an interesting glance over topics which affect the business environment.

2. Business environment consists of two sub-environments
Micro Environment Macro Environment
Internal Environment External Environment
Market Size Interest Rates
Demand Taxes
Supply Inflation
Competitors CurrencyExchange rates
Suppliers Unemployment Rate
Recession
Depression
ECONOMIC FACTORS AFFECTING BUSINESS
ENVIRONMENT

3.  What IS INTEREST RATE
 REASONS FOR INTEREST RATE
CHANGE
 TYPEs OF INTERES RATES
INTEREST RATES

4. UNEMPLOYMENT

5. Typesand causes
1)Imperfect
information
2)Disincentives
1)Economic Change
2)Globalisation and
Liberalisation of Trade
3)Capital replacement
1)immobility
of labor,
1)When an
economy
experiences a
downturn
1)People with plenty of
cash

6. Consequences

7. Statistics

9. Factors of inflation

10. Effects on business environment
Salestarget
Incomedistribution
Futurepredictions
Reputationof the company

11.  Deflation (a fall in prices – negativeinflation) is very harmful.
 Moderateinflation enables adjustment of wages.
 Inflation enables adjustment of relative prices.
advantages

12. Controlling the inflation

13. Labor cost

14. * Covers one of the major portions of the total cost of a product or job.
* Increase the profitability and competitiveness of the organization.
* Labor cost is more difficult to control as compared to material
* Affected due to a change in government policy and requirement of trade union.
* Adversely affected due to dissatisfaction , irregularity, inefficiency, idle time, high labor turnover,
lack of interest and negative attitude of the workers.
*Helpful in minimizing wastage of materials by workers , idle time and unusual overtime work.
Need and importance

15. Advantages
1)Keepscost down
2)Flexibleemployment pattern
3)Increasedlaborproductivity
DISADVANTAGES
1)HIGHERPRODUCTIONCOST
2)INEQUALITYON INCOMEDISTRIBUTION
3)LOWERMORALEANDPRODUCTIVITY

17. COMPETITION

18. DISADVANTAGES
MARKET SHARE IS
DIVIDED
NEGATIVE
ADVERTISINGCAN
HURT
ADVANTAGES
DRIVESINNOVATION
AND QUALITY
it leads COLLECTIVE
LEARNING

19. Specific
Measurable
Agreed
BUSINESS OBJECTIVES
Realistic
Time
specific
OBJECTIVESCANBE ACHIEVEDBT CONSIDERINGFOLLOWING
CRITERIA

20. Disposable income ,taxes and tariffs

21. DISPOSABLE INCOME
High level of disposable income is good for producing luxury goods.a large disparty in income
distribution will promote businesses dealing in luxury goods as well as inferior goods.

22. Taxes
 High level of taxes will lead to low disposable income and
contraction of demand in the economy. Business will find it difficult
to attract consumers
 Types of taxes
 Tariff
 Tariffs are taxes and imposed on imported goods. If the tariffs are
low the domestic market may be flooded with cheap imported
goods and the local businesses will have tough time selling their
products.

23.  http://articles.economictimes.indiatimes.com/
 http://www.yourarticlelibrary.com/
 http://inflationdata.com/
 http://marketrealist.com/
reference