The business environment in emerging economies Prof. Olivier Cadot Spring Semester, 2014
Business environment 2014
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Transcript of Business environment 2014
The term business environment means the sum totalof all individuals or institutions & other forces that are outside the control of a business enterprise but that may affect its performance.
•Business environment is dynamic as it keeps on changing in terms of technological improvement, change in fashion & tastes etc.
•Business environment is uncertain as it is very difficult to predict future happenings.E.g.- Change in IT & fashion industry.
•Business environment is a relative concept since it differs from country to country & even region to region. For e.g.- Demand of Sarees are high in India, whereas it is NIL in France.
•Elements of business environment are closely inter-related For e.g.- People can purchase better quality of goods & services which willimprove their quality of lifebecause their incomes arerising.
Quality
Economic Environment
Technological environment
Political environment
Legal environment
Social environment
Dimensions of Business Environment
Economic environment consists of:
a) Gross domestic product
b) Inflation rate
c) Stock market indices
d)Interest rates
e)Value of rupee
In case of construction companies & automobile manufacturers, low interest rates are beneficial because they result in increased spending by consumers for buying homes & cars.
People buy them because of lower rate
of Interest
If the government provides subsidy in the production of cotton garments it will have positive impact on cotton textile businesses.
Subsidy provided on Raw materials to cotton textile industry.
It includes:a) Legislations passed by the
governmentb) administrative orders c) court judgmentd) decisions rendered by various
agencies at every level ofgovernment
Government forced all companies to put these marks on food products!
Non- Veg
Veg
It includes:
a) Scientific improvements and innovations
which provide new ways of producing goods
and services
b) New methods and techniques of operating
business
Because of technological advancements, it has become possible to book railway & air tickets through Internet from home, office, etc.
The social environment of businessincludes the social forces like:a) Customs & traditionsb) Social trendsc) Society’s expectations from
businessd) Values
The celebration of Diwali, Eid, Christmas & Guru Parv in India provides significant financial opportunities for greeting cards companies, sweets or confectionary manufacturers, tailoring outlets & many other related business. Great Opportunity
For Businessmen
In past 25 years the role of women is not like as today they were illiterate and engaged in different household tasks they were dependent on male members, they were not free to take any decision
Trend has been changed, now the women are self dependent, literate, bold & strong enough to take decisions.More and more women are rising to the leadership challenge, even in some of the most male-dominated industries in this competitive world.
Through this presentation we conclude that Women today are more practical and rational than earlier.She is more cognizant of her world today and she understands her work pressures.Today’s women no more feel that a career would be at the cost of neglecting the family and children. The Indian woman is also spending a lot more money on her personal appearance.