You are on page 1of 15

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)