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Be unit-i

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  • 1. WISH U A GOOD BEGINNING
    lmothilal@gmail.com - DMS, Pondicherry University
  • 2. It refers to all External Forces,
    “ Internal Relationships &
    “ Society
    Which have impact on the functioning of business
    What is Business Environment?
    lmothilal@gmail.com - DMS, Pondicherry University
  • 3. Business Environment
    Internal Environment
    External Environment
    Micro (Task / operations)
    Macro (General / Remote)
    lmothilal@gmail.com - DMS, Pondicherry University
  • 4. Internal Environment
    Promoters’ Values
    Mission & Objectives
    Management Structure
    Internal Power Relationship
    Company Image / Brand
    Physical Assets / Facilities
    R & D / Technological Capabilities
    lmothilal@gmail.com - DMS, Pondicherry University
  • 5. Internal Environment
    Human Resources
    Internal Relationships
    Jobs & Wages
    Human Factor
    Safe & Hygienic Work Place
    Security
    lmothilal@gmail.com - DMS, Pondicherry University
  • 6. External Environment - Micro
    Customers
    Suppliers
    Competitors
    Public
    Financiers
    Marketing Intermediaries
    lmothilal@gmail.com - DMS, Pondicherry University
  • 7. External Environment - Macro
    Economic Factors
    Social & Cultural Factors
    Demographic Factors
    Political & Government Factors
    Natural Factors
    Technological Factors
    Global Factors
    lmothilal@gmail.com - DMS, Pondicherry University
  • 8. Introduction - General
    Various Revolutions
    Industrial :
    Labour Intensive
    Capital Intensive
    Green
    White
    lmothilal@gmail.com - DMS, Pondicherry University
  • 9. Introduction - General
    I.T. (Convergence of Communication Technologies)
    Knowledge Resolution (Intellectual Capital)
    lmothilal@gmail.com - DMS, Pondicherry University
  • 10. Introduction - General
    Two Economic Eras
    Mass Production
    Customized Production
    lmothilal@gmail.com - DMS, Pondicherry University
  • 11. Features of old Economic Era
    Growth Areas:
    Energy
    Transportation
    Utility
    Chemicals &
    Consumer Goods
    lmothilal@gmail.com - DMS, Pondicherry University
  • 12. Features of old Economic Era
    Growth Rate – 2-3 % p.a.
    Focus – Natural Resources
    Important – Physical Assets (main)
    Example - Oil Rich Countries
    lmothilal@gmail.com - DMS, Pondicherry University
  • 13. Features of New Economic Era
    Growth Engines:
    I.T.
    Satellites
    Fiber optics
    Biotechnology
    Environment
    Healthcare
    lmothilal@gmail.com - DMS, Pondicherry University
  • 14. Features of New Economic Era
    Growth Rate – 20-30% p.a.
    Focus Knowledge
    Knowledge Management
    lmothilal@gmail.com - DMS, Pondicherry University
  • 15. Features of New Economic Era
    Important – Physical Assets +
    Intangible Assets:
    Example – Japan, Singapore,
    Hong Kong
    lmothilal@gmail.com - DMS, Pondicherry University
  • 16. Era of Turbulent Change
    In era of turbulent change, managing change & discontinuity is a key Issue
    lmothilal@gmail.com - DMS, Pondicherry University
  • 17. Era of Turbulent Change
    PDCA - PDCA
    P – Plan
    D – Development
    C – Check
    A – Act
    lmothilal@gmail.com - DMS, Pondicherry University
  • 18. Era of Turbulent Change
    Companies are operating in a war zone of rapidly changing
    Competitors
    Technology
    New Laws
    Trade Policies
    Diminishing Customer Loyalty
    lmothilal@gmail.com - DMS, Pondicherry University
  • 19. Era of Turbulent Change
    Today’s younger generation is coming with new dreams, hopes & aspirations
    What it needs
    New set of Corporate Response
    Why ?
    lmothilal@gmail.com - DMS, Pondicherry University
  • 20. Era of Turbulent Change
    Today’s Generation :
    High Awareness – increased information Bargaining Power will Influence
    Intelligent & Proactive
    Higher Standard of Living
    lmothilal@gmail.com - DMS, Pondicherry University
  • 21. Era of Turbulent Change
    Demands Variety of Services
    Wants World Class Quality
    Tech Savvy
    Try New Products & Fickle in brand loyalty
    More Sensitive
    lmothilal@gmail.com - DMS, Pondicherry University
  • 22. Era of Turbulent Change
    Initially companies begin to compete on Cost basis, once companies achieve comparable cost structure within industry, Focus shifts to
    Quality then
    Variety & finally to
    Responsiveness
    lmothilal@gmail.com - DMS, Pondicherry University
  • 23. Era of Turbulent Change
    Key DifferentiatorService
    for example:
    Xerox Corp. (service within 3 Hours anywhere in U.S.)
    McDonald's (Courteous)
    WalMart Store – People Greeter
    Singapore Airlines – Smile
    lmothilal@gmail.com - DMS, Pondicherry University
  • 24. Era of Turbulent Change
    Old Rule is changing:
    Big will not swallow small but, that FAST who will outpace SLOW
    lmothilal@gmail.com - DMS, Pondicherry University
  • 25. Era of Turbulent Change
    “ It is not the strongest nor the most intelligent that will survive but the one who is the most responsive to the change” – Charles Darwin
    Gap between conception of an idea & commercialization has decreased tremendously.
    lmothilal@gmail.com - DMS, Pondicherry University
  • 26. Era of Turbulent Change
    Where Indian companies have to focus?
