Suneel GuptaAssociate ProfessorGHS-IMR,Kanpur

BUSINESS ENVIRONMENT

ENVIRONMENT : Sum of all factor ( Eco+ pol+Soc + Cul +Int)

Macro contexts Micro UnitsBusiness Firms

LOCAL

NATIONAL

INTERNATIONAL

MICRO ENVIRONMENT

Initially affect the environment

Supplier

Customers

Competitor ; Desired +generic+Product+Brand(Rivals)

Market intermediaries(Distribution channel members)

Public

GDP

Sectoral Shares

Agricultural Output

Electricity Generation

Rate of Inflation

Money Supply

Foreign Trade

Foreign Exchange Reserve

Exchange Rate

Economic Infrastructure

Macro economic Indicator

BUSINESS :

An important Institution of society

Organized effort of enterprise to supply consumer good& services

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

Characteristic of Business

1 Change 4. Globalisation 7 Government Interference

2 Vastness 5. Science 8 Competition

3 Diversification 6. Information

ChangeSmart Product• The more you use knowledge offering the

smatter they get.• Knowledge base product• Knowledge base product & service adjusted to

changing environment• Knowledge base product & service that will

have shorter life cycle• Knowledge base business enable customer to

act in real time

Diversification• Concentric : adding related new

product• Horizontal : Unrelated product or

services• Conglomerate: adding new &

unrelated product

BUSINESS

GOALS

PROFIT

GROWTH

EMPLOYEE SATISFACTION

ANDDEVELOPMENT

MARKET LEADERSHIP

SERVICE TO SOCITY

JOY OF CREATION

POWER QUALITYOFPRODUCT ANDSERVICE

CHALLANGE

Business Environment and Strategic Management

• Corporate Manager who make policies and strategies must account for the nature and environment of the bloc where they propose to operate.

• Risk Overview: Overall assessment + Security assessment

• Political Risk stability: Government effectiveness risk + Legal and regulatory environment + Macroeconomic risk + Foreign trade and payment risk + tax policy risk + Labor market risk + Financial risk + Infrastructure risk + Country risk

Method of Assessing Environmental Risk/ Analysis

• Expert opinion/ Scanning• Checklist / Assessment• Rating and ranking system• Economic methods/ Monitoring• Forecasting