What are the Key Components of the Business Environment?
The business environment can be divided into several key components:
Economic Environment: Includes factors like inflation, interest rates, and economic growth that affect consumer purchasing power and business investment. Social Environment: Consists of societal norms, cultural trends, and demographics that can influence consumer behavior and product demand. Legal Environment: Encompasses laws, regulations, and policies that govern business operations, such as labor laws, trade regulations, and intellectual property laws. Technological Environment: Involves innovations and advancements in technology that can create new opportunities or render existing products and services obsolete.