2nd SEMESTER

1. Introduction
2. Economic and technological environment
3. Political and social environment
4. Perspectives of Indian economy
5. Human resource and economic development
6. Sectoral composition of Indian economy
7. Inequality and economic power in India
8. The foreign trade of India
 Environment literally means the
surroundings, external objects under which
something exist.
 All external forces impact on the functioning
of a business
 Business is all about reaping profits from the
opportunities available in the environment.
 Opportunity can be threat to a business.
 Every business operates in a particular
environment
 Changes in RBI’s Monetary policy can impact.
 It can predict the changes in the environment
 The relation between a business and an
environment is not a one way affair.
 Its not all about the economic environment
but it also about the political environment.
 Success of a business fall in understanding of
an environment.
 Complex in nature
 It is dynamic
 It has a multi faceted
 Inter relatedness
 Uncertainty
 Relativity
 Far reaching impact.
 A) It Helps in Identifying Opportunities and
Making First Mover Advantage
 (B) It Helps the Firm Identify Threats and Early
Warning Signals
 (C) It Helps in Tapping Useful Resources
◦ Business avails inputs from environment and
convert them into usable products and provide to
society.
◦ Ex LED manufacturer collects latest technology
instead of availing inputs for color and black &
white TV
 (D) It Helps in Coping With Rapid Changes
◦ Business environment is changing very rapidly and
industry is getting affected by changing market
conditions
◦ Ex . Change in fashion especially jeans ware
reduced demand of traditional attire.
◦ Due to less brand loyalty, division of market, global
competition.
 (E) It Helps in Assisting in Planning and Policy
Formulation
 (F) It Helps in Improving Performance
 Value system
◦ Business ethics, moral values and beliefs assist in
achieving organizational goal.
◦ It determines the behavior towards employees,
customers and society.
◦ Being honest to the people.
◦ Initiating contributions to up lift the society lead to
the success of a business.
 Mission and vision
◦ Guide the priorities, business policies
◦ Business plan has to be developed
◦ Effective utilization of resources.
◦ Ex . To become world class company follow
Reliance industry.
 Organizational structure
◦ It’s a style in which the tasks are distributed.
◦ Its concerned with hierarchical relationship.
◦ Delay in decision making can cause a business.
 Corporate culture.
◦ It’s a way of attitude and behaviors
◦ Its generally considered as either closed and
threatening or open and participatory.
 Human resource
◦ Its concerned with factors manpower planning,
recruitment , compensation and appraisal.
 Macro environment
◦ Political environment
◦ Regulatory and legal environment
◦ Demographic
◦ Socio culture environment
◦ Technological environment
◦ Global environment
◦ Economic environment
 Political environment
◦ Political environment decides the fortune of
business in a country.
 Ex janata govt.
◦ Political philosophy and stability influences.
 Regulatory and Legal environment
◦ Its an result or outcome of a political environment
◦ It dictates the dos and don’ts of a business.
◦ It consist of various laws such as companies act,
MRTP act, consumer protection act,,etc..
 Demographic environment.
◦ It consist of age, gender, size, occupation and
needs.
◦ It decides the marketing mix for an organisation.
◦ Ex ITC launched E chaupal.
 Socio culture
◦ It falls between values, beliefs, attitude of the
people.
◦ Drastic changes could be seen in lifestyle of the
people.
◦ Culture also influences the business environment.
◦ Ex. MC Donald's and KFC
 Technological environment
◦ It enhances wide range of opportunities and
threats.
◦ It may affect business actions.
◦ Rate of change in technology.
 Global environment.
◦ It focuses on the operations across the national
boundaries.
◦ Changes in global relationships.
◦ All companies must be mindful of the global
environment.
 Economic Environment.
◦ It consist of economic conditions and the nature of
the economy.
◦ Decides purchasing power.
◦ Economic policies
 Business environment is extremely dynamic
in nature.
 It’s a process by identifying the risks and
opportunities affecting business prospectus.
 Environmental scanning is related to
examining and interpreting different
economic, social, technology, political trends
and events that affect an organisation.
 SWOT Analysis.
 Best use of resources
 Survival and growth of a business
 Planning for long term
 Helps in decision making.