Responsibility of business for

Government

1. Regular payment of taxes

2. Voluntary programmes i.e; cultural, population
control, drought relief
3. Providing information:- Feedback
4. Govt. Contracts
5. Service to govt.
6. Corporate contribution etc
Responsibility of Govt. for
Business
1. Political institutions:- Laws,
2. Peaceful atmosphere
3. Money & credit
4. Balanced development
5. Basic infrastructure
6. Assist SSIs
7. Transfer of Technology
8. Licensing
9. Protection form foreign competitions
 Social & Cultural Environment
Features:
1. Pluralistic Society
2. Predominantly Rural Society
3. Poverty
4. Illiteracy
5. Linguistic Diversity
6. Racial Diversity
7. Caste & Casteism
8. Communalism
9. Regionalism
10. Fashion
 SWOT
Strategic planning method to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved
in a project or in a business venture.

 Strengths: characteristics of the business or team

that give it an advantage over others in the industry.

 Weaknesses: are characteristics that place the firm

at a disadvantage relative to others.
 Opportunities: external chances to make greater
sales or profits in the environment.

 Threats: external elements in the environment that

could cause trouble for the business.
SWOT: internal factors
 Strengths
 Positive tangible and intangible attributes, internal to an
organization. Within the organization’s control

 Weaknesses
 Factors within organization’s control. In which areas might
the organization improve?
SWOT: external factors
 Opportunities
 External factors represent reason for organization to exist
and develop.
 What opportunities exist in the environment which propel
the organization?

 Threats
 External factors, beyond an organization’s control, which
could place the organization’s mission or operation at risk.
The organization may benefit by having contingency plans
to address them should they occur
 Classify them by their “seriousness” and “probability of
occurrence”
E.T.O.P

 It is a process of dividing the environment into

different sectors and then analyzing the impact of
each sector on the organization.
 E.T.O.P

 Environment analysis results in a mass of information

related to forces in the environment .

 Structuring of environmental issues is necessary to make

them meaning full for strategy formulation.

 ETOP(Environmental Threat and Opportunity Profile) is a

technique to structure environmental issues.
 ETOP involves:

 Dividing the environment into different sectors .

Each sectors can be subdivided into sub sectors.
 Analyzing the impact of each sector and subsector
on the organization.
 Describe the impact in the form of a statement.
Political Bicycle principal mode of
transport for low & middle
income, Industry too small
to draw attention.

Regulatory Parts & components

reserved for SSI, bicycle
industry a thrust area for
exports,

Social Environment & health

friendly transport option,
wide usage, as recreation,
convenient in traffic,
customers preference
Environmental sectors Nature of impact Impact of each sector
ETOP FOR BICYCLE
Economic Growing affluence among
COMPANY urban consumers, rising
disposable incomes & living
standards.

Market Organized sector a virtual

oligopoly with 4 major
manufacturers, buyers
critical & better informed,
overall industry growth rate
not encouraging, growth
rate for niche market like
sports, trekking etc is high.

International Global imports growing but

India’s share shrinking,
major importers are the US
& EU but India exports
mainly to Africa.
Supplier Mostly ancillaries in small-
scale sector supply parts &
components, rising steel
prices, industrial
concentration in Punjab &
Tamilnadu.

Technological Up gradation in progress,

import of machinery
simple, product innovations
ongoing like battery
operated & lightweight
foldable cycles
Advantage of ETOP:-

 Provides a clear pic. of which sector and sub

sectors have favorable impact on the organization.
 Helps interpret the result of environment analysis.
 The organization can assess its competitive
position.
 Appropriate strategies can be formulated to take
advantage of opportunities and counter the threat.
 SWOT analysis (Strategic weakness, opportunities
and threats.)
 PESTL
Political, Economic, Social, Technological and Legal
 "Political, Economic, Social, and Technological analysis“

 Describes a framework of macro-environmental factors

used in the environmental scanning.
 It is a part of the external analysis when conducting
a strategic analysis or doing market research
 Gives an overview of the different macro
environmental factors that the company has to take
into consideration
 Useful strategic tool for understanding market
growth
 Environmental Impact Matrix

 It is one of the way to identify and analyze

development in the external environment.
 It is also called as ‘ Issue Priority matrix’
 High Medium Low
High High High Medium
Priority Priority Priority

Medium High Medium Low

Probability Priority Priority Priority
of
Occurrenc Low Medium Low Priority Low
Priority Priority
e
Probable Impact on the Corporation