BUSINESS ENVIRONMENT

Anujith KR

Introduction, Concepts, Features, Factors, Environmental Awareness Vs Environmental Scanning

Business Environment

•Concept•Types Internal – 5Ms External

Significance/Features• Needs = Goods & Services• Dynamic conditions (IT & ITES Boom)(Inflation,

deflation, stagflation)• Policies & Resources = Social needs• CSR (e-choupal, drishti)• Decipher factors that affect functioning• Strategies (Long Term or Short Term?)• Competitor Strategies and Counter Strategies• Impact of Socio-Economic Change • Conducive Environment (Money value depreciation)• SWOT• Growth• Continuous Learning & Image Building (Related

Terms?)

Factors• Socio-Cultural• Economic

• Geographic• Technological

• Political

• Legal• Ecological

• Government Policies

• Values, Tastes, Preferences, Norms, Beliefs (Mc Donald's, KFC), Process Improvers

• Percapita income, national income, infrastructure(The per capita income at current prices during 2012-13 is estimated to be Rs 68,747 as compared to Rs 61,564 during 2011-12, showing a rise of 11.7%," an official release by the Central Statistics Office (CSO) Kerala – INR 83,725

• Benetton

• MRTP, FERA, IPR, Licensing, Collaborations

• CMP– Mahatma Gandhi National Rural Employment Guarantee Scheme, e-Governance, women status

• Factories Act, CPA, EPA, MRTP Act, Companies Act

• EPA, Water Prevention & Control of Pollution Act , Air Prevention & Control of Pollution Act.

• Trade Policies, Foreign Exchange, Labour, Monetary & Fiscal, Taxation, Export-Import

Factors• Labour• Market Conditions

• Locational

• Organizational

• Miscellaneous

• Ecological• Global

• AITUC, INTUC, ILO• Monopoly vs Oligopoly,

Perfect vs Imperfect• Taxation, Licensing,

Incentives Policy

• Brand Equity & Values - Infosys-Knowledge Pool

• Shareholding – Wipro vs Tata

• R&D- Nokia, Samsung

• PETA,• WTO, EU, WHO, UN

Environmental Analysis

Approaches

Techniques

• Inside - Out vs. Outside – In

• Information Gathering• Search & Scanning –

Clipping, MIS• Espionage• Formal Forecasting

EnvironmentalAwareness Vs Scanning Vs Monitoring

Environmental Scanning - Techniques

SWOT Analysis

•Corporate Planning, Set Objectives, KRA & CSF, Analyze Existing strategy, Strategic Issues, Revise strategy, Implementation & Monitoring

Industry Analysis Porter’s 5 Forces

‘Think Global, Act Local’ – Caselet 1

•Prestructural – To be one among the pioneers like GM, Apple, Toyota

•Unistructural – Counter strategy to Outperform competitors, Expansion Strategy

•Multistructural –Internal and External factors – Environment scanning

•Relational – Socio-cultural Impact (Heinz Ketchup, HUL detergents, Mc. Donald's), Unity in diversity

•Out of Box Thinking – Cultural adaptation, Societal transition.

Competitor Analysis

• Future Objectives• Current Strategy• Assumptions• Capabilities