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2. BUSINESS ENVIRONMENT (NMBA014)
Syllabus

3. UNIT 1
Business Environment-Meaning, Importance, Environmental Factors, Recent Political Environment, Recent Economic and Financial Environment, Planning In India-Planning Commision-Liberalisation and Planning, Industrial Policy: New trade policy-1991 onwards, Industrial Licensing in India

4. Introduction to Business Environment
UNIT 1
Introduction to Business Environment

5. What is Business???
Business may be understood as the organized efforts of enterprises to supply consumers with goods and services for a profit

6. Contemporary Business goals
Profit (Bottom-line)
Growth
Market Leadership
Customer satisfaction
Employee satisfaction
Quality Products & Services
Service to Society

7. Why Study Business Environment
Development of broad strategies to ensure sustainability
To foresee the impact of socio-economic changes at the national and international levels on firm’s ability
Analysis of competitor’s strategies and formulation of effective counter measures
To keep oneself dynamic

8. What do you mean by Business Environment???
The environment of any organization is “ the aggregate of all conditions, events and influences that surround and affect it.”
Characteristics of Business Environment:
Complex
Dynamic
Multi-faceted
Far- reaching impact

9. FEATURES OF BUSINESS ENVIRONMENT
(a) Business environment is the sum total of all factors external to the business firm and that greatly influence their functioning. (b) It covers factors and forces like customers, competitors, suppliers, government, and the social, cultural, political, technological and legal conditions.

10. (c) The business environment is dynamic in nature, that means, it keeps on changing. (d) The changes in business environment are unpredictable. It is very difficult to predict the exact nature of future happenings and the changes in economic and social environment. (e) Business Environment differs from place to place, region to region and country to country. Political conditions in India differ from those in Pakistan.

11. IMPORTANCE OF BUSINESS ENVIRONMENT
(a) Determining Opportunities and Threats (b) Giving Direction for Growth (c) Continuous Learning (d) Image Building (e) Meeting Competition (f) Identifying Firm’s Strength and Weakness

12. Factors of Business Environment
Internal Factors
External Factors
Micro environment
Macro environment
Economic
Non Economic

13. Internal Factors
Refers to all the factors that are within an organization which impart strengths or cause weaknesses of strategic nature.
Controllable factors. These include:
Value system
Mission and Objectives
Management Structure and Nature

14. Internal factors includes:
Human Resources
Company Image and Brand Equity
Other Factors
Physical Assets and Facilities
R & D and Technological Capabilities
Marketing Resources
Financial Resources

15. External Factors
Includes all factors outside the organization which provide opportunities or pose threats to the organization
Uncontrollable factors
Consists of Micro and Macro environment

16. Micro Environment
“It consists of the factors in the company’s immediate environment that affect the performance of the company”.

17. Micro Environment Factors
Suppliers
Customers
Marketing Intermediaries
Competitors
Publics
Financial Community

18. Macro Environment
It comprises general trends and forces that may not immediately affect the organization but sooner or later will alter the way organization operates.
Macro Environment :-
Economic
Non Economic

19. Economic Environment
Economic stages that exists at a given time in a country
Economic system that is adopted by a country for example. Capitalistic, Socialistic or Mixed Economy
Economic planning, such as five year plans, budgets, etc.
Economic policies for example, monetary, industrial and fiscal policies
Economic Indices such as National Income, Per Capital Income, Disposable Income, Rate of growth of GNP, Distribution of Income, Rate of savings, Balance of Payments etc.
Economic Problems
Functioning of economy

20. Non Economic Environment
Regulatory Environment
Socio- Cultural Environment
Demographic Environment
Technological Environment
Political Environment

21. Non- Economic Environment
Cultural Environment
Social Customs & Rituals and practices
Lifestyle patterns
Family structure
Role & position of men, women, children and aged in family & society

22. Non- Economic Environment
Demographic Environment
Growth of population
Age Composition
Life Expectancy
Gender Ratio
Fertility and Mortality rates
Inter-state migration

23. Macro Environment Sources of technology Technological development
Technological Environment
Sources of technology
Technological development
Impact of technology
Political Environment
Political parties in power
Political Philosophy

24. Macro Environment Regulatory Environment Constitutional framework
Policies relating to pricing and foreign investment
Policies related to the public sector, SSIs, development of backward areas and control of environmental pollution

25. Overview of Business Environment
MACRO ENVIRONMENT
ECONOMIC Environment
MICRO ENVIRONMENT
BUSINESS
Internal Environment
Values,
Mission & Objectives. Human Resources,
Co. Image & Brand Equity
TECHNOLOGICAL FACTORS
DEMOGRAPHIC FACTORS
SOCIAL CULTURAL FACTORS
MARKETING INTERMEDIARIES
Non - Economic Environment

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