Business environment by jagdeep singh ,shelly, Parmod from galaxy global group of institutions

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  • 1.  
  • 2.  
  • 3. CLASSROOM EXERCISE
    • 1. LIST TOP 20 BUSINESSESS IN YOUR CITY.
    • LIST NAME OF 20 RESTAURANTS IN YOUR CITY.
    • LIST THE PRICE OF 30 ITEMS IN YOUR HOUSE.
  • 4.
    • LET START WITH A QUESTION?
    • WHAT IS RECESSION .
    I DON`T WANT TO SPEND. STOCK MARKET CRASH BANKS GO BANKRUPT
  • 5. SO PANTALOON DID IN THIS WAY
    • WITH MALL OWNERS: FROM FIXED RENT TO REVENUE-SHARING MODEL……RESULTED IN 10% SAVING ON OVERALL COST.
    • AIR CONDITIONER TEMPERATURE RAISED TO 25 DEGREE FROM 22 DEGREE…….RESULTED IN LOW COST.
    • OFFICE OCCUPY BY EMPLOYEES DOWN FROM 200 Sq FT TO 150 Sq ft……RESULTED IN 25-30% RUDUCE IN REQUIREMENT
    • CHANGED THE PAYMENT PATTERN OF DEBT TO CASH GENERATED THROUGH SALES
  • 6. HERO HONDA
    • OUR DEPENDENCE ON FINANCE TO CONSUMER THROUGH BANKS REDUCES FROM 55-60% TO JUST 15 %.
    • SIGNED AS TITLE SPONSORS FOR HOCKEY WORLD CUP.
    • RESULTS: GROWING FASTER THAN THE INDUSTRY
  • 7. MCDONALDS INDIA
    • 24 Hr DRIVE THROUGH
    • IN DELHI, STORES ARE OPEN TILL 1 A.M
    • ALTERED OUR MENU TO TASTE OF CUSTOMERS.
    • SO THAT WE INVITE THE SAME CUSTOMER TO VISIT MORE OFTEN AND INVITE NEW CUSTOMERS ALSO…RESULTED IN 10% INCREASE.
  • 8. ICICI BANK
    • LOWER EXPOSURE TO UNSECURED LOANS
    • LESS RELIANCE ON DIRECT SELLING AGENTS
    • MORE FOCUS ON BRANCH BANKING
    • GREATER INPORTANCE TO HR
  • 9.  
  • 10. NATURE,COMPONENTS AND DETERMINANTS OF BUSINESS ENVIRONMENT COMPLEX SO BUSINESS ENVIRONMENT COMPLEX UNSTABLE
  • 11.  
  • 12.  
  • 13. SO WHO WILL FRONT RUNNER
    • COMPANIES  PROACTIVELY FACES THE CHALLENGES
    •  DEVISE THE WAYS TO COUNTER AND TAKE APPROPRIATE DEFENCE
    •  INNOCULATIVE MEASURE
    • WILL LEAD THE PACK AMONG.
  • 14.  
  • 15. CONTINUE……….
    • FIRMS ELEMENTS CHANGE  EXETRNAL E. BUT– SOMETIME EXTERNAL E HAS—POSITIVE IMPACT AND NEGETIVE IMPACT.
    • ITS DEPEND AND CHANGES: WHAT IS AND WILL BE
        • COMPETITIVE SITUATION
        • PRODUCT MIX OF FIRMS
        • MANAGERIAL CAPABILITIES
        • ABILITY OF THE FIRM TO MAKE STRATEGIC ADJUSTMENT TO ENVIRONMENT CHANGES .
  • 16. INPUT PROVIDER CUSTOMER CHANNEL MEMBERS BUSINESS GOVERNEMENT EMPLOYEE RIVALS DOMESTIC MACRO ECONOMIC ENVIRONMENT GROWTH AND DISTRIBUTION ENVIRONMENT ECONOMIC SYSTEM ECONOMIC STABILITY ECONOMIC POLICY SOCIAL CULTURE ENVIRONMENT NON MACRO ENVIRONMENT COMPETITIVE ENVIRONMENT DEMOGRAPHIC ENVIRONMENT INTERNATIONAL ENVIRONMENT INTERNATIONAL ENVIRONMENT COMPONENTS OF B.E DIFFERENT LAYERS OF B.E OF FIRM
  • 17. GLOBAL B.E MAY CAUSE CHANGES IN DOMESTIC ENVIRONMENT BUT EFFECT OF LATTER ON POLICY ENVIRONMENT MAY BE SLOW AND LAGGARD
  • 18.
