Business environment basics
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The document discusses the various factors that make up a business's internal and external environment. The internal environment includes elements like management structure, human resources, and marketing capabilities. The external environment contains economic, political, social, technological, and global factors outside a firm's control. It specifically outlines economic conditions like growth and income levels, different economic systems like capitalist and socialist models, and how government economic policies around taxation, spending, and regulation can impact businesses.
Business environment basics
- 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. INTERNAL ENVIRONMENT • • • • • • • • Promoters & shareholders value Mission /Objectives Mgnt. Structure Internal power relationship Co. Image/Brand Image R&D , Technology Human Resources Marketing Capabilities
- 3. EXTERNAL ENVIRONMENT • 1.Micro/Task/Operating environment • 2.Macro/General/Remote/Uncontrollable
- 4. EXTERNAL ENVIRONMENT • • • • • • • Economic factors Political environment Social/Cultural factors Demographic factors Natural factors Technological Global factors
- 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. 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. ECONOMIC SYSTEM • CAPITALIST (FREE MARKET ECONOMY) • SOCIALIST/COMMUNIST(CENTRALLY PLANNED) • MIXED ECONOMIC SYSTEM – INDIA’s
- 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. 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. 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. FISCAL POLICY • Policy regarding – Taxation – Public expenditure – Public debt
- 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.