SlideShare une entreprise Scribd logo
1  sur  52
BUSINESS ENVIRONMENTAL &ANALYSIS
Prof. Prashant Mehta
National Law University, Jodhpur
BUSINESS ENVIRONMENTAL &ANALYSIS
Introduction
Business
Objectives of Business
Environmental Influences on Business
Why Environmental Analysis
Characteristics of Business Environment
Components of Business Environment
Relationship Between Organization and
Environment
The Micro and Macro Environment
Elements of Micro Environment
Elements of Macro Environment
Strategic Response to the Environment
Competitive Environment
Porter’s Five Forces Model – Competitive Analysis
Strategic - Definition
• “The process by which strategists monitor the economic, governmental/legal,
market / competitive, supplier / technological, geographic, and social
settings to determine opportunities and threats to their firms”
• “Environmental diagnosis consists of managerial decisions made by
analysing the significance of data (opportunities and threats) of the
environmental analysis”
Introduction
• The term Business Environment is composed of two words ‘Business’ and
‘Environment’. In simple terms, the state in which a person remains busy is
known as business. On the other hand, the word ‘Environment’ refers to the
aspects of surroundings.
• Business operates in Unique Environment and cannot function in isolation.
• Business is like open systems which continuously interacts with environment
i.e. Business enterprises exist in and are surrounded by an ‘environment’ called
as the business or organisational environment.
• Society and business enterprises are mutually dependent i.e. Business
enterprises satisfy societal needs. Relationship between society and business
enterprises takes place in a changing environment
Business- Definition
• An organization or enterprising entity engaged in commercial, industrial or
professional activities. A business can be a for-profit entity, such as a
publicly-traded corporation, or a non-profit organization engaged in
business activities, such as an agricultural cooperative.
• Any commercial, industrial or professional activity undertaken by an
individual, group, organization or society.
• A reference to a specific area or type of economic activity which may
include purchase, sale, manufacture, processing, and or marketing of
product or services.
• For business profit is often regarded as overall measure of performance (it is
financial yardstick for measuring business efficiency and evaluating
managerial competence)
Business- Explanation
• Businesses include everything from a small owner-operated company such
as a family restaurant, to a multinational conglomerate such as General
Electric.
• To "do business" with another company, a business must engage in some
kind of transaction or exchange of value with that company.
• In this sense, the word "business" can be used to refer to a specific industry
or activity.
• Business is created and managed by people who make decisions for growth
of business. (Peter Drucker)
• Profit is not the sole objective of business rather it includes development of
wealth, goodwill, societal factors, relations etc.
Objectiveof Business
Purpose of Business is to
create Customers or
Markets which in turn
caters to society
• Profitability
• Productive Efficiency
• Growth
• Technological Dynamism
• Stability
• Self Reliance
• Survival
• Competitive Strength
• Customer Service
• Financial Solvency
• Product Quality
• Diversification
• Employee Satisfaction and
Welfare
Business is society organ
of economic expansion,
growth, and change
Importanceof BusinessEnvironment
Business environment is complicated and active in nature and has a far-
reaching impact on the survival and growth of the business.
• Determining Opportunities and Threats
• Giving Direction for Growth
• Continuous Learning
• Image Building
• Meeting Competition
• Identifying Firm’s Strength and Weakness
EnvironmentalInfluencesof Business- Natural
The natural environment has influenced business in a variety of
ways. Environmental influence has captured the attention of
companies and consumers worldwide on how products and
services are delivered, and to work with the natural environment
instead of slowly destroying it.
Businesses that ignore or underestimate environmental influence
will eventually fail. Businesses must continuously monitor and
adapt to survive the environmental threats as well as identify,
appraise, and respond to various opportunities in the environment.
BusinessInfluencedby.........
• Business decisions are influenced by two sets of factors
• Internal factors (The Internal Environment
• External Factors( The External Environment)
• Business Environment presents two challenges to the enterprise
• The challenge to combat the environmental threats
• Exploit the business opportunities
• Environmental Analysis is one of the first steps in Strategic
Management
Environment= External + Internal Forces
• INTERNAL
• EXTERNAL
•MACRO
•MICRO
ENVIRONMENTAL
VARIABLES
• POSITIVE
• NEGATIVE
INFLUENCE
• BETWEEN EXTERNAL AND
INTERNAL ENVIRONMENT
MUTUAL
RELATIONSHIP
ExternalisbeyondControlofIndividual,IndustrialEnterprise,andTheirManagement.,and
varyfromindustrytoindustryandcountrytocountry.Astrategistlooksonenvironmentas
posingthreatstothefirmorofferingimmenseopportunitiesforexploitation.
DifferentOrganizationsusedifferentinputs,adoptdifferentprocesses,andproducedifferent
outputs.
Input-Outputexchangeactivityisacontinuousprocesswhichactivelyinteractswithexternal
environment
Problemsin Understandingthe Env. Influences
• The environment encapsulates different influence and
diversity which makes strategic decision making difficult.
• Uncertainty due to fast technological and global change
makes it difficult to understand future external influences
on organization.
• Coping with business and environmental complexities is
based on ever changing environment. The strategic
management task is to simplify and achieve useful and
usable level of analysis without bias.
Frameworkto UnderstandEnv.Influences
• Understand nature of organization environment (static,
dynamic, complex, difficult to comprehend etc.)
• Auditing the environmental Influences both favorably or
unfavorably with respect to changes in PEST.
• Construct pictures, scenarios of possible future, and the
extent to which strategies need to change.
• Immediate organization environment is competitive
environment and assessing competitive position - that is how
it stands in relation to other organization competing for
resources, customers, markets etc.
EnvironmentalScanning
Environmental Scanning is the monitoring, evaluating and disseminating of
information from the external and internal environments to key people within
the corporation.
A corporation uses this tool to avoid strategic surprise and to ensure its long-
term health and sustainability of business.
TechniquesForEnvironmentalScanning
Involve two phases: Information gathering and Evaluation
• Verbal & Written Information: verbal information includes, information obtained
by direct talk with people, by attending seminars, meetings, etc.. , Written or
documentary information includes both published and unpublished materials
• Search and Scanning: this involves research for obtaining the required
information
• Spying: Even though it is not considered as ethical, spying to get information
about the competitor is not uncommon.
These 3 pertains to source of information/methods of gathering information
• Forecasting: Done by corporate planners or other staff personnel or consultants ,
This pertains to use the information gathered by above mentioned 3 methods for
picturing the future scenario.
WhyEnvironmentalAnalysis
FUTUREISUNCERTAINANDNOTALLFUTUREEVENTSCANBEANTICIPATED
• Analysis should provide an
understanding of current and potential
changes taking place, besides long term
future prospective.
• Environmental analysis provides inputs
in form of information which is useful for
strategic decision making.
• Environment analysis should facilitate
and foster strategic thinking in
organization by bringing fresh view
points and ideas in context of business
operations.
Characteristicsof BusinessEnvironment
ENVIRONMENT IS
COMPLEX
•EVENTS
•CONDITIONS
•INFLUENCES
•EASIER TO UNDERSTAND IN
PARTS
•DIFFICULT TO UNDERSTAND IN
TOTALITY
ENVIRONMENT IS
DYNAMIC
•CONSTANTLY CHANGING IN
SHAPE AND STRUCTURE
ENVIRONMENT IS
MULTIFACETED
•DEPENDS ON PERCEPTION OF
OBSERVER
•NEW DEVELOPMENT MAY BE
OPPURTUNITY FOR ONE AND
THREAT FOR OTHER
ENVIRONMENT HAS FAR
REACHING IMPACT
•GROWTH AND PROFITABILITY
DEPENDS ON
ORGANIZATIONAL
ENVIRONMENT
TypesOf Environment
Componentsof BusinessEnvironment
transformation
process
internal environment
the organisation
industry environment
customerssuppliers
competitors
market
regulatory and professional
groups
inputs outputs
Technological and eco-
environmental forces
social and legal forces
economic forcespolitical forces
macro environment
BusinessEnvironment
RelationshipBetweenOrganization
andEnvironment
• Exchange of Information – Study of Behaviour and Changes, uses this
information for Planning, Decision-making, and Control Purposes. Information
generation and transmission of information to external agencies.
• Exchange of Resources – Inputs received from external environment, and so is
disposal of its output for wide array of clientele satisfying the need and
demands of external environment.
• Exchange of Influence and Power - External environment holds considerable
power by virtue of being more inclusive and by virtue of command over its
resources, information and inputs. It offers range of opportunities, incentives,
and rewards on one hand, and set of constraints, threats, and restrictions on
the other. In both ways organization is conditioned and constrained.
For example – Government Control, Collective power of Customers, Suppliers,
Competitors etc. Relationships depends on fact whether environmental
elements behave randomly or structured manner (uncertain vs predictability).
InternalEnvironment- Components
Internal environment has direct impact on business. Important internal
factors which have a bearing on the decisions of a business firm and which
are generally controllable because the company has control over these
factors:
• Value system
• Vision, Mission and Objectives
• Management Structure and Nature
• Internal Power Relationship
• Human Resources
• Company Image
InternalEnvironment- Components
Value System - The value system of founders and those at the helm of affairs has
important bearing on the choice of business, the mission and objectives of the
organization, business policies and practices.
Vision, Mission, and Objectives - The business domain of the company , priorities,
direction of development, business philosophy, business policy etc. are guided by
the mission and objectives of the company
Management Structure and Nature - The organizational structure, the
composition of the Board of Directors, extent of professionalization of
management etc. are important factors influencing business decisions. Board of
directors is the highest decision making body and it overseas performance of the
organization and so its quality is very important. The share holding pattern can
also have important managerial implications.
InternalEnvironment- Components
Internal Power Relationship - Factors like the amount of support the top
management enjoys from lower levels and workers, share holders and Board of
Directors have important influence on the decisions and their implementation.
The relationship between the members of Board of Directors, and CEO is also a
critical factor.
Human Resources - The characteristics of the human resources like skill, quality,
morale, commitment, attitudes etc. could contribute to the strength and
weakness of the organization. The involvement, initiative etc. of the people at
different levels may vary from organization to organization. Ex: Some
organizations find it difficult to carry out restructuring or modernization because
of resistance by employees whereas they are smoothly done in some others.
InternalEnvironment- Components
Company Image and Brand Equity - The image of the company matters while
raising finance, forming joint ventures or other alliances, soliciting market
intermediaries, entering purchase or sale contracts , launching new products etc.
OTHER FACTORS
1. Physical Assets and Facilities
2. R&D and Technological Capabilities
3. Marketing Resources
4. Financial Factors
ExternalEnvironmentMACROENVIRONMENT
• Demographic
• Economic
• Government
• Legal
• Political
• Cultural
• Technological
• Global
MICROENVIRONMENT
• Consumer / Customer
• Competitors
• Organization
• Market
• Suppliers
• Intermediaries
• Publics
Microenvironment
• Also known as task environment and operating environment
• It includes
• Consumers / Customers
• Competitors
• Organization
• Market
• Suppliers
• Intermediaries
• More intimately linked with the company than macro factors
• The micro forces need not necessarily affect all the firms in a particular industry in
the same way.
• Some of the micro factors are particular to a firm.
Consumers/Customers
• Major task of business is to create and sustain customers
• Different categories of consumers / Benefits looking for / Buying Patterns
• Individuals
• Households
• Industries and other commercial establishments
• Government and other institutions
• Depending on single customer is too risky
• Choice of customer should be done by considering
• Relative profitability
• Dependability
• Stability of demand
• Growth prospectus
• Extent of competition
Competitors
• A firm’s competitors include not only the other firms which market the same
or similar product but also all those who compete for the income of the
consumers.
• Desire competition
• Generic competition
• Product form competition
• Brand competition
• The competition here among these products may be said as desire
competition as the primary task here is to fulfil the desire of the customers.
• Who are the competitors
• What is their present strategy and business objectives
• Who are the most aggressive and powerful competitors.
Organization
