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1. BUSINESS
ENVIRONMENT
INTRODUCTION

2. SYLLABUS
..MBA-3001_Business Environment.docx
4/3/2024
BE 2

3. MODULE I
BE 4/3/2024 3
Definition
Components and Overview of Business
Environment
Complexity and Diversity of Business
Environment in the 21st century
Environmental Scanning- Meaning, Nature
& Process
Techniques of Scanning the Business
Environment.
LEARNING OBJECTIVES

4. MODE OF TEACHING
• Lecture
• Case Study
• Class Tests
• Assignments
• Group Presentations
4/3/2024
BE 4

5. BE 4/3/2024 5
Blog:
marketingwithsaif.com

6. Text & References
a) K. Aswathappa
(2019),Essentials of Business
Environment (15e).
b) Business Environment (2019),
Francis Cherunilam (27e).
c) Saleem, S. (2020), Business
environment. Pearson
Education India (4e).
BE 4/3/2024 6
Web links:
1. https://www.google.co.in/books/edition/
Business_Environment_by_Dr_V_C_Si
nha_Rit/Xp0PEAAAQBAJ?hl=en&gbp
v=1&dq=business+environment&print
sec=frontcover
2. https://www.google.co.in/books/edition/
Business_Environment/wjk7BAAAQB
AJ?hl=en&gbpv=1&dq=business+envir
onment&printsec=frontcover
3. https://www.google.co.in/books/edition/
Business_Environment/mGw8BAAAQ
BAJ?hl=en&gbpv=1&dq=business+env
ironment&printsec=frontcover
4. http://www.mbaskool.com/

7. BE 4/3/2024 7

8. BE 4/3/2024 8

9. BE 4/3/2024 9
BUSINESS ENVIRONMENT

10. BE 4/3/2024 10
1. It helps an organization to develop its broad strategies and long-
term policies.
2. It enables an organization to analyse its competitor’s strategies and,
thereby, formulate effective counter strategies.
3. Knowledge about the changing environment will keep the
organization dynamic in its approach.
4. Such a study enables the organization to foresee the impact of socio-
economic changes at the national and international level on its
stability.
5. Executives are able to adjust to the prevailing conditions and, thus,
influence the Environment in order to make it congenial for
business.
Why is it important to study "Business Environment"?
Saleem, S.,p-4

11. BE 4/3/2024 11
6. Development of effective strategies to ensure sustainability.
7. To foresee the impact of socio-economic changes both at the national
and international levels on a firm’s ability.
8. Analysis of competitors’ strategies and formulation of effective
counter measures.
9. To keep the organization dynamic.
Saleem, S.,p-4
Cont..

12. What is Business?

13. What is Business? Meaning
• Busyness-is the state of being busy
• All of us need food, clothing and shelter.
We also have many other household
requirements to be satisfied in our daily
lives. We met these requirements from
the shopkeeper. The shopkeeper gets
from wholesaler. The wholesaler gets
from manufacturers. The shopkeeper,
the wholesaler, the manufacturer are
doing business and therefore they are
called as Businessman.
• Old civilization and business/Industrial
revolution (1760_1820_1840)
4/3/2024
BE 13

14. BE 4/3/2024 14
• Business is an economic activity, which is related
with continuous and regular production and
distribution of goods and services for satisfying
human wants.
What is Business? Meaning
“Business is the creator and preserver of civilization”
(Herbert Casson)

15. DEFINITIONS OF BUSINESS
• Stephenson defines business as, "The regular production or purchase and sale of
goods undertaken with an objective of earning profit and acquiring wealth through
the satisfaction of human wants.“
• According to Dicksee, "Business refers to a form of activity conducted with an
objective of earning profits for the benefit of those on whose behalf the activity is
conducted.“
• Lewis Henry defines business as, "Human activity directed towards producing or
acquiring wealth through buying and selling of goods.“
4/3/2024
BE 15

16. Business Characteristics
4/3/2024
BE 16
 Economic Activity
 Production of goods and services
 Exchange or Sale of Goods and Services
 Continuous process
 Profit motive
 Risk and uncertainty
• https://byjus.com/commerc
e/concept-and-features-of-
business/
• https://tyrocity.com/topic/c
haracteristics-of-business/
https://marketingwithsaif.co
m/business-characteristics/

