ENVIRONMENT
BY:- PARDEEP
SINGLA
INTRODUCTION
Adverse Conditions
To keep regular vigil on the changing Environment.
COMPONENTS OF
BUSINESS ENVIRONMENT
International
Environment
Domestic
Macroeconomic
Env.
Economic
System
External
Growth
&
Distribution
Economi
Employee
c
Input
Economi
s
Stabilit
Provide
c
y
r
Policy
Compe
INTERNAL
titive
Rival
ENVIRONEMEN
Custome
Env.
s
T
rs
Socio
Cultural
Env.
Channel
Member
Govt.
Busines
s
Non-Economic
Macroeconomic
International
Environment
DemoGraphi
c
Env.
INTERNATIONAL
ENVIRONMENT
This is among the most dynamic and volatile components of
business environment. At the outset, it must be appreciated that
this layer concerns all business firms whether they have
international transactions or not.
The international environment is basically determined by the
growth of the world economy distribution of world GDP; economic
relations and interdependence between nations and international
economic policies of major industrial market economies ;
multinational corporations; banks and multilateral institutions like
IMF,WTO and World Bank and ILO.
Factor affect International Trade:
Economic Laws
Treaties
Agreements & conventions
This Factor Cost :International Investment.
International Finance
DOMESTIC MACROECONOMIC
ENVIRONMENT
Macroeconomic Environment envelopes all business firms and provides
then a framework within which they have to operate and adapt
themselves. The environment provider national level economic conditions
and circumstances affecting the level of aggregate economic activity in
which individual firms drive or seek their own business opportunities.
DOMESTIC MACROECONOMIC ENVIRONMENT INCLUDES
Economic System
Growth & Distribution Environment
Macroeconomic Stability
Economic Policy
Monetary Policy
Fiscal Policy
Industrial Policy
Trade Policy
Competitive Environment
Non- Economic Environment(Political, legal, Cultural, Demographic)
Economic System:-
Types of Economic Policy:Monetary Policy:- Its refers the all the action of the government or the
central bank of the country which affect, directly or indirectly , supply of
the money, interest rate, and the baking system. Basically its affect the
cost and availability for credit in the economy.
Fiscal Policy:- Fiscal policy is basically concerned with the use of taxes
and government expenditure, through the issues relating to non tax
revenue, government borrowings and fiscal federalism are closely
associated with these factors for achieving pre-determined objectives.
Industrial Policy:- The central objectives of an industrial policy are to
promote industrialization, correcting regional imbalances enhancing
competitiveness of firms, developing inter- sectoral linkage, promoting
exports and imports substitutions.
Trade Policy:-Basic objectives of trade policy are to promote exports,
regulate imports, improve terms of trade enhance export competitive and
create condition of export- led growth.
Sectoral Environment:Supplier.
Customers.
Distribution Channel Members.
Rivals.
Other Entities.
Internal Environment