    • INTERNATIONAL ENVIRONMENT:
      • MOST DYNAMIC AND VOLATILE COMPONENT OF BUSINESS ENVIRONMENT.
      • EX: FOREIGN CURRENCY CHANGE.
      • THIS RESULT—PRICE CHANGE—DOMESTIC MARKET WILL BE EFFECTED- ALSO IT CAN COST VARIATION IN PRODUCTION COST—AS PRICES OF GOODS CHANGE.
  • 19.
    • BY GROWTH OF THE WORLD ECONOMY
    • DISTRIBUTION OF WORLD GDP
    • ECONOMIC RELATIONS AND INTERDEPENDENCE BETWEEN NATIONS.
    • INTERNATIONAL ECONOMIC POLICIES OF MAJOR INDUSTRIAL MARKET ECONOMIES: AMERICA,CHINA.
    • EX  CURRENT CHANGE IN DOLLAR VALUE EFFECT ON CHINA.
  • 20. CONTINUE…….
    • 5. MULTINATIONAL CORPORATIONS
    • 6. BANKS
    • 7. MULTILATERAL INSTITUTIONS– IMF,WTO,WORLD BANK, ILO ETC.
    THESE ALL ABOVE INTURN EFFECT BY INTERNATIONAL ECONOMIC LAWS, TREATIES, AGGREMENTS AND CONVENTIONS. ALL THESE FACTORS AFFECT– COST AND FLOW OF INTERNATIONAL TRADE, I INVESTMENT, I FINANCE, I TECHNOLOGY AND GROWTH AND COMPETENCE OF FIRMS THE WORLD OVER.
  • 21.
    • MIXED ECONOMY: COMBINATION OF MARKET AND COMMAND
    • SOCIALIST MARKET ECONOMY
      • Productive Resources—with Gov
      • But allocation,production and distribution—as—principle of market. 1 st S.M.E.  Yogoslavia-1950
    NOW MOST S.M.E ARE MOVING TOWARDS(MARKET) TRANSITION TO OPEN MARKET ECONOMIES: THESE ARE CALLED TRANSITION ECONOMIES.
  • 22. CONTINUEE.. LAYERS OF B.E: GROWTH AND DISTRIBUTION ENVIRONMENT
    • ECONOMIC GROWTH: Process of increase in real output(GDP measuring factor) over period of time(usually 1 year).
      • 4 components of this(GDP)
        • Personal Consumption expenditure
        • Gross domestic Private Investment
        • Govt Expenditure on Consumption and Investment
        • Net Export
  • 23. HOW GDP IS THEN ALLOCATED.
  • 24. Continue…..
    • Second measure: Net Domestic Product
      • NDP= GDP- Depreciation(this is arbitarary)
    • Gross national Product:
      • Total final output produces by resources owned by residents of the country. GDP includes produce by foreign companies and national also.
  • 25.
    • GDP= C + I + X-M
    • NDP= GDP – DEPRECIATION
    • NATIONAL INCOME= NDP – T(indirect taxes)
      • IT CONTAIN INCOME RECEIVED BY OWNERS, SUPPLIERS,LAND OWNER, LABOUR AND CAPITAL IN FORM OF RENT , WAGES, INTEREST AND PROFIT.
    DISPOSAL INCOME= NI – T(direct taxes)
  • 26.
      • STABILITY IN PRICE LEVEL
      • EXCHANGE RATE
      • INTEREST RATE
      • MONEY SUPPLY
      • AGGREGATE DEMAND
      • BALANCE PAYMENTS
      • EMPLOYMENT RATE
      • BUDGETARY BALANCE
      • AND NATIONAL INCOME AND OUTPUT
    ALL ABOVE VARIABLE ARE INTERACTIVE AND INSTABILITY OF ONE OR FEW EFFECT OTHER
  • 27.
    • SO YOU MAKE ECONOMIC POLICY.
      • MONETARY POLICY
      • FISCAL POLICY
      • INDUSTRIAL POLICY
      • TRADE POLICY.
  • 28.
    • TO STIMULATE AND MAINTAIN GROWTH
    • ACHIEVE ECONOMIC STABILITY
    • INCREASE EMPLOYMENT
    • STABILIZE BALANCE OF PAYMENTS
    • CORRECT REGIONAL IMBALANCES
    • MAKE ECONOMY MORE COMPETITIVE.
