PPT on business envi

1. BUSINESS ENVIRONMENT

2. Introduction to Business
 Business is an important institution in society.
Be it the supply of goods and services; creation
of employment opportunities; offer of better
quality of life; or contribution to the economic
growth of a country, role of business is crucial
and society can’t survive without it.
 Business is the organized efforts of enterprises
to supply consumers with goods and services.
Businesses vary in size as measured by
number of employees or by sales volume.
 All businesses share the same purpose to
earn Profits. However, the purpose of

3.  It is an important institution in society and the role of business
is crucial.
 Be it for the supply of goods and services
 Creation of job opportunities
 Offer of better quality of life
 Contributing to the economic growth of the country and
putting it on the global map
Scope of Business
 Business included all activities connected with production,
trade, banking, insurance, finance, agency, advertising,
packaging and numerous other related activities.
Businesses include all efforts to comply with legal
restrictions and government requirements and discharging
obligations to consumers, employees, owners and to other
interest groups which have stakes in business directly or
Society cannot do without business and vice versa.

4. Definition of business
 Business represents the organized efforts of
enterprises to supply consumers with goods and
services.”
 Business “is a system created to satisfy society’s
needs and desires.”
 Business is that “complex field of commerce and
industry in which goods and services are created
and distributed- in the hope of profit within a
framework of laws and regulation.”

5. INTRODUCTION
 Understanding the environment within which the business has
to operate is very important for running a business unit
successfully at any place.
 Because, the environmental factors influence almost every
aspect of business, be it its nature, its location, the prices of
products, the distribution system, or the personnel policies.
 The success of every business depends on adapting itself to
the environment within which it functions.
 For example, when there is a change in the government
polices,the business has to make the necessary changes to
adapt itself to the new policies.

6.  Similarly, a change in the technology may render the
existing products obsolete, as we have seen that the
introduction of computer has replaced the
typewriters; the color television has made the black
and white television out of fashion.
 Again a change in the fashion or customers’ taste may
shift the demand in the market for a particular product,
e.g., the demand for jeans reduced the sale of other
traditional wear. All these aspects are external factors
that are beyond the control of the business.

7. MEANING OF BUSINESS
ENVIRONMENT
 The term ‘business environment’ connotes external forces,
factors and institutions that are beyond the control of the
business and they affect the functioning of a business
enterprise.
 These include customers, competitors, suppliers,
government, and the social, political, legal and technological
factors etc.
 While some of these factors or forces may have direct
influence over the business firm, others may operate
indirectly.
 Thus, business environment may be defined as the total
surroundings, which have a direct or indirect bearing on the
functioning of business.
 It may also be defined as the set of external factors, such as
economic factors, social factors, political and legal factors,

8. Importance of Business Environment
 Determining Opportunities and Threats: The interaction between the
business and its environment would identify opportunities for and threats
to the business. It helps the business enterprises for meeting the
challenges successfully.
 Giving Direction for Growth: The interaction with the environment leads
to opening up new frontiers of growth for the business firms. It enables the
business to identify the areas for growth and expansion of their activities.
 Continuous Learning: Environmental analysis makes the task of
managers easier in dealing with business challenges. The managers are
motivated to continuously update their knowledge, understanding and
skills to meet the predicted changes in realm of business.
 Image Building: Environmental understanding helps the business
organizations in improving their image by showing their sensitivity to the
environment within which they are working. For example, in view of the
shortage of power, many companies have set up Captive Power Plants
(CPP) in their factories to meet their own requirement of power.
 Meeting Competition: It helps the firms to analyze the competitors’
strategies and formulate their own strategies accordingly.

9. Nature of business
Business
Information
Competition
Change - Transition
Opportunities
Diversification
Globalisation
Technology

10. Nature OF Business Environment
 Totality of external forces
 Specific and general forces
 Dynamic nature
 Uncertainity
 Relativity

11. TYPES OF BUSINESS
ENVIRONMENT
 Confining business environment to
uncontrollable external factors, it may be
classified as
(a) Economic environment: The economic
environment
includes economic conditions, economic policies
and economic system of the country.
(b) Non-economic environment : Non-economic
environment comprises social, political, legal,
technological, demographic
and natural environment.

