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Impact of Natural Environment on Business

The document discusses the natural environment and its impact on business. It notes that the geographical, ecological and locational factors of the natural environment such as natural resources, weather, topography and port facilities are important to consider for business. These natural environment factors ultimately support all business activities and determine what can be done in a society. The document also discusses how the natural environment impacts business decisions and can be impacted by technology. It identifies natural factors and technology as "impulsive factors" that define possibilities for human action, while economic, social and political factors are "propulsive factors" that contribute to business growth.

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Rishi
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27 views6 pages

Impact of Natural Environment on Business

The document discusses the natural environment and its impact on business. It notes that the geographical, ecological and locational factors of the natural environment such as natural resources, weather, topography and port facilities are important to consider for business. These natural environment factors ultimately support all business activities and determine what can be done in a society. The document also discusses how the natural environment impacts business decisions and can be impacted by technology. It identifies natural factors and technology as "impulsive factors" that define possibilities for human action, while economic, social and political factors are "propulsive factors" that contribute to business growth.

Uploaded by

Rishi
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Natural and Technological

Environment
• Natural Environment,
• technological environment and their impact
on business,
• innovation and business technology and
competitive advantage,
• economic effects of technology,
• technology policy and government
promotional facilities.
Natural Environment
• Just as we consider economic, social, global
environment important for doing business, it is equally
important to analyse the Natural environment in the
place where the Business is going to be conducted.
• The geographical & ecological factors such as:
1. natural resource endowments,
2. weather & climatic conditions,
3. topographical,
4. locational aspects in the global context,
5. port facilities etc are all relevant to conduct of
Business.
Natural Environment
• According to Watrick & Wood, “ the natural
environment ultimately is the source & support of
everything used by Businesses (and almost any
other human activity) – every raw material, every
energy source, every life sustaining factor, even
every waste disposal site.”
• The natural environment determines what can be
got done in a society and how institutions can
function.
• Resource availability is the fundamental factor in
the development of business in societies.
Impact of Natural Environment
Geographical & ecological factors would impact
Business in decisions such as:
1. Location of industries
2. Choice of building technology, design, material
etc.
3. Demand pattern for goods & services
4. Modification in product.
5. Packaging & storage requirements
6. Government policies related to conservation of
environment.
Impulsive & Propulsive factors

IMPLUSIVE FACTORS PROPULSIVE FACTORS

Economic
Technology
Economic &
Social / Demographic
Business
Natural factors Development Political / Government
The core of social system
• At the core of any social system is the natural environment and
the available technology, so they are considered to be Impulsive
factors.
• Whereas, economic, social, political are considered as Propulsive
factors as they contribute in the push up of Business activity.
• Both, natural & technological factors define the possibilities for
human action in the society.
• The natural environment through its resources and constraints,
technology through the tools & processes available for human
use.
• To some extent the ecology & technology are inter-dependent.
• Technology is always built upon what is physically possible in the
natural environment.
• Natural environment can be degraded or enhanced, made more
productive for human uses or depleted for any use, by the
application of technology.

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