• Individuals occupying different positions, working in different capacities, having
different interests.
• It is self analysis of organization (both strengths and weakness)
• The groups that are likely to influence an organization are:
• Owners – Individuals, Share holders, Groups have vested interest of well
being of the company.
• Board of Directors (Companies Act 956) – Elected by share holders, they
oversee the general management of the organization and protect share
holders interests.
• Employees - They should embrace same values and goals as the organization
or else the organization will suffer.
Market
• Market is larger than Customers.
• Market is studied for its actual potential size, its growth prospects, and its
attractiveness.
• Important Issues are:
• Cost Structure of Market
• The Price sensitivity of Market
• Technological structure of the Market
• The Existing distribution system of the market
• Is the Market Mature
Suppliers
• Those who supply the inputs (raw materials, equipments and services to the
company.
• Source/Sources should be Reliable
• Uncertainty regarding the supply or other supply constraints or compel s
companies to maintain high inventories causing cost increases.
• Very risky to depend on a single supplier
• The purchasing department should “market” itself to suppliers, to obtain
favourable treatment during the periods of shortages.
• Organizational decisions about “Outsourcing” or “In-house Production” is very
important
MarketingIntermediaries
• Firms that aid the company in promoting, selling and distributing its goods to final
buyers. They are important link between company and customers. It Includes:
• The middlemen and merchants who “help the company find customers or
close sales with them”
• Physical distribution firms which “ assist the company in stocking and moving
goods from their origin to their destinations”
• Marketing service agencies which “assist the company in targeting and
promoting its products to the right markets”
• Financial intermediaries which “finance marketing activities and insure
business risks”
• Vital links between the company and the final consumers.
Publics
• Any group that has an actual or potential interest in or impact on an
organization’s ability to achieve its interests. E.g. Media publics, citizens
action publics, local publics
• Media attack on any company can influence the government decisions
affecting the company.
• Environmental pollution is an issue often taken up by number of local publics
• Publics are not always threat to the business.
• Fruitful cooperation between a company and the local publics may be
established for the mutual benefit.
• NGOs have been protesting against child labour, cruelty against animals,
environmental problems, deindustrialization resulting from imports etc.
ExternalEnvironment(Micro Environment)
CONSUMERS /
CUSTOMERS
• Who are the customers and what benefits they are looking at?
• What are their buying patterns and buying habits?
• Difference between customer and consumer?
COMPETITORS
• Who are competitors (competing for both resources and markets)?
• What are their present strategy and business objectives (direct and indirect competition)?
• Who are most powerful and aggressive competitors?
ORGANIZATION
• People occupying different positions and their background (their varied interests)?
• Analyzing objectives, goals and resource availability?
• Groups influencing an organization (Owners, Board of Directors, and Employees)?
MARKET
• Market actual and potential size, growth prospects and its attractiveness?
• Study of Cost structure, price sensitivity, technological structure and distribution system?
• Is market mature?
SUPPLIERS
• Suppliers are important (provides raw material, components, and services)?
• Suppliers own bargaining power affect cost structure of the industry?
• Outsourcing or In house production depends on supplier environment?
MARKET
INTERMEDIATER
IES
• Major influence (middle man, marketing agencies, financial and physical intermediaries)?
• Consumer is not aware of manufacturers?
• Adds to cost structure?
MacroEnvironment
• Consists of larger societal forces that affect all the actors in company’s micro
environment-namely :
• Demographic
• Economic
• Political - Legal
• Socio – Cultural
• Technological
• Natural
• Global
• Also known as Societal Environment – It includes general forces that do not
directly touch on short-run activities of the organization but that can, and
often do, influence its long-run decisions.
DemographicEnvironment
Denotes characteristics of population in area (race, age, income, educational
attainment, asset ownership, employment status, Size, growth rate, age
composition, sex composition of population, family size, educational levels,
economic stratification of the population, language, caste, religion, and
location).
POPULATION
SIZE
• Change in birth
rate, family size
• Increase and
decline in total
population
• Effect of Rapid
population
growth on
natural
resources
GEOGRAPHIC
DISTRIBUTION
• Attractiveness
of Companies
location
• Availability of
qualified work
force
• Concept of
working from
home due to IT
revolution
ETHNIC MIX
• Change in
product and
service design
• Demand of new
products and
services
• Culturally
diverse work
force
• Advantages of
work force
heterogeneity
INCOME
DISTRIBUTION
• Individual and
group
purchasing
power
• Consumption
• Spending
• Saving pattern
EconomicEnvironment
• Economic environment refers to the aggregate of the nature of economic system
of the country, business cycles, the socio-economic infrastructure etc. The
successful businessman visualizes the external factors affecting the business,
anticipating prospective market situations and makes it suitable to get the
maximum benefits with minimize cost. Important factors are: Economic
conditions, Economic policies, and Economic systems
• Economic condition
• The economic conditions of a country – for example, the nature of the
economy, the stage of development of the economy, economic resources, the
level of income, the distribution of income and assets, etc.- are among the
very important determinants of business strategies. In a developing country,
the low income may be the reason for the very low demand for the product.
India: Fastest Growing Free Market Democracy
Economic Environment
EconomicEnvironment
• Economic Policies
• Some types or categories of business are favourably affected by government
policy, some adversely affected, while it is neutral to some others.
• E.g. a restrictive import policy may greatly help the import competing
industries, while a liberalisation of the import policy may create difficulties
for such industries
• Economic System
• The scope of the private business depends on the economic system.
• The freedom of the private enterprise is the greatest in the free market
economy.
Political- Legal Environment
It includes factors like:
• General state of political Development
• Degree of Politicization of Business
• Level of Political Mortality
• Law and Order Situation
• Political Stability
• Political Ideology
• Practices of Ruling Party
• Efficiency of Government Agencies
• Government Intervention in Business
• Government Policies (Fiscal, Monitory,
Industrial, Labour, Export-Import Policy)
• Specific Legal Enactments &
Implementation
• Public Attitude towards Business
POLITICAL
POLITCIAL PRESSURE INFLUENCE
AND LIMIT ORGANIZATION.
(CONSUMER RIGHTS, MINORITY
RIGHTS, WOMAN RIGHTS AND
LABOUR RIGHTS MUST BE
PROTECTED)
LEGAL
ORGANIZATION MUST
FOLLOW RELEVANT
LAWS (COMPANIES,
COMPETITION, IP,
FOREIG EXCHANGE
ETC)
GOVERNEMNT
AFFECTS BUSINESS
DIRECTLY
(TAXES AND DUTIES)
Political- Legal Environment
• Has close relationship with the economic system and economic policy.
• It includes factors such as characteristics and policies of the political parties,
nature of Constitution and government system relating to business policies and
regulations.
• Important economic policies such as industrial policy, policy towards foreign
capital and technology, fiscal policy and foreign trade policy are often political
decisions.
• In many countries regulations to protect consumer interests have become
stronger. Some governments specify certain standards for the products to be
marketed in the country; some even prohibit the marketing of certain products.
Promotional activities are subject to various types of controls. Eg: In India,
Advertisement of alcoholic product is prohibited and the packages must carry
“injurious to health” warnings
Socio- Cultural Environment
• The social dimension or environment of a nation determines the value system of
the society which, in turn affects the functioning of the business.
• Sociological factors such as costs structure, customs and conventions, mobility of
labour etc. have far reaching impact on the business. These factors determine
the work culture and mobility of labour, work groups etc.
• Strategy should be appropriate in the socio-cultural environment. Eg: nestle
brews a very large variety of instant coffee to satisfy different national tastes.
• Even when people of different cultures use the same product; the mod of
consumption, conditions of use, purpose of use or the perceptions of the
product attributes may vary so much so that the product attributes, method of
presentation, positioning or method of promoting the product may have to be
varied to suit the characteristics of different markets. E.g.: Vicks Vaporub, the
popular pain balm is used as mosquito repellent in some tropical countries.
Socio- Cultural Environment
It includes factors like:
• Buying and Consumption Pattern
• Values and Beliefs
• Literacy Level / Education
• Ethical Standard
• State of Society, Tastes & Preferences
• Extent of Social Stratification
• Conflict and Cohesiveness
• Human Relationships
• Language, Belief, Norms in Society
• Social Customs & Traditions
• Social Rituals
• Changing life Style Patterns
• Family Structure
• Work Ethics
• Media and Consumerism
Socio- Cultural Environment
• Language difference pose a serious problem.
• e.g. Preet- Prestige for overseas market
• In Japanese, General Motors’ “body by Fisher” means “Corpse by fisher”
• Colour
• Blue: feminine and warm in Holland ; but masculine and cold in Sweden
• Green: favourite in Muslim world; but represents illness in Malaysia
• Red: popular in communist countries; but represents disaster in Africa
• White: death and mourning in China and Korea; but it expresses
happiness in some countries. Also it is the colour of bridal dress.
TechnologicalEnvironment
• The business in a country is greatly influenced by the technological
development and opportunities arising out of technological innovation.
• The technology adopted by the industries determines the type and quality of
goods and services to be produced and the type and quality of plant and
equipment to be used.
• Technological environment influences the business in terms of investment in
technology, consistent application of technology and the effects of technology
on markets. Access to information highway is key.
• The pull of technological change.
• Risk and Uncertainty of technological development.
• Role of R&D in the country and Government R&D Budget
TechnologicalEnvironment
Technologies have changed our life forever
THE TECHNOLOGY PULL
TECHNOLOGY INNOVATION
ROLE OF RESEARCH & DEVELOPMENT
RISK AND UNCERTAINITY OF TECHNOLOGY DEVELOPMENT
• Business prospects demands availability of certain physical facilities. E.g. demand
for electrical appliances is affected by the extent of electrification and the
reliability of power supply. Demand for LPG stoves depend on rate of growth of
gas connections
• Differing technological environment of different markets may call for product
modifications. E.g. Many appliances are designed for 110 V in USA. They should
be converted for 240v in India
• Technological developments may increase or decrease the demand for some
existing products. E.g. voltage stabilizers help increase in sale of electrical
appliances in markets characterised by frequent voltage fluctuations.
Introduction of TVs, Refrigerators, etc. with in-built stabilizers adversely affects
the demand for voltage stabilizers.
Natural Environment
• Geological and ecological factors, such as natural resources endowments,
weather and climatic conditions, topographical factors, location aspects in the
global context, port facilities etc., are relevant to business.
• Differences in geographical conditions between markets may some times call for
changes in the marketing mix. Geographical and Ecological factors also influence
the location of certain industries. E.g. industries with high material index tend to
be located near the raw material sources.
• Topographical factors may affect the demand pattern:
• E.g.. In hilly areas with difficult terrain, jeeps may be in a greater demand
than cars.
• Ecological factors have recently assumed great importance. The depletion of
natural resources, environmental pollution and the disturbance of ecological
balance have caused great concern.
International/ Global Environment
• Positive and Negative Impact of
Significant International event.
• Identification of emerging global
markets and markets that are
changing.
• Difference between cultural and
institutional attributes of individual
global markets
• Acquisitions by Indian Companies
abroad (global perspective is
universal).
International / Global Environment
The global environment refers to those factors which are relevant to business
such as: WTO principles and agreements, International conventions, Treaties,
agreements, declarations, protocols, economic sentiments in other countries,
hike in crude oil prices etc.
• Particularly important for the industries directly depending
on imports or exports and import-competing industries.
• Recession, economic boom, liberalization
• Major international developments have their spread effects on domestic
business. E.g. Oil price hikes increased the cost of production and the prices of
certain products such as fertilizers , synthetic fibres. So usually, the demand for
natural fibres and manures increased. Also demand for automobiles that
economise energy consumption got increased.

