S.

No Nature Objectives of Topic Details Evaluation Expected outcomes

Academic Parameters
Activity

Case Individual To make the Students will be required Report -20 Students will be able
students learn to select an organization of
Study mark, Viva- to understand the
their choice
about 10 marks concepts related to
and identify the relevant
appropriately external environmental the course.
analyze the factors including
business political, economic, social,
environment demographic, cultural and
and develop technological
affecting the business of
skills of
the chosen organization
formulating and recommend
strategic solutions for managing
actions plans such situation effectively.
OR
Complete the MOOC
Course as instructed by the
teacher

Infosys Technologies
Limited :
 ABOUT THE COMPANY :
Infosys Technologies Ltd. (NASDAQ: INFY) was started in 1981 by seven people with US$ 250.
Today, we are a global leader in the “next generation” of IT and consulting with revenues of over
US$ 4 billion. Infosys defines designs and delivers technology-enabled business solutions that help
Global 2000 companies win in a Flat World. Infosys also provides a complete range of services by
leveraging our domain and business expertise and strategic alliances with leading technology
providers.

Infosys’ offerings span business and technology consulting, application services, systems
integration, product engineering, custom software development, maintenance, re-engineering,
independent testing and validation services, IT infrastructure services and business process
outsourcing Infosys pioneered the Global Delivery Model (GDM), which emerged as a disruptive
force in the industry leading to the rise of offshore outsourcing. The GDM is based on the principle
of taking work to the location where the best talent is available, where it makes the best economic
sense, with the least amount of acceptable risk. Infosys has a global footprint with over 50 offices
and development centers in India, China, Australia, the Czech Republic, Poland, the UK, Canada
and Japan.Infosys has over 103,000 employees. Infosys takes pride in building strategic long-term
client relationships. Over 97% of our revenues come from existing customers.

Infosys has over 103,000 employees. Infosys takes pride in building strategic long-term client
relationships. Over 97% of our revenues come from existing customers.

In an increasingly globalised world, significant complexity and uncertainty is getting attached to the
unprecedented economic crisis. The Indian economy has also been impacted by the recessionary
trends, with a slowdown in GDP growth to seven per cent. The focus and exponential growth in the
domestic market has partially offset this fall and insulated the country, resulting in net overall
momentum. The IT-BPO industry in India has today become a growth engine for the economy,
contributing substantially to increases in the GDP, urban employment and exports, to achieve the
vision of a “young and resilient” India. During the year, the sector maintained its double digit growth
rate and was a net hirer. This growth has been fueled by increasing diversification in the geographic
base and industry verticals, and adaptation in the service offerings portfolio. While the effects of the
economic crisis are expected to linger in the near term future, the Indian IT-BPO industry has
displayed resilience and tenacity in countering the unpredictable conditions and reiterating the
viability of India’s fundamental value proposition. Consequently, India has retained its leadership
position in the global sourcing market. The Indian IT-BPO industry is estimated to achieve revenues
of USD 71.7 billion in FY2009, with the IT software and services industry accounting for USD 60
billion of revenues. During this period, direct employment is expected to reach nearly 2.23 million,
an addition of 226,000 employees, while indirect job creation is estimated to touch 8 million. As a
proportion of national GDP, the sector revenues have grown from 1.2 per cent in FY1998 to an
estimated 5.8 per cent in FY2009. Software and services exports (including BPO) are expected to
account for over 99 per cent of total exports, employing over 1.76 million employees. While the
current mood is that of “cautious optimism,” the industry is expected to witness sustainable growth
over a two-year horizon, going past its USD 60 billion export target in FY2011. While the industry
has significant headroom for growth, competition is increasing, with a number of countries creating
enabling business environments aimed at replicating India’s success in the IT-BPO industry. Hence,
concentrated efforts are required by all stakeholders to address the current challenges, to ensure that
India realizes its potential, and maintains its leadership position.