12. ECONOMIC ENVIRONMENT
The survival and success of each and every business
enterprise depend fully on its economic
environment. The main factors that affect the economic
environment are:
(a) Economic Conditions: The economic conditions of
a nation refer to a set of economic factors that have
great influence on business organisations and their
operations. These include gross domestic product, per
capita income, markets for goods and services,
availability of capital, foreign exchange reserve, growth
of foreign trade, strength of capital market etc. All
these help in improving the pace of economic growth.

13. (b) Economic Policies: All business activities and
operations are directly influenced by the economic
policies framed by the government from time to time.
Some of the important economic policies are:
(i) Industrial policy
(ii) Fiscal policy
(iii) Monetary policy
(iv) Foreign investment policy
(v) Export –Import policy (Exim policy)
(c) Economic System: The world economy is primarily
governed by three types of economic systems, viz., (i)
Capitalist economy; (ii) Socialist economy; and (iii) Mixed
economy. India has adopted the mixed economy system
which implies co-existence of public sector and private
sector.

14. NON-ECONOMIC ENVIRONMENT
The various elements of non-economic environment are as
follow:
(a) Social Environment
 The social environment of business includes social factors
like customs, traditions, values, beliefs, poverty, literacy, life
expectancy rate etc.
 The social structure and the values that society cherishes
have a considerable influence on the functioning of business
firms. For example, during festive seasons there is an
increase in the demand for new clothes, sweets, fruits, flower,
etc.
 Due to increase in literacy rate the consumers are becoming
more conscious of the quality of the products.
 Due to change in family composition, more nuclear families
with single child concepts have come up.
 This increases the demand for the different types of
household goods. It may be noted that the consumption
patterns, the dressing and living styles of people belonging to

15. (b) Political Environment
 This includes the political system, the government policies and
attitude towards the business community and the unionism. All
these aspects have a bearing on the strategies adopted by the
business firms.
 The stability of the government also influences business and
related activities to a great extent. It sends a signal of strength,
confidence to various interest groups and investors.
 Further, ideology of the political party also influences the business
organization and its operations.
 You may be aware that Coca-Cola, a cold drink widely used even
now, had to wind up operations in India in late seventies.
 Again the trade union activities also influence the operation of
business enterprises. Most of the labour unions in India are
affiliated to various political parties. Strikes, lockouts and labour
disputes etc. also adversely affect the business operations.
However, with the competitive business environment, trade
unions are now showing great maturity and started contributing
positively to the success of the business organization and its
operations through workers participation in management.

16. (c) Legal Environment
This refers to set of laws, regulations, which influence the business
organisations and their
operations. Every business organisation has to obey, and work within the
framework of the law. The important legislations that concern the
business enterprises include:
(i) Companies Act, 1956
(ii) Foreign Exchange Management Act, 1999
(iii) The Factories Act, 1948
(iv) Industrial Disputes Act, 1972
(v) Payment of Gratuity Act, 1972
(vi) Industries (Development and Regulation) Act, 1951
(vii) Prevention of Food Adulteration Act, 1954
(viii) Essential Commodities Act, 2002
(ix) The Standards of Weights and Measures Act, 1956
(x) Monopolies and Restrictive Trade Practices Act, 1969
(xi) Trade Marks Act, 1999
(xii) Bureau of Indian Standards Act, 1986
(xiii) Consumer Protection Act, 1986
(xiv) Environment Protection Act
(xv) Competition Act, 2002

17. The following are also form part of the legal environment of
business
(i) Provisions of the Constitution: The provisions of the
Articles of the Indian Constitution, particularly directive
principles, rights and duties of citizens, legislative powers
of the central and state government also influence the
operation of business enterprises.
(ii) Judicial Decisions: The judiciary has to ensure that the
legislature and the government function in the interest of
the public and act within the boundaries of the
constitution. The various judgments given by the court in
different matters relating to trade and industry also
influence the business activities.

18. (d) Technological Environment
 Technological environment include the methods,
techniques and approaches adopted for production of
goods and services and its distribution.
 The varying technological environments of different
countries affect the designing of products. For example,
in USA and many other countries electrical appliances
are designed for 110 volts. But when these are made
for India, they have to be of 220 volts.
 In the modern competitive age, the pace of
technological changes is very fast. Hence, in order to
survive and grow in the market, a business has to
adopt the technological changes from time to time.
 It may be noted that scientific research for improvement
and innovation in products and services is a regular
activity in most of the big industrial organizations. Now
a days infact, no firm can afford to persist with the

