CLASSROOM EXERCISE

• 1. LIST TOP 20 BUSINESSESS IN YOUR CITY.• LIST NAME OF 20 RESTAURANTS IN YOUR

CITY.• LIST THE PRICE OF 30 ITEMS IN YOUR HOUSE.

• LET START WITH A QUESTION?• WHAT IS RECESSION.

I DON`T WANT TO SPEND.I DON`T WANT TO SPEND.

STOCK MARKET CRASHSTOCK MARKET CRASH

BANKS GO BANKRUPTBANKS GO BANKRUPT

SO PANTALOON DID IN THIS WAY• WITH MALL OWNERS: FROM FIXED RENT TO

REVENUE-SHARING MODEL……RESULTED IN 10% SAVING ON OVERALL COST.

• AIR CONDITIONER TEMPERATURE RAISED TO 25 DEGREE FROM 22 DEGREE…….RESULTED IN LOW COST.

• OFFICE OCCUPY BY EMPLOYEES DOWN FROM 200 Sq FT TO 150 Sq ft……RESULTED IN 25-30% RUDUCE IN REQUIREMENT

• CHANGED THE PAYMENT PATTERN OF DEBT TO CASH GENERATED THROUGH SALES

HERO HONDA

• OUR DEPENDENCE ON FINANCE TO CONSUMER THROUGH BANKS REDUCES FROM 55-60% TO JUST 15 %.

• SIGNED AS TITLE SPONSORS FOR HOCKEY WORLD CUP.

RESULTS: GROWING FASTER THAN THE INDUSTRY

MCDONALDS INDIA

• 24 Hr DRIVE THROUGH• IN DELHI, STORES ARE OPEN TILL 1 A.M• ALTERED OUR MENU TO TASTE OF CUSTOMERS.

SO THAT WE INVITE THE SAME CUSTOMER TO

VISIT MORE OFTEN AND INVITE NEW CUSTOMERS ALSO…RESULTED IN 10% INCREASE.

ICICI BANK• LOWER EXPOSURE TO UNSECURED LOANS• LESS RELIANCE ON DIRECT SELLING AGENTS• MORE FOCUS ON BRANCH BANKING• GREATER INPORTANCE TO HR

NATURE,COMPONENTS AND DETERMINANTS OF BUSINESS ENVIRONMENT

COMPLEX

SO BUSINESS ENVIRONMENT

COMPLEX UNSTABLE

SO WHO WILL FRONT RUNNER

• COMPANIES PROACTIVELY FACES THE CHALLENGES

• DEVISE THE WAYS TO COUNTER AND TAKE APPROPRIATE DEFENCE

• INNOCULATIVE MEASUREWILL LEAD THE PACK AMONG.

CONTINUE……….

• FIRMS ELEMENTS CHANGE EXETRNAL E. BUT– SOMETIME EXTERNAL E HAS—POSITIVE IMPACT AND NEGETIVE IMPACT.

• ITS DEPEND AND CHANGES: WHAT IS AND WILL BE

• COMPETITIVE SITUATION• PRODUCT MIX OF FIRMS• MANAGERIAL CAPABILITIES• ABILITY OF THE FIRM TO MAKE STRATEGIC ADJUSTMENT

TO ENVIRONMENT CHANGES.

INPUT PROVIDER

CUSTOMER

CHANNEL MEMBERS

BUSINESS GOVERNEMENT

EMPLOYEE

RIVALS

DOMESTIC MACRO ECONOMIC ENVIRONMENT

GROWTH AND DISTRIBUTION ENVIRONMENT

ECONOMIC SYSTEM

ECONOMIC STABILITY

ECONOMIC POLICY

SOCIAL CULTURE ENVIRONMENT

NON MACRO ENVIRONMENT

COMPETITIVE ENVIRONMENT

DEMOGRAPHIC ENVIRONMENT

INTERNATIONAL ENVIRONMENT

INTERNATIONAL ENVIRONMENT

COMPONENTS OF B.ECOMPONENTS OF B.E DIFFERENT LAYERS OF B.E OF FIRMDIFFERENT LAYERS OF B.E OF FIRM

GLOBAL B.E MAY CAUSE CHANGES IN DOMESTIC ENVIRONMENT BUT EFFECT OF LATTER ON POLICY ENVIRONMENT MAY BE SLOW AND LAGGARDGLOBAL B.E MAY CAUSE CHANGES IN DOMESTIC ENVIRONMENT BUT EFFECT OF LATTER ON POLICY ENVIRONMENT MAY BE SLOW AND LAGGARD