Contenu connexe

Tendances

Internal Environmental Analysis
Internal Environmental AnalysisInternal Environmental Analysis
Internal Environmental AnalysisFaiz Alwi
 
Pestle analysis
Pestle analysisPestle analysis
Pestle analysisSelman Ay
 
Environmental scanning-ppt
Environmental scanning-pptEnvironmental scanning-ppt
Environmental scanning-ppt16119843
 
Concept of international business environment
Concept of international business environmentConcept of international business environment
Concept of international business environmentPinki Verma
 
Political factors affecting business
Political factors affecting business Political factors affecting business
Political factors affecting business Tehmina Kousar
 
International Business Introduction, Nature and Scope
International Business   Introduction, Nature and ScopeInternational Business   Introduction, Nature and Scope
International Business Introduction, Nature and ScopeDheeraj Rajput
 
Business environment
Business environmentBusiness environment
Business environmentVisakhapatnam
 
Challenges Of Corporate Social Responsibility
Challenges Of Corporate Social ResponsibilityChallenges Of Corporate Social Responsibility
Challenges Of Corporate Social ResponsibilityElijah Ezendu
 
Buisness Environment internal & external
Buisness Environment internal & external Buisness Environment internal & external
Buisness Environment internal & external aaanuj27
 
Internal and external business environment
Internal and external business environmentInternal and external business environment
Internal and external business environmentAashish Sahi
 
Chapter 2 Stakeholder Relationships, Social Responsibility, & Corporate Gover...
Chapter 2 Stakeholder Relationships, Social Responsibility, & Corporate Gover...Chapter 2 Stakeholder Relationships, Social Responsibility, & Corporate Gover...
Chapter 2 Stakeholder Relationships, Social Responsibility, & Corporate Gover...Firdaus Fitri Zainal Abidin
 
The Nature of Strategic Management
The Nature of Strategic ManagementThe Nature of Strategic Management
The Nature of Strategic ManagementNoel Buensuceso
 
