Which factor present in the environment affects the environment of business?
The different environmental factors that affect the business can be broadly categorized as internal and external factors.
Internal factors are those factors which exist within the premises of an organization and directly affects the different operations carried out in a business. These internal factors are :Mission and objectives, value system, financial factors, internal relationship, etc.
External Factors include all those factors which exists outside the firm and are often regarded as uncontrollable. These factors are sub categorised as Micro and Macro Environment.
Micro Environment includes: Suppliers, competitors, intermediaries.
Macro Environment includes: Economic factors as- inflation, trade policies, etc, Social factors as educational background, purchasing power, etc. Political factors and Technological factors.