Vision :
“To be a globally respected corporation that provides best-of-breed business
solutions, leveraging technology, delivered by best in class people.”

mission :
“To achieve our objectives in an environment of fairness, honesty, and
courtesy towards our clients, employees, vendors and society at large.”

board of directors:
Business environment :
The word ‘business environment’ indicates the aggregate total of all people, organisations and other
forces that are outside the power of industry but that may affect its production. According to an
anonymous writer- “Just like the universe, withhold from it the subset that describes the system and
the rest is environment”. Therefore, the financial, cultural, governmental, technological and different
forces which work outside an enterprise are part of its environment. The individual customers or
facing enterprises as well as the management, customer groups, opponents, media, courts and other
establishments working outside an enterprise comprise its environment.

Business environments change frequently and require consideration when planning and conducting
operations. Business managers and executives have a responsibility to examine internal concerns for
how they may influence company decisions. It's also important to monitor any external
environmental factors that can affect how the business functions as well as develop methods for
overcoming these challenges. In this article, we discuss what external environment factors are, their
importance and nine of these factors that affect businesses.

COMPONENTS OF Business
environment :
Internal Environment :
Internal environment is a component of the business environment, which is composed of various
elements present inside the organization, that can affect or can be affected with, the choices,
activities and decisions of the organization.It encompasses the climate, culture, machines/equipment,
work and work processes, members, management and management practices.In other words, the
internal environment refers to the culture, members, events and factors within an organization that
has the ability to influence the decisions of the organization, especially the behaviour of its human
resource. Here, members refer to all those people which are directly or indirectly related to the
organization such as owner, shareholders, managing director, board of directors, employees, and so
forth .

External Environment :
External environment factors are elements that exist outside of a company's internal environment
that can affect a company's operations. These outside forces can help the business or present
challenges to its current processes. Managers often keep track of external environment factors so
they can recognize and resolve the issues the factors cause and make appropriate changes.

External environment factors are important because they can cause direct and indirect effects on
business operations, personnel and revenue. The external environment of a company changes
constantly in ways beyond the company's control, but executives and managers can track these
changes and minimize their consequences. Choosing to monitor the dynamic nature of external
environment factors allows businesses to protect themselves against predictable events and mitigate
the effects of unexpected changes.
Types Of External Environment Factors
Affecting Business Of Infosys :

Customers :
Customer experience really boils down to the perception the customer has of your brand. You may think your brand and customer
experience is the best in class but if the customer perceives it differently, you need to work on improving and enhancing it. Listen to
your customers well. It is what the customer thinks, feels, and believes that matters. Companies need to make the customers ‘feel’
they are being cared for. Seek out “truth” tellers in the client’s organization - leaders who are open and honest and tell you what you
are doing well, what you “stink” at, and where you need to improve. The truth may hurt, but it will save your business and help you
grow.

In the digital world, the greatest proof of organizational belief is the customers who keep coming back. Another sign is when
customers showcase their love of your product and service on social media (FB, LinkedIn, Twitter, and Blogs) and yet another is
positive word of mouth. All of these activities need to be captured, monitored and studied in the digital customer journey to
understand who the customers are and what they expect from the organization.

COMPETITORS :
Competition in business decreases an individual companies market share and shrinks the available customer base, especially if
demand is limited. A competitive market can also force lower prices to stay competitive, decreasing profit margins for each sale
or service. 

changes in policies and laws, both domestic and foreign, and intensifying competition in the technology services market may impact its revenues.

Political Factor :
As political officials leave office and new ones replace them, the policies they implement often
affect businesses in relevant industries. Because of the inconsistent nature of politics, businesses
monitor legislative bills closely to prepare for potential changes. Policies that can have long-term
effects on companies include : Taxation , Tariffs ,Environment law , Competition Regulation ,
Import Restriction ,Intellectual Property Law .Companies affected by political decisions must
modify their processes to comply with new legislation and regulations but doing so can keep them in
business.

Impact :

Taxation policies – Over the last two decades Infosys has benefitted from lower taxation policies
throughout the western hemisphere. It has resulted in high profits and increasing spending in the
research and development. The increasing inequality in India can lead to changes in the taxation
policies. Secondly local governments are also looking into Software & Programming specific
taxation policies to contain the carbon footprint of the Technology sector.

Armed Conflict – There are no imminent threats to India from the disruption in the business
environment because of military policies, terrorist threats and other political instability. Infosys has
experience of handling operations in difficult circumstances.

Importance of local governments in India – Unlike in most other countries, local governments
play critical role in policy making and regulations in India. Infosys has to closely follow the states
and territories it has presence in rather than devising nation-wide policies in India.