• INTERNATIONAL ENVIRONMENT:– MOST DYNAMIC AND VOLATILE COMPONENT OF

BUSINESS ENVIRONMENT.– EX: FOREIGN CURRENCY CHANGE.– THIS RESULT—PRICE CHANGE—DOMESTIC

MARKET WILL BE EFFECTED- ALSO IT CAN COST VARIATION IN PRODUCTION COST—AS PRICES OF GOODS CHANGE.

1. BY GROWTH OF THE WORLD ECONOMY2. DISTRIBUTION OF WORLD GDP3. ECONOMIC RELATIONS AND

INTERDEPENDENCE BETWEEN NATIONS.4. INTERNATIONAL ECONOMIC POLICIES OF

MAJOR INDUSTRIAL MARKET ECONOMIES: AMERICA,CHINA.

EX CURRENT CHANGE IN DOLLAR VALUE EFFECT ON CHINA.

CONTINUE…….

5. MULTINATIONAL CORPORATIONS6. BANKS7. MULTILATERAL INSTITUTIONS–

IMF,WTO,WORLD BANK, ILO ETC.

THESE ALL ABOVE INTURN EFFECT BY INTERNATIONAL ECONOMIC LAWS, TREATIES, AGGREMENTS AND CONVENTIONS.THESE ALL ABOVE INTURN EFFECT BY INTERNATIONAL ECONOMIC LAWS, TREATIES, AGGREMENTS AND CONVENTIONS.

ALL THESE FACTORS AFFECT– COST AND FLOW OF INTERNATIONAL TRADE, I INVESTMENT, I FINANCE, I TECHNOLOGY AND GROWTH AND COMPETENCE OF FIRMS THE WORLD OVER.

ALL THESE FACTORS AFFECT– COST AND FLOW OF INTERNATIONAL TRADE, I INVESTMENT, I FINANCE, I TECHNOLOGY AND GROWTH AND COMPETENCE OF FIRMS THE WORLD OVER.

• MIXED ECONOMY: COMBINATION OF MARKET AND COMMAND

• SOCIALIST MARKET ECONOMY– Productive Resources—with Gov– But allocation,production and distribution—as—

principle of market. 1st S.M.E.Yogoslavia-1950

NOW MOST S.M.E ARE MOVING TOWARDS(MARKET) TRANSITION TO OPEN MARKET ECONOMIES: THESE ARE CALLED TRANSITION ECONOMIES.

NOW MOST S.M.E ARE MOVING TOWARDS(MARKET) TRANSITION TO OPEN MARKET ECONOMIES: THESE ARE CALLED TRANSITION ECONOMIES.

CONTINUEE.. LAYERS OF B.E: GROWTH AND DISTRIBUTION ENVIRONMENT

• ECONOMIC GROWTH: Process of increase in real output(GDP measuring factor) over period of time(usually 1 year).– 4 components of this(GDP)

• Personal Consumption expenditure• Gross domestic Private Investment• Govt Expenditure on Consumption and Investment• Net Export

HOW GDP IS THEN ALLOCATED.

Continue…..

• Second measure: Net Domestic Product– NDP= GDP- Depreciation(this is arbitarary)

• Gross national Product:– Total final output produces by resources owned

by residents of the country. GDP includes produce by foreign companies and national also.

• GDP= C + I + X-M• NDP= GDP – DEPRECIATION• NATIONAL INCOME= NDP – T(indirect taxes)

– IT CONTAIN INCOME RECEIVED BY OWNERS, SUPPLIERS,LAND OWNER, LABOUR AND CAPITAL IN FORM OF RENT , WAGES, INTEREST AND PROFIT.

