1. Business Environment PGDM III A&B

2. Nature, Components, Dynamics & Importance of Business Environment.

3. “ Business is an economic activity because it includes all those activities whose purpose is to earn profit by transfer of goods & services.”

4. “ Environment consists atoms & molecules agglomeration of things in motion, alive of men emotions, or force & resistances. There numbers are infinite & they are always present; they are always changing. -Chester Bernard “ Business, Like weather is with us everyday.” -Wheeler “ Business may be defined as human activity directed towards producing or acquiring wealth through buying or selling of goods. -C.H.Haney

6. Business Environment

7. Components of Business Environment

8. “ The process by which strategist monitors the economic, legal, governmental, market, competitive supplier, technological, geographic & social setting to determine opportunities & threats of their firm.” -William F Gluicck

9. Business Decisions Internal Environment External Environment

10. INTERNAL BUSINESS ENVIRONMENT ATTITUDES INTERNAL POWER RELATIONSHIP MISSION & OBJECTIVE VALUE SYSTEM MANAGEMENT STRUCTURE & NATURE HUMAN RESOURCE COMPANY IMAGE & BRAND EQUITY OTHER FACTORS

12. External Environment

13. Micro Environment “ Micro or task environment is more specific and immediate environment in which an organization conducts its business.” -Dunham & Pierce

22. Political Environment

28. Dynamics of Business Environment

32. Importance of Business Environment

34. COUNTRY RISK & POLITICAL RISK BUSINESS ENVIRONMENT

47. BALANCE OF PAYMENTS

50. Balance of payments Visible Invisible Capital Transfers

54. Indian Share in World Trade Export Import Trade 1950 1960 1970 1980 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 1.85 1.03 0.64 0.42 0.52 0.50 0.53 0.58 0.60 0.60 0.60 0.60 0.60 0.60 1.71 1.69 0.65 0.72 0.66 0.56 0.61 0.60 0.63 0.60 0.60 0.60 0.60 0.80 1.78 1.36 0.65 0.57 0.59 0.53 0.57 0.59 0.61 0.60 0.60 0.60 0.60 0.70

55. Foreign Trade in India Year Import Export Trade (def) 1950-51 1960-61 1970-71 1980-81 1990-91 1996-97 1997-98 1998-99 99-2000 2001-02 2003-04 608 1122 1634 12549 43198 138920 154176 178332 215236 230873 245199 606 642 1535 6711 32553 118817 130101 139753 159561 203571 209018 2 480 99 5838 10645 20103 24075 38579 55675 27302 36181

58. FOREIGN DIRECT INVESTMENT

69. INDUSTRIAL POLICY BUSINESS ENVIRONMENT

114. TYPES OF ECONOMIC REFORMS TYPES OF ECONOMIC REFORMS LIBERALISATION PRIVATISATION GLOBALISATION

130. FINANCIAL ENVIRONMENT