BUSINESS ENVIRONMENT: AN ANALYSIS

DR. SK LAROIYA UNIVERSITY OF DELHI AND AMITY 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 • 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 .

PRODUCT DIFFERENTIATION WOULD BECOME MORE IMPORTANT .EMERGING TRENDS • WITH GROWING COMPETITION.

• 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 .

FOOD PRICES .FLUCTUATIONS IN THE LEVEL OF ECONOMIC ACIVITY .EFFECTS OF GLOBALIZATION A. HEGEMONY OF DEVELOPED COUNTRIES . ON THE INTERNATIONAL ECONOMY ESPECIALLY DEVELOPING COUNTRIES 1.STOCK MARKETS .CAPITAL MOVEMENTS .

SOCIO-CULTURAL ENVORONMENT .ADVERSE EFFECTS ON THE VALUE SYSTEM .POLITICAL INTERFERENCE .CONSUMERISM ..ADVERSE EFFECTS ON THE SOCIETY .KILLING DOMESTIC INITIATIVES 2.

3. LONG TERM EFFECTS ON THE ECONOMY AND GOVERNANCE .

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