Economic Environment: Int erest rates, inflation rates, changes in disposable income of people, stock market indices and the value of rupee are some of the economic factors that can affect management practices in a business enterprise. Short and long term interest rates significantly affect the demand for product and services

Social Environment: The social environment of business include the social forces like customs and traditions, values, social  trends, society’s expectations from business, etc. Traditions define social practices that have lasted for decades or even centuries