The Business Approaches To The Nature Of Business Environment

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The nature of Business Environment is simply and better explained by the following approaches.
Fig 1.2 Different approaches to the Nature of Business Environment
(i) System Approach:
In original, business is a system by which it produces goods and services for the satisfaction of wants, by using several inputs, such as, raw material, capital, labour etc. from the environment.
(ii) Social Responsibility Approach:
In this approach business should fulfil its responsibility towards several categories of the society such as consumers, stockholders, employees, government etc.
(iii) Creative Approach:
As per this approach, business gives shape to the environment by facing the challenges and availing the opportunities
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• Business organization structure and functions are adjusted towards the external environment information.
• Generation of external environment information is complex and it is one of the major problems which involve uncertainty to business organization.
• A business project look for current information and future information which is related to demography, competition, technical, legal, political and government policies and procedures.
Apart from gathering the information, a business organization itself transfers information in the following ways:
• Organization transfers its own information to several external agencies either voluntarily, inadvertently or legally.
• Some organizations and interest individuals also approached to a business organization for obtaining the valuable information which relates with functions, products, services and social responsibility towards stakeholders of the company.
• An organization’s information is available in the form of annual reports, occasional advertisements and media reports
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