DISPOSAL INCOME= NI – T(direct taxes)

– STABILITY IN PRICE LEVEL– EXCHANGE RATE– INTEREST RATE– MONEY SUPPLY– AGGREGATE DEMAND– BALANCE PAYMENTS– EMPLOYMENT RATE– BUDGETARY BALANCE– AND NATIONAL INCOME AND OUTPUT

ALL ABOVE VARIABLE ARE INTERACTIVE AND INSTABILITY OF ONE OR FEW EFFECT OTHERALL ABOVE VARIABLE ARE INTERACTIVE AND INSTABILITY OF ONE OR FEW EFFECT OTHER

• SO YOU MAKE ECONOMIC POLICY.– MONETARY POLICY– FISCAL POLICY– INDUSTRIAL POLICY– TRADE POLICY.

• TO STIMULATE AND MAINTAIN GROWTH• ACHIEVE ECONOMIC STABILITY• INCREASE EMPLOYMENT• STABILIZE BALANCE OF PAYMENTS• CORRECT REGIONAL IMBALANCES• MAKE ECONOMY MORE COMPETITIVE.

SO IF YOU TAKE GRANTS AND OTHERS FROM MULTILATERAL INSTITUTIONS LIKE IMF,WTO THEN YOU HAVE TO FOLLOW THERE GUIDELINES

SO IF YOU TAKE GRANTS AND OTHERS FROM MULTILATERAL INSTITUTIONS LIKE IMF,WTO THEN YOU HAVE TO FOLLOW THERE GUIDELINES

• Deal with cost ……avalibility credit—market.• WHO TAKES THE ACTION: Gov`t or Central

Bank of country.– How: Directly or Indirectly– Supply of Money, rate

of Interest and banking System.

FIRM`s affect: It affects his Liquidity & Cost of capital– So in turn effects its DEBT:EQUITY FIRM`s affect: It affects his Liquidity & Cost of capital– So in turn effects its DEBT:EQUITY

SO WHAT YOU WOULD DO IN CASE: Its Recession and To fight Inflation

• If Recession: LIBERAL POLICY--- CREDIT LIBERAL

• MONETARY EXPANSION: REDUCE RATE OF INTEREST.

• TO FIGHT INFLATION: RESTRICTIVE MONETARY POLICY RAISE THE RATE OF INTEREST, REDUCE MONEY SUPPLY GROWTH RATE, RESTRICT FLOW OF CREDIT.

• USE OF TAXES AND GOVERNMENT EXPENDITURE

• GOVT-EXPEN CONSUMPTION EXPENDITURE- INVESTMENT

EXPENDITURE- TRANSFER

PAYMENTS(SUBSIDARY, GRANTS , - UNEMPLOYMENT,ALLOWANCES)

SO INCREASE IN GOV`T EXPENDITURE LEAD—MORE MONEY MORE DEMAND FOR PRIVATE GOODS ETC.SO INCREASE IN GOV`T EXPENDITURE LEAD—MORE MONEY MORE DEMAND FOR PRIVATE GOODS ETC.

CONTINUE………

• FISCAL DIRECT AND INDIRECT TAXES.• Direct taxes: reduces DISPOSIBLE INCOME– so

reduce demand or core demand to diminish

• Indrect taxes: Raises the cost of Production. Impact the profits of the firms.

• Inform of:» EXCISE, CUSTOM, SALE TAX.» SO CERTAIN CATEGORIES BECOME LESS PROFITABLE

COMPARED TO OTHER.

NOTE: FISCAL POLICIES BY GOVT AND MONETARY POLICY BY CENTRAL BANK. SO BOTH CLOSELY RELATEDNOTE: FISCAL POLICIES BY GOVT AND MONETARY POLICY BY CENTRAL BANK. SO BOTH CLOSELY RELATED

BOTH THE POLICY ARE TOFIGHT AGAINST INFLATION AND RECESSIONBOTH THE POLICY ARE TOFIGHT AGAINST INFLATION AND RECESSION

• ROLE OF GOVT.

SO FIRM RESEARCH DEEPLY AND UNDERSTAND– TO GO INTERNATIONAL MARKET.SO FIRM RESEARCH DEEPLY AND UNDERSTAND– TO GO INTERNATIONAL MARKET.

• POLITICAL• COUNTRY RISK(Erratic economic and Social

Performance, Discrimination in foreign countries)

• CULTURE RISK( Affecting marketing communication, Consumer attitude towards foreign goods and change in fashion, taste and preference).

