Introduction

to
Business
Environment
Introduction
Certain concepts
 Consumer
 Producer/ Firm
 Government
 GDP
 Inflation
 Monetary policy
 Fiscal policy
 Exchange rate
 BOP
 FDI
 MNC
 A case Study : Bajaj Auto
Bajaj Auto Limited established in 1945.
Market leader in the Indian two wheeler industry from
1960 – mid 1990.
Protected by “License Raj”, company had huge success with
popular
scooter models like Chetek and Super
Motorcycle like M-50 and M-80
After 1990 dismantling of the License Raj and other
liberalization process changed the face of auto industry.
Easy entry of new domestic and foreign players
Intensified the competition
Per capita income rose and along with it the taste and
preferences of the people changed
A case Study : Bajaj Auto contd.
Modern technologically sophisticated fuel efficient motor bikes
caught the eyes of Indian youth population.
Gearless two wheeler became available in the market (preferred by
mostly women)
Bajaj Auto continued to remain focused on its models
Invested time and resources on its geared scooters.
Failing to adapt according to the need of the time, led to the fall of
the Bajaj Auto Limited
By 2009, the sales of the scooter declined to 1,000 per month.
Company decided to exit from the scooter market and concentrate
on the motorcycle segment.
 Major are Bajaj Pulsar, Discover, Kawasaki Ninja, Platina, XCD
In 2012 launched Bajaj RE 60, mini car for intra-city urban
transportation
Struggling with Honda and Hero motor for market share.