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Lalpur Extension Centre Ranchi


%ame !& 'eacher Satrajeet (haudhary

Submitted by: Avinash Raja (BBA/2019/10) Rajeev Kumar (BBA/2021/10) Subject- r!ject mana"ement
#r!u n!$-9

Question: Describe briefly the aspects of business environment that needs to be monitored as well as the dimensions along which a firm may appraise its strength and weakness for identifying investment opportunities? Answer: )nderstandin" the envir!nment *ithin *hich the business has t! ! erate is very im !rtant &!r runnin" a business unit success&u++y at any +ace$ Because, the envir!nmenta+ &act!rs in&+uence a+m!st every as ect !& business, be it its nature, its +!cati!n, the rices !& r!ducts, the distributi!n system, !r the ers!nne+ !+icies$ -ence it is im !rtant t! +earn ab!ut the vari!us c!m !nents !& the business envir!nment, *hich c!nsists !& the ec!n!mic as ect, the s!ci!-cu+tura+ as ects, the !+itica+ &rame*!r., the +e"a+ as ects and the techn!+!"ica+ as ects Monitoring the environment Basica++y a r!misin" investment idea enab+es a &irm (!r entre reneur) t! e/ +!it ! !rtunities in the envir!nment by dra*in" !n its c!m etitive stren"ths$ -ence the &irm must systematica++y m!nit!r the envir!nment and assess its c!m etitive abi+ities$ 'his secti!n +!!.s at the m!nit!rin" !& envir!nment and the &!++!*in" at c!r !rate a raisa+$ 0!r ur !se !& m!nit!rin", the business envir!nment may be divided int! si/ br!ad sect!rs$ 'he im !rtant as ects studied in m!nit!rin" the .ey sect!rs !& the envir!nment are as &!++!*s:

Economic sector 'his inc+udes the ec!n!mic &act!rs that a&&ects !r may a&&ect the business *ithin a state !& ec!n!my$ 1t inc+udes &act!rs +i.e state !& the ec!n!my !vera++ rate !& "r!*th #r!*th rate !& rimary, sec!ndary, and tertiary sect!rs (yc+ica+ &+uctuati!ns 1n&+ati!n rate 2in.a"e *ith the *!r+d ec!n!my 'rade sur +us/de&icits Ba+ance !& ayment situati!n Governmental sector 'his inc+udes the vari!us ru+es and re"u+ati!ns +aid d!*n by the "!vernment t! chec. industria+ "r!*th !r t! r!m!te industria+ deve+! ment !& the state$ 1t inc+udes: 1ndustria+ !+icy #!vernment r!"rams and r!jects 'a/ &rame*!r. Subsidies, incentives, and c!ncessi!ns 1m !rt and e/ !rt !+icies 0inancin" n!rms 2endin" c!nditi!ns !& &inancia+ instituti!ns and c!mmercia+ ban.s

echnological sector 'his inc+udes the techn!+!"ica+ &act!rs a&&ectin" business +i.e 4mer"ence !& ne* techn!+!"ies Access t! technica+ .n!*-h!*, &!rei"n as *e++ as indi"en!us Rece tiveness !n the art !& industry !ocio"demographic sector 'his inc+udes s!cia+ and dem!"ra hic &act!rs !ccurrin" *ithin an area *hich a&&ects !r may a&&ect the business +i.e 5! u+ati!n trends A"e shi&ts in ! u+ati!n 1nc!me distributi!n 4ducati!na+ r!&i+e 4m +!yment !& *!men Attitudes t!*ard c!nsum ti!n and investment #ompetition sector 'his inc+udes the c!m etitive &act!rs that brin"s ab!ut c!m etiti!n in business ! erati!n +i.e %umber !& &irms in the industry and the share !& the t! &e*(&!ur !r &ive) 6e"ree !& h!m!"eneity and di&&erentiati!n am!n" r!ducts 4ntry barriers

(!m aris!n *ith substitutes in terms !& 8ua+ity, rice, a &uncti!na+ er&!rmance 9ar.etin" !+icies and ractices

ea+, and

!upplier sector 'his inc+udes the &act!rs that a&&ects the su +y !& ra* materia+s !r r!ducts *hich u+timate+y a&&ects the sm!!th &+!* !& a business$ 'hese &act!rs are Avai+abi+ity and c!st !& ra* materia+s and sub-assemb+ies Avai+abi+ity and c!st !& ener"y Avai+abi+ity and c!st !& m!ney

Dimensions along which a firm may appraise its strength and weakness A rea+istic a raisa+ !& c!r !rate stren"ths and *ea.nesses is essentia+ &!r identi&yin" investment ! *ea.ness a !rtunities *hich can be r!&itab+y e/ +!ited$ 'he raise its stren"th and br!ad areas !& dimensi!ns a+!n" *hich a &irm may a raisa+ are as &!++!*s:

Marketing and distribution A c!m any can have an ed"e !n its c!m etit!rs !n its mar.etin" and distributi!n !+icies$ 1t inc+udes usin" a""ressive mar.etin" strate"ies !r t! have an ed"e !n the &!++!*in" ima"e 5r!duct +ine share 6istributi!n net*!r. (ust!mer +!ya+ty 9ar.etin" and distributi!n c!sts $roduction and operations 'his inc+udes the r!ducti!n and ! erati!n &act!rs that may "ive a c!m any a c!m etitive advanta"e$ 'hese are (!nditi!n and ca acity !& +ant and machinery Avai+abi+ity !& ra* materia+s, sub-assemb+ies, and !*er 6e"ree !& vertica+ inte"rati!n 2!cati!n advanta"e (!st structure

%esearch and development A c!m any can "! ahead !& its c!m etit!rs i& $ 1t has "!!d research and deve+! ment *in"$ 'he &act!rs inc+uded in these are Research ca abi+ities !& the &irm 'rac. rec!rd !& ne* r!duct deve+! ments 2ab!rat!ries and testin" &aci+ities (!!rdinati!n bet*een research and ! erati!ns #orporate resources and personnel 'his inc+udes the &act!rs *hich a&&ect the c!r !rate and ers!nne+ ima"e !& the c!m any *hich may brin" a c!m any<s brand erce ti!n$ 'hese are (!r !rate ima"e (+!ut *ith "!vernmenta+ and re"u+at!ry a"encies 6ynamism !& t! mana"ement (!m etence and c!mmitment !& em +!yees State !& industria+ re+ati!ns &inance and Accounting 'his inc+udes the &inancia+ &act!rs a+!n" *hich a c!m any can a stren"th !r *ea.ness$ 'hese are 0inancia+ +evera"e and b!rr!*in" ca acity (!st !& ca ita+ 'a/ situati!n

!sitive !r a ne"ative attitude in

raise its

Re+ati!ns *ith shareh!+ders and credit!rs Acc!untin" and c!ntr!+ system


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