Macro-Environment

• National Environment
• International or Global
Environment
• Technological Environment
 National Environment
• Economic Environment
• Political Environment
• Govt. Environment
• Legal Environment
• Financial Environment
• Socio-cultural Environment
• Demographic Environment
• Natural Environment
 Economic Environment
• Stage of Economic Development
• Central Planning mechanism
• Economic Indicators
• Type of Economic System
• Economic Policies
• Supply & Demand forces in an industry
• Conditions in Resource Markets
• Conditions in related industries
• Economic / Business Cycles
 Political Environment
• State of Political Development
• Degree of Politicalisation of Business &
Economic Issues
• Political Morality
• Law & Order
• Political Stability
• Political Ideology & Practices of Ruling
Party
 Govt. Environment
• Efficiency of the Govt. Agencies &
Deptts.
• Govt. Intervention in economy &
industry
• Govt. Attitude towards Industry
• Tenure of Ruling Govt.
• People comprising the Govt.
 Legal Environment
• Legal Framework
• Legal Enactments
• Laws affecting particular businesses / industries
• Legal Provisions on Related Matters
• Distribution of Legislative Power between Central &
State Govts.
• Policies towards Monopolies, Foreign Investment &
Industrial Financing
• Policies towards SSIs, SMEs, Sick Units, Consumer
Protection, Investor Protection, Environmental Pollution
 Financial Environment

• The Central Bank & its Policies

• Health of Commercial Banks
• Existence & Role of DFIs
• Existence of NBFCs
• Interest Rates & Liquidity
• Policies on Lending
Socio-Cultural Environment
• Attitudes of People
• Literacy Level
• General Awareness of People
• Role of Women in Society
• Consumption Habits of People
• Customs & Traditions in Regions
• Languages spoken
• Beliefs & Value Systems
• Family Structures
• Festivals
• Extent of Urbanisation
• Social Stratification
Demographic Environment
• Family Size
• Population Size
• Literacy Level
• Job Profiles of People
• Male / Female Composition of Population
• Life Expectancy
• Religion & Caste System
• Spatial Mobility of Population
 Natural Environment
• Region-wise Climatic Conditions
• Geography
• Types of Crops
• Availability of Natural Water
Sources
• Soil Conditions
• Flora & Fauna
 International or Global
Environment
• Economic crisis in other countries
• Slowdown in major economies
• Crash in major economies
• Global recession
• Protectionism by foreign govts.
• Regional economic groups
• Dominance of MNCs
• Underdeveloped countries
 Technological Environment
• Pace of Technological changes
• Internal sources of Technology
• Emphasis on R&D
• Environmental effects of Technology
• Technological changes in communication,
infrastructure & daily life
• Technological Obsolescence
• Technological Innovations in Products / Processes
• Technology used by Competitors & Industry
Basic Economic Indicators-I

• GDP
• GNP
• National Income
• Per Capita Income
• Personal Disposable Income
Basic Economic Indicators-II

• Balance of Payments (BoP)

• Fiscal Deficit
• Inflation
• GDP Growth Rate
• Interest Rates
Basic Economic Indicators-III
• Foreign Exchange Rates
• Commodity Prices
• Index of Industrial Production (IIP)
• Stock Market Index
• FDI Inflows
• Portfolio Investments (FII Inflows &
Outflows)