business

1. WISH U A GOOD BEGINNING lmothilal@gmail.com - DMS, Pondicherry University

2. It refers to all External Forces, “ Internal Relationships & “ Society Which have impact on the functioning of business What is Business Environment? lmothilal@gmail.com - DMS, Pondicherry University

3. Business Environment Internal Environment External Environment Micro (Task / operations) Macro (General / Remote) lmothilal@gmail.com - DMS, Pondicherry University

4. Internal Environment Promoters’ Values Mission & Objectives Management Structure Internal Power Relationship Company Image / Brand Physical Assets / Facilities R & D / Technological Capabilities lmothilal@gmail.com - DMS, Pondicherry University

5. Internal Environment Human Resources Internal Relationships Jobs & Wages Human Factor Safe & Hygienic Work Place Security lmothilal@gmail.com - DMS, Pondicherry University

6. External Environment - Micro Customers Suppliers Competitors Public Financiers Marketing Intermediaries lmothilal@gmail.com - DMS, Pondicherry University

7. External Environment - Macro Economic Factors Social & Cultural Factors Demographic Factors Political & Government Factors Natural Factors Technological Factors Global Factors lmothilal@gmail.com - DMS, Pondicherry University

8. Introduction - General Various Revolutions Industrial : Labour Intensive Capital Intensive Green White lmothilal@gmail.com - DMS, Pondicherry University

9. Introduction - General I.T. (Convergence of Communication Technologies) Knowledge Resolution (Intellectual Capital) lmothilal@gmail.com - DMS, Pondicherry University

10. Introduction - General Two Economic Eras Mass Production Customized Production lmothilal@gmail.com - DMS, Pondicherry University

11. Features of old Economic Era Growth Areas: Energy Transportation Utility Chemicals & Consumer Goods lmothilal@gmail.com - DMS, Pondicherry University

12. Features of old Economic Era Growth Rate – 2-3 % p.a. Focus – Natural Resources Important – Physical Assets (main) Example - Oil Rich Countries lmothilal@gmail.com - DMS, Pondicherry University

13. Features of New Economic Era Growth Engines: I.T. Satellites Fiber optics Biotechnology Environment Healthcare lmothilal@gmail.com - DMS, Pondicherry University

14. Features of New Economic Era Growth Rate – 20-30% p.a. Focus Knowledge Knowledge Management lmothilal@gmail.com - DMS, Pondicherry University

15. Features of New Economic Era Important – Physical Assets + Intangible Assets: Example – Japan, Singapore, Hong Kong lmothilal@gmail.com - DMS, Pondicherry University

16. Era of Turbulent Change In era of turbulent change, managing change & discontinuity is a key Issue lmothilal@gmail.com - DMS, Pondicherry University

17. Era of Turbulent Change PDCA - PDCA P – Plan D – Development C – Check A – Act lmothilal@gmail.com - DMS, Pondicherry University

18. Era of Turbulent Change Companies are operating in a war zone of rapidly changing Competitors Technology New Laws Trade Policies Diminishing Customer Loyalty lmothilal@gmail.com - DMS, Pondicherry University

19. Era of Turbulent Change Today’s younger generation is coming with new dreams, hopes & aspirations What it needs New set of Corporate Response Why ? lmothilal@gmail.com - DMS, Pondicherry University

20. Era of Turbulent Change Today’s Generation : High Awareness – increased information Bargaining Power will Influence Intelligent & Proactive Higher Standard of Living lmothilal@gmail.com - DMS, Pondicherry University

21. Era of Turbulent Change Demands Variety of Services Wants World Class Quality Tech Savvy Try New Products & Fickle in brand loyalty More Sensitive lmothilal@gmail.com - DMS, Pondicherry University

22. Era of Turbulent Change Initially companies begin to compete on Cost basis, once companies achieve comparable cost structure within industry, Focus shifts to Quality then Variety & finally to Responsiveness lmothilal@gmail.com - DMS, Pondicherry University

23. Era of Turbulent Change Key DifferentiatorService for example: Xerox Corp. (service within 3 Hours anywhere in U.S.) McDonald's (Courteous) WalMart Store – People Greeter Singapore Airlines – Smile lmothilal@gmail.com - DMS, Pondicherry University

24. Era of Turbulent Change Old Rule is changing: Big will not swallow small but, that FAST who will outpace SLOW lmothilal@gmail.com - DMS, Pondicherry University

