Commerce: The Business Environment: Introduction

• It is a common cause that businesses do not operate in a vacuum
• There are a number of factors that affect the way a business operates
• These factors can be external to the business i.e. outside the business itself
• They can, however, be internal i.e. factors that are to be found within the business itself
• The combination of these internal and external and internal factors is known as the business’s environment
• The term business environment is used to refer to the combination of internal and external factors that influence a company’s operating situation
• These factors influence things like:
  • The prices that the business will put on its products
  • The taxes it pays
  • The location of its premises
  • The number of units it produces in a given period
  • Its production methods
  • Who it sells to
  • The way it packages and distributes its products
  • The way it markets its products
• Notes on:
  • The internal environment can be found here
  • The external environment can be found here

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