    SO IF YOU TAKE GRANTS AND OTHERS FROM MULTILATERAL INSTITUTIONS LIKE IMF,WTO THEN YOU HAVE TO FOLLOW THERE GUIDELINES
  • 29.
    • Deal with cost ……avalibility  credit—market.
    • WHO TAKES THE ACTION: Gov`t or Central Bank of country.
      • How: Directly or Indirectly– Supply of Money, rate of Interest and banking System.
    FIRM`s affect: It affects his Liquidity & Cost of capital– So in turn effects its DEBT:EQUITY
  • 30. SO WHAT YOU WOULD DO IN CASE: Its Recession and To fight Inflation
    • If Recession: LIBERAL POLICY--- CREDIT LIBERAL
    • MONETARY EXPANSION: REDUCE RATE OF INTEREST.
    • TO FIGHT INFLATION: RESTRICTIVE MONETARY POLICY  RAISE THE RATE OF INTEREST, REDUCE MONEY SUPPLY GROWTH RATE, RESTRICT FLOW OF CREDIT.
  • 31.
    • USE OF TAXES AND GOVERNMENT EXPENDITURE
    • GOVT-EXPEN  CONSUMPTION EXPENDITURE
            • - INVESTMENT EXPENDITURE
            • - TRANSFER PAYMENTS(SUBSIDARY, GRANTS , - UNEMPLOYMENT,ALLOWANCES)
    SO INCREASE IN GOV`T EXPENDITURE  LEAD—MORE MONEY  MORE DEMAND FOR PRIVATE GOODS ETC.
  • 32. CONTINUE………
    • FISCAL  DIRECT AND INDIRECT TAXES.
    • Direct taxes: reduces DISPOSIBLE INCOME– so reduce demand or core demand to diminish
    • Indrect taxes: Raises the cost of Production. Impact the profits of the firms.
    • Inform of:
            • EXCISE, CUSTOM, SALE TAX.
            • SO CERTAIN CATEGORIES BECOME LESS PROFITABLE COMPARED TO OTHER.
    NOTE: FISCAL POLICIES BY GOVT AND MONETARY POLICY BY CENTRAL BANK. SO BOTH CLOSELY RELATED BOTH THE POLICY ARE TOFIGHT AGAINST INFLATION AND RECESSION
  • 33.
    • ROLE OF GOVT.
  • 34.  
  • 35. SO FIRM RESEARCH  DEEPLY AND UNDERSTAND– TO GO INTERNATIONAL MARKET.
  • 36.
    • POLITICAL
    • COUNTRY RISK(Erratic economic and Social Performance, Discrimination in foreign countries)
    • CULTURE RISK( Affecting marketing communication, Consumer attitude towards foreign goods and change in fashion, taste and preference).
  • 37.
    • IT ENVELOPS AND PROVIDES TO ALL FIRMS.
        • FRAMEWORK
          • TO OPERATE AND ADOPT
    ECONOMIC SYSTEM : is a way in which a society is organised to decide….
    • WHAT PRODUCTS SHOULD BE PRODUCES AND IN WHAT QUANTITIES.
    • HOW SHOULD THE PRODUCTS BE PRODUCED.
    • FOR WHOME SHOULD THE PRODUCTS BE RODUCED.
  • 38. CONTINUE……..
    • SO ECONOMIC SYSTEM  Is a framework within which a FIRMS OPERATES AND VARIOUS ECONOMIC UNITS AND AGENTS MOULD THEMSELVES TO FIT INTO THE SYSTEM.
    SUB PART OF ECONOMIC SYSTEM: a. MARKET ECONOMY b. COMMAND ECONOMY. MARKET ECONOMY:( CAPITALISM) ARE PRODUCTIVE ASSETS ARE PRIVATELY OWNED AND FIRM HAVE THE FREEDOM TO MAKE MAJOR DECISION OF PRODUCTION & CONSUMPTION UNDER COMPETITIVE CONDITIONS. COMMAND ECONOMY: GOVERNMENT MAKE DECISION REGARDING PRODUCTION AND DISTRIBUTION.
  • 39.
    • . THE STATE OF WORLD ECONOMY & DISTRIBUTION OF WORLD OUTPUT.
    • . INTERNATIONAL ECONOMIC COOPERATION
    • . ROLE OF MULTILATERAL ECONOMIC INSTITUTIONS
    • . INTERNATIONAL ECONOMIC LAWS, TRETUES, AGGREEMENTS, NORMS , PRACTISES AND CODES.
    • . POLITICAL SYATEM AND CONDITIONS IN DIFFERENT COUNTRIES.
