Legal environment :Advertisements, including packets of cigarettes carry the statutory warning ‘Cigarette smoking is injurious to health’. Similarly, advertisements of baby food must necessarily inform the potential buyer that mothers milk is the best. All these regulations are required to be followed by advertisers.

Economic Environment: Interest 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.

 Political Environment: Political environment includes political conditions such as general stability and peace in the coun-try and specific attitudes that elected government representatives hold towards business.

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