Presented By:

ANUJ RANA
ATULYA AGGARWAL
 “Business, Like weather is with us everyday.”
-Wheeler

“Business may be defined as human activity

directed towards producing or acquiring wealth
through buying or selling of goods.
-C.H.Haney

“Environment consists atoms & molecules

agglomeration of things in motion, alive of men
emotions, or force & resistances. There numbers are
infinite & they are always present; they are always
changing.
-Chester Bernard
1. Interdependence
2. Dynamic
3. Unlimited effect of uncontrollable factors.
4. Media & Social Change
5. Uncertainties & Restrictions.
6. Adverse conditions
7. To keep regular vigil on the changing
environment.
8. Danger of casual change
 B u s i n e s s E n v i r o

I n t e r n a l E n v i r oE n x m t e e r nn t a l E n v i r o

S t r e n g t Wh s e a k n O e sp s p o r t u Tn ih t ir e e s a t s
-William F Gluicck
 Internal Business External
Environment Decisions Environment
 MISSION MANAGEMENT
VALUE
& STRUCTURE &
SYSTEM
OBJECTIVE NATURE

INTERNAL INTERNAL
ATTITUDES BUSINESS POWER
ENVIRONMENT RELATIONSHIP

COMPANY
OTHER HUMAN
IMAGE &
FACTORS RESOURCE
BRAND EQUITY
 Miscellaneous Factors
 Physical Assets & Facilities
 R&D Technological Capabilities
 Marketing Resources
 Financial Factors
 E x t e r n a l E n

M i c r o M a c r o
E n v i r o En mn v e i nr ot n
 “Micro or task environment is more specific and
immediate environment in which an organization
conducts its business.”
-Dunham & Pierce
 Reliability

 Multiple Supplier
 Types of Customers
 Industrial Customers
 Institutional Customer
 Foreign Customer
 Retail Customer

Multiple Customer
Globalization
Customer Segmentation
 Types of Market Intermediates
• Middlemen
• Marketing Agencies
• Financial Institution
• Physical Intermediates
 Pricing Competition
 Non Pricing Competition
 Media Publics
 Local Public
 Economic
 Political
 Social-Cultural
 Technological
 Demographic
• MACRO ENVIRONMENT means general
environment of business. Macro factors are
uncontrollable in comparison to the micro forces
of environment. The growth and survival of
business depend upon its adaptability to macro
environment factor which include
Economic Conditions
•Boom
•Depression

Economic System
•Capitalist
•Socialist
•Mixed Economy

Economic Policies
•Monetary Policy
•Fiscal Policy
•Foreign Trade Policy
•Foreign Investment
•Industrial Policy
Political Ideology of Govt.
Political stability in the Economy.
Foreign Policy of Govt.
Defense & Military Policy.
Centre state relationship.
 P o l i t c a l E n v i r o n m e

P o l i t i c a l S y s t Ce mo n s t i t u t i o n
E n v i r o n m e n t

L e g i s l a t u r eP r e a m b l e

E x e c u t i v e F u n d a m e n t a l R i g

J u d i c i a r y D i r e c t i v e s
P r i n c i p l e s o f S t a t
 Urbanization
 Religion
 Tastes & Preferences
 Customs & Tradition in Society
 Health & Quality of Life
 Language
 Innovation
 Research & Development
 Inflow of foreign Technology etc.
 Age Composition
 Sex Composition
 Education Level
 Family size & structure
 Urban-rural population
year Under 15 15-64 65+

2000 361 604 45

2005 368 673 51

2010 370 747 58

2020 373 882 76

Foreign investment plays important
role to accelerate the growth of
any economy
International capital flow gives
boost to the various economic
sector
 Increase the level income and employment
 Increase the tax revenue of the Govt.
 It facilitate transfer of technology to the host
country
 It provide professionalism
 It enables the country to increase exports and
reduces imports
 Foreign investors encourages the domestic
suppliers
 It increase competition and breaks monopoly
 Improves the quality and the cost of inputs
incurred
 Flow of investment into high profit area
 Stage of development of the country
 Multinational can evade the economic power
 Unfavorable effect on balance of payments
 Interference in the national politics
 Engage in unfair and unethical trade
practices
 Higher cost are involved to encourage FDI
 MAURITIUS 34.49 %
 USA 17.1 %
 JAPAN 7.33 %
 NETHERLANDS 7.16 %
 UK 6.54 %
 MAHARASHTRA 14.8 %
 DELHI 12.2 %
 TAMILNADU 9.05 %
 KARNATKA 7.63 %
 GUJRAT 4.97 %
 The concept of “ Industrial Policy” covers all
those procedures, principles, policies, rules and
regulations which control the industrial
undertaking of a country and shape the pattern
of Industrialization.
 After independence Indian Industrial production
lower down
 Inflation Increases
 Rehabilitation problem faced by Indian due to
partition
 First phase of Industrialization started by
constituting the first Industrial policy
resolution,1948
 Globalization is the process by which a firms
activity become worldwide in scope
 Doing, or planning to expand , business globally
 Giving distinction between the domestic market
& foreign market
 Locating the production and other physical
facilities of global business dynamics
 Basic product development and production
planning on the global consideration
 Global sourcing of factors of production
 Global orientation of organizational structure
and management culture
THANK
YOU