Business Environment: Meaning, Definition, Concept, Components, Significance

Marine environments are the largest known environments, they are characterized by the presence of water with great salt content. Organisms within marine environments communicate with each other and with their physical surrounding. These environments are of great importance to humans because it is an important source of nutrition and resources. Marine pollution, acidification, and warming are threats to the marine environment as a result of human activities. Executives also must realize that virtually any environmental trend or event is likely to create opportunities for some organizations and threats for others. As odd as it may seem, however, these tragic events also opened up significant opportunities for other organizations.

Actually they exchange resources with and are dependent on the environment. Successful managers must recognize opportunities and threats in their firm’s external environment. Regardless of the industry, the external environment is critical to a firm’s survival and success. A host of external factors influence a firm’s choice of direction and action. Businesses must understand the changes in the environment and how these changes affect their performance. The process of thinking strategically requires that managers understand how the structure and competitive dynamics of their industry affect the performance and profitability of their companies.

So any change in environment has an impact on the operational behaviour of organization. Take technology how helped cell phone manufacturing companies (New product, and improvements in existing products, and providing telecommunication services). Weight cell phone set with multiple attributes it is just because of technology. Therefore technological developments can have a sudden and dramatic effect on an organisation’s environment.

Because trees naturally remove a great deal of carbon dioxide from the atmosphere during photosynthesis, deforestation can produce a net increase in the global atmospheric concentration of carbon dioxide, an important greenhouse gas. Increased carbon dioxide levels can affect climate by contributing to higher temperatures at Earth’s surface (see greenhouse effect; global warming). Abiotic factors play a large role in determining the types and traits of organisms that inhabit a given ecosystem. For example, air temperature, soil pH and type, the availability of fresh water, and the amount of sunlight all interact to influence what types of vegetation can thrive in a terrestrial habitat. Water temperature, pH, turbidity, current speed, salinity (the amount of dissolved salts in water), and dissolved oxygen concentration are key abiotic factors in an aquatic environment.

Familiarize yourself with these various adaptations as well as their nutritional requirements obtained not from the soil but from freshwater… Animals adapt to their environment in aspects of anatomy, physiology, and behavior. This tutorial will help you understand how animals adapt to their habitat. For instance, how animals thrive in aquatic habitat and are able to overcome osmosis. Let’s take a look at the following ways to group or classify environments.

However, their tools are relatively primitive and often the impact is not as extensive as that of human tools and technology. Human technology became widely distributed all over the world affecting all aspects of the environment either directly or indirectly. Different branches of science are interested in studying the environment, its components, and the interaction between living organisms and their environment.

It is very difficult to be precise about the factors which constitute the economic environment of a country. At the same time, it is equally difficult to draw the lines of distinction between the political environment and the economic environment and the technological environment. Demographic factors are commonly used to differentiate groups of present or potential customers. These factors are easily understandable and quantifiable and therefore easy to use in strategy formulation.

Human activities have caused serious environmental problems, polluting natural resources and disrupting ecosystems. Deforestation, urbanization, and agricultural practices are some of the ways in which humans have greatly changed the Earth, affecting both the abiotic and biotic environment. Biogeochemical cycles are pathways that allow different chemical substances to move through biotic and abiotic factors on Earth. Biogeochemical cycles are essential for different environments, especially those of carbon, oxygen, nitrogen, phosphorus, and water.

Energy flows between biotic and abiotic parts of the environment in cycles within the system of the ecosystem. Consequently, all components of the ecosystem are integrated with each other in harmony. The climate is the state of wind, humidity, rain, atmospheric pressure, and temperature in a given area over a long period of time. It is classified in relation to different variables such as precipitation and temperature.

  1. The specific environment is the part of the environment that is directly relevant to the achieve­ment of an organization’s goals.
  2. Hence all the things that surround us in the form of living or non-living are a component of our environment.
  3. Natural lakes on Earth are generally found in mountainous areas, rift zones, and areas with ongoing or recent glaciation.
  4. Macro environment deals with external environment in which business organisation operates.

It has been witnessed that deforestation leads to a decline in wildlife population from the biological environment and it also increases the atmospheric temperature within the physical environment. The environment refers to our immediate surroundings in which all living and non-living components co-exist. The environment has a huge impact on an individual’s behaviour and intellect. Any change that occurs in a living entity either directly or indirectly is related to a change in his immediate surrounding. The biotic the biosphere—the “zone of life” composed of living things as well as their products, remains, and wastes.


If you mean physical environment, then it is defined as the surrounding conditions and elements with which a living thing interacts with. However, apart from the physical, there are other types of elements that make up an environment. Thus, an environment contains all biotic and abiotic factors that have a role in the survival, evolution, and development of the organism occupying it. The scope of the environment varies — from the tiniest, “micro” scale to the largest, global scale.

Environment protects the ecosystem

They are also responsible for the rainfall patterns in the area and subsequently recharge groundwater. Water is an important contributor in the sustenance of life and acts as the life-supporting module for the earth. Water helps to control the atmospheric temperature, functions as an air purifier, and also works as a waste assimilator. In the words of Herbert L. Mason and Jean H. Langenheim, environment is “The sum of all substances and forces external to an organism which determines its existence and regulates its process”.

Environment Definition

For consumers, it brings a wider product range to choose from and lower prices. For firms, it brings opportunities for higher efficiency gains and productivity growth. Growth has been strong in the United States, China, and most emerging market and developing countries. Here are some explored important themes in the theory and experience of globalisation.

Water on Earth

In the late 1990s, for example, the trends toward obesity in the US and the need for healthy eating helped Panera Bread position itself as a healthy alternative to traditional fast-food restaurants. Threats are events and trends that may undermine an organization’s performance. Saladworks, for example, offers a variety of salads that contain fewer than five hundred calories.

This heritage is essential for the social life of humans to flourish, it is known to have an influence on an individual’s life. The altered form of the economic and physical environment – artificial environment, are seen as two different aspects of the man-made environment. The four fundamental elements of the environment are the atmosphere, or air, lithosphere, or rocks and soil, hydrosphere, or water, and the biological component of the environment, or biosphere. Air, soil, and water pollution are among the negative effects of urbanization.


Also, processes such as decomposition, reproduction, photosynthesis, and disease affect the biotic environment. Interactions between the abiotic and biotic environments are the focus of ecology, which emphasizes the dependence of every form of life on other living things and on the abiotic factors in their environment. Weather occurs due to density (temperature and moisture) environment consists of differences between one place and another. These differences can occur due to the sun angle at any particular spot, which varies by latitude from the tropics. The strong temperature contrast between polar and tropical air gives rise to the jet stream. Weather systems in the mid-latitudes, such as extratropical cyclones, are caused by instabilities of the jet stream flow.

A common solution is to adapt a static view neglecting natural variances to exist. Methodologically, this view could be defended when looking at processes which change slowly and short time series, while the problem arrives when fast processes turns essential in the object of the study. The pace, magnitude and direction of change caused by globalisation will continue to progress rapidly through technology transfer. It will join societies and cultures, change community values, and widen the gap between the rich and the poor. But it will also create opportunities and challenges for companies and organisations. With increasing global competition, it has become difficult for organisations to start, survive, grow, stabilize and excel their performance in business.


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