19. (e) Demographic Environment
 This refers to the size, density, distribution and growth rate
of population. All these factors have a direct bearing on the
demand for various goods and services.
 For example a country where population rate is high and
children constitute a large section of population, then there
is more demand for baby products
 Similarly the demand of the people of cities and towns are
different than the people of rural areas.
 The high rise of population indicates the easy availability of
labour. These encourage the business enterprises to use
labour intensive techniques of production.
 Moreover, availability of skill labour in certain areas
motivates the firms to set up their units in such area. For
example, the business units from America, Canada,
Australia, Germany, UK, are coming to India due to easy
availability of skilled manpower.
 Thus, a firm that keeps a watch on the changes on the
demographic front and reads them accurately will find
opportunities knocking at its doorsteps.

20. (f) Natural Environment
 The natural environment includes geographical and
ecological factors that influence the business
operations. These factors include the availability of
natural resources, weather and climatic condition,
location aspect, topographical factors, etc.
 Business is greatly influenced by the nature of natural
environment. For example, sugar factories are set up
only at those places where sugarcane can be grown.
 It is always considered better to establish
manufacturing unit near the sources of input.
 Further, government’s policies to maintain ecological
balance, conservation of natural resources etc. put
additional responsibility on the business sector.

21. Business
Decision
Internal Environment
Mission / Objectives
Management Structure
Internal Power Relationship
Physical Assets & facilities
Company image
Human resources
Financial Capabilities
Technological Capabilities
Marketing Capabilities
Financiers
Suppliers
Customers
Competitors
Public
Mktg Intermediaries
Micro Environment
Economic
Technological
Global
Demographic
Socio-Cultural
Political
Macro Environment
BUSINESS ENVIRONMENT

22. MICRO ENVIRONMENT
 Micro-environment is the specific or the task
environment of a business which affects its working or
operations directly on a regular basis.
 While the changes in the macro-environment affect
business in the long run, the effects of changes in the
micro-environment are noticed immediately.
 Hence, organizations must closely analyze and monitor
all the elements of the micro-environment on a regular
basis.

23. Suppliers:
 The suppliers refer to the providers of inputs, like
raw materials, equipment and services, to an
organization. Large companies have to deal with
hundreds of suppliers to maintain their
production.
 Suppliers with their own bargaining power affect
working and cost structure of the industry. Hence
it is important for an organization to carry out a
study of the following:
a) Who are the suppliers?
b) What are their products, prices and terms and
conditions?
c) Whether to "Outsource" production or get it done
"in-house" depending on this supplier

24. Consumers/Customers:
 No organization can survive without customers and
consumers. A customer is the one who buys a product
or service for the consumer who ultimately consumes
or uses the product or service of the organization.
 Hence, the consumer occupies the central position;
therefore an organization must closely monitor and
analyze the following:
 a) Who are the customers/consumers?
 b) What features or benefits are they looking for?
 c) What are their income levels?
 d) What are their tastes, preferences?
 e) What are their buying patterns, etc?

25. PUBLIC
 In common parlance, the world public refers to
people in general.
 According to Philip Kotler, A public is any group
that has an actual or potential interest in or
impact on a company’s ability to achieve its
objectives.”
 Environmentalists, consumer protection groups,
media persons and local lobbyists are some of
the well known examples of publics.
 These groups by their actions pose a threat to
companies.
 In certain cases , policies of public have,
however, proved to be beneficial to the business.

26. MARKETING INTERMEDIARIES
 In a company’s microenvironment , marketing
intermediaries such as wholesalers, retailers,
distribution firms, agents, etc., constitute an important
element.
 Most companies find it too difficult to reach the
consumers as they don’t have a network to market their
products. Distribution firms and agents in such cases
render useful service in popularizing a product.
 In case some product of a company is already popular
the marketing intermediaries other than wholesalers
and retailers are not required.

27. COMPETITORS
 In real business world a company encounters
various forms of competition.
 The most common competition which a
company’s product now faces is from
differentiated products of other companies, this
type of competition is called as ‘ the brand
competition.’
 A company sometimes encounters ‘ the product
form competition.’
 Competition can be of , ‘the desire competition','
on-price competition’,advertising,etc.,

28. DEMOGRAPHIC ENVIRONMENT

29. Important demographic bases of market segmentation include
the following.
 Age structure
 Gender
 Income distribution
 Family size
 Family life cycle (For example: Young, single: young,
married, no children; young married with children …….)
 Occupation
 Education
 Social class
 Religion
 Race
 Nationality

30. Table: Some Demographic Trends

31.  The increase in population and increase in income make
the developing countries very attractive markets of the
future. In fact, there are only three countries, excluding
India, (China, USA and Indonesia) in the world with a
total population larger than the population that India
added to itself during 1991 – 2001. The total population
of a large number of countries is smaller than the annual
addition to the Indian population.

