BUSINESS ENVIRONMENT: AN ANALYSIS

DR. SK LAROIYAUNIVERSITY OF DELHIANDAMITY BUSINESS SCHOOL

BUSINESS ENVIRONMENT

WHY IT IS ESSENTIAL FOR A BUSINESS ENTERPRISE?

BUSINESS ENVIRONMENT contd…

IT IS DEFINED AS THE PROCESS BY WHICH THE STRATEGISTS MONITOR

ECONOMIC GOVERNMENTAL LEGAL MARKETING COMPETITIVE TECHNOLOGICAL SOCIAL SETTINGS

TO DETERMINE OPPORTUNITIES AND THREATS TO THEIR ENTERPRISES

SWOT ANALYSIS

EVERY ENTERPRISE MUST UNDERTAKE TO ANALYZE

BUSINESS ENVIRONMEMT

PROSPECTS FOR A BUSINESS IS A FUNCTION OF

RESOURCES

AND AN ANALYSIS OF BUSINESS ENVIRONMENT

EVERY BUSINESS IS CONFRONTED WITH CONTROLLABLE FACTORS ( INTERNAL FACTORS)

UNCONTROLLABLE FACTORS (EXTERNAL FACTORS)

• EXTERNAL FACTORS ARE BEYOND THE CONTROL OF THE BUSINESS ENTERPRISE

• ITS SUCCESS DEPENDS ON ITS ADAPTABILITY TO THE EXTERNAL ENVIRONMENT THAT IS ITS ABILITY TO PROPERLY DESIGN AND ADJUST INTERNAL FACTORS AND TAKE ADVANTAGE OF THESE OPPORTUNITIES AND COMBAT THE THREATS IN THE EXTERNAL ENVIRONMENT

FACTORS INFLUENCING BUSINESS ENVIRONMENT

MACRO FACTORS

MICRO FACTORS

MACRO FACTORS

• NATIONAL INCOME INDICATORS• INVESTMENT RULES AND REGULATIONS• MONETARY AND FISCAL POLICIES• POLITICAL AND GOVERNMENTAL

ENVIRONMENT• SOCIO-CULTURAL ENVIRONMENT

• DEMOGRAPHIC ENVIRONMENT• TECHNOLOGICAL ENVIRONMENT• INTERNATIONAL ENVIRONMENT

MICRO FACTORS

• SUPPLIERS• CONSUMERS• COMPETITION• MARKETING INTERMEDIARIES• MEDIA

TECHNIQUES OF ANALYSIS

• VERBAL AND WRITTEN INFORMATION

• SEARCH AND SCANNING

• SPYING

• FORECASTING AND FORMAL STUDIES

NEW TRENDS

SOCIAL RESPONSIBILITY OF BUSINESS

AN EMERGING SCENARIO

BUSINESS ENVIRONMENT IS DYNAMIC

ITS ELEMENTS ALWAYS KEEP ON CHANGING

BUSINESS ENVIRONMENT:AN EMERGING SCENARIO

• GLOBAL

• NATIONAL

GLOBAL

POLITICAL AND ECONOMIC ENVIRONMENT

NATIONAL ECONOMIC STRATEGIES REGIONAL ECONOMIC GROUPINGS PROTECTIONISM GOVT. SUPPORT

BUSINESS STRATEGIES

SELLING WORLD WIDE SOURCING JOINT VENTURES MERGERS AND ACQUISITIONS

NATIONAL

ECONOMIC AND COMPETITIVE ENVIRONMENT

DEMOGRAPHIC AND SOCIAL ENVIRONMENT

EMERGENCE OF RURAL MARKETS

EMERGING TRENDS

• WITH GROWING COMPETITION, PRODUCT DIFFERENTIATION WOULD BECOME MORE IMPORTANT

• GROWING COMPETITION WILL INCREASE THE IMPORTANCE OF AUGMENTED PRODUCT

• MORE ATTENTION TO THE PRODUCT QUALITY AND SERVICING BY THE COMPANIES

• MORE DIRECT MARKETING

• SOCIETAL MARKETING WOULD GAIN IMPORTANCE

• ABUNDANT ENTREPRENEURIAL CHANCES THROUGH FAST GROWING SERVICES SECTOR

• COMPANIES SHALL TEND TO ADOPT LEAN STRUCTURE AND CUT EXTRA FLAP

• INDIAN BUSINESSES SHALL BECOME MORE INTEGRATED WITH THE GLOBAL BUSINESSES

• VARIETY OF PRODUCTS AND PRODUCT AVAILABILITY WILL SIGNIFICANTLY INCREASE, SUBSTANTIALLY INCREASING THE CONSUMER CHOICE

• INDUSTRIES WOULD BE MORE SKILL INSTEAD OF CAPITAL AND LABOR INTENSIVE

EFFECTS OF GLOBALIZATION

A. ON THE INTERNATIONAL ECONOMY ESPECIALLY DEVELOPING COUNTRIES

1. HEGEMONY OF DEVELOPED COUNTRIES - CAPITAL MOVEMENTS- FOOD PRICES- STOCK MARKETS- FLUCTUATIONS IN THE LEVEL OF

ECONOMIC ACIVITY

- POLITICAL INTERFERENCE- KILLING DOMESTIC INITIATIVES2. SOCIO-CULTURAL ENVORONMENT - CONSUMERISM- ADVERSE EFFECTS ON THE SOCIETY- ADVERSE EFFECTS ON THE VALUE SYSTEM

3. LONG TERM EFFECTS ON THE ECONOMY AND GOVERNANCE