Economic environment
Economic environmentEconomic environment
Economic environmentJenny Cortez
 
Corporate Level Strategies
Corporate Level StrategiesCorporate Level Strategies
Corporate Level Strategiesnishikantwar
 
Economic environment
Economic  environment Economic  environment
Economic environment Nishant Pahad
 
Organizational Design And Change
Organizational Design And  ChangeOrganizational Design And  Change
Organizational Design And ChangeKing Julian
 
Macro environment
Macro environmentMacro environment
Macro environmentVadivelM9
 

Tendances (20)

Internal Environmental Analysis
Internal Environmental AnalysisInternal Environmental Analysis
Internal Environmental Analysis
 
Pestle analysis
Pestle analysisPestle analysis
Pestle analysis
 
Environmental scanning-ppt
Environmental scanning-pptEnvironmental scanning-ppt
Environmental scanning-ppt
 
Introduction to business environment slides
Introduction to business environment slidesIntroduction to business environment slides
Introduction to business environment slides
 
Concept of international business environment
Concept of international business environmentConcept of international business environment
Concept of international business environment
 
Chapter 1: The Importance of Business Ethics
Chapter 1: The Importance of Business Ethics�Chapter 1: The Importance of Business Ethics�
Chapter 1: The Importance of Business Ethics
 
Political factors affecting business
Political factors affecting business Political factors affecting business
Political factors affecting business
 
International Business Introduction, Nature and Scope
International Business   Introduction, Nature and ScopeInternational Business   Introduction, Nature and Scope
International Business Introduction, Nature and Scope
 
Globalization
Globalization Globalization
Globalization
 
Business environment
Business environmentBusiness environment
Business environment
 
Challenges Of Corporate Social Responsibility
Challenges Of Corporate Social ResponsibilityChallenges Of Corporate Social Responsibility
Challenges Of Corporate Social Responsibility
 
Buisness Environment internal & external
Buisness Environment internal & external Buisness Environment internal & external
Buisness Environment internal & external
 
Internal and external business environment
Internal and external business environmentInternal and external business environment
Internal and external business environment
 
Chapter 2 Stakeholder Relationships, Social Responsibility, & Corporate Gover...
Chapter 2 Stakeholder Relationships, Social Responsibility, & Corporate Gover...Chapter 2 Stakeholder Relationships, Social Responsibility, & Corporate Gover...
Chapter 2 Stakeholder Relationships, Social Responsibility, & Corporate Gover...
 
The Nature of Strategic Management
The Nature of Strategic ManagementThe Nature of Strategic Management
The Nature of Strategic Management
 
Economic environment
Economic environmentEconomic environment
Economic environment
 
Corporate Level Strategies
Corporate Level StrategiesCorporate Level Strategies
Corporate Level Strategies
 
Economic environment
Economic  environment Economic  environment
Economic environment
 
Organizational Design And Change
Organizational Design And  ChangeOrganizational Design And  Change
Organizational Design And Change
 
Macro environment
Macro environmentMacro environment
Macro environment
 

En vedette

Environmental Analysis
Environmental  AnalysisEnvironmental  Analysis
Environmental AnalysisElijah Ezendu
 
Business Environment- Features,Meaning,Importance,Objectives & Porter's Model
Business Environment- Features,Meaning,Importance,Objectives & Porter's Model Business Environment- Features,Meaning,Importance,Objectives & Porter's Model
Business Environment- Features,Meaning,Importance,Objectives & Porter's Model Nikhil Soares
 
Business Environments
Business EnvironmentsBusiness Environments
Business EnvironmentsSaugata Palit
 
environmental analysis and its technique
environmental analysis and its technique environmental analysis and its technique
environmental analysis and its technique Sonu Nitish
 
Environmental analysis & forecasting
Environmental analysis & forecastingEnvironmental analysis & forecasting
Environmental analysis & forecastingAnju Babu
 
Business environment 1 st module mba Management
Business environment 1 st module  mba Management Business environment 1 st module  mba Management
Business environment 1 st module mba Management Babasab Patil
 
Business environment
Business environmentBusiness environment
Business environmentManthan Shah
 
Save Energy, Address Sustainability with Web DALI Intelligent Lighting Contro...
Save Energy, Address Sustainability with Web DALI Intelligent Lighting Contro...Save Energy, Address Sustainability with Web DALI Intelligent Lighting Contro...
Save Energy, Address Sustainability with Web DALI Intelligent Lighting Contro...Control Network Solutions Ltd
 
Energy Efficient Intelligent LED Lighting System
Energy Efficient Intelligent  LED Lighting SystemEnergy Efficient Intelligent  LED Lighting System
Energy Efficient Intelligent LED Lighting SystemAnand Parakkat Parambil
 
Solar product business plan
Solar product business planSolar product business plan
Solar product business planKamlesh Kumar
 
LED-Light Emitting Diode
LED-Light Emitting DiodeLED-Light Emitting Diode
LED-Light Emitting DiodeAon Ali Jaffery
 
LED Lighting Presentation_102009
LED Lighting Presentation_102009LED Lighting Presentation_102009
LED Lighting Presentation_102009wpprenosil
 
Marketing Concepts- Production, Social, Exchange, Selling, Product and Holist...
Marketing Concepts- Production, Social, Exchange, Selling, Product and Holist...Marketing Concepts- Production, Social, Exchange, Selling, Product and Holist...
Marketing Concepts- Production, Social, Exchange, Selling, Product and Holist...Dan John
 
Business Environment
Business EnvironmentBusiness Environment
Business EnvironmentAj Khandelwal
 
LED Lighting Presentation
LED Lighting PresentationLED Lighting Presentation
LED Lighting Presentationrobcohen
 
Business environment
Business environmentBusiness environment
Business environmentAnkit Agarwal
 
INTELLIGENT ROOM LIGHTING ON PERSON PRESENCE
INTELLIGENT ROOM LIGHTING ON PERSON PRESENCEINTELLIGENT ROOM LIGHTING ON PERSON PRESENCE
INTELLIGENT ROOM LIGHTING ON PERSON PRESENCESatish Kumar
 
Intelligent lighting ppt
Intelligent lighting pptIntelligent lighting ppt
Intelligent lighting pptAmrata Yadav
 
Solar Sales & Marketing
Solar Sales & MarketingSolar Sales & Marketing
Solar Sales & MarketingOnGrid
 

En vedette (20)

Environmental Analysis
Environmental  AnalysisEnvironmental  Analysis
Environmental Analysis
 
Business Environment- Features,Meaning,Importance,Objectives & Porter's Model
Business Environment- Features,Meaning,Importance,Objectives & Porter's Model Business Environment- Features,Meaning,Importance,Objectives & Porter's Model
Business Environment- Features,Meaning,Importance,Objectives & Porter's Model
 
Business Environments
Business EnvironmentsBusiness Environments
Business Environments
 
environmental analysis and its technique
environmental analysis and its technique environmental analysis and its technique
environmental analysis and its technique
 
Environmental analysis & forecasting
Environmental analysis & forecastingEnvironmental analysis & forecasting
Environmental analysis & forecasting
 
Business environment
Business environmentBusiness environment
Business environment
 
Business environment 1 st module mba Management
Business environment 1 st module  mba Management Business environment 1 st module  mba Management
Business environment 1 st module mba Management
 
Business environment
Business environmentBusiness environment
Business environment
 
Save Energy, Address Sustainability with Web DALI Intelligent Lighting Contro...
Save Energy, Address Sustainability with Web DALI Intelligent Lighting Contro...Save Energy, Address Sustainability with Web DALI Intelligent Lighting Contro...
Save Energy, Address Sustainability with Web DALI Intelligent Lighting Contro...
 
Energy Efficient Intelligent LED Lighting System
Energy Efficient Intelligent  LED Lighting SystemEnergy Efficient Intelligent  LED Lighting System
Energy Efficient Intelligent LED Lighting System
 
Solar product business plan
Solar product business planSolar product business plan
Solar product business plan
 
LED-Light Emitting Diode
LED-Light Emitting DiodeLED-Light Emitting Diode
LED-Light Emitting Diode
 
LED Lighting Presentation_102009
LED Lighting Presentation_102009LED Lighting Presentation_102009
LED Lighting Presentation_102009
 
Marketing Concepts- Production, Social, Exchange, Selling, Product and Holist...
Marketing Concepts- Production, Social, Exchange, Selling, Product and Holist...Marketing Concepts- Production, Social, Exchange, Selling, Product and Holist...
Marketing Concepts- Production, Social, Exchange, Selling, Product and Holist...
 