• IT ENVELOPS AND PROVIDES TO ALL FIRMS.• FRAMEWORK

– TO OPERATE AND ADOPT

ECONOMIC SYSTEM: is a way in which a society is organised to decide….

1. WHAT PRODUCTS SHOULD BE PRODUCES AND IN WHAT QUANTITIES.

2. HOW SHOULD THE PRODUCTS BE PRODUCED.3. FOR WHOME SHOULD THE PRODUCTS BE RODUCED.

CONTINUE……..

• SO ECONOMIC SYSTEM Is a framework within which a FIRMS OPERATES AND VARIOUS ECONOMIC UNITS AND AGENTS MOULD THEMSELVES TO FIT INTO THE SYSTEM.

SUB PART OF ECONOMIC SYSTEM: a. MARKET ECONOMY b. COMMAND ECONOMY.

MARKET ECONOMY:( CAPITALISM) ARE PRODUCTIVE ASSETS ARE PRIVATELY OWNED AND FIRM HAVE THE FREEDOM TO MAKE MAJOR DECISION OF PRODUCTION & CONSUMPTION UNDER COMPETITIVE CONDITIONS.

MARKET ECONOMY:( CAPITALISM) ARE PRODUCTIVE ASSETS ARE PRIVATELY OWNED AND FIRM HAVE THE FREEDOM TO MAKE MAJOR DECISION OF PRODUCTION & CONSUMPTION UNDER COMPETITIVE CONDITIONS.

COMMAND ECONOMY: GOVERNMENT MAKE DECISION REGARDING PRODUCTION AND DISTRIBUTION.COMMAND ECONOMY: GOVERNMENT MAKE DECISION REGARDING PRODUCTION AND DISTRIBUTION.

.THE STATE OF WORLD ECONOMY & DISTRIBUTION OF WORLD OUTPUT.

. INTERNATIONAL ECONOMIC COOPERATION

. ROLE OF MULTILATERAL ECONOMIC INSTITUTIONS

. INTERNATIONAL ECONOMIC LAWS, TRETUES, AGGREEMENTS, NORMS , PRACTISES AND CODES.

. POLITICAL SYATEM AND CONDITIONS IN DIFFERENT COUNTRIES.

. TECHNOLOGY GROWTH AND TRANSFER.

. CORPORATE GOVERNANCE STANDARDS AND ETHICAL PRACTISES ACROSS COUNTRIES.

. INTERNATIONAL MARKET STRUCTURE AND COMPETITION.

. BARRIERS TO INTERNATIONAL TRADE AND INVESTMENT.

. NATIONAL ECONOMIC POLICIES OF DIFFERENT COUNTRIES.

MAJOR EVENTS AFFECTING INTERNATIONAL BUSINESS ENVIRONMENT.

• Formation of WTO in 1995• Collapse of the EASTERN EUROPE in 1989, USSR in

1991.• Emergence of European Union(EU) and Introduction

Of EURO as common currency.• Increasing economic strength and presence of MNC`s

the world over.• Increase in No. of FTA`s( Free Trade Areas).• Economic crises in east and south east Asian

countries

• ECONOMIC SLOWDOWN IN A NUMBER OF INDUSTRIAL MARKET ECONOMIES INCLUDING JAPAN.

• ECONOMIC REFORM AND OPENING UP OF A LARGE NO. OF LESS DEVELOPED COUNTRIES INCLUDING INDIA.

• PROTECTIONIST TRENDS IN THE INDUSTRIAL MARKET COUNTRIES NOTABLY IN USA.

CONTINUE…….

SO IN ADDITION TO ECONOMIC FACTORS, INTERNATIONAL SOCIAL, CULTURAL AND DEMOGRAPHIC FACTORS ALSO PLAY ROLE.

SO IN ADDITION TO ECONOMIC FACTORS, INTERNATIONAL SOCIAL, CULTURAL AND DEMOGRAPHIC FACTORS ALSO PLAY ROLE.

• COMPETITIVE ENVIRONMENT. ONE OF THE MAJOR FACTOR AFFECTING.

