Business Envrnmt - MNRAJ

8/8/2019 Business Envrnmt - MNRAJ

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Kiran Arundeep

Raj Manas

Praneeth

Taj Pathan Abhishek


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BusinessBusinessEnvironmentEnvironment


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Business environmentis a set of political, economic, social

and technological (PEST) forces that arelargely outside the control and influenceof a business, and that can potentiallyhave both a positive and a negativeimpact on the business.


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- Today's world is a rapidly changing place.

-Developments across a range of factors will have

an impact on your business or industry.

- The classic framework (political, economic,social, technological) identifies four majorcategories of external factors that affect the ability of your organization to survive and prosper.

P E S T A n a l y s i s


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N ATURE OFBUSI N ESS E NV IRO NM E N T

B usiness may be understood as the organized efforts of enterprise toSupply consumers with goods and services for a profit.B usinesses vary in size, as measured by the number of employees or

by sales volume. B ut, all businesses share the same purpose: to earn

profits.The purpose of business goes beyond earning profit. There are:I t is an important institution in society.B e it for the supply of goods and servicesCreation of job opportunitiesOffer of better quality of lifeContributing to the economic growth of the country.

Hence, it is understood that the role of business is crucial. Societycannot do without business. I t needs no emphasis that business needs

society as much.


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G enerally Business reefers to the activities which is related to thebuying and selling of goods.

Business Environment consists of all those factors that have abearing on the business.

The survival and success of a business firm depend on itsstrength, resources at its command, including physical resources,financial resources, human resources, skill and organization and its

adaptability to the environment and the extend to whichenvironment is favorable to the development of the organization.

The survival and success of a fir, thus, depend on two sets of factors, viz., the internal factors the internal environment and external

factors- the external environment.

COMPONENTS OF

BUSINESS ENVIRONMENT


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Some of the external factors have a direct intimate impact on thefirm (like the suppliers and distributors) of the firm.

These factors are classified as microenvironment also known astask environment and operating environment.

These are other external factors which effect an industry very

generally (such as industrial policy, demography factors etc.).

They constitute what is called macro-environment, generalenvironment or remote environment.

Hence business environment has three components.

Internal EnvironmentM icro /Task /Operating EnvironmentM acro / G eneral /Remote Environment


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D ETER M IN AN TS OF

BUSI N ESS E NV IRO NM E N TS

G overnment RegulationEnergy and

Physical Environment

Labor and Human Resources

Technology

Regional and Local I ssues

The Political System

I nternational Events


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THE STRUCTURE OF THE I N D IA N ECO N O MY

India was under socialist-based policies for an entire generation from the

1947 until 1991.

The economy was characterized by extensive regulation, protectionism, and public ownership, leading to pervasive corruption and slow growth.

Since 1991,continuing economic liberalization has moved the economytowards a market-based system.

A revival of economic reforms and better economic policy in 2000saccelerated India's economic growth rate.

The economy of India is the twelfth largest economy in the world by marketexchange rates and the fourth largest by purchasing power parity (PPP) basis.

B y 2009, India had prominently established itself as the world's second-

fastest growing major economy.


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I ndia's large service industry accounts for 54% of the country's GD Pwhile the industrial and agricultural sector contribute 29% and 17%

respectively.

A griculture is the predominant occupation in I ndia, accounting for about 60% of employment.

The service sector makes up a further 28%, and industrialsector around 12%.

The labor force totals half a billion workers. Major

agricultural products include rice, wheat, oilseed, cotton, jute, tea,sugarcane, potatoes, cattle, water,buffalo, sheep, goats, poultry .

Major industries include textiles, chemicals, food processing, steel,transportation equipment, cement, mining, petroleum, machinery,information technology enabled services and software.


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India's per capita income (nominal) is $1016,

ranked 142th in the world, while its per capita (PPP) of US$2,762 is ranked 129th.

India currently accounts for 1.5% of World trade as of 2007according to the WTO.

According to the World Trade Statistics of the WTO in 2006,India's total merchandise trade (counting exports andimports) was valued at $294 billion in 2006.

India's trade has reached a still relatively moderate share24% of GDP in 2006, up from 6% in 1985


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SECTORS OF I N D IA N ECO N O MY

Agriculture Industry and s

Banking and finance N atural resou


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ECONOM IC ISSUES:

o A gricultureo Corruption

o Educationo G overnmento I nfrastructure

o Labor lawso Environment and health


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ENV I RONMENT A L SC A NN I NG

Identification and forecasting phenomena in theenvironmentOngoing environmental scanning is essential for strategy formulationEnterprises continuously engage in identifying andforecasting opportunities and threatsVarious sources of information are available to assistwith scanning


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SWOT analysisEnvironmental conditions may be favourable or unfavourable :

Opportunity

Represents favourable (positive) conditions inmicro, market, macro environmentsA dvantageous to firm

AN AL Y SIS OF THEBUSI N ESS E NV IRO NM E N T


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SWOT s

Threat:Represents unfavourable (negative) conditions

in micro, market, macro environmentsDetrimental to firm


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Business Envrnmt - MNRAJ

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