    • . TECHNOLOGY GROWTH AND TRANSFER.
    • . CORPORATE GOVERNANCE STANDARDS AND ETHICAL PRACTISES ACROSS COUNTRIES.
    • . INTERNATIONAL MARKET STRUCTURE AND COMPETITION.
    • . BARRIERS TO INTERNATIONAL TRADE AND INVESTMENT.
    • . NATIONAL ECONOMIC POLICIES OF DIFFERENT COUNTRIES.
  • 40. MAJOR EVENTS AFFECTING INTERNATIONAL BUSINESS ENVIRONMENT.
    • Formation of WTO in 1995
    • Collapse of the EASTERN EUROPE in 1989, USSR in 1991.
    • Emergence of European Union(EU) and Introduction Of EURO as common currency.
    • Increasing economic strength and presence of MNC`s the world over.
    • Increase in No. of FTA`s( Free Trade Areas).
    • Economic crises in east and south east Asian countries
  • 41.
    • ECONOMIC SLOWDOWN IN A NUMBER OF INDUSTRIAL MARKET ECONOMIES INCLUDING JAPAN.
    • ECONOMIC REFORM AND OPENING UP OF A LARGE NO. OF LESS DEVELOPED COUNTRIES INCLUDING INDIA.
    • PROTECTIONIST TRENDS IN THE INDUSTRIAL MARKET COUNTRIES NOTABLY IN USA .
    CONTINUE……. SO IN ADDITION TO ECONOMIC FACTORS, INTERNATIONAL SOCIAL, CULTURAL AND DEMOGRAPHIC FACTORS ALSO PLAY ROLE.
  • 42.
    • COMPETITIVE ENVIRONMENT. ONE OF THE MAJOR FACTOR AFFECTING.
          • RATE OF GROWTH
          • INCOME DISTRIBUTION
          • CONSUMER WELFARE
    ON INDIVIDUAL BUSINESS:  FREEDOM OF ENTRY AND EXIT IN THE MARKET  ITS PRICE AND SCAL OF OUTPUT.
  • 43. CONTINUE…..
    • ALSO DEPEND UPON TYPE OF GOVERNMENT.
    CAPITALIST AND MIXED ECONOMY ATTEMPTS TO MAINTAIN LAW THROUGH.. SUITABLE ECONOMIC LAWS AND REGULATION, FREE AND FAIR COMPETITION IN VARIOUS SECTORS OF THEIR ECONOMIES, CHEK MONOPOLISTIC or ANTI-COMPETITIVE ABUSE OF MARKET POWER.  ABUSE : PRICE FIXING, PRICE DISCRIMINATION ETC. ALSO MERGERS, ACQUISITIONS AND TAKEOVER ALSO REDUCE THE NO. OF COMPETING FIRMS AND CREATE MONOPOLISTIC TENDENCIES.
  • 44.
    • POLITICAL ENVIRONMENT
    • LEGAL ENVIRONMENT
    • CULTURAL ENVIRONMENT
    V.IMP—BUSINESS POINT OF VIEW—NOT IN POSITION TO BRING CHANGE IN ENVIRONMENT IT OPERATES.
  • 45.
    • IT ALSO INCLUDE INTERNATIONAL POLITICAL RELATIONS—MNC ARE MOST INTERESTED IN THIS.
    • COUNTRIES WITH ABSOLUTIST GOVT HAVE AN AFFECT.
    • FREE MARKET S LIKE CHINA. BUT ONLY WITH PERMISSION OF GOVT.
  • 46.  
  • 47.
    • INDUSTRIAL DEVELOPMENTS AND REGULATIONS 
    • LICENSING
    • REGISTRATION OF INDUSTRIES
    • PRICE AND OUTPUT REGULATIONS.
    • MERGERS ACQUISITIONS AND TAKEOVER OF INDUSTRIES
    • LOCATION OF INDUSTRIES.
    • FOREIGN EXCHANGE MANAGEMENT:
    • TRANSCATIONS IN FOREIGN CURRENCY AND SECURITY.