33. Technological Environment
 Technology is the systematic application of scientific or
other organized knowledge to practical tasks.
 Technological environment hold new technological
innovation, new products, the state of technology, the
utilization of technology for maximum inputs and outputs,
the obsolescence of technology and the dynamic changes
that frequently occur in technologies which enable firms to
get a competitive advantage
 Technology reaches people through business
 Helps in increased productivity
 Business needs to spend on R & D and keep up with the
technological advances around them
 Technology leads to introduction of new products and older
products becoming outdated and redundant.
 Technological advances leads to high expectations of
consumers in terms of quality
 Leads to system complexity
 Demand for capital

34. Political Environment
Political Environment refers to the influence exerted by the three
political institutions ie. legislature, executive and judiciary in
shaping, directing, developing and controlling business activities.
 The constitution of a country
 Political Organisation
 Political Stability
 Image of the country and its leaders
 Foreign Policy
 Laws governing business
 Flexibility and adaptability of laws
 The Judicial System

35. Economic Environment
 Economic Environment refers to all forces which have an economic
impact on Business.
 The economic environment consists of the demand dynamics, supply
situation, pricing factors, degree of competitiveness, and impact of
profitability. It includes the fiscal policy, monetary policy and the taxation
policy, the FDI norms, the investment criterion and financing decisions.
Economic environment includes:
 Growth strategy
 Industry
 Agriculture
 Infrastructure
 Money and Capital Markets
 Per capita and national income
 Population
 New Economic Policy
.

36. External Environmental Analysis
Environmental Analysis has three goals:
 Provides an understanding of current and potential changes taking place
 Environmental Analysis should provide input for strategic decision making.
 Facilitate and lead to strategic decisions within an organization.
Environmental Analysis and diagnosis give strategists time to anticipate
opportunities and to plan to take optional responses to these opportunities. It also
helps strategists to develop an early warning system to prevent threats or to
develop strategies which can turn a threat to a firm’s advantage”. Firms which
systematically analyse and diagnose the environment are more effective than
those which do not.
Process of Environmental Analysis:
The analysis consists of four steps:
 Scanning : Detect early signals of possible environmental change and detect
environmental change already underway.
 Monitoring : Purpose of monitoring is to assemble sufficient data to discern
whether certain trends are emerging, identification of the trends and identification
of areas for further scanning.
 Forecasting : It is concerned with developing projections of the direction, scope
and intensity of environmental change.
 Assessment : To determine implications for the organisation’s current and
potential strategy.

37. Environmental Analysis and Strategic Management
Defining Business Mission and Objectives
SWOT Analysis
Environmental Analysis + Self Appraisal
Strategic Alternatives and Choice of Strategy
Implementation of Strategy
Evaluation and Control of Strategy

38. Competitive Structure of Industries
The competitive structure of industries is a very important business
environment. Identification of forces affecting the competitive
dynamics of an industry is very useful in formulation of strategies.
As per Michael Porter’ well known model of structural analysis of
industries, the state of competitions depends on:
Porter’s analysis determines the competitive intensity of the industry
and the attractiveness of the market. A highly competitive industry is
one approaching “Perfect Competition” whereby businesses are
only able to earn normal profits.
Rivalry among firms Buyers
Substitutes
New Entrants
Suppliers
Threat of new entrants
Threat of substitutes
Bargaining power
Bargaining power

39. Rivalry among Existing firms:
Firms in an industry are mutually dependent – competitive
motives of a firm usually affects others and may be
retaliated. Factors influencing the intensity of rivalry are:
 Number of firms and their Relative market share
 State of Growth of Industry: In stagnant, declining and
slow growth industries, a firm is able to increase its sales
by increasing the market share.
 Fixed or storage costs: In case of high fixed costs,
strategy of firms is to increase sales which in turn would
improve on capacity utilization.
 Indivisibility of capacity augmentation : Where there are
economies of scale, capacity increases would be in large
blocks necessitating, efforts to increase sales to achieve
capacity utilization norms.