Business Environment
Business EnvironmentBusiness Environment
Business Environment
 
LED Lighting Presentation
LED Lighting PresentationLED Lighting Presentation
LED Lighting Presentation
 
Business environment
Business environmentBusiness environment
Business environment
 
INTELLIGENT ROOM LIGHTING ON PERSON PRESENCE
INTELLIGENT ROOM LIGHTING ON PERSON PRESENCEINTELLIGENT ROOM LIGHTING ON PERSON PRESENCE
INTELLIGENT ROOM LIGHTING ON PERSON PRESENCE
 
Intelligent lighting ppt
Intelligent lighting pptIntelligent lighting ppt
Intelligent lighting ppt
 
Solar Sales & Marketing
Solar Sales & MarketingSolar Sales & Marketing
Solar Sales & Marketing
 

Similaire à Business Environment and Analysis

Chapter_1_Business_Environment.pptx
Chapter_1_Business_Environment.pptxChapter_1_Business_Environment.pptx
Chapter_1_Business_Environment.pptxscopecollege
 
Business Environment
Business EnvironmentBusiness Environment
Business EnvironmentDrMJayashree
 
Chapter_1_Business_Environment.pptx
Chapter_1_Business_Environment.pptxChapter_1_Business_Environment.pptx
Chapter_1_Business_Environment.pptxVishnu J Nair
 
Business_Environment.pptx
Business_Environment.pptxBusiness_Environment.pptx
Business_Environment.pptxbobo-gogo
 
Business Environment and Analysis.pdf
Business Environment and Analysis.pdfBusiness Environment and Analysis.pdf
Business Environment and Analysis.pdfVirdha Puspita
 
Business Environment
Business EnvironmentBusiness Environment
Business Environmentvip1233
 
Business Environment
Business EnvironmentBusiness Environment
Business EnvironmentChhavi Jain
 
Business environment basics
Business environment basicsBusiness environment basics
Business environment basicsvip1233
 
Unit-1- Business Environment.pptx
Unit-1- Business Environment.pptxUnit-1- Business Environment.pptx
Unit-1- Business Environment.pptxbibha737
 
BusinessEnvironmentandLaw1&2-05-06.03.2022.pptx
BusinessEnvironmentandLaw1&2-05-06.03.2022.pptxBusinessEnvironmentandLaw1&2-05-06.03.2022.pptx
BusinessEnvironmentandLaw1&2-05-06.03.2022.pptxAshwath54
 
Organization Management (GR.11) - Lesson 4
Organization Management (GR.11) - Lesson 4Organization Management (GR.11) - Lesson 4
Organization Management (GR.11) - Lesson 4Nathan John Rosales
 
BE concepts & signifnce by ajay- ajaysnair@outlook
BE concepts & signifnce  by ajay- ajaysnair@outlookBE concepts & signifnce  by ajay- ajaysnair@outlook
BE concepts & signifnce by ajay- ajaysnair@outlookAjay Nair
 
Business environment BBA(CAM) 201
Business environment BBA(CAM)  201Business environment BBA(CAM)  201
Business environment BBA(CAM) 201cpjcollege
 
Business Environment
Business EnvironmentBusiness Environment
Business Environmentcpjcollege
 
Economic environment of business by Neeraj Bhandari ( Surkhet.Nepal )
Economic environment of business by Neeraj Bhandari ( Surkhet.Nepal )Economic environment of business by Neeraj Bhandari ( Surkhet.Nepal )
Economic environment of business by Neeraj Bhandari ( Surkhet.Nepal )Neeraj Bhandari
 
Economic environment of business (1) by Neeraj Bhandari ( Surkhet.Nepal )
Economic environment of business (1) by Neeraj Bhandari ( Surkhet.Nepal )Economic environment of business (1) by Neeraj Bhandari ( Surkhet.Nepal )
Economic environment of business (1) by Neeraj Bhandari ( Surkhet.Nepal )Neeraj Bhandari
 
External Environment Analysis SM.pdf
External Environment Analysis SM.pdfExternal Environment Analysis SM.pdf
External Environment Analysis SM.pdfSaketSharma97
 
All About "Business Environment" presented by Aditi Walia
All About "Business Environment" presented by Aditi WaliaAll About "Business Environment" presented by Aditi Walia
All About "Business Environment" presented by Aditi WaliaAditi Walia
 

Similaire à Business Environment and Analysis (20)

Chapter_1_Business_Environment.pptx
Chapter_1_Business_Environment.pptxChapter_1_Business_Environment.pptx
Chapter_1_Business_Environment.pptx
 
Business Environment
Business EnvironmentBusiness Environment
Business Environment
 
Chapter_1_Business_Environment.pptx
Chapter_1_Business_Environment.pptxChapter_1_Business_Environment.pptx
Chapter_1_Business_Environment.pptx
 
Business_Environment.pptx
Business_Environment.pptxBusiness_Environment.pptx
Business_Environment.pptx
 
Business environment
Business environmentBusiness environment
Business environment
 
Business Environment and Analysis.pdf
Business Environment and Analysis.pdfBusiness Environment and Analysis.pdf
Business Environment and Analysis.pdf
 
Business Environment
Business EnvironmentBusiness Environment
Business Environment
 
Business Environment
Business EnvironmentBusiness Environment
Business Environment
 
Business environment basics
Business environment basicsBusiness environment basics
Business environment basics
 
Unit-1- Business Environment.pptx
Unit-1- Business Environment.pptxUnit-1- Business Environment.pptx
Unit-1- Business Environment.pptx
 
BusinessEnvironmentandLaw1&2-05-06.03.2022.pptx
BusinessEnvironmentandLaw1&2-05-06.03.2022.pptxBusinessEnvironmentandLaw1&2-05-06.03.2022.pptx
BusinessEnvironmentandLaw1&2-05-06.03.2022.pptx
 
Organization Management (GR.11) - Lesson 4
Organization Management (GR.11) - Lesson 4Organization Management (GR.11) - Lesson 4
Organization Management (GR.11) - Lesson 4
 
BE concepts & signifnce by ajay- ajaysnair@outlook
BE concepts & signifnce  by ajay- ajaysnair@outlookBE concepts & signifnce  by ajay- ajaysnair@outlook
BE concepts & signifnce by ajay- ajaysnair@outlook
 
Business Environment Basics
Business Environment BasicsBusiness Environment Basics
Business Environment Basics
 
Business environment BBA(CAM) 201
Business environment BBA(CAM)  201Business environment BBA(CAM)  201
Business environment BBA(CAM) 201
 
Business Environment
Business EnvironmentBusiness Environment
Business Environment
 
Economic environment of business by Neeraj Bhandari ( Surkhet.Nepal )
Economic environment of business by Neeraj Bhandari ( Surkhet.Nepal )Economic environment of business by Neeraj Bhandari ( Surkhet.Nepal )
Economic environment of business by Neeraj Bhandari ( Surkhet.Nepal )
 
Economic environment of business (1) by Neeraj Bhandari ( Surkhet.Nepal )
Economic environment of business (1) by Neeraj Bhandari ( Surkhet.Nepal )Economic environment of business (1) by Neeraj Bhandari ( Surkhet.Nepal )
Economic environment of business (1) by Neeraj Bhandari ( Surkhet.Nepal )
 
External Environment Analysis SM.pdf
External Environment Analysis SM.pdfExternal Environment Analysis SM.pdf
External Environment Analysis SM.pdf
 
All About "Business Environment" presented by Aditi Walia
All About "Business Environment" presented by Aditi WaliaAll About "Business Environment" presented by Aditi Walia
All About "Business Environment" presented by Aditi Walia
 

Plus de Prashant Mehta

Gases physical properties
Gases physical propertiesGases physical properties
Gases physical propertiesPrashant Mehta
 
New education policy 2020
New education policy 2020New education policy 2020
New education policy 2020Prashant Mehta
 
India's New Education Policy 2020
India's New Education Policy 2020 India's New Education Policy 2020
India's New Education Policy 2020 Prashant Mehta
 
Human induced climate change
Human induced climate changeHuman induced climate change
Human induced climate changePrashant Mehta
 
Opportunities in Indian Healthcare Sector
Opportunities in Indian Healthcare SectorOpportunities in Indian Healthcare Sector
Opportunities in Indian Healthcare SectorPrashant Mehta
 
Healthcare Waste Trail in India
Healthcare Waste Trail in IndiaHealthcare Waste Trail in India
Healthcare Waste Trail in IndiaPrashant Mehta
 