    • CURRENT ACCOUNT TRANSACTIONS
    • CAPITAL ACCOUNT TRANSACTIONS
    • FOREIGN EXCHANGE REALIZATION
    • FOREIGN TRADE AND INVESTMENT TRANSACTIONS
    • BORROWING AND LENDING IN FOREIGN EXCHANGE
  • 48. CONSUMER PROTECTION: CONSUMER RIGHTS,DISPUTES,COMPLAINTS AND GRIEVANCE REDRESSAL SYSTEM. ESSENTIAL COMMODITIES– COVERING THEIR SUPPLY, PRICES, QUALITY WEIGHT, MEASURE AND PACKAGING- COVERING STANDARD UNITS, PACKAGING NORMS AND DECLARATION INSPECTION. PATENTS  APPLICATION PROCEDURE, LIFE OF A PATENT, RIGHT OF PATENTEE, EXCLUSIVE MARKETING RIGHTS INFRINGMENT OF PATENTS, CLAIM PROCEDURE And SETTLEMENT.
  • 49. LABOUR  EMPLOYESS INSURANCE,PAYMENT OF GRATUITY,DISPUTES,BONUS,EMPLOYEES PROVIDENT FUND, COMPENSATION,DISCIPLINARY CORPORATE MANAGEMENT  FORMATION OF COMPANIES, MANAGEMENT OF COMPANIES, GOVERANCE OF COMPANIES, RAISING OF CAPITAL AND LIQUIDATION OF COMPANIES.
  • 50. CHANGE SLOW TO OCCUR – CAN ACCELERATE—WITH-SOCIAL MOVEMENTS—CAMPAIGN—ALSO BY EXTERNAL INFLUECE EX- MAGGIE, ETC
  • 51. ALSO HAS AN IMPACT ON BUSINESS ENVIRONMENT POPULATION DENSITY, SEX RATIO, FERTILITY AND MORTALITY RATIO, AGE COMPOSITION, LIFE EXPECTANCY, GEOGRAPHICAL DISTRIBUTION OF POPULATIO. ABOVE FORMS THE BASES OF MARKET SEGMENTATION, PRODUCT POSITIONING FOR MARKETERS . IT AFFECT THE SIZE OF MARKET AND DISCOURAGE/INCOURAGE PRIVATE INVESTMENT PARTICULARLY IN REGIONS OF LOW PER CAPITA INCOME.
  • 52.  
  • 53.  
  • 54. TO FULLFILL MISSION, A FIRM AHS A VISION– LAYS DOWN ITS BASIC PHILOSOPHY AND APPROACH. STRATEGY  BASED ON THOROUGH—CLEARLY OBJECTIVES TO BE ACHIEVED OVER A PERIOD OF TIME. IS BASED ON ITS MISSION: WHY AND FOR WHOME DOES IT EXITS. SO BASIS FOR FIRM`S EXISTENCE AND OPERATIONS A FIRM EXECUTE THE MISSION THROUGH A STRATEGY.
  • 55.
    • MISSION AND VISION OF THE ORGANISATION
    • MANAGEMENT PHILOSOPHY AND STRATEGY
    • INDUSTRIAL RELATIONS
    • CORPORATE CULTURE AND VALUES
    • LINE AND STAFF RELATIONS
    • GOVERANCE STANDARD AND CODES
    • QUALITY CONTROL SYSYTEM
    • TEAM SPIRIT AMONG EMPLOYEES
    • WORK CULTURE AND SOCIO-ECONOMIC BACKROUND OF EMPLOYEES
    • JOB DESIGN AND COORDINATION
    • QULAITY OF INTERNAL COMMUNICATION
    • COMPENSATION SYSTEM AND CAREER PROGRESSION OF OF EMPLOYEES
    • CONTROL SYSTEM OF THE ORGANISATION.
  • 56. B.E IS DYNAMIC. SO THOROUGH KNOWLEDGE IS REQUIRED TO INTERPRET THE B.E. . SO REQUIRE PROFESSIONAL BUSINESS ECONOMISTS AND MANAGERS
  • 57.
    • CHANGES IN GOVERNMENT POLICIES: OF FISCAL: MONETARY AND PUBLIC DEBT (Affects the supply of saving and the aggregate level of demand for the private sector)
    • VARIATIONS IN GROWTH PERFORMANCE. SECTOR WISE GROWTH—7% -INCRESE THE NATIONAL INCOME.
    • CORRECTIVE POLICY ACTIONS: GOVT—USE FISCAL AND MONETARY: READJUST MONEY SUPPLLY AND CREDIT GROWTH RATES.
    • CHANGES IN MARKET STRUCTURE AND COMPETITION.
    • FUTURE EXPECTATION AND BUSINESS SPECULATION.
  • 58.
    • CHANGES IN MARKET STRUCTURE AND COMPETITION.