40. Rivalry among Existing firms:
• Product standardization, after sales service: In case
of firms which have standardized products; it is price,
distribution and after sales service which become the
distinguishing factors.
 Strategic stake: Rivalry becomes more intensive if
the firms have high stakes in achieving success
there.
 Exit Barrier: If exit barriers are high, firms would keep
competing in the same industry even though it might
not be very attractive.
 Diverse Competition: Competitors with diverse
strategies make the industry highly competitive.
 Switching costs: One time costs that the buyer faces
on switching from one supplier’s product to that of
another ie cost of new ancillary equipment etc.
 Expected Retaliation

41. Threat of Entry:
Potential competition tends to be high if the industry is profitable or
critical and entry barriers are low. Some of the common entry barriers
are:
 Government Policy
 Cost Disadvantages: Cost advantages enjoyed by established firms
may discourage entry of new firms such as learning curve, favorable
location etc.
 Product Differentiation: Characterized by brand image, customer loyalty
etc. may deter new firms from entering the market.
 Monopoly Elements
 Capital Requirements : High capital intensive nature of the industry is an
entry barrier to small firms
Threat of substitutes
 An industry which has close substitutes available is highly competitive in
nature. Existence of close substitutes increases the propensity of
consumers to switch to alternatives in response to price increases.
 Perceived level of product differentiation in the minds of the consumer is
also a highly influential factor.

42. Bargaining power of Buyers:
Buyers can in turn also be potential competitors as they may integrate
backwards or bargain for lower costs, better quality of the product etc.
 The volume of purchase relative to the total sale of the seller
 The importance of the product to the buyer in terms of the total cost
 Extent of standardization or differentiation of the product
 Switching costs
 Extent of buyer’s information
Bargaining power of sellers:
Important determinants of supplier power are the following:
 Extent of concentration and domination in the supplier industry
 Importance of the product to the buyer
 Importance of the buyer to the supplier
 Extent of substitutability of the product
 Switching costs
 Extent of standardization of the product
 Potential for forward integration by suppliers

43. SWOT Analysis
SWOT stands for Strengths, Weaknesses,
Opportunities and Threats
Identification of the threats and opportunities in
the external environment and strengths and
weaknesses in the internal environment of the firms
are the cornerstone of business policy formulation.
It is the SWOT analysis which determines the
course of action to ensure the growth / survival of
the firm.

44. Strengths
•Strengths—internal to the unit; are a unit’s resources and capabilities that can
be used as a basis for developing a competitive advantage; strength should be
realistic and not modest.
Your list of strengths should be able to answer:
•What are the unit’s advantages?
•What does the unit do well?
•What relevant resources do you have access to?
•What do other people see as your strengths?
•What would you want to boast about to someone who knows nothing about this
organization and its work?
•Examples: good reputation among customers, resources, assets, people, :
experience, knowledge, data, capabilities
•Think in terms of: capabilities; competitive advantages; resources, assets,
people
•(experience, knowledge); marketing; quality; location; accreditations
•qualifications, certifications; processes/systems

45. Weaknesses
•Weaknesses—internal force that could serve as a barrier to maintain or
achieve a competitive advantage; a limitation, fault or defect of the unit;
•It should be truthful so that they may be overcome as quickly as
possible
Your list of weaknesses should be able to answer:
•What can be improved?
•What is done poorly?
•What should be avoided?
•What are you doing as an organization that you feel could be done
more effectively/efficiently?
•What is this organization NOT doing that you feel it should be doing?
•If you could change one thing that would help this department function
more effectively, what would you change?
•Examples: gaps in capabilities, financial, deadlines, morale
•lack of competitive

46. Opportunities
•Opportunities—any favorable situation present now or in the
future in the external environment.
Examples: unfulfilled customer need, arrival of new technologies,
loosening of regulations, global influences, economic boom,
demographic shift
•Where are the good opportunities facing you?
•What are the interesting trends you are aware of?
•Think of: market developments; competitor; vulnerabilities;
industry/ lifestyle trends;; geographical; partnerships

47. Threats
•External force that could inhibit the maintenance or attainment of a
competitive advantage; any unfavorable situation in the external
environment that is potentially damaging now or in the future.
•Examples: shifts in consumer tastes, new regulations, political or
legislative effects, environmental effects, new technology, loss of key staff,
economic downturn, demographic shifts, competitor intent; market
demands; sustaining internal capability; insurmountable weaknesses;
financial backing
Your list of threats should be able to answer:
•What obstacles do you face?
•What is your competition doing?
•Are the required specifications for your job/services changing?
•Is changing technology threatening your position?
•Do you have financial problems?
•Could any of your weaknesses seriously threaten your unit?

