Domestic and Global Business Environnent

By

Dhandapani

Definition
According to Androse The term business environment of a company is defined as a pattern of all external influences that effect its life and development.

Main Factors
Social Legal Economic Political Technological Ethical

Important Priorities
Agriculture Industrial output Services GDP growth rate Companies India's resource consumption Oil Natural gas Issues References External links

Agriculture
India ranks second worldwide in farm output. India is the largest producer in the world of milk cashew nuts, coconuts, tea, ginger, turmeric and black pepper It also has the world's largest cattle population (193 million) 2nd Largest Producer of wheat, rice, sugar, groundnut and inland fish It is the third largest producer of tobacco India accounts for 10% of the world fruit production with first rank in the production of banana and sapota

Main problems in the Agricultural Sector, as Listed by the World Bank

India's large agricultural subsidies are hampering productivity-enhancing investment. Overregulation of agriculture has increased

costs, price risks and uncertainty.

Government interventions in labour, land, and credit markets. Inadequate infrastructure and services.

Research and Development

The Indian Agricultural Research Institute (IARI) The Union Minister of Agriculture is the President of the ICAR Prof. M.S. Swaminathan is known as "Father of the Green Revolution He is known for his advocacy of environmentally sustainable agriculture and sustainable food security

Industrial Development
India is fourteenth in the world in factory output Manufacturing sector in addition to

mining, quarrying, electricity and gas together

account for 27.6% of the GDP and employ 17% of the total workforce

Services
India is fifteenth in services output The ITES - BPO sector has become a big employment generator especially amongst

young college graduates

Indian IT-ITES is estimated to have helped create an additional 3 million job opportunities through indirect and induced employment.

GDP Growth Rate

Year
2000 2001 2002 2003 2004 2005 2006

Growth (real) (%)

5.5 6.0 4.3 4.3 8.3 6.2 8.4

2007
2008 2009

9.2
9.0 7.4

The 10 Leading Companies

World Rank Company Logo Industry Revenue (billion $) Profits (billion $) Assets (billion $) Market Value (billion $)

121 150

Reliance Industries State Bank of India

Oil & Gas Operations Banking

34.03 22.63

4.87 2.23

43.61 255.86

35.95 12.75

152

Oil and Natural Gas

Corporation

Oil & Gas Operations

24.04

4.95

35.35

28.91

207

Indian Oil Corporation

Oil & Gas Operations

51.66

1.97

33.64

10.20

317 329 463

NTPC ICICI Bank Tata Steel

Utilities Banking Materials

9.63 15.06 32.77

1.86 0.85 3.08

24.58 120.61 31.16

29.70 7.14 2.46

508

Bharti Airtel

Telecommunications Services

6.73

1.59

12.28

23.63

582

Steel Authority of India

Limited

Materials

9.82

1.89

10.54

6.14

689

Reliance Communications

Telecommunications Services

4.26

1.35

19.31

6.27

Employment
India's labor force is growing by 2.5% every year but employment is growing only at 2.3% a year Official unemployment exceeds 9%. 30% of workers are casual workers 10% of the workforce is in regular employment Children under 14 constitute 3.6% of the total labor force in the country

Definition
The environment in different sovereign

countries, with factors exogenous to the home environment of the organization, influencing

decision

making

on

resource

use

and

capabilities.

Types
Internal External

Types of External Environment

Global Economic and Political Environment Economic Environment Political Environment Political Environment in Emerging Countries Political Environment in Developed Countries Part Three Global Social and Cultural Environment Social Environment Cultural Environment Social and Cultural Environment in Developing Countries

 Social and Cultural Environment in Developed Countries Part Four Global Technological Environment An Overview of Technology Influence of the Internet on Business Part Five Global Regulatory, Tax and Legal Environment Regulatory Environment Tax Environment Legal Environment

Process of Globalization
Times when Buddhism spread from India to China in I century Glob Traced Year 1300 saw the creation of the Ottoman Empire which spanned Europe, North Africa, and the Middle East, and connected the dynasties in Central Asia and India - Expansion Trading B/w Europe & Asia Trade in commodities continued well into the 17th century In 1800 Atlantic and Indian Ocean systems were connected to one another through the flow of commodities &British, French, and Dutch overseas companies Operations.

Economic Environment
conomies of Countries:

1. Ownership of Means of Production

a. Capitalist Economy

b. Socialist Economy
c. Mixed Economy 2. Levels of economic development a. Developing countries b. Developed countries

Political Environment
1. Based on the party system in the society a. Single - Party b. Two - Party c. Multiparty d. One - Party 2. Mode in which Govt attain Power a. Parliamentary Type - Elected b. Absolutist Type - Power by Force

Social Environment
Social class Important Society

Western societies
Upper Middle Lower

Internet on Business
Email Listserv Usenet Gopher FTP Telnet The Internet Relay Chart World Wide Web All over the world linked - Data can be passed between them

Regulatory Environment
Purpose Ensure Equality Justice in society - Laws Acts & Regulations Aim - Legal and Corporate Status, Protecting Health Safety & Welfare Proper Benefits in case of Sickness Maternity or any Injury, Ensuring that they receive regular & prompt Wages and other benefits.

Legal Environment
Regulates the operations of firms in

international markets It is sufficient for a firm operating at the domestic level to stick to regulations of the land

Top 10 Extract of the World's Largest Software Companies

According to Forbes Global 2000 Oracle Corporation IBM Microsoft Google Accenture SAP AG Hewlett Packard Computer Sciences Corporation Yahoo! CA