Principles of management encompasses activities connected with organising, planning and controlling of basic aspects or an organisation, like materials, people, methods, machines as well as financial resources. It engages in coordinating and directing human efforts with a common objective of meeting established goals.

Business environment is the sum totals of all factors external to the business firm and that greatly influence their functioning. • It covers factors and forces like customers, competitors, suppliers, government, and the social, cultural, political, technological and legal conditions.