48. POSITIVE/
HELPFUL
to achieving the
goal
NEGATIVE/
HARMFUL
to achieving the
goal
INTERNAL Origin
facts/ factors of the
organization
Strengths
Things that are
good now,
maintain them,
build on them
and use as
leverage
Weaknesses
Things that are bad
now, remedy,
change or stop
them.
EXTERNAL Origin
facts/ factors of the
environment in
which the
organization
operates
Opportunities
Things that are
good for the
future, prioritize
them, capture
them, build on
them and
optimize
Threats
Things that are bad
for the future,
put in plans to
manage them or
counter them

49. SWOT Analysis of Indian Economy
Strengths
• Huge pool of labor force
• High percentage of cultivable land
• Diversified nature of the economy
• Availability of skilled manpower
• Extensive higher education system
• High growth rate of economy
• Rapid growth of IT / ITes Sector
• Abundance of natural resources
Weaknesses
• High percentage of workforce involved
in agriculture
• Approx a quarter of population below
the poverty line
• High unemployment rate
• Inequality in prevailing socio economic
conditions, rural – urban divide
• Low productivity
• Huge population leading to scarcity of
resources
• Low level of mechanization
• Red tapism, Bureaucracy
• Low literacy rates
Opportunities
• Scope for entry of private firms in various
sectors of business
• Inflow of FDI
• Huge foreign exchange prospects in IT / ITeS
• Investment in R & D
• Area of infrastructure
• Huge domestic market : Opportunity for MNCs
• Huge agricultural resources
Threats
• High fiscal deficit
• Threat of government intervention in
some states
• Growing import bill
• Population explosion, rate of growth of
population
• Agriculture excessively dependent on
monsoon

50. AN ORGANIZATION’S ENVIRONMENT
Industry Sector
Competitors,
Industry size and
Characteristics, Related
Industries
Raw Materials
Sector
Suppliers,
Manufacturers,
Real Estate
Human
Resources
Sector
Labor Market, Employment
Agencies, Universities, Training
Schools, Employees in Other
Companies, Unionization
Financial Resources Sector
Stock Markets, Banks,
Savings and Loans,
Private Investors
Market
Sector
Customers, Clients,
Potential Users of
Products and Services
Technology
Sector
Techniques of
Production, Science,
Research Centers,
Automation, New
Materials
Economic
Conditions Sector
Recession, Unemployment
Rate, Inflation rate, Rate of
Investment, Economics,
Growth
Government Sector
City, State, Federal Laws and
Regulations, Taxes, Services,
Court System, Political
Processes
Socio-Cultural sector
Age, Values, Beliefs, Education,
Religion, Work Ethic, Urban vs.
Rural, Birth Rate
ORGANIZATION
DOMAIN
Task Environment
Macro
Environment

51. United Nations Development Programme
 The United Nations Development Programme (UNDP) is the United Nations' global
development network.Headquartered in New York City, UNDP advocates for change and
connects countries to knowledge, experience and resources to help people build a better
life.
 It provides expert advice, training, and grant support to developing countries, with
increasing emphasis on assistance to the least developed countries.
 The status of UNDP is that of an executive board within the United Nations General
Assembly. The UNDP Administrator is the third highest-ranking official of the United
Nations after the United Nations Secretary-General and Deputy Secretary-General.
 To accomplish the MDGs and encourage global development, UNDP focuses on poverty
reduction, HIV/AIDS, democratic governance, energy and environment, social
development, and crisis prevention and recovery.
 UNDP also encourages the protection of human rights and the empowerment of women
in all of its programmes. The UNDP Human Development Report Office also publishes
an annual Human Development Report (since 1990) to measure and analyse
developmental progress.
 In addition to a global Report, UNDP publishes regional, national, and local Human
Development Reports.UNDP is funded entirely by voluntary contributions from member
nations. The organization operates in 177 countries, where it works with local
governments to meet development challenges and develop local capacity. Additionally,
the UNDP works internationally to help countries achieve the Millennium Development
Goals (MDGs). Currently, the UNDP is one of the main UN agencies involved in the
development of the Post-2015 Development Agenda.