Explain the dimensions of business environment?explain each one by one....

Dimensions of business environments are often classified
in 6 major groups represents by the acronym PESTEL. These
are:

1. Political


2. Economic


3. Sociocultural


4. Technological


5. Environmental


6. Legal

Political
environment includes factors like the nature of government policies particularly those
related to taxation, industrial relations, regulation of internal business and industry,
and foreign trad regulations. It also relates to the stability of the government in
power and risk of major political disturbances.

Economic
factors, as the name implies related to the general condition of the economy within
which a business operates and conducts business. It will include factors like GNP,
economic growth rate, interest rates, inflation rate, moneys supply, and unemployment
rates.

Sociocultural factor cover the nature of the life
style, culture, attitude and other such common factors that influence an describe the
behavioral characteristics typical of the people. It will include factors like
demographic profile of the people, culture, and life
style.

Technological dimension covers the nature of
technology available and used by an economy or industry in general. It also covers the
extent to which development in technologies are likely to take place. This may be
reflected in factors like expenditure on R&D and rate of
obsolescence.

Environmental factor refers to the physical
or geographical environment affecting the business. It also includes the considerations
like environmental pollution.

Legal dimension describes the
framework of legislation impacting the business. The kind of laws more important to
business relate to areas like monopolies and consumer protection, employment and
industrial relations, health and safety, and joint stock
companies.