17. BE 4/3/2024 17
BUSINESS SECTORS
 PRIMARY SECTOR
 SECONDARY SECTOR
 TERTIARY SECTOR
Services industries,Trade,Commerce,
Insurance, Banking, Repair, Transport
Manufacturing Industries,
Manufacturing activities, Electricity
Generation and Construction
Agriculture, Mining
*GVA (Gross Value Added
21.82*
24.29*
53.89*
https://statisticstimes.com/economy/country/india-gdp-sectorwise.php

18. BE 4/3/2024 18
CLASSIFICATION OF BUSINESS
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USES OF GOODS
 COMPETITIVE STRUTCURE

19. BE 4/3/2024 19
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USES OF GOODS
 COMPETITIVE STRUTCURE
A. BUSINESS WHICH PRODUCES GOODS
B. BUSINESS WHICH PRODUCES SERVICES
C. BUSINESS WHICH DITRIBUTES GOODS
D. BUSINESS WHICH FACILITATES
DISTRIBUTION OF GOODS
E. BUSINESS WHICH DEALS IN FINANCE
CLASSIFICATION OF BUSINESS

20. BE 4/3/2024 20
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USES OF GOODS
 COMPETITIVE STRUTCURE
A. BUSINESS WHICH PRODUCES GOODS
B. BUSINESS WHICH PRODUCES SERVICES
C. BUSINESS WHICH DITRIBUTES GOODS
D. BUSINESS WHICH FACILITATES
DISTRIBUTION OF GOODS
E. BUSINESS WHICH DEALS IN FINANCE
• Goods produced by Secondary sector
• Conversion of Raw material into another form
• Farms, Dairies, Manufacturing Enterprises,
Machinery, Materials for other business,
Producing goods for consumption
a) COMMODITIES
b) PRODUCTS
• Goods produced by Primary sector
• Will not undergo any processing
• Agriculture , Fisheries, Mining etc.
CLASSIFICATION OF BUSINESS
Wheat=> Flour
Tomato=> Sauce

21. BE 4/3/2024 21
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USES OF GOODS
 COMPETITIVE STRUTCURE
A. BUSINESS WHICH PRODUCES GOODS
B. BUSINESS WHICH PRODUCES SERVICES
C. BUSINESS WHICH DITRIBUTES GOODS
D. BUSINESS WHICH FACILITATES
DISTRIBUTION OF GOODS
E. BUSINESS WHICH DEALS IN FINANCE
• Transport , Telephone , Electric
Light ,Hotels ,Entertainment
CLASSIFICATION OF BUSINESS

22. BE 4/3/2024 22
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USES OF GOODS
 COMPETITIVE STRUTCURE
A. BUSINESS WHICH PRODUCES GOODS
B. BUSINESS WHICH PRODUCES SERVICES
C. BUSINESS WHICH DITRIBUTES GOODS
D. BUSINESS WHICH FACILITATES
DISTRIBUTION OF GOODS
E. BUSINESS WHICH DEALS IN FINANCE
• Wholesale merchants
• Retail Merchants
• Importers & Exporters
CLASSIFICATION OF BUSINESS

23. BE 4/3/2024 23
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USES OF GOODS
 COMPETITIVE STRUTCURE
A. BUSINESS WHICH PRODUCES GOODS
B. BUSINESS WHICH PRODUCES SERVICES
C. BUSINESS WHICH DITRIBUTES GOODS
D. BUSINESS WHICH FACILITATES
DISTRIBUTION OF GOODS
E. BUSINESS WHICH DEALS IN FINANCE
• Warehouse, Auction Houses,
Advertising, Financing
CLASSIFICATION OF BUSINESS

24. BE 4/3/2024 24
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USES OF GOODS
 COMPETITIVE STRUTCURE
A. BUSINESS WHICH PRODUCES GOODS
B. BUSINESS WHICH PRODUCES SERVICES
C. BUSINESS WHICH DITRIBUTES GOODS
D. BUSINESS WHICH FACILITATES
DISTRIBUTION OF GOODS
E. BUSINESS WHICH DEALS IN FINANCE
• Commercial Banks, Co-Operative
Banks, Development Banked,
Insurance, Stock Exchange
CLASSIFICATION OF BUSINESS

25. BE 4/3/2024 25
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USES OF GOODS
 COMPETITIVE STRUTCURE
 EXTRACTIVE INDUSTRIES
 GENETIC INDUSTRIES
 MANUFACTURING INDUSTRIES
 CONSTRUCTION INDUSTRIES
 SERVICE AND IT/ITes INDUSTRIES
• Extract goods from natural resources.
• Farming, lumbering, fishing, mining, oil
extraction(KG6) mostly commodities.
CLASSIFICATION OF BUSINESS

