BUSINESS ENVIRONMENT
ENVIRONMENT REFERS TO ALL
FACTORS WHICH HAS A
BEARING ON THE FUNCTIONING
OF A BUSINESS UNIT.
IT MAY B...
INTERNAL ENVIRONMENT
•
•
•
•
•
•
•
•

Promoters & shareholders value
Mission /Objectives
Mgnt. Structure
Internal power re...
EXTERNAL ENVIRONMENT
• 1.Micro/Task/Operating environment
• 2.Macro/General/Remote/Uncontrollable
EXTERNAL ENVIRONMENT
•
•
•
•
•
•
•

Economic factors
Political environment
Social/Cultural factors
Demographic factors
Nat...
ECONOMIC ENVIRONMENT
• Recently it is complex. Determined
by govt, capital market, household
sector, global market etc. It...
ECONOMIC CONDITIONS
• Determined by national income,
percapita income, economic resources,
distrn of income and assets, ec...
ECONOMIC SYSTEM
• CAPITALIST (FREE MARKET ECONOMY)
• SOCIALIST/COMMUNIST(CENTRALLY
PLANNED)
• MIXED ECONOMIC SYSTEM – INDI...
ECONOMIC POLICIES
• The policies throuth:– Budgets
– Industrial regulations
– Economic Planning
– Business laws
– Industri...
GOVTS REGULATE BUSI. THROUGH
•
•
•
•
•
•

Factories Act 1948
Industrial dispute act 1947
FERA1947 --FEMA
Companies act 195...
MONETARY POLICY
• RBI’s steps to regulate & control the cost
and supply of money and credit , Credit
control, bank rate, o...
FISCAL POLICY
• Policy regarding

– Taxation
– Public expenditure
– Public debt
POLITICAL ENVIRONMENT
•
•
•
•

Legislature
Executive
Judiciary
Impact of defence and military policy, Political
stability,...
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Business environment basics

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Business environment basics

  1. 1. BUSINESS ENVIRONMENT ENVIRONMENT REFERS TO ALL FACTORS WHICH HAS A BEARING ON THE FUNCTIONING OF A BUSINESS UNIT. IT MAY BE INTERNAL AND EXTERNAL
  2. 2. INTERNAL ENVIRONMENT • • • • • • • • Promoters & shareholders value Mission /Objectives Mgnt. Structure Internal power relationship Co. Image/Brand Image R&D , Technology Human Resources Marketing Capabilities
  3. 3. EXTERNAL ENVIRONMENT • 1.Micro/Task/Operating environment • 2.Macro/General/Remote/Uncontrollable
  4. 4. EXTERNAL ENVIRONMENT • • • • • • • Economic factors Political environment Social/Cultural factors Demographic factors Natural factors Technological Global factors
  5. 5. ECONOMIC ENVIRONMENT • Recently it is complex. Determined by govt, capital market, household sector, global market etc. It consists of economic conditions, economic systems, economic policies, economic growth, interest rates, currency exchange rates
  6. 6. ECONOMIC CONDITIONS • Determined by national income, percapita income, economic resources, distrn of income and assets, economic development etc. business cycles and economic growth are also important in the eco.conditions and in turn environment
  7. 7. ECONOMIC SYSTEM • CAPITALIST (FREE MARKET ECONOMY) • SOCIALIST/COMMUNIST(CENTRALLY PLANNED) • MIXED ECONOMIC SYSTEM – INDIA’s
  8. 8. ECONOMIC POLICIES • The policies throuth:– Budgets – Industrial regulations – Economic Planning – Business laws – Industrial policy – Demand and supply of goods – Monetary policy – Fiscal policy, Balance of payments, LPG
  9. 9. GOVTS REGULATE BUSI. THROUGH • • • • • • Factories Act 1948 Industrial dispute act 1947 FERA1947 --FEMA Companies act 1956 Export import control act Interest rate/borrowing rate Currency exchange rate –Rupee value
  10. 10. MONETARY POLICY • RBI’s steps to regulate & control the cost and supply of money and credit , Credit control, bank rate, open market operation, CRR, SLR, qualitative techniques of credit control etc.
  11. 11. FISCAL POLICY • Policy regarding – Taxation – Public expenditure – Public debt
  12. 12. POLITICAL ENVIRONMENT • • • • Legislature Executive Judiciary Impact of defence and military policy, Political stability, President’s rule, emergency, philosophy of political parties, Foreign policy, like allignment of non allignment policy, loan from IMF, ADB, ASSEAN agreement etc.

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