 Governance System – The present governance system in India has served its purpose for the long
time and I don’t think much will change in the process even though it may throw up leaders that can
lead divergent policy making from the historical norm. Infosys has to keep a close eye on the
industry wide government priorities to predict trends.Government of India has come under
increasing global pressures to adhere to World Trade Organization’s regulations on Software &
Programming industry.

Other stakeholders such as non-government organizations, protest & pressure groups, activist
movements play critical role in policy making in India. Infosys should closely collaborate with these
organizations so that it can contribute better to the community goals as well as with corporate goals.

Economic Factor :
The state of the economy plays an important role in every aspect of daily life from the well-being of
personnel to the ability of a company to thrive. When the economy trends downward and
unemployment rises, businesses may have to work harder to keep their staff and change their
processes to continue earning revenue. If the company produces products for retail sale, for instance,
they may consider lowering the price to increase sales and positively affect their revenue.Economic
factors includes – inflation rate, labor market conditions , taxation rate, consumer disposable income,
interest rate, economic performance of countryname, the stage of economy of countryname,
exchange rate etc.
Impact :

Inflation rate – The easy liquidity in the market post the great recession of 2018 will lead to
increasing inflation in the India economy.
Exchange rate – The volatile exchange rate of India can impact Infosys investment plans not only in
the short term but also in the long run.

Economic Performance of India – I believe the economic performance of India in the near future
5-10 years will remain stable given – government expenditure, stable demand because of disposable
income, and increasing investment into new industries.

Downward pressure on consumer spending – Even though the consumer disposable income has
remain stable, the growing inequality in the society will negatively impact consumer sentiment and
thus impact consumer spending behavior.

Increasing liberalization of trade policy of India can help Infosys to invest further into the regions
which are so far offlimits to the firm.

Economic Cycles – The performance of Infosys in India is closely correlated to the economic
performance of the India's economy. The growth in last two decades is built upon increasing
globalization and utilizing local resources to cater to global markets.

Social Factor :
Each society and culture has its own way of doing business. These social factors can not only help
companies like company name to better understand the way of doing business but also in
understanding the customer preferences in Technology sector of country name. Social factors
include – traditions, health & safety attitudes, gender roles, demographics, acceptance of
entrepreneurial spirit, societal roles and norms, culture, attitude towards certain products and
services, and leisure interests.
Impact:

Access to essential services – By and large over the last decade and half the wider population in
getting access to essential services in India. This has been a result of increasing investment in public
services.

Gender roles – The gender roles are evolving in India. Infosys can test various concepts to cater to
and support these evolving gender roles in India society.

Migration – The broader attitude towards migration is negative in India. This can impact Infosys
ability to bring international leaders and managers to manage operations in the country.

Attitude towards health and safety – With increasing liberalization the attitude towards health and
safety are getting lax. Infosys needs to stay away from these attitudes as the cost of failure is too
high in India.

Demographics – For the Technology products, Infosys has demographics on its side. India is a
young country and growing. Infosys can use this trend to cater to various segments of the population.

Leisure interests – the customers in the India are giving higher preferences to experiential products
rather than traditional value proposition in Technology sector. Infosys can leverage this trend to
build products that provide enhanced customer experience.
Technological Factor :
Technology is fast disrupting various industries and Technology is no different. There are numerous
ways technological factors are impacting the Infosys & Software & Programming in India. Some of
the technological factors are – population access to technology, supply chain disruption because of
technology, innovation in product offerings, rate of technology driven change, access to greater
information, innovation in customer services, access to mobile phones driving empowerment etc.
Impact :

5G and its potential – Infosys has to keep a close eye on the development and enhancement of user
experience with increasing speed and access. This can completely transform the customer user
experience in the Software & Programming industry.

Empowerment of supply chain partners – Technology has shortened the product life cycle and it
has enabled suppliers to quickly develop new products. This has put pressure on Infosys marketing
department to keep the suppliers happy by promoting diverse range of products. It has added to the
cost of operations of the Infosys.

Technological innovation is fast disrupting the supply chain as it is providing greater access to
information to not only supply chain partners but also to wider players in the Technology industry.