26. BE 4/3/2024 26
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USES OF GOODS
 COMPETITIVE STRUTCURE
 EXTRACTIVE INDUSTRIES
 GENETIC INDUSTRIES
 MANUFACTURING INDUSTRIES
 CONSTRUCTION INDUSTRIES
 SERVICE AND IT/ITes INDUSTRIES
• Produce goods by breeding.
• Breeding animals and plants,
Poultries.
• Use of Bio Technology
CLASSIFICATION OF BUSINESS

27. BE 4/3/2024
27
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USES OF GOODS
 COMPETITIVE STRUTCURE
 EXTRACTIVE INDUSTRIES
 GENETIC INDUSTRIES
 MANUFACTURING INDUSTRIES
 CONSTRUCTION INDUSTRIES
 SERVICE AND IT/ITes INDUSTRIES
Process Raw materials into finished goods
 BASIC INDUSRIES : Iron, Steel
 CAPITAL GOODS INDUSTRIES : Machines
 INTERMEDIATE INDUSTRIES : Tyre , Tubes
 CONSUMER GOODS INDUSTRIES : Soap
CLASSIFICATION OF BUSINESS

28. BE 4/3/2024 28
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USES OF GOODS
 COMPETITIVE STRUTCURE
 EXTRACTIVE INDUSTRIES
 GENETIC INDUSTRIES
 MANUFACTURING INDUSTRIES
 CONSTRUCTION INDUSTRIES
 SERVICE AND IT/ITes INDUSTRIES
• Canals, Dams, Road, Buildings,
Road
CLASSIFICATION OF BUSINESS

29. BE 4/3/2024 29
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USES OF GOODS
 COMPETITIVE STRUTCURE
 EXTRACTIVE INDUSTRIES
 GENETIC INDUSTRIES
 MANUFACTURING INDUSTRIES
 CONSTRUCTION INDUSTRIES
 SERVICE AND IT/ITes INDUSTRIES
CLASSIFICATION OF BUSINESS

30. BE 4/3/2024 30
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USES OF GOODS
 COMPETITIVE STRUTCURE
 BASIC INDUSTRIES
 CAPITAL GOOD INDUSTRIES
 INTERMEDIATE GOODS INDUSTRIES
 CONSUMER GOODS INDUSTRIES
• Provide essential inputs to other
industries
• Iron, Steel, Fertilizer, Chemicals
CLASSIFICATION OF BUSINESS

31. BE 4/3/2024 31
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USES OF GOODS
 COMPETITIVE STRUTCURE
 BASIC INDUSTRIES
 CAPITAL GOOD INDUSTRIES
 INTERMEDIATE GOODS INDUSTRIES
 CONSUMER GOODS INDUSTRIES
• Instrumental in producing goods and services
• Do not directly produce goods for consumption
• Capital intensive
• Machines, Tools.
CLASSIFICATION OF BUSINESS

32. BE 4/3/2024 32
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USES OF GOODS
 COMPETITIVE STRUTCURE
 BASIC INDUSTRIES
 CAPITAL GOOD INDUSTRIES
 INTERMEDIATE GOODS INDUSTRIES
 CONSUMER GOODS INDUSTRIES
• Goods already had undergone manufacturing
process but which forms input
• For other industries for further processing
CLASSIFICATION OF BUSINESS

33. BE 4/3/2024 33
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USES OF GOODS
 COMPETITIVE STRUTCURE
 BASIC INDUSTRIES
 CAPITAL GOOD INDUSTRIES
 INTERMEDIATE GOODS INDUSTRIES
 CONSUMER GOODS INDUSTRIES
• For consumption – Durable /Nondurable goods
• Durable – Usage for more than 3 years
• Non-durable – Usage within 3 years
CLASSIFICATION OF BUSINESS

34. BE 4/3/2024 34
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USED OF GOODS
 COMPETITIVE STRUTCURE
 MONOPOLY
 DUOPOLY
 OLIGOPOLY
 MONOPOLISTIC COMPETITION
 PERFECT COMPETITION
• Single –Firm Industry
• Monopsony – Single Buyer
• Bilateral Monopoly – Single Buyer and Single seller
• MRTP 1969 Act replaced by Competition Act 2002 =>CCI
Wal-Mart, Microsoft and DeBeers (diamonds).
CLASSIFICATION OF BUSINESS
Indian railways