– RATE OF GROWTH– INCOME DISTRIBUTION– CONSUMER WELFARE

ON INDIVIDUAL BUSINESS: FREEDOM OF ENTRY AND EXIT IN THE MARKET ITS PRICE AND SCAL OF OUTPUT.

ON INDIVIDUAL BUSINESS: FREEDOM OF ENTRY AND EXIT IN THE MARKET ITS PRICE AND SCAL OF OUTPUT.

CONTINUE…..

• ALSO DEPEND UPON TYPE OF GOVERNMENT.

CAPITALIST AND MIXED ECONOMY

ATTEMPTS TO MAINTAIN LAW THROUGH..

SUITABLE ECONOMIC LAWS AND REGULATION, FREE AND FAIR COMPETITION IN VARIOUS SECTORS OF THEIR ECONOMIES, CHEK MONOPOLISTIC or ANTI-COMPETITIVE ABUSE OF MARKET POWER.

ABUSE: PRICE FIXING, PRICE DISCRIMINATION ETC. ALSO MERGERS, ACQUISITIONS AND TAKEOVER ALSO REDUCE THE NO. OF COMPETING FIRMS AND CREATE MONOPOLISTIC TENDENCIES.

ABUSE: PRICE FIXING, PRICE DISCRIMINATION ETC. ALSO MERGERS, ACQUISITIONS AND TAKEOVER ALSO REDUCE THE NO. OF COMPETING FIRMS AND CREATE MONOPOLISTIC TENDENCIES.

• POLITICAL ENVIRONMENT• LEGAL ENVIRONMENT• CULTURAL ENVIRONMENT

V.IMP—BUSINESS POINT OF VIEW—NOT IN POSITION TO BRING CHANGE IN ENVIRONMENT IT OPERATES.V.IMP—BUSINESS POINT OF VIEW—NOT IN POSITION TO BRING CHANGE IN ENVIRONMENT IT OPERATES.

• IT ALSO INCLUDE INTERNATIONAL POLITICAL RELATIONS—MNC ARE MOST INTERESTED IN THIS.

• COUNTRIES WITH ABSOLUTIST GOVT HAVE AN AFFECT.

• FREE MARKET S LIKE CHINA. BUT ONLY WITH PERMISSION OF GOVT.

INDUSTRIAL DEVELOPMENTS AND REGULATIONS LICENSING REGISTRATION OF INDUSTRIES PRICE AND OUTPUT REGULATIONS. MERGERS ACQUISITIONS AND TAKEOVER OF INDUSTRIES LOCATION OF INDUSTRIES.

INDUSTRIAL DEVELOPMENTS AND REGULATIONS LICENSING REGISTRATION OF INDUSTRIES PRICE AND OUTPUT REGULATIONS. MERGERS ACQUISITIONS AND TAKEOVER OF INDUSTRIES LOCATION OF INDUSTRIES.

FOREIGN EXCHANGE MANAGEMENT: TRANSCATIONS IN FOREIGN CURRENCY AND SECURITY. CURRENT ACCOUNT TRANSACTIONS CAPITAL ACCOUNT TRANSACTIONS FOREIGN EXCHANGE REALIZATION FOREIGN TRADE AND INVESTMENT TRANSACTIONS BORROWING AND LENDING IN FOREIGN EXCHANGE

FOREIGN EXCHANGE MANAGEMENT: TRANSCATIONS IN FOREIGN CURRENCY AND SECURITY. CURRENT ACCOUNT TRANSACTIONS CAPITAL ACCOUNT TRANSACTIONS FOREIGN EXCHANGE REALIZATION FOREIGN TRADE AND INVESTMENT TRANSACTIONS BORROWING AND LENDING IN FOREIGN EXCHANGE

CONSUMER PROTECTION:CONSUMER RIGHTS,DISPUTES,COMPLAINTS ANDGRIEVANCE REDRESSAL SYSTEM.

CONSUMER PROTECTION:CONSUMER RIGHTS,DISPUTES,COMPLAINTS ANDGRIEVANCE REDRESSAL SYSTEM.

ESSENTIAL COMMODITIES– COVERING THEIR SUPPLY, PRICES, QUALITYESSENTIAL COMMODITIES– COVERING THEIR SUPPLY, PRICES, QUALITY

WEIGHT, MEASURE AND PACKAGING- COVERING STANDARD UNITS,PACKAGING NORMS AND DECLARATION INSPECTION.

