Business Environment

(BE)
MGT511

ABBAS ANSARI
waheedabbasansari@ya
hoo.in
Text Books
 Salem Sheikh, Business
Environment
 Justin Paul
 Francis Cherunilam
INTRODUCTION
 Why to study Business
Environment ?
INTRODUCTION
 BE (set of factors) drives the business
decisions and business strategies in
particular
 Business firm’s success depends on its
strength (resources) , its adaptability to
the environment and conduciveness of
the environment , e.g. Bajaj Scoters
Types of Environments
 Internal Environment
 External Environment
Internal Environment
 Controllable factors
 Sources of firms (entity’s)
strengths / weakness
Internal Environment
 Promoter’s value systems and its relevance
e.g. Murugappa group

 Mission and Objectives , e.g. Ranbaxy

 Management Structure and Nature
 Human Resources
Internal Environment
 Miscellaneous factors such as
R & D capabilities , Marketing capabilities
External Environment
 Micro / Task / Operating Environment
 Macro (General / Remote )
Environment
Micro Environment
 Bearing on the firm’s operations
 Consists of factors in company’s immediate
envirnmt affecting firm’s performance
Micro Environment
 Suppliers
 Customers
 Competitors
 Marketing Intermediaries , etc…
Macro Environment
 Government Policies / Political Factors ,
e.g. Singur
 Legal factors , e.g. Laws relating to
licensing, monopoly control etc..
 Global ,e.g. WTO principles , Free Trade
agreements repercussions
Micro Environment
 Cultural Factors , e.g. social and
religious beliefs and societal
conformity Norms