35. BE 4/3/2024 35
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USED OF GOODS
 COMPETITIVE STRUTCURE
 MONOPOLY
 DUOPOLY
 OLIGOPOLY
 MONOPOLISTIC COMPETITION
 PERFECT COMPETITION
• Two firms/sellers
Pepsi and Coke, Airbus and Boeing.
GM, Chrysler and Ford in the 1970’s.
Sony, Nintendo and Microsoft in the gaming industry.
General Mills, Post and Kellogg’s in the breakfast cereal sector.
TRIOPOLY
CLASSIFICATION OF BUSINESS

36. BE 4/3/2024 36
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USED OF GOODS
 COMPETITIVE STRUTCURE
 MONOPOLY
 DUOPOLY
 OLIGOPOLY
 MONOPOLISTIC COMPETITION
 PERFECT COMPETITION
• Only few firms holding 80 to 85 % market share
o PERFECT OLIGOPOLY
o IMPERFECT OLIGOPOLY
Product is homogeneous
Differentiated
High-tech
industries,Automobile,
Computer Hardware
CLASSIFICATION OF BUSINESS

37. BE 4/3/2024 37
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USED OF GOODS
 COMPETITIVE STRUTCURE
 MONOPOLY
 DUOPOLY
 OLIGOPOLY
 MONOPOLISTIC COMPETITION
 PERFECT COMPETITION
• A large number of firms selling products which are close but not perfect, substitutes.
• Product differentiation.
• Competitive advantage.
• Freedom in pricing.
• Textile industry, Sugar industry, Toilet soaps (HLL,Godrej,Wipro,Colgate-Palmalive,P&G,Nirma-
OLIGOPOLISTIC SITUATION.
CLASSIFICATION OF BUSINESS

38. BE 4/3/2024 38
Based on:
 SCOPE OF BUSINESS
 NATURE OF ACTIVITY
 USED OF GOODS
 COMPETITIVE STRUTCURE
 MONOPOLY
 DUOPOLY
 OLIGOPOLY
 MONOPOLISTIC COMPETITION
 PERFECT COMPETITION
1. Large sellers.
2. Homogeneous products.
3. Free entry , exit.
4. Perfect knowledge on the part of the buyers
and sellers about the conditions in market.
5. Complete mobility of factors of production
between industries.
PURE COMPETITION
CLASSIFICATION OF BUSINESS

39. BE 4/3/2024 39

40. BUSINESS AS A SYSTEM
Which of the following represent the “ Integrated Whole Thing”
Digestive System Digestive Method Digestive Process
Sound System Sound Method Sound Process
Music System Music Method Music Process
Computer System Computer Method Computer Process
Political System Social System Cultural system
Economic System
Technological System
Legal System
BE 4/3/2024 40
Contd …

41. SYSTEM
A set of things working together as parts of a
mechanism or an interconnecting network.
PROCESS
A series of actions or steps taken to achieve an
end.
METHOD
A particular procedure for accomplishing or
approaching something, esp. a systematic or
established one.
4/3/2024
BE 41

42. SYSTEM will:
Draw Input, Process it Internally and Releases output into environment.
BUSINESS
Draw Input – Material , Energy , Information
Process it Internally - In to different Material , energy and Information
Releases output into environment – Tangible, Intangible and Information
4/3/2024
BE 42
Contd …

43. Output
Input
Transformation
External Environment
Reenergizing
the system
INPUT-OUTPUT MODEL

44. SYSTEMS APPROACH TO THE MANAGEMENT PROCESS
External Environment
Management
INFORMATION
Opportunities
Constrains
Others
GOAL OF
CLAIMENTS
Employees
Consumers
Suppliers
Stockholders
Governments
Community
Others
OUTPUT
Products
Services
Profit
Satisfaction
Goal Integration
Others
INPUTS
Human
Capital
Management
Technological
Others
Re-energizing
the
system
1.Planning
2.Organising
3.Staffing
4.leading
5.Controlling
Communication
External Environment
4/3/2024
BE 44

45. BE 4/3/2024 45

46. BE 4/3/2024 46
DEFINITIONS:
BUSINESS ENVIRONMENT
William F. Glueck defines business environment “as
the process by which strategists monitor the
economic, governmental, market, supplier,
technological, geographic, and social settings to
determine opportunities and threats to their firms.
Business environment consist of all the actors and
forces influencing the company’s ability to transact
business effectively with it’s target market constitute
business environment
https://marketingwithsaif.com
/business-environment/