    • FUTURE EXPECTATION AND BUSINESS SPECULATION
    • TO MAKE FIRM MORE EFICIENT—PACKUP
    • MARKET STRUCTURE DEPENDS UPON:
    • NO. OF BUYERS AND SELLERS IN THE MARKET
    • FREEDOM OF ENTRY AND EXIT
    • INDEPENDENCE BETWEEN FIRMS
    • MOBILITY OF THE FACTORS OF PRODUCTION.
    • AVALIBILITY OF MARKET INFORMATION TO VARIOUS PARTICIPATNS
    • 2. FIRM ON BASES– PAST—PRESENT  PREDIT FUTURE.
    • RATE OF INTEREST
    • RATE OF INFLATION
    • TAXES
    • GOVERNMENT BORROWING
    • ADV EXPENDITURE
    • PRODUCTION IN Various sectors, so firm predict accordingly
  • 59. YOUNG GROUP,TASTE CHANGES: FACTOR THAT BRING CHANGE .. EDUCATION,GEOGRAPHICAL MOBILITY,FASHION TREND. AS CONSUMER INDUCE CHANGES IN PRODUCT CONTENT AND PRESENTATION  PACKAGING,DELIVERY ETC SO MORE COMPETITIVE ENVIRONMENT
  • 60. CONTINUE………
    • A. IMPORT AND FOREIGN INVESTMENT CHANGES.
    • AS COUNTRY PROGRESS UNDER GLOBALISATION—--LIBERA-CHANGES OCCUR.
    • WHAT TYPE……………
  • 61. 2. EXTERNAL ECONOMIC SHOCKS
  • 62. ALL ABOVE CAN CAUSE TREMENDOUS DAMAGE TO ECONOMY.
  • 63. AREAS OF ENVIRONMENTAL CHANGE AREAS IF CORPORATE RESPONSE TECHNOLOGICAL ENVIRONMENT R&D, FOREIGN TECHNICAL COLLABORATION,CHOICE OF TECHNOLOGY,LABOUR-CAPITAL RATIO. LABOUR ENVIR.. EMPLOYEE MOTIVATION, PRODUCTIVITY,COMPENSATION,TURNOVER RATE,WORKING CONDITIONS, LABOUR RELATIONS,NATURE OF EMPLOYMENT, JOB DESCRIPTION AND SPECIFICATION
  • 64. COMPETITIVE ENVIRONMENT PRICING,MERGER,ACQUISITION OR AMALGAMATION,SUB-CONTROLLING, HORIZONTAL, VERTICAL, BACKWARD OR FORWARD INTEGRATION, MARKETING STRATEGY, NPD, ECONOMIES OF SCALE AND SCOPE. MONETARY ENVIRONMENT WORKING-CAPITAL FINANCING, LIQUIDITY RESTRUCTURING FISCAL ENVIRONMENT DIBIDEND POLICY, SUB-CONTRATING, TRANSFER PRICING,PRODUCT MIX,INDUSTRIAL LOCATION,SOURING. TRADING ENVIRONMENT FOREIGN COLLABORATION, INPUT MIX,EXPORT ORIENTATION, IMPORT INTENSITY, PRODUCT MIX
  • 65. SO IMPORTANT TO FIND OUT FIRST BEFORE A PARTICULAR RESPONSE: WHIH CAUSATIVE FACTOR WILL AFFECT WHICH COMPONENT OF BUSINESS ENVIRONMENT. FINANCIAL ENVIRONMENT PRODUCT DEVELOPMENT, OVERHEAD FINANCING, FINANCING MIX, CAPITAL STRUCTURE, RATE OF RETURN, EXTERNAL FINANCING. LEGAL ENVIRONMENT PROCEDURE AND DOCUMENTATION, CREDIBILITY, CONFORMITY AND ETHICAL PRACTISES, INTELLECTUAL PROPERTY PROTECTION. SOCIAL ENVIRONMENT SOCIAL RESPONSIBILTY, LOCAL AND REGIONAL RELATIONSHIPS, WELFARE EXPENDITURE.
  • 66. POSSIBILITY OF LOSS OR DAMAGE TO A BUSINESS FIRM. NO. OF POSSIBLE FUTURE EVENTS OR OUTCOMES IS LARGER THAN THE NUMBER OF EVENTS OR OUTCOMES WHICH WILL ACTUALLY TAKE PLACE.
  • 67. TO IDENTIFY AND ASSESS THE RISKS  KNOW THE CURRENT STATE OF THE ENVIRONMENT AND ITS LEADING DETERMINANTS.
  • 68.  
  • 69.  
  • 70.