WEIGHT, MEASURE AND PACKAGING- COVERING STANDARD UNITS,PACKAGING NORMS AND DECLARATION INSPECTION.

PATENTS APPLICATION PROCEDURE, LIFE OF A PATENT, RIGHT OF PATENTEE, EXCLUSIVE MARKETING RIGHTS INFRINGMENT OF PATENTS, CLAIM PROCEDURE And SETTLEMENT.

PATENTS APPLICATION PROCEDURE, LIFE OF A PATENT, RIGHT OF PATENTEE, EXCLUSIVE MARKETING RIGHTS INFRINGMENT OF PATENTS, CLAIM PROCEDURE And SETTLEMENT.

LABOUR EMPLOYESS INSURANCE,PAYMENT OF GRATUITY,DISPUTES,BONUS,EMPLOYEES PROVIDENT FUND, COMPENSATION,DISCIPLINARY

LABOUR EMPLOYESS INSURANCE,PAYMENT OF GRATUITY,DISPUTES,BONUS,EMPLOYEES PROVIDENT FUND, COMPENSATION,DISCIPLINARY

CORPORATE MANAGEMENT FORMATION OF COMPANIES,

MANAGEMENT OF COMPANIES, GOVERANCE OFCOMPANIES, RAISING OF CAPITAL ANDLIQUIDATION OF COMPANIES.

CORPORATE MANAGEMENT FORMATION OF COMPANIES,

MANAGEMENT OF COMPANIES, GOVERANCE OFCOMPANIES, RAISING OF CAPITAL ANDLIQUIDATION OF COMPANIES.

CHANGE SLOW TO OCCUR – CAN ACCELERATE—WITH-SOCIAL MOVEMENTS—CAMPAIGN—ALSO BY EXTERNAL INFLUECECHANGE SLOW TO OCCUR – CAN ACCELERATE—WITH-SOCIAL MOVEMENTS—CAMPAIGN—ALSO BY EXTERNAL INFLUECE

EX- MAGGIE, ETC

ALSO HAS AN IMPACT ON BUSINESS ENVIRONMENTALSO HAS AN IMPACT ON BUSINESS ENVIRONMENT

POPULATION DENSITY, SEX RATIO, FERTILITY AND MORTALITY RATIO, AGE COMPOSITION, LIFE EXPECTANCY, GEOGRAPHICAL DISTRIBUTION OF POPULATIO.

ABOVE FORMS THE BASES OF MARKET SEGMENTATION, PRODUCT POSITIONING FOR MARKETERS . IT AFFECT THE SIZE OF MARKET AND DISCOURAGE/INCOURAGE PRIVATE INVESTMENT PARTICULARLY IN REGIONS OF LOW PER CAPITA INCOME.

ABOVE FORMS THE BASES OF MARKET SEGMENTATION, PRODUCT POSITIONING FOR MARKETERS . IT AFFECT THE SIZE OF MARKET AND DISCOURAGE/INCOURAGE PRIVATE INVESTMENT PARTICULARLY IN REGIONS OF LOW PER CAPITA INCOME.

IS BASED ON ITS MISSION: WHY AND FOR WHOME DOES IT EXITS. SO BASIS FOR FIRM`S EXISTENCE AND OPERATIONS

TO FULLFILL MISSION, A FIRM AHS A VISION– LAYS DOWN ITS BASIC PHILOSOPHY AND APPROACH.

A FIRM EXECUTE THE MISSION THROUGH A

STRATEGY.

STRATEGY BASED ON THOROUGH—CLEARLY OBJECTIVES TO BE ACHIEVED OVER A PERIOD OF TIME.STRATEGY BASED ON THOROUGH—CLEARLY OBJECTIVES TO BE ACHIEVED OVER A PERIOD OF TIME.