47. BUSINESS ENVIRONMENT
Internal
Environment
Vision,
Mission
HR &
Internal
Relationship
Image
Mgt.
Structure
Physical
Assets
R&D
Resources
External
Environment
Micro
Environment
Customers
Suppliers
Competitors
Middlemen
Publics
Macro
Environment
Demographic
Factors
Economic
Factors
Political
factors
Socio-
Cultural
Factors
International
Factors
Natural
factors 4/3/2024
BE 47
Task
Environment
Broad
Environment

48. Company
Demographic
Economic
Natural
Technological
Political
Cultural
Company
Customers
Intermediaries
Suppliers
Competitors
Publics
BUSINESS
ENVIRONMENT
4/3/2024
BE 48

49. 4/3/2024
BE 49

50. BE 4/3/2024 50
• The internal factors are known as controllable factors because the organization has
a control over these factors.
• It can modify or alter such factors to suit the environment.
• It refers to all the factors within an organization, which impart strength or create
weakness of a strategic nature.
• STREGTH is the inherent capacity of an organization which can be used to gain
strategic advantage over its competitors.
• On the other hand, the WEAKNESS of an organization refers to its inherent
limitation or constraint which creates a strategic disadvantage.
INTERNAL BUSINESS ENVIRONMENT
Vision,
Mission
HR &
Internal
Relationship
Image
Mgt.
Structure
Physical
Assets
R&D
Resources

51. BUSINESS MOTIVE
The desire which stimulate action
Example: Profit, Non-Profit
BUSINESS OBJECTIVE
The end actions
Example:Supply Quality Products,
Customer Satisfaction, Exploit labour,
Tax evasion
BE 4/3/2024 51

52. 52
Characteristics of Objectives
SMART objective
George T Doran (1981)
http://www.hydratemarketi
ng.com/blog/the-
importance-of-setting-
smart-goals
4/3/2024
BE

53. BE 4/3/2024 53
https://www.undp.o
rg/sustainable-
development-goals
Sustainable
Development
Goals

54. BE 4/3/2024 54
The triple bottom line (or otherwise noted as TBL or
3BL) is an accounting framework with three parts:
social, environmental (or ecological) and financial.
https://en.wikipedia.org/wiki/Triple_bottom_line

55. IMPORTANCE of Objectives
Justifies existence
Provide Direction
Help coordination
Provide standards for assessment & control
Help decentralization
BE 4/3/2024 55

56. BE 4/3/2024 56
Contd …
TYPES OF OBJECTIVES
ECONOMIC OBJECTIVES
a) Earning of adequate profit.
b) Creation of customers
c) Innovation
d) Generation of employment
e) Control of inflation
f) Economic development
g) Reduction of inequalities of
income

57. BE 4/3/2024 57
Contd …
TYPES OF OBJECTIVES
SOCIAL OBJECTIVES
a) Supply of goods and services.
b) Good treatment of customers.
c) Fair treatment of employees.
d) Good working environment
e) Customer Counseling
f) Social responsibility.
g) Pollution control.

58. BE 4/3/2024 58
Contd …
TYPES OF OBJECTIVES
NATIONAL OBJECTIVES
a) Implement of government laws.
b) Payment of taxes.
c) Democratic practices.

59. VISION & MISSION
VISION
Where are we headed?
 The first step in establishing an organisation
begins with a dream.
 The vision is like a company dream.
 Visualization of what is wanted and it comes
alive.
 The owner should be the one with the vision.
And it should include goals to attaining, (short
and long).
4/3/2024
BE 59
 https://strategicmanagementinsight
.com/tools/vision-statement/
 https://strategicmanagementinsight
.com/tools/mission-statement.html

60. BE 4/3/2024 60
MISSION
How will we get there?
(Peter Drucker )
 What is our business?
 Who is the customer?
 What is value to the customer?
 What will our business be?
 What should our business be?

61. BE 4/3/2024 61
VALUES
What do we stand for?
• Values Are the guidelines for day to day activity
on this path
• Examples:Vision and Mission of Centers for
Disease Control

62. BE 4/3/2024 62
NATIONAL ASSESMENT AND ACCREDITION COUCIL (NAAC)

63. BE 4/3/2024 63
NATIONAL ASSESMENT AND ACCREDITION COUCIL (NAAC)

64. BE 4/3/2024 64
MICRO & MACRO ENVIRONMENT
The term ‘business environment’ generally refers to the external environment and
includes factors outside the firm which can lead to opportunities for or threats to the
firm.
Although there are many external factors it is divided into micro and macro
environments.
The most important factors of macro environment are economic, governmental, legal,
technological, geographical, and social.

