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 Business is an integral part of the ecology and social system  Organized efforts of and by enterprises to supply consumers with

goods and services to the consumers for a profit.
 It varies in size and is measured in terms of number of employees or

by sales (turnover) volume.
 Its decisions and performance are influenced by a host of diverse

 The purpose of business goes beyond just earning profit.

Business Environment  BE consists of all the factors that have a bearing on the business          Strengths of a business Weaknesses Relationships (external and internal) Orientation of the organization Government policies and regulations Nature of economy Economic conditions Socio-cultural conditions Demographics Global trends and developments .

Business Objectives  Vision: A broad explanation of why the firm exists and where is it trying to lead…  It seeks to answer the following questions  Where do we go from here?  What changes lies ahead in the business landscape?  What differences will these changes make to the company’s present business?  The vision gives the organization a sense of purpose and a set of values that unite employees in a common density. .

Mission statement: What is our business?  It gives a unique identity to the organisation and builds a path for development.  The company’s concern for survival. Mission statements are more specific than vision statements…. and competencies or how the firm goes about creating and delivering value to the customer and satisfying their needs.  Four elements Customer needs. or what is being satisfied  Customer groups. its philosophy.  Vision statement: Where do we go from here?  Then. technologies. its self-concept and its concern for public image.Contd…  Mission: Outlines the fundamental purpose of the organisation. . or who is being satisfied  The company’s activities.

Business Goals  Profit  Growth  Power  Employee Satisfaction and Development  Quality products and services  Market leadership  Service to society .

regulatory framework.Types of Environment  Internal Factors: generally regarded as controllable factors because these are under the control of the management. Physical facilities etc. These are the environmental factors  Economic factors.  Personnel.  External factors: One’s that are not under the direct control of the management. demographic factors. socio-cultural factors. .

 R&D and technology capabilities  Financial policies and capital structure etc. technology and efficiency of productive. . Mission and Objectives  Management Structure  Internal bonding/relationship  Human resources  Physical assets and facilities like production capacity.  Marketing resources and efficiency.Internal Factors  Value system  Vision.

Public: Any group that has an actual or potential interest in or impact on an organisation’s ability to achieve its interest. Labour: One of the most important dimension of any business.External Factors Micro Environment The factors that affect the company’s performance immediately Suppliers: supply the inputs like raw materials and components to      the company. Marketing Intermediaries: Act as a link between the company and the final consumers. Customer: A major task of a business is to create and sustain customers Competitors: May market the same or similar product and compete for the pocket share of the consumers. .

Macro Environment  Global Environment  Increasing opportunities as world has become one market  Improving quality  Competition from MNCs  Capital and technology transfers  Deciding which markets to enter and how to enter  Adjusting management processes  India and WTO .

 Increased productivity  Need to spend on R&D  Fast changing technology  Rise and decline of products and organisations  High expectations of consumers  Problem of techno structure  System complexity  Increased regulation and stiff opposition  Demand for capital  Social changes .Contd…  Technological Environment  Technology reaches people through business.

Contd… Economic Environment  Growth strategy  Economic system  Industry  Agriculture  Infrastructure  Money and capital markets  Per capita and national income  Population  New economic policy .

Contd…  Political Environment  Role of legislature  Role of executive  Role of judiciary  Constitution of India  New directions for government role .

Contd…  Social-Cultural Environment  Culture creates people  Culture and globalisation  Determines goods and services  Determines people’s attitude to business and work  Caste system  Spirit of collectivism and individualisation  Education  Family and marriage  Scientific spirit  Ethics in business  Social responsibility  Corporate governance .

Contd…  Natural Environment  Manufacturing depends on physical inputs  Mining and drilling depends upon natural deposits  Agriculture depends on nature  Trade between two regions depend upon the geographical factors  Transport and communication depend on geographical factors .

gender. political affiliations Educational status etc. . religion. household size etc. Economic strata Caste.Contd…  Demographic Environment  Population in terms of number or decline/growth over a     period Composition in terms of age.

vague and imprecise .Environment Analysis  Scanning: Involves general surveillance of all environmental factors and their in order to Identify early signals of possible environmental change  Detect environmental change already under way  It is ambiguous environmental analysis activity.  The relevant data for scanning are unlimited but scattered.

Contd…  Monitoring: Involves tracking the environmental trends  The purpose is to assemble sufficient data to discern whether certain trends and patterns are emerging.  Three outcomes of monitoring:  A specific description of environmental trends and patterns to be forecast  Identification of trends for further monitoring  Identification areas for further scanning . in this case the data turns frequently from imprecise to precise. Therefore.

 Aims at laying out and evolutionary path of anticipated change. scope and intensity of environmental change. scanning and monitoring.Contd…  Forecasting: It is concerned with developing plausible projections of the directions.  Unlike. it is more deductive and complex activity .

 Involves identifying and evaluating how and why current and projected environmental changes affect or will affect strategic management of the organisation.Contd…  Assessment: Required to determine implications for organisation’s current and potential strategies.  It tries to answer questions such as What are the key issues presented by the environment?  What are the implications of such issues? .

commonly known as e-commerce.  The World Wide Web (WWW). . and other multimedia. is the buying and selling of product or service over electronic systems such as the Internet and other computer networks. is a system of interlinked hypertext documents accessed via the Internet. although it may encompass a wider range of technologies such as e-mail. With a web browser. images. mobile devices and telephones as well.  Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle. one can view web pages that may contain text. and navigate between them via hyperlinks.E-Commerce  Electronic commerce. videos.

Contd…  E-commerce can be divided into:  E-tailing or "virtual storefronts" on Web sites with      online catalogs. the business-tobusiness exchange of data E-mail and fax and their use as media for reaching prospects and established customers (for example. Newsletters) Business-to-Business buying and selling The security of business transactions . with catalogues. sometimes gathered into a "virtual mall" The gathering and use of demographic data through Web contacts and social media Electronic Data Interchange (EDI).

Objectives of E-Commerce  Developing and enhancing business  Increasing the customer base  Offering better customer service  Convenience .