Healthcare Waste and Judicial Intervention by Indian Courts
Healthcare Waste and Judicial Intervention by Indian CourtsHealthcare Waste and Judicial Intervention by Indian Courts
Healthcare Waste and Judicial Intervention by Indian CourtsPrashant Mehta
 
Challenges in Indian Healthcare Sector
Challenges in Indian Healthcare SectorChallenges in Indian Healthcare Sector
Challenges in Indian Healthcare SectorPrashant Mehta
 
Internal security and forensic science
Internal security and forensic scienceInternal security and forensic science
Internal security and forensic sciencePrashant Mehta
 

Plus de Prashant Mehta (20)

Elements facts
Elements factsElements facts
Elements facts
 
Gases physical properties
Gases physical propertiesGases physical properties
Gases physical properties
 
Communicable Diseases
Communicable DiseasesCommunicable Diseases
Communicable Diseases
 
Industrial processes
Industrial processesIndustrial processes
Industrial processes
 
Alloys
AlloysAlloys
Alloys
 
New education policy 2020
New education policy 2020New education policy 2020
New education policy 2020
 
India's New Education Policy 2020
India's New Education Policy 2020 India's New Education Policy 2020
India's New Education Policy 2020
 
Green house effect
Green house effectGreen house effect
Green house effect
 
Human induced climate change
Human induced climate changeHuman induced climate change
Human induced climate change
 
Smog
SmogSmog
Smog
 
Acid rain
Acid rainAcid rain
Acid rain
 
Healthcare Wastes
Healthcare WastesHealthcare Wastes
Healthcare Wastes
 
Opportunities in Indian Healthcare Sector
Opportunities in Indian Healthcare SectorOpportunities in Indian Healthcare Sector
Opportunities in Indian Healthcare Sector
 
Healthcare Waste Trail in India
Healthcare Waste Trail in IndiaHealthcare Waste Trail in India
Healthcare Waste Trail in India
 
Healthcare Waste and Judicial Intervention by Indian Courts
Healthcare Waste and Judicial Intervention by Indian CourtsHealthcare Waste and Judicial Intervention by Indian Courts
Healthcare Waste and Judicial Intervention by Indian Courts
 
Challenges in Indian Healthcare Sector
Challenges in Indian Healthcare SectorChallenges in Indian Healthcare Sector
Challenges in Indian Healthcare Sector
 
Internal security and forensic science
Internal security and forensic scienceInternal security and forensic science
Internal security and forensic science
 
Atmospheric Oxidants
Atmospheric OxidantsAtmospheric Oxidants
Atmospheric Oxidants
 
Atmosphere
AtmosphereAtmosphere
Atmosphere
 
Global Warming
Global WarmingGlobal Warming
Global Warming
 

Dernier

PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfHajeJanKamps
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsyasinnathani
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinAnton Skornyakov
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Reportamberjiles31
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGlokeshwarmaha
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toumarfarooquejamali32
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxWorkforce Group
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)tazeenaila12
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyHanna Klim
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.ukaroemirsr
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003believeminhh
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhangmcgroupjeya
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfCharles Cotter, PhD
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 

Dernier (20)

PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story points
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup Berlin
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Report
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb to
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agency
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.uk
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhang
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 

