Components of Business 
                          Environment
     .                Business 
                      Environment
      Internal                                   External 
      Environment                                Environment
      •Promoters/sharehol
      ders                      Micro                 Macro 
      •Mission/objectives       Environment           Environment
      •Management               •Customers            •Economic 
      structure                 •Suppliers            environment
      •Internal power           •Competitors          •Social environment
      relation                  •Creditors            •Technological 
      •Company image            •Distributers         environment
      •Research &                                     •Natural 
      Development                                     environment
      •Human Resources                                •Political 
      •Marketing                                      environment
      capabilities
    Types of Business Environment
   There    are   two    types   of  business 
     environment:
   1. Internal Business Environment 
   2. External Business Environment
         and External environment is divided into 
      two categories  (a)Micro Environment &  
      (b)Macro Environment.
        Internal Environment
   These  are  those  factors  which  can  be 
    controlled by the company and they directly 
    affect the operations of the company.
   Types of Internal Environment:
   1. Shareholders
   2. Mission & objectives
   3. Management structure
   4. Internal Power Relationship
   5. Human resources, etc.
   External Business Environment
   Those factors which are beyond the control of 
    business enterprise are included in external 
    environment.
   External Environment is divided into two parts:
   1. Micro  Environment:  The  environment 
    includes factors on which business has some 
    control indirectly.
   2. Macro Environment: it includes factors on 
    which business has no control any how.
           Micro Environment
   
     Suppliers:  The  party  which  supplies  raw 
     material or inputs.
   
     Customers:     Wholesalers,    Retailers, 
     Industries, Govt. & other Institutions
   
     Marker  Intermediaries:    middleman, 
     Marketing agencies, Financial intermediaries, 
     physical intermediaries
   
     Competitors 
   
     Public