65. BE 4/3/2024 65
MACRO ENVIRONMENT
The major external and uncontrollable factors that
influence an organization's decision making, and
affect its performance and strategies.
These factors include the economic factors;
demographics; legal, political, and social conditions;
technological changes; and natural forces.
DEFINITION
MICRO ENVIRONMENT
Factors or elements in an
organization's immediate area of
operations that affect its
performance and decision-
making freedom.
These factors include
competitors, customers,
distribution channels, suppliers,
and the general public.

66. MICRO ENVIRONMENT

67. Company
Customers
Publics Suppliers
Competitors Intermediaries
Forces Affecting a
Company’s Ability to
Serve
Customers
MICRO ENVIRONMENT
4/3/2024
BE 67

68. BE 4/3/2024 68
CUSTOMERS
No customer, No business
Organization should know its customers so well that it is able to predict what they
will require next rather than wait until it is possibly too late and then follow.
Understand changing needs by an appropriate MIS and carry out research in
collecting, analyzing and disseminating information.
Contd …

69. BE 4/3/2024 69
Different Categories of Customers
 Industrial customers
 Wholesale customers
 Retail customers
 Government customers
 Foreign customers

70. BE 4/3/2024 70
MARKET INTERMEDIARIES
i. Middlemen.
ii. Physical distribution Firms:
(warehouses and transport firms)
iii. Marketing service agencies
(Advertising agencies market
research firms, media firms,
consulting firms)
iv. Financial intermediaries
Contd …
Marketing channels through which the
product is being sold. Help in promoting
products. Eg. Food manufacturers who do
not get shelf space in the major
supermarkets may find it difficult to
achieve large sales volume.

71. BE 4/3/2024 71
SUPPLIERS & VENDORS
• Provide an organization with goods and services which are transformed by the
organization into value added products for customers.
• Companies operating in highly competitive environment where differentiation
between products is minimal, obtaining supplies at the lowest possible price may be
vital in order to be able to pass on cost savings in the form of lower prices charged to
customers.
Toyota following JUST IN TIME strategy and thus function of supplies becomes very
important. (SAP,ERP)

72. BE 4/3/2024 72
COMPETITORS
 COMPETITIVE ENVIRONMENT
 LEVELS OF COMPETITION
 ELEMENTS OF COMPETITION
Contd …

73. BE 4/3/2024 73
COMPETITORS
 COMPETITIVE ENVIRONMENT
 LEVELS OF COMPETITION
 ELEMENTS OF COMPETITION
Contd …
Number of competitors a company faces
Relative size of competitors
Degree of interdependence within the
industry
New technologies

74. BE 4/3/2024 74
COMPETITORS
 COMPETITIVE ENVIRONMENT
 LEVELS OF COMPETITION
 ELEMENTS OF COMPETITION
Contd …
Brand level Competition:
• Similar product/similar price
• Maruti Alto with Hyundai Santro (Not with
Mercedes C class or BMW’s)
Industry level Competition:
• With all other manufacturers of similar products.
• Maruti with Hyundai,Volkswagen,Chevrolet,GM
Form level Competition:
• Products providing same service
• Maruti (car) with Honda (motorcycles)-Service-
Travelling/Steel with Aluminium
Generic level Competition:
• For same money or wallet of customers
• Car with Durables,Vacation,Home

75. BE 4/3/2024 75
COMPETITORS
 COMPETITIVE ENVIRONMENT
 LEVELS OF COMPETITION
 ELEMENTS OF COMPETITION
Contd …
 The entry of New Firms
 The Power of Buyers
 The Power of Suppliers
 The Power of Substitutes
 The Intensity of Rivalry among Existing
Firms

76. BE 4/3/2024 76
Porter’s Five
Forces Model of
Competition

77. BE 4/3/2024 77
PUBLICS
• A public is any group that has an actual or potential interest in or impact on an
organization's ability to achieve its interest.
• Example: Media publics, Citizen action publics, Local publics etc.

78. MACRO ENVIRONMENT

79. Demographic
Technological
Cultural
Economic
Political Natural
Forces that Shape
Opportunities
and Pose Threats
to a Company
4/3/2024
BE 79

80. THANK
YOU!
Dr. Md. Saifullah Khalid
Phone
7533807620
Email
Saif.kh92@gmail.com
Blog
marketingwithsaif.com