Business Environment and Analysis

  • 1. BUSINESS ENVIRONMENTAL &ANALYSIS Prof. Prashant Mehta National Law University, Jodhpur
  • 2. BUSINESS ENVIRONMENTAL &ANALYSIS Introduction Business Objectives of Business Environmental Influences on Business Why Environmental Analysis Characteristics of Business Environment Components of Business Environment Relationship Between Organization and Environment The Micro and Macro Environment Elements of Micro Environment Elements of Macro Environment Strategic Response to the Environment Competitive Environment Porter’s Five Forces Model – Competitive Analysis
  • 3. Strategic - Definition • “The process by which strategists monitor the economic, governmental/legal, market / competitive, supplier / technological, geographic, and social settings to determine opportunities and threats to their firms” • “Environmental diagnosis consists of managerial decisions made by analysing the significance of data (opportunities and threats) of the environmental analysis”
  • 4. Introduction • The term Business Environment is composed of two words ‘Business’ and ‘Environment’. In simple terms, the state in which a person remains busy is known as business. On the other hand, the word ‘Environment’ refers to the aspects of surroundings. • Business operates in Unique Environment and cannot function in isolation. • Business is like open systems which continuously interacts with environment i.e. Business enterprises exist in and are surrounded by an ‘environment’ called as the business or organisational environment. • Society and business enterprises are mutually dependent i.e. Business enterprises satisfy societal needs. Relationship between society and business enterprises takes place in a changing environment
  • 5. Business- Definition • An organization or enterprising entity engaged in commercial, industrial or professional activities. A business can be a for-profit entity, such as a publicly-traded corporation, or a non-profit organization engaged in business activities, such as an agricultural cooperative. • Any commercial, industrial or professional activity undertaken by an individual, group, organization or society. • A reference to a specific area or type of economic activity which may include purchase, sale, manufacture, processing, and or marketing of product or services. • For business profit is often regarded as overall measure of performance (it is financial yardstick for measuring business efficiency and evaluating managerial competence)
  • 6. Business- Explanation • Businesses include everything from a small owner-operated company such as a family restaurant, to a multinational conglomerate such as General Electric. • To "do business" with another company, a business must engage in some kind of transaction or exchange of value with that company. • In this sense, the word "business" can be used to refer to a specific industry or activity. • Business is created and managed by people who make decisions for growth of business. (Peter Drucker) • Profit is not the sole objective of business rather it includes development of wealth, goodwill, societal factors, relations etc.
  • 7. Objectiveof Business Purpose of Business is to create Customers or Markets which in turn caters to society • Profitability • Productive Efficiency • Growth • Technological Dynamism • Stability • Self Reliance • Survival • Competitive Strength • Customer Service • Financial Solvency • Product Quality • Diversification • Employee Satisfaction and Welfare Business is society organ of economic expansion, growth, and change
  • 8. Importanceof BusinessEnvironment Business environment is complicated and active in nature and has a far- reaching impact on the survival and growth of the business. • Determining Opportunities and Threats • Giving Direction for Growth • Continuous Learning • Image Building • Meeting Competition • Identifying Firm’s Strength and Weakness
  • 9. EnvironmentalInfluencesof Business- Natural The natural environment has influenced business in a variety of ways. Environmental influence has captured the attention of companies and consumers worldwide on how products and services are delivered, and to work with the natural environment instead of slowly destroying it. Businesses that ignore or underestimate environmental influence will eventually fail. Businesses must continuously monitor and adapt to survive the environmental threats as well as identify, appraise, and respond to various opportunities in the environment.
  • 10. BusinessInfluencedby......... • Business decisions are influenced by two sets of factors • Internal factors (The Internal Environment • External Factors( The External Environment) • Business Environment presents two challenges to the enterprise • The challenge to combat the environmental threats • Exploit the business opportunities • Environmental Analysis is one of the first steps in Strategic Management
  • 11. Environment= External + Internal Forces • INTERNAL • EXTERNAL •MACRO •MICRO ENVIRONMENTAL VARIABLES • POSITIVE • NEGATIVE INFLUENCE • BETWEEN EXTERNAL AND INTERNAL ENVIRONMENT MUTUAL RELATIONSHIP ExternalisbeyondControlofIndividual,IndustrialEnterprise,andTheirManagement.,and varyfromindustrytoindustryandcountrytocountry.Astrategistlooksonenvironmentas posingthreatstothefirmorofferingimmenseopportunitiesforexploitation.
  • 13. Problemsin Understandingthe Env. Influences • The environment encapsulates different influence and diversity which makes strategic decision making difficult. • Uncertainty due to fast technological and global change makes it difficult to understand future external influences on organization. • Coping with business and environmental complexities is based on ever changing environment. The strategic management task is to simplify and achieve useful and usable level of analysis without bias.
  • 14. Frameworkto UnderstandEnv.Influences • Understand nature of organization environment (static, dynamic, complex, difficult to comprehend etc.) • Auditing the environmental Influences both favorably or unfavorably with respect to changes in PEST. • Construct pictures, scenarios of possible future, and the extent to which strategies need to change. • Immediate organization environment is competitive environment and assessing competitive position - that is how it stands in relation to other organization competing for resources, customers, markets etc.
  • 15. EnvironmentalScanning Environmental Scanning is the monitoring, evaluating and disseminating of information from the external and internal environments to key people within the corporation. A corporation uses this tool to avoid strategic surprise and to ensure its long- term health and sustainability of business.
  • 16. TechniquesForEnvironmentalScanning Involve two phases: Information gathering and Evaluation • Verbal & Written Information: verbal information includes, information obtained by direct talk with people, by attending seminars, meetings, etc.. , Written or documentary information includes both published and unpublished materials • Search and Scanning: this involves research for obtaining the required information • Spying: Even though it is not considered as ethical, spying to get information about the competitor is not uncommon. These 3 pertains to source of information/methods of gathering information • Forecasting: Done by corporate planners or other staff personnel or consultants , This pertains to use the information gathered by above mentioned 3 methods for picturing the future scenario.
  • 17. WhyEnvironmentalAnalysis FUTUREISUNCERTAINANDNOTALLFUTUREEVENTSCANBEANTICIPATED • Analysis should provide an understanding of current and potential changes taking place, besides long term future prospective. • Environmental analysis provides inputs in form of information which is useful for strategic decision making. • Environment analysis should facilitate and foster strategic thinking in organization by bringing fresh view points and ideas in context of business operations.
  • 18. Characteristicsof BusinessEnvironment ENVIRONMENT IS COMPLEX •EVENTS •CONDITIONS •INFLUENCES •EASIER TO UNDERSTAND IN PARTS •DIFFICULT TO UNDERSTAND IN TOTALITY ENVIRONMENT IS DYNAMIC •CONSTANTLY CHANGING IN SHAPE AND STRUCTURE ENVIRONMENT IS MULTIFACETED •DEPENDS ON PERCEPTION OF OBSERVER •NEW DEVELOPMENT MAY BE OPPURTUNITY FOR ONE AND THREAT FOR OTHER ENVIRONMENT HAS FAR REACHING IMPACT •GROWTH AND PROFITABILITY DEPENDS ON ORGANIZATIONAL ENVIRONMENT
  • 20. Componentsof BusinessEnvironment transformation process internal environment the organisation industry environment customerssuppliers competitors market regulatory and professional groups inputs outputs Technological and eco- environmental forces social and legal forces economic forcespolitical forces macro environment
  • 22. RelationshipBetweenOrganization andEnvironment • Exchange of Information – Study of Behaviour and Changes, uses this information for Planning, Decision-making, and Control Purposes. Information generation and transmission of information to external agencies. • Exchange of Resources – Inputs received from external environment, and so is disposal of its output for wide array of clientele satisfying the need and demands of external environment. • Exchange of Influence and Power - External environment holds considerable power by virtue of being more inclusive and by virtue of command over its resources, information and inputs. It offers range of opportunities, incentives, and rewards on one hand, and set of constraints, threats, and restrictions on the other. In both ways organization is conditioned and constrained. For example – Government Control, Collective power of Customers, Suppliers, Competitors etc. Relationships depends on fact whether environmental elements behave randomly or structured manner (uncertain vs predictability).
  • 23. InternalEnvironment- Components Internal environment has direct impact on business. Important internal factors which have a bearing on the decisions of a business firm and which are generally controllable because the company has control over these factors: • Value system • Vision, Mission and Objectives • Management Structure and Nature • Internal Power Relationship • Human Resources • Company Image
  • 24. InternalEnvironment- Components Value System - The value system of founders and those at the helm of affairs has important bearing on the choice of business, the mission and objectives of the organization, business policies and practices. Vision, Mission, and Objectives - The business domain of the company , priorities, direction of development, business philosophy, business policy etc. are guided by the mission and objectives of the company Management Structure and Nature - The organizational structure, the composition of the Board of Directors, extent of professionalization of management etc. are important factors influencing business decisions. Board of directors is the highest decision making body and it overseas performance of the organization and so its quality is very important. The share holding pattern can also have important managerial implications.
  • 25. InternalEnvironment- Components Internal Power Relationship - Factors like the amount of support the top management enjoys from lower levels and workers, share holders and Board of Directors have important influence on the decisions and their implementation. The relationship between the members of Board of Directors, and CEO is also a critical factor. Human Resources - The characteristics of the human resources like skill, quality, morale, commitment, attitudes etc. could contribute to the strength and weakness of the organization. The involvement, initiative etc. of the people at different levels may vary from organization to organization. Ex: Some organizations find it difficult to carry out restructuring or modernization because of resistance by employees whereas they are smoothly done in some others.
  • 26. InternalEnvironment- Components Company Image and Brand Equity - The image of the company matters while raising finance, forming joint ventures or other alliances, soliciting market intermediaries, entering purchase or sale contracts , launching new products etc. OTHER FACTORS 1. Physical Assets and Facilities 2. R&D and Technological Capabilities 3. Marketing Resources 4. Financial Factors
  • 27. ExternalEnvironmentMACROENVIRONMENT • Demographic • Economic • Government • Legal • Political • Cultural • Technological • Global MICROENVIRONMENT • Consumer / Customer • Competitors • Organization • Market • Suppliers • Intermediaries • Publics
  • 28. Microenvironment • Also known as task environment and operating environment • It includes • Consumers / Customers • Competitors • Organization • Market • Suppliers • Intermediaries • More intimately linked with the company than macro factors • The micro forces need not necessarily affect all the firms in a particular industry in the same way. • Some of the micro factors are particular to a firm.
  • 29. Consumers/Customers • Major task of business is to create and sustain customers • Different categories of consumers / Benefits looking for / Buying Patterns • Individuals • Households • Industries and other commercial establishments • Government and other institutions • Depending on single customer is too risky • Choice of customer should be done by considering • Relative profitability • Dependability • Stability of demand • Growth prospectus • Extent of competition
  • 30. Competitors • A firm’s competitors include not only the other firms which market the same or similar product but also all those who compete for the income of the consumers. • Desire competition • Generic competition • Product form competition • Brand competition • The competition here among these products may be said as desire competition as the primary task here is to fulfil the desire of the customers. • Who are the competitors • What is their present strategy and business objectives • Who are the most aggressive and powerful competitors.