25. Era of Turbulent Change “ It is not the strongest nor the most intelligent that will survive but the one who is the most responsive to the change” – Charles Darwin Gap between conception of an idea & commercialization has decreased tremendously. lmothilal@gmail.com - DMS, Pondicherry University

26. Era of Turbulent Change Where Indian companies have to focus? Quantum Restructuring Discard Outdated Systems ( e.g. E- Governance in Administration) Focus on Customer centricity (Blow Up) lmothilal@gmail.com - DMS, Pondicherry University

27. Era of Turbulent Change Analysis of Environment: Scanning Monitoring Forecasting Assessment lmothilal@gmail.com - DMS, Pondicherry University

28. Era of Turbulent Change Analyze Environment SWOT S – Strengths W – Weaknesses O – Opportunities T – Threats lmothilal@gmail.com - DMS, Pondicherry University

29. Era of Turbulent Change Analyze – Competitive Structure of Industries: Rivalry among existing firms Threat of new entrants Bargaining power of suppliers & buyers lmothilal@gmail.com - DMS, Pondicherry University

31. Per Capita Income

32. Distribution of Income

33. BOP Trends, Inflation, Rainfall

34. Climate

35. Politics – Local & Internationallmothilal@gmail.com - DMS, Pondicherry University

36. Economic Environment Nature of the Economy Low Income - Less than $755 of per capita GNP Middle Income – ( $756 - $2995) High Income – ($9266 & Above) ( of year 2000) lmothilal@gmail.com - DMS, Pondicherry University

37. Economic Environment Structure of the Economy: Components Primary Agriculture (18% in 2007) Secondary Industry ( Tertiary Service ( lmothilal@gmail.com - DMS, Pondicherry University

38. Economic Environment Economic Policies: Industrial Policy Trade Policy Foreign Exchange FDI / FPI Monetary Fiscal - Public Expenditure & Revenue lmothilal@gmail.com - DMS, Pondicherry University

39. Economic Environment Economic Conditions: Boom Recession lmothilal@gmail.com - DMS, Pondicherry University

40. Economic Environment Global Linkages: Membership of WTO, IMF, World Bank, Trade Blocks etc. Magnitude & Nature of cross border Trade Financial Flows – FDI / FPI Extremism: Terrorism – within & Cross border Unsocial elements Fanaticism lmothilal@gmail.com - DMS, Pondicherry University

41. Economic Environment Economic Systems: Capital Economy Centrally Planned Mixed Economy lmothilal@gmail.com - DMS, Pondicherry University

42. Roles of Government - Economic Regulatory Promotional – Infrastructure Entrepreneurial Planning lmothilal@gmail.com - DMS, Pondicherry University

43. Other Roles of Government The Constitution Directive Principles of State Policy Separation of Powers: Union List State List Concurrent List (1&2) lmothilal@gmail.com - DMS, Pondicherry University

45. Age Structure of Population

46. Migration

47. Family Life-Style

48. Social Attitudelmothilal@gmail.com - DMS, Pondicherry University

49. Demographic Environment Age Structures Gender Family Size Family Life-Cycle Single Married With / Without Children lmothilal@gmail.com - DMS, Pondicherry University

50. Demographic Environment Occupation Education Social Class Religion Nationality Urban / Rural lmothilal@gmail.com - DMS, Pondicherry University

51. Types of Forecasting 3. Political Forecasting: Political Alliances Political Ideologies Political Leadership lmothilal@gmail.com - DMS, Pondicherry University

52. Political Environment Policies of Political Parties Nature of the Constitution Govt. System: Parliamentary Democracy Presidential Democracy lmothilal@gmail.com - DMS, Pondicherry University

53. Types of Forecasting 4. Technological Forecasting: Innovations: Radical / Incremental / Next Generation Place & Extent of Diffusion Pace (Future shock) lmothilal@gmail.com - DMS, Pondicherry University

54. Technological Forecasting Technological Leadership & Followers Transfer of Technology Appropriate Technology & Adaptation First mover Advantages & Disadvantages Sustainability of the lead lmothilal@gmail.com - DMS, Pondicherry University

55. Natural Environment Geographical Factors: ( e.g. interplanetary explorations & motives beyond them - commercial Exploitation ) Ecological Factors lmothilal@gmail.com - DMS, Pondicherry University

56. In view of constant changewhat should company do? Customer Needs & Expectations Demand Conditions Substitutes Govt. Policy Social Forces Competitive Dynamics Innovations by R&D Labs Manage cross-cultures lmothilal@gmail.com - DMS, Pondicherry University