At any place, the environment within which a business operates is vital to the success of the business. Therefore, it is necessary to understand the business environment and how it influences all aspects of the business whether it is its nature, setting and even the cost of the products. The environment of a business, internal as well as external both impact how a business runs. In order to understand the business environment, several techniques are used by analysts including SWOT analysis,PESTanalysis, understanding the culture, government, global environment, economics etc. Thus, learning about the various components of the business environment which includes; the economic aspect, the political and legal framework, the socio-cultural aspect, technological aspects, as well as others is very important.
2.0 Business Environment:
Nowadays, it has become a common phrase that economic growth adds to environmental problems which have become considerably large as it is. Environmental pressures can lead a business to take on steps for economic benefit that may actually not be socially viable. On the other hand, some businesses may take steps in business strategy that may actually lead to issues such as social and environmental concerns. In most cases, the most frequent reaction to rectify such situations is to make environmental regulation stricter. The result is usually a trade-off amidst healthy business growth on one hand and a healthy business environment on the other. Hence, prospects and openings for conducting business may be restricted. Raising such barriers to entry and to run a business may make businesses economically nonviable (Elearn Limited, 2005,Worthington, and Britton, 2009,Kew,and Stredwick, 2005).
Nevertheless, some forms of advancement which are environmentally as well as sociably sustainable are present. These lead to a better environment and not to a trade-off. There are several examples of businesses that have actually run their operations successfully in order to avoid this trade off and in turn be socially responsible as well. The triple bottom line concept discusses the three main elements that are being affected by a business operation, people, profits and the planet. The ideology behind this concept is that a business should consider success of its operations not only through profitability but through societal benefit as well which would then lead to long term sustainability of the environment leading on towards organizational sustainability as well. (Elearn Limited, 2005,Worthington, and Britton, 2009,Kew,and Stredwick, 2005).