  • 31. Organization • Individuals occupying different positions, working in different capacities, having different interests. • It is self analysis of organization (both strengths and weakness) • The groups that are likely to influence an organization are: • Owners – Individuals, Share holders, Groups have vested interest of well being of the company. • Board of Directors (Companies Act 956) – Elected by share holders, they oversee the general management of the organization and protect share holders interests. • Employees - They should embrace same values and goals as the organization or else the organization will suffer.
  • 32. Market • Market is larger than Customers. • Market is studied for its actual potential size, its growth prospects, and its attractiveness. • Important Issues are: • Cost Structure of Market • The Price sensitivity of Market • Technological structure of the Market • The Existing distribution system of the market • Is the Market Mature
  • 33. Suppliers • Those who supply the inputs (raw materials, equipments and services to the company. • Source/Sources should be Reliable • Uncertainty regarding the supply or other supply constraints or compel s companies to maintain high inventories causing cost increases. • Very risky to depend on a single supplier • The purchasing department should “market” itself to suppliers, to obtain favourable treatment during the periods of shortages. • Organizational decisions about “Outsourcing” or “In-house Production” is very important
  • 34. MarketingIntermediaries • Firms that aid the company in promoting, selling and distributing its goods to final buyers. They are important link between company and customers. It Includes: • The middlemen and merchants who “help the company find customers or close sales with them” • Physical distribution firms which “ assist the company in stocking and moving goods from their origin to their destinations” • Marketing service agencies which “assist the company in targeting and promoting its products to the right markets” • Financial intermediaries which “finance marketing activities and insure business risks” • Vital links between the company and the final consumers.
  • 35. Publics • Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its interests. E.g. Media publics, citizens action publics, local publics • Media attack on any company can influence the government decisions affecting the company. • Environmental pollution is an issue often taken up by number of local publics • Publics are not always threat to the business. • Fruitful cooperation between a company and the local publics may be established for the mutual benefit. • NGOs have been protesting against child labour, cruelty against animals, environmental problems, deindustrialization resulting from imports etc.
  • 36. ExternalEnvironment(Micro Environment) CONSUMERS / CUSTOMERS • Who are the customers and what benefits they are looking at? • What are their buying patterns and buying habits? • Difference between customer and consumer? COMPETITORS • Who are competitors (competing for both resources and markets)? • What are their present strategy and business objectives (direct and indirect competition)? • Who are most powerful and aggressive competitors? ORGANIZATION • People occupying different positions and their background (their varied interests)? • Analyzing objectives, goals and resource availability? • Groups influencing an organization (Owners, Board of Directors, and Employees)? MARKET • Market actual and potential size, growth prospects and its attractiveness? • Study of Cost structure, price sensitivity, technological structure and distribution system? • Is market mature? SUPPLIERS • Suppliers are important (provides raw material, components, and services)? • Suppliers own bargaining power affect cost structure of the industry? • Outsourcing or In house production depends on supplier environment? MARKET INTERMEDIATER IES • Major influence (middle man, marketing agencies, financial and physical intermediaries)? • Consumer is not aware of manufacturers? • Adds to cost structure?
  • 37. MacroEnvironment • Consists of larger societal forces that affect all the actors in company’s micro environment-namely : • Demographic • Economic • Political - Legal • Socio – Cultural • Technological • Natural • Global • Also known as Societal Environment – It includes general forces that do not directly touch on short-run activities of the organization but that can, and often do, influence its long-run decisions.
  • 38. DemographicEnvironment Denotes characteristics of population in area (race, age, income, educational attainment, asset ownership, employment status, Size, growth rate, age composition, sex composition of population, family size, educational levels, economic stratification of the population, language, caste, religion, and location). POPULATION SIZE • Change in birth rate, family size • Increase and decline in total population • Effect of Rapid population growth on natural resources GEOGRAPHIC DISTRIBUTION • Attractiveness of Companies location • Availability of qualified work force • Concept of working from home due to IT revolution ETHNIC MIX • Change in product and service design • Demand of new products and services • Culturally diverse work force • Advantages of work force heterogeneity INCOME DISTRIBUTION • Individual and group purchasing power • Consumption • Spending • Saving pattern
  • 39. EconomicEnvironment • Economic environment refers to the aggregate of the nature of economic system of the country, business cycles, the socio-economic infrastructure etc. The successful businessman visualizes the external factors affecting the business, anticipating prospective market situations and makes it suitable to get the maximum benefits with minimize cost. Important factors are: Economic conditions, Economic policies, and Economic systems • Economic condition • The economic conditions of a country – for example, the nature of the economy, the stage of development of the economy, economic resources, the level of income, the distribution of income and assets, etc.- are among the very important determinants of business strategies. In a developing country, the low income may be the reason for the very low demand for the product.
  • 40. India: Fastest Growing Free Market Democracy Economic Environment
  • 41. EconomicEnvironment • Economic Policies • Some types or categories of business are favourably affected by government policy, some adversely affected, while it is neutral to some others. • E.g. a restrictive import policy may greatly help the import competing industries, while a liberalisation of the import policy may create difficulties for such industries • Economic System • The scope of the private business depends on the economic system. • The freedom of the private enterprise is the greatest in the free market economy.
  • 42. Political- Legal Environment It includes factors like: • General state of political Development • Degree of Politicization of Business • Level of Political Mortality • Law and Order Situation • Political Stability • Political Ideology • Practices of Ruling Party • Efficiency of Government Agencies • Government Intervention in Business • Government Policies (Fiscal, Monitory, Industrial, Labour, Export-Import Policy) • Specific Legal Enactments & Implementation • Public Attitude towards Business POLITICAL POLITCIAL PRESSURE INFLUENCE AND LIMIT ORGANIZATION. (CONSUMER RIGHTS, MINORITY RIGHTS, WOMAN RIGHTS AND LABOUR RIGHTS MUST BE PROTECTED) LEGAL ORGANIZATION MUST FOLLOW RELEVANT LAWS (COMPANIES, COMPETITION, IP, FOREIG EXCHANGE ETC) GOVERNEMNT AFFECTS BUSINESS DIRECTLY (TAXES AND DUTIES)
  • 43. Political- Legal Environment • Has close relationship with the economic system and economic policy. • It includes factors such as characteristics and policies of the political parties, nature of Constitution and government system relating to business policies and regulations. • Important economic policies such as industrial policy, policy towards foreign capital and technology, fiscal policy and foreign trade policy are often political decisions. • In many countries regulations to protect consumer interests have become stronger. Some governments specify certain standards for the products to be marketed in the country; some even prohibit the marketing of certain products. Promotional activities are subject to various types of controls. Eg: In India, Advertisement of alcoholic product is prohibited and the packages must carry “injurious to health” warnings
  • 44. Socio- Cultural Environment • The social dimension or environment of a nation determines the value system of the society which, in turn affects the functioning of the business. • Sociological factors such as costs structure, customs and conventions, mobility of labour etc. have far reaching impact on the business. These factors determine the work culture and mobility of labour, work groups etc. • Strategy should be appropriate in the socio-cultural environment. Eg: nestle brews a very large variety of instant coffee to satisfy different national tastes. • Even when people of different cultures use the same product; the mod of consumption, conditions of use, purpose of use or the perceptions of the product attributes may vary so much so that the product attributes, method of presentation, positioning or method of promoting the product may have to be varied to suit the characteristics of different markets. E.g.: Vicks Vaporub, the popular pain balm is used as mosquito repellent in some tropical countries.
  • 45. Socio- Cultural Environment It includes factors like: • Buying and Consumption Pattern • Values and Beliefs • Literacy Level / Education • Ethical Standard • State of Society, Tastes & Preferences • Extent of Social Stratification • Conflict and Cohesiveness • Human Relationships • Language, Belief, Norms in Society • Social Customs & Traditions • Social Rituals • Changing life Style Patterns • Family Structure • Work Ethics • Media and Consumerism
  • 46. Socio- Cultural Environment • Language difference pose a serious problem. • e.g. Preet- Prestige for overseas market • In Japanese, General Motors’ “body by Fisher” means “Corpse by fisher” • Colour • Blue: feminine and warm in Holland ; but masculine and cold in Sweden • Green: favourite in Muslim world; but represents illness in Malaysia • Red: popular in communist countries; but represents disaster in Africa • White: death and mourning in China and Korea; but it expresses happiness in some countries. Also it is the colour of bridal dress.
  • 47. TechnologicalEnvironment • The business in a country is greatly influenced by the technological development and opportunities arising out of technological innovation. • The technology adopted by the industries determines the type and quality of goods and services to be produced and the type and quality of plant and equipment to be used. • Technological environment influences the business in terms of investment in technology, consistent application of technology and the effects of technology on markets. Access to information highway is key. • The pull of technological change. • Risk and Uncertainty of technological development. • Role of R&D in the country and Government R&D Budget
  • 48. TechnologicalEnvironment Technologies have changed our life forever THE TECHNOLOGY PULL TECHNOLOGY INNOVATION ROLE OF RESEARCH & DEVELOPMENT RISK AND UNCERTAINITY OF TECHNOLOGY DEVELOPMENT
  • 49. • Business prospects demands availability of certain physical facilities. E.g. demand for electrical appliances is affected by the extent of electrification and the reliability of power supply. Demand for LPG stoves depend on rate of growth of gas connections • Differing technological environment of different markets may call for product modifications. E.g. Many appliances are designed for 110 V in USA. They should be converted for 240v in India • Technological developments may increase or decrease the demand for some existing products. E.g. voltage stabilizers help increase in sale of electrical appliances in markets characterised by frequent voltage fluctuations. Introduction of TVs, Refrigerators, etc. with in-built stabilizers adversely affects the demand for voltage stabilizers.
  • 50. Natural Environment • Geological and ecological factors, such as natural resources endowments, weather and climatic conditions, topographical factors, location aspects in the global context, port facilities etc., are relevant to business. • Differences in geographical conditions between markets may some times call for changes in the marketing mix. Geographical and Ecological factors also influence the location of certain industries. E.g. industries with high material index tend to be located near the raw material sources. • Topographical factors may affect the demand pattern: • E.g.. In hilly areas with difficult terrain, jeeps may be in a greater demand than cars. • Ecological factors have recently assumed great importance. The depletion of natural resources, environmental pollution and the disturbance of ecological balance have caused great concern.
  • 51. International/ Global Environment • Positive and Negative Impact of Significant International event. • Identification of emerging global markets and markets that are changing. • Difference between cultural and institutional attributes of individual global markets • Acquisitions by Indian Companies abroad (global perspective is universal).
  • 52. International / Global Environment The global environment refers to those factors which are relevant to business such as: WTO principles and agreements, International conventions, Treaties, agreements, declarations, protocols, economic sentiments in other countries, hike in crude oil prices etc. • Particularly important for the industries directly depending on imports or exports and import-competing industries. • Recession, economic boom, liberalization • Major international developments have their spread effects on domestic business. E.g. Oil price hikes increased the cost of production and the prices of certain products such as fertilizers , synthetic fibres. So usually, the demand for natural fibres and manures increased. Also demand for automobiles that economise energy consumption got increased.