MISSION AND VISION OF THE ORGANISATIONMANAGEMENT PHILOSOPHY AND STRATEGYINDUSTRIAL RELATIONSCORPORATE CULTURE AND VALUESLINE AND STAFF RELATIONSGOVERANCE STANDARD AND CODESQUALITY CONTROL SYSYTEMTEAM SPIRIT AMONG EMPLOYEESWORK CULTURE AND SOCIO-ECONOMIC BACKROUND OF

EMPLOYEESJOB DESIGN AND COORDINATIONQULAITY OF INTERNAL COMMUNICATIONCOMPENSATION SYSTEM AND CAREER PROGRESSION OF OF

EMPLOYEESCONTROL SYSTEM OF THE ORGANISATION.

MISSION AND VISION OF THE ORGANISATIONMANAGEMENT PHILOSOPHY AND STRATEGYINDUSTRIAL RELATIONSCORPORATE CULTURE AND VALUESLINE AND STAFF RELATIONSGOVERANCE STANDARD AND CODESQUALITY CONTROL SYSYTEMTEAM SPIRIT AMONG EMPLOYEESWORK CULTURE AND SOCIO-ECONOMIC BACKROUND OF

EMPLOYEESJOB DESIGN AND COORDINATIONQULAITY OF INTERNAL COMMUNICATIONCOMPENSATION SYSTEM AND CAREER PROGRESSION OF OF

EMPLOYEESCONTROL SYSTEM OF THE ORGANISATION.

B.E IS DYNAMIC. SO THOROUGH KNOWLEDGE IS REQUIRED TO INTERPRET THE B.E. . SO REQUIRE PROFESSIONAL BUSINESS ECONOMISTS AND MANAGERS

B.E IS DYNAMIC. SO THOROUGH KNOWLEDGE IS REQUIRED TO INTERPRET THE B.E. . SO REQUIRE PROFESSIONAL BUSINESS ECONOMISTS AND MANAGERS

CHANGES IN GOVERNMENT POLICIES: OF FISCAL: MONETARY AND PUBLIC DEBT(Affects the supply of saving and the aggregate level of demand for the private sector)

VARIATIONS IN GROWTH PERFORMANCE. SECTOR WISE GROWTH—7% -INCRESE THE NATIONAL INCOME.

CORRECTIVE POLICY ACTIONS: GOVT—USE FISCAL AND MONETARY: READJUST MONEY SUPPLLY AND CREDIT GROWTH RATES.

CHANGES IN MARKET STRUCTURE AND COMPETITION.FUTURE EXPECTATION AND BUSINESS SPECULATION.

1. CHANGES IN MARKET STRUCTURE AND COMPETITION.2. FUTURE EXPECTATION AND BUSINESS SPECULATION

1. TO MAKE FIRM MORE EFICIENT—PACKUP MARKET STRUCTURE DEPENDS UPON:

NO. OF BUYERS AND SELLERS IN THE MARKETFREEDOM OF ENTRY AND EXITINDEPENDENCE BETWEEN FIRMSMOBILITY OF THE FACTORS OF PRODUCTION.AVALIBILITY OF MARKET INFORMATION TO VARIOUS PARTICIPATNS

1. TO MAKE FIRM MORE EFICIENT—PACKUP MARKET STRUCTURE DEPENDS UPON:

NO. OF BUYERS AND SELLERS IN THE MARKETFREEDOM OF ENTRY AND EXITINDEPENDENCE BETWEEN FIRMSMOBILITY OF THE FACTORS OF PRODUCTION.AVALIBILITY OF MARKET INFORMATION TO VARIOUS PARTICIPATNS

2. FIRM ON BASES– PAST—PRESENT PREDIT FUTURE. RATE OF INTEREST RATE OF INFLATION TAXES GOVERNMENT BORROWING ADV EXPENDITURE PRODUCTION IN Various sectors, so firm predict accordingly

2. FIRM ON BASES– PAST—PRESENT PREDIT FUTURE. RATE OF INTEREST RATE OF INFLATION TAXES GOVERNMENT BORROWING ADV EXPENDITURE PRODUCTION IN Various sectors, so firm predict accordingly

YOUNG GROUP,TASTE CHANGES: FACTOR THAT BRING CHANGE .. EDUCATION,GEOGRAPHICAL MOBILITY,FASHION TREND.

AS CONSUMER INDUCE CHANGES IN PRODUCT CONTENT AND PRESENTATION PACKAGING,DELIVERY ETC

YOUNG GROUP,TASTE CHANGES: FACTOR THAT BRING CHANGE .. EDUCATION,GEOGRAPHICAL MOBILITY,FASHION TREND.

