ENVIRONMENTAL AND INTERNAL RESOURCE ANALYSIS
Concept of environment
Environment literally means the surroundings, external objects,influences or circumstances under
which some one or some thing exists. The environment of any organization is “the aggregate of all
conditions,events and influences that surrounds and affect it.”
Need for environmental analysis
Since the environment influences an organisation in multitudinous ways,an understanding of the
environment is crucial for the existence,growth and profitability of any organization.
Characteristics of environment
The characteristics of business environment may briefly be described as follows:
1.Environment is complex: the environment consists of a number off actors,events,conditions and
influences a rising from different sources.
2.Environment is dynamic: the environment is dynamic in nature,causing it to chance its shape & its
character continuously.
3.Environment is multi-faceted: environment may be viewed differently by different observers based
on their perceptions.this is seen frequently when a particular change in the environment or a new
development is welcomed as an opportunity by one company while an other company perceives it
as a threat.
4.Environment as a far-reaching impact: the environment has a far-reaching impact on the growth
and profitability of any organization in several different ways.