The document discusses various elements of business environment including direct and indirect factors. Direct factors include internal elements like personnel and physical assets that can be controlled by businesses. Indirect factors are external uncontrollable elements like social, economic, political and technological conditions that businesses must adapt to. It provides examples of Tata Nano automobile and challenges it faced relating to various environmental factors. Kingfisher Airlines is also discussed along with issues it encountered relating to internal mismanagement and changing external environment conditions.

1. Managing direct and
indirect elements of
Environment

2. Group members :-
Group no. 1
• Mansi Agrawal 1
• Payal Agrawal 2
• Anand 3
• Pravesh 4
• Mamta Bist 5

3. Introduction
A business cannot exist in isolation. It is promoted by certain people
and requires some resources for execution. So Business environment
consist of all those factors that have a bearing on the business.
The survival and success of a business or firm depends upon its
resources, command and its adaptability to the environment and the
extent to which the environment is favorable or unfavorable to the
development of the organization. The business environment is divided
into two parts:
• Direct action elements
• Indirect action elements

4. Direct action elements
• Directly affect the performance of the business
• Controllable ones
• Alter factors such as : personnel, physical assets,
facilities, objects, goals, policies etc.

5. Direct action
elements
Internal External

6. Employers
Internal
Shareholders
and BOD

7. Customers
Suppliers
Government
External
SIG
Competitors
Media
Labor unions
Financial
institution

8. Indirect action elements
• It consists of all those factors, which have
an indirect effect on the activities of the
business.
• The external factors are generally out of
control & the organization has to adapt
itself according to these external
environmental changes

9. Indirect action
elements
Social Economic Political Technological

10. Tata Nano
• THE PEOPLE’S CAR-Is a comfortable, safe, all-weather car, high
on fuel efficiency & low on emissions.
• I observed families riding on two- wheelers -- the father
driving the scooter, his young kid standing in front of him, his
wife seated behind him holding a little baby. Add to that the
slippery roads & Night time too. It is downright dangerous. It
led me to wonder whether one could conceive of a safe,
affordable, all-weather form of transport for such a family.---
--Ratan Tata

11. CONTROVERSY
POLITICAL PROBLEM
• Why Tata choose Singur
• Singur plant controversy
• West Bengals loss Gujarat’s gain
TECHINOLOGICAL PROBLEM
• Nano caught fire
• 30,000 cars already sold
• Electrical switches problem

12. IMPACT ON NANO
• Sales dipped by an alarming 85 percent, to 509 units Nano’s
last month, compared same month of November in 2009
after at least six of them caught fire, the last one in New Delhi
in August. This was the four the straight month of falling Sales
from the high of 9,000 cars in July. Dramatic footage of fires
On TV news channels had A negative impact on the sale
of the two-cylinder , 600cc Nano.
•

13. PEST ANALYSIS
Political
• Singur episode.
• Advantage Gujarat.
Economical
• Boom in the banking and financial sector.
• Employment
Social impact
• Living standard up gradation
• Increased safety
• Inadequate infrastructure
• Traffic congestion
• Parking problem
Technological impact
• Automobile Revolution

14. COCA-COLA SNAPSHOT
Founded in 1886 by Asa Candler
American multinational beverage company.
Its major brands include Coke, Diet Coke, Fanta and Sprite.
 Coca-Cola currently offers more than 500 brands in over 200
countries or territories and serves over 1.7 billion servings each
day

15. Managing the dae-external
environment (customers)
Coca cola came up with
an excessive marketing
strategy to gain back the
trust of their customers
It tied up with the
famous personalities to
be their brand
ambassador

16. MAJOR CRITICISM IN INDIA
Affecting the customers
Health hazards.
High usage of pesticide.

17. MAJOR CRITICISM IN INDIA
targeting social variables
Environmental degradation
and depletion of ground
water which lead to protest
in many villages.
Employees issues.

18. MANAGING THE IDEA--(social
variables)
LIVE POSITIVELY an initiative towards sustainable development :
 Sustainable Packaging
 Water Stewardship
 Product Quality and Safety
 Energy management and
Climate protection
 Community
 Work place

19. • Kingfisher Airlines Limited is an airline group based in India. Its head
office is in Andheri (East), Mumbai and Registered Office in UB City,
Bangalore. Parent company United Breweries Group, has a 50% stake in
low-cost carrier Kingfisher Red
• Until December 2011, Kingfisher Airlines had the second largest share
in India's domestic air travel market
• In May 2009, Kingfisher Airlines carried more than 1 million passengers,
giving it the highest market share among airlines in India
• Kingfisher also won the Skytrax award for India's best airline of the year
2011.
• Kingfisher Airlines is also the sponsor of F1 racing outfit Force India

20. • Acquirement of air Deccan airlines
• Freezing of bank accounts by income tax department
• Debt of 8000 crore with 18 lenders
• Delayed salary
• Fuel Dues
• Aircraft lease rental dues
• Income tax
• Bank arrears

21. “I WILL BOUNCE BACK”
- Vijay Mallya

22. IAE affecting Kingfisher
Sociological Five star flying experience
Technological TV, E booking, etc
Economic For upper classes
Ecological Climatic disorders
Political Stable conditions

23. DAE affecting Kingfisher
Competitor Low cost airlines like Indigo
Suppliers Bargaining power less