AS CONSUMER INDUCE CHANGES IN PRODUCT CONTENT AND PRESENTATION PACKAGING,DELIVERY ETC

SO MORE COMPETITIVE ENVIRONMENT

CONTINUE………

• A. IMPORT AND FOREIGN INVESTMENT CHANGES.• AS COUNTRY PROGRESS UNDER GLOBALISATION—--

LIBERA-CHANGES OCCUR.• WHAT TYPE……………

2. EXTERNAL ECONOMIC SHOCKS

ALL ABOVE CAN CAUSE TREMENDOUS DAMAGE TO ECONOMY.ALL ABOVE CAN CAUSE TREMENDOUS DAMAGE TO ECONOMY.

AREAS OF ENVIRONMENTAL CHANGE

AREAS IF CORPORATE RESPONSE

TECHNOLOGICAL ENVIRONMENT

R&D, FOREIGN TECHNICAL COLLABORATION,CHOICE OF TECHNOLOGY,LABOUR-CAPITAL RATIO.

LABOUR ENVIR.. EMPLOYEE MOTIVATION, PRODUCTIVITY,COMPENSATION,TURNOVER RATE,WORKING CONDITIONS, LABOUR RELATIONS,NATURE OF EMPLOYMENT, JOB DESCRIPTION AND SPECIFICATION

COMPETITIVE ENVIRONMENT PRICING,MERGER,ACQUISITION OR AMALGAMATION,SUB-CONTROLLING, HORIZONTAL, VERTICAL, BACKWARD OR FORWARD INTEGRATION, MARKETING STRATEGY, NPD, ECONOMIES OF SCALE AND SCOPE.

MONETARY ENVIRONMENT WORKING-CAPITAL FINANCING, LIQUIDITY RESTRUCTURING

FISCAL ENVIRONMENT DIBIDEND POLICY, SUB-CONTRATING, TRANSFER PRICING,PRODUCT MIX,INDUSTRIAL LOCATION,SOURING.

TRADING ENVIRONMENT FOREIGN COLLABORATION, INPUT MIX,EXPORT ORIENTATION, IMPORT INTENSITY, PRODUCT MIX

FINANCIAL ENVIRONMENT PRODUCT DEVELOPMENT, OVERHEAD FINANCING, FINANCING MIX, CAPITAL STRUCTURE, RATE OF RETURN, EXTERNAL FINANCING.

LEGAL ENVIRONMENT PROCEDURE AND DOCUMENTATION, CREDIBILITY, CONFORMITY AND ETHICAL PRACTISES, INTELLECTUAL PROPERTY PROTECTION.

SOCIAL ENVIRONMENT SOCIAL RESPONSIBILTY, LOCAL AND REGIONAL RELATIONSHIPS, WELFARE EXPENDITURE.

SO IMPORTANT TO FIND OUT FIRST BEFORE A PARTICULAR RESPONSE: WHIH CAUSATIVE FACTOR WILL AFFECT WHICH COMPONENT OF BUSINESS ENVIRONMENT.

SO IMPORTANT TO FIND OUT FIRST BEFORE A PARTICULAR RESPONSE: WHIH CAUSATIVE FACTOR WILL AFFECT WHICH COMPONENT OF BUSINESS ENVIRONMENT.

POSSIBILITY OF LOSS OR DAMAGE TO A BUSINESS FIRM.

NO. OF POSSIBLE FUTURE EVENTS OR OUTCOMES IS LARGER THAN THE NUMBER OF EVENTS OR OUTCOMES WHICH WILL ACTUALLY TAKE PLACE.

NO. OF POSSIBLE FUTURE EVENTS OR OUTCOMES IS LARGER THAN THE NUMBER OF EVENTS OR OUTCOMES WHICH WILL ACTUALLY TAKE PLACE.

TO IDENTIFY AND ASSESS THE RISKS KNOW THE CURRENT STATE OF THE ENVIRONMENT AND ITS LEADING DETERMINANTS.TO IDENTIFY AND ASSESS THE RISKS KNOW THE CURRENT STATE OF THE ENVIRONMENT AND ITS LEADING DETERMINANTS.