    Quantum Restructuring
    Discard Outdated Systems
    ( e.g. E- Governance in Administration)
    Focus on Customer centricity
    (Blow Up)
    lmothilal@gmail.com - DMS, Pondicherry University
  • 27. Era of Turbulent Change
    Analysis of Environment:
    Scanning
    Monitoring
    Forecasting
    Assessment
    lmothilal@gmail.com - DMS, Pondicherry University
  • 28. Era of Turbulent Change
    Analyze Environment SWOT
    S – Strengths
    W – Weaknesses
    O – Opportunities
    T – Threats
    lmothilal@gmail.com - DMS, Pondicherry University
  • 29. Era of Turbulent Change
    Analyze – Competitive Structure of Industries:
    Rivalry among existing firms
    Threat of new entrants
    Bargaining power of suppliers & buyers
    lmothilal@gmail.com - DMS, Pondicherry University
  • 30. Types of Forecasting
    Economic: General Economic Conditions
    • GDP Growth Rate
    • 31. Per Capita Income
    • 32. Distribution of Income
    • 33. BOP Trends, Inflation, Rainfall
    • 34. Climate
    • 35. Politics – Local & International
    lmothilal@gmail.com - DMS, Pondicherry University
  • 36. Economic Environment
    Nature of the Economy
    Low Income - Less than $755 of per capita GNP
    Middle Income – ( $756 - $2995)
    High Income – ($9266 & Above)
    ( of year 2000)
    lmothilal@gmail.com - DMS, Pondicherry University
  • 37. Economic Environment
    Structure of the Economy: Components
    Primary Agriculture (18% in 2007)
    Secondary Industry (
    Tertiary Service (
    lmothilal@gmail.com - DMS, Pondicherry University
  • 38. Economic Environment
    Economic Policies:
    Industrial Policy
    Trade Policy
    Foreign Exchange
    FDI / FPI
    Monetary
    Fiscal - Public Expenditure & Revenue
    lmothilal@gmail.com - DMS, Pondicherry University
  • 39. Economic Environment
    Economic Conditions:
    Boom
    Recession
    lmothilal@gmail.com - DMS, Pondicherry University
  • 40. Economic Environment
    Global Linkages: Membership of WTO, IMF, World Bank, Trade Blocks etc.
    Magnitude & Nature of cross border Trade
    Financial Flows – FDI / FPI
    Extremism:
    Terrorism – within & Cross border
    Unsocial elements
    Fanaticism
    lmothilal@gmail.com - DMS, Pondicherry University
  • 41. Economic Environment
    Economic Systems:
    Capital Economy
    Centrally Planned
    Mixed Economy
    lmothilal@gmail.com - DMS, Pondicherry University
  • 42. Roles of Government - Economic
    Regulatory
    Promotional – Infrastructure
    Entrepreneurial
    Planning
    lmothilal@gmail.com - DMS, Pondicherry University
  • 43. Other Roles of Government
    The Constitution
    Directive Principles of State Policy
    Separation of Powers:
    Union List
    State List
    Concurrent List (1&2)
    lmothilal@gmail.com - DMS, Pondicherry University
  • 44. Types of Forecasting
    2. Social Forecasting:
    • Population Growth / Decline
    • 45. Age Structure of Population
    • 46. Migration
    • 47. Family Life-Style
    • 48. Social Attitude
    lmothilal@gmail.com - DMS, Pondicherry University
  • 49. Demographic Environment
    Age Structures
    Gender
    Family Size
    Family Life-Cycle
    Single
    Married
    With / Without Children
    lmothilal@gmail.com - DMS, Pondicherry University
  • 50. Demographic Environment
    Occupation
    Education
    Social Class
    Religion
    Nationality
    Urban / Rural
    lmothilal@gmail.com - DMS, Pondicherry University
  • 51. Types of Forecasting
    3. Political Forecasting:
    Political Alliances
    Political Ideologies
    Political Leadership
    lmothilal@gmail.com - DMS, Pondicherry University
  • 52. Political Environment
    Policies of Political Parties
    Nature of the Constitution
    Govt. System:
    Parliamentary Democracy
    Presidential Democracy
    lmothilal@gmail.com - DMS, Pondicherry University
  • 53. Types of Forecasting
    4. Technological Forecasting:
    Innovations:
    Radical / Incremental /
    Next Generation
    Place & Extent of Diffusion
    Pace
    (Future shock)
    lmothilal@gmail.com - DMS, Pondicherry University
  • 54. Technological Forecasting
    Technological Leadership & Followers
    Transfer of Technology
    Appropriate Technology & Adaptation
    First mover Advantages & Disadvantages
    Sustainability of the lead
    lmothilal@gmail.com - DMS, Pondicherry University
  • 55. Natural Environment
    Geographical Factors:
    ( e.g. interplanetary explorations & motives beyond them - commercial Exploitation )
    Ecological Factors
    lmothilal@gmail.com - DMS, Pondicherry University
  • 56. In view of constant changewhat should company do?
    Customer Needs & Expectations
    Demand Conditions
    Substitutes
    Govt. Policy
    Social Forces
    Competitive Dynamics
    Innovations by R&D Labs
    Manage cross-cultures
    lmothilal@gmail.com - DMS, Pondicherry University

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