Lowering cost of production – The latest technology is fast lowering production and servicing cost
in the Technology sector. Infosys has to restructure its supply chain to bring in more flexibility to
meet both customer needs and cost structures.

Maturity of technology – The technology in the Software & Programming sector is still not reached
maturity and most players are vying for new innovations that can enable them to garner higher
market share in India.

Research and development investment at both macro level and micro level in India. If there is an
environment of creative disruption and both government and private players are spending resources
on developing new solutions.

Environmental Factor :
Over the last decade sustainability and environmental factors are becoming critical for businesses.
Government and pressure groups are fast asking organizations to adhere to environmental standards.
Some of the environmental factors are – limiting carbon footprints, climate change, laws regulating
pollution, insurance policies, safe waste disposal, increasing focus on sustainability, safe disposal of
hazardous material, safe water treatment etc.
Impact :

Regular scrutiny by environmental agencies is also adding to the cost of operations of the Infosys.

Recycling is fast emerging as a norm rather than a good thing to do in India economy. Infosys has to
make plans to adhere to regulations and expectations in the Technology sector.
Environmental norms are also altering the priorities of product innovation. In many cases products
are designed based on environmental standards and expectations rather than catering to traditional
value propositions.

Extreme weather is also adding to the cost of operations of the Infosys as it has to invest in making
its supply chain more flexible.

Paris Climate Agreement has put real targets for the national government of India to adhere to.
This can result in greater scrutiny of environmental standards for Infosys in India.

Customer activism – Greater awareness among customers have also put environmental factors at
the center of Infosys strategy. Customers expects Infosys to adhere to not only legal standards but
also to exceed them to become responsible stakeholder in the community.

Legal Factor :
Legal plays an important role in the development of Software & Programming sector in any
economy. Infosys management has to consider following legal factors before entering international
market – time taken to deliver justice, discrimination laws, intellectual property rights protection,
copyrights law, data protection laws, biasedness toward home players, system of justice etc.
Impact :

Data protection laws – Over the last decade data protection has emerged as critical part of not only
privacy issues but also intellectual property rights. Infosys has to consider whether India have a
robust mechanism to protect against data breaches or not.

Legal protection of intellectual property, patents, copyrights, and other IPR rights in India. How
Infosys will be impacted if there are not enough protection.

Health and safety norms in the India and what Infosys needs to do to meet those norms and what
will be the cost of meeting those norms.

Business Laws – The business laws procedure that India follows. Are these norms consistent with
international institutions such as World Trading Organization, European Union etc.

Environment Laws and guides – The level of environmental laws in the India and what Infosys
needs to do to meet those laws and regulations.

Time take for business cases in court – some countries even though follow international norms but
the time for resolution often run in years. Infosys has to carefully consider average time of specific
cases before entering an international market.
 

DEMOGRAPHIC Factor :
Companies with successful products and services evaluate the demographics of their target market to
ensure they meet the needs of those who benefit from their offerings. They also perform tests to
measure how well they serve their customers. This helps them understand if their target market has
changed and how they can develop better ways to serve their loyal customers and earn new ones.
Demographics that affect business decisions and processes include: Age , Race , Gender ,Nationality
, Belief system, Martial status , Occupation , Income , Level of Education .
Impact :

Population Size - Since every organization across the globe like to target large amount of profit, so
for this, organization do require a healthy amount of customer. For this factor a good population size
is an important aspect. 

Educational Level - Huge population of India is young and most of them are graduates. Indian
Parents are now focusing towards Smart Class concept and with respect to this, more than 12000
schools have adopted the concept of smart classes. Companies like Educomp, NIIT, Samsung Smart
Class Solutions are major key players in the market. This will help Infosys have much talented and
technological experts in their firm .

Language - Language is the one of the centers of attraction for companies so that they change their
complete strategies to cover markets.

Religion - Religion is basically one of the parameters that every organization likes to take care of
during the business, because anything against religion may destroy or may lead to huge loss for the
company. 

Racism - Racism is one of the problems which always creates trouble to companies, in some
countries it’s not allowed for them to hire other than natives, then it become a big problem to hire
good employees for the company. Trump’s controversial decision over H1B visa actually made
companies to suffer in completion of their projects. Indian IT Giant Infosys got the problem because
their clients in US showed incapability in arranging H1B visa for the Infosys Employees.