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    The microenvironment of the business is characterised by explosive industrial growth in some segments and at the same time, rapid technological development is rendering existing solutions to customer problems obsolete. On the macro-economic front, governments are increasingly facing the dilemma of choosing between economic progress and welfare - affecting government expenditure, and in turn the economic growth of the country. On the other hand, recessionary conditions in other countries have forced many companies out of business. Added to these, are the regulatory frameworks of the country and socio-cultural factors. The scenarios become even more complex when companies expand to new geographical regions. They have to deal with multiple – yet distinct – business environments. Organisations have no control over the changes happening in its external environment; but these factors cannot be ignored as they have a profound impact on the business operations and its profitability. With the ongoing rapid change in business environment, the conventional bases of competitive strategy are continuously eroding. In such a scenario, any company that is not continually developing, acquiring, and adapting to new technological advances and to the changing business environment is preparing itself to be out of the business within a few years. So, an extensive study of the business environment has become an essential prerequisite for success. The case studies featured in this book provide an in-depth and rigorous perspective on various business environment issues across the globe. Starting with a short theoretical framework, the book, Case Studies on Business Environment - Vol. I, provides insights into some of the companies that have been successful in managing their ever-changing and demanding business environments. This book would definitely be an essential reading for all those executives managing or desirous of managing different business environments.

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    The microenvironment of the business is characterised by explosive industrial growth in some segments and at the same time, rapid technological development is rendering existing solutions to customer problems obsolete. On the macro-economic front, governments are increasingly facing the dilemma of choosing between economic progress and welfare - affecting government expenditure, and in turn the economic growth of the country. On the other hand, recessionary conditions in other countries have forced many companies out of business. Added to these, are the regulatory frameworks of the country and socio-cultural factors. The scenarios become even more complex when companies expand to new geographical regions. They have to deal with multiple – yet distinct – business environments. Organisations have no control over the changes happening in its external environment; but these factors cannot be ignored as they have a profound impact on the business operations and its profitability. With the ongoing rapid change in business environment, the conventional bases of competitive strategy are continuously eroding. In such a scenario, any company that is not continually developing, acquiring, and adapting to new technological advances and to the changing business environment is preparing itself to be out of the business within a few years. So, an extensive study of the business environment has become an essential prerequisite for success. The case studies featured in this book provide an in-depth and rigorous perspective on various business environment issues across the globe. Starting with a short theoretical framework, the book, Case Studies on Business Environment - Vol. I, provides insights into some of the companies that have been successful in managing their ever-changing and demanding business environments. This book would definitely be an essential reading for all those executives managing or desirous of managing different business environments.

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    © All Rights Reserved
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    11K views4 pages

    Case Studies On Business Environment - Vol. I

    Uploaded by

    ibscdc
    The microenvironment of the business is characterised by explosive industrial growth in some segments and at the same time, rapid technological development is rendering existing solutions to customer problems obsolete. On the macro-economic front, governments are increasingly facing the dilemma of choosing between economic progress and welfare - affecting government expenditure, and in turn the economic growth of the country. On the other hand, recessionary conditions in other countries have forced many companies out of business. Added to these, are the regulatory frameworks of the country and socio-cultural factors. The scenarios become even more complex when companies expand to new geographical regions. They have to deal with multiple – yet distinct – business environments. Organisations have no control over the changes happening in its external environment; but these factors cannot be ignored as they have a profound impact on the business operations and its profitability. With the ongoing rapid change in business environment, the conventional bases of competitive strategy are continuously eroding. In such a scenario, any company that is not continually developing, acquiring, and adapting to new technological advances and to the changing business environment is preparing itself to be out of the business within a few years. So, an extensive study of the business environment has become an essential prerequisite for success. The case studies featured in this book provide an in-depth and rigorous perspective on various business environment issues across the globe. Starting with a short theoretical framework, the book, Case Studies on Business Environment - Vol. I, provides insights into some of the companies that have been successful in managing their ever-changing and demanding business environments. This book would definitely be an essential reading for all those executives managing or desirous of managing different business environments.

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    of 4

    Case Studies on

    Business Environment – Vol. I

    Edited by
    Mercy Mathew
    Icfai Business School Case Development Centre

    Icfai Books
    # 71, Nagarjuna Hills, Punjagutta, Hyderabad – 500082
    Icfai Books
    # 71, Nagarjuna Hills,
    Punjagutta, Hyderabad – 500082
    Andhra Pradesh, INDIA
    Phone: 91 - 40 - 23435387/91, Fax: 91 - 40 - 23435386
    e-mail: icfaibooks@icfai.org, ibscdc@icfai.org
    Website: www.icfaipress.org/books, www.ibscdc.org

    © 2006 The Institute of Chartered Financial Analysts of India. All rights reserved.

    No part of this publication may be reproduced, stored in a retrieval system, used in a


    spreadsheet, or transmitted in any form or by any means – electronic, mechanical,
    photocopying or otherwise – without prior permission in writing from The Institute of
    Chartered Financial Analysts of India.

    While every care has been taken to avoid errors and omissions, this book is being
    sold on the condition and understanding that the information given in the book is
    merely for reference and must not be taken as having authority of or being binding in
    any way on the authors, editors, publisher or sellers.

    Product or corporate names may be registered trademarks. These are used in the
    book only for the purpose of identification and explanation, without intent to infringe.

    Case studies are intended to be used as a basis for class discussion rather than to
    illustrate either effective or ineffective handling of a management situation.

    Copies of individual case studies are available for purchase from www.ibscdc.org

    ISBN : 81-314-0602-4

    Editorial Team: Priti Krishnan and Radhika Nair M.K


    Visualiser: Ch. Yugandhar Rao
    Designer: Mrugasira
    Case Title Page No.

    Britain’s Housing Market – Pound vs US Dollar Dilemma 1


    Business Confidence for FDI in India 11
    Business Environment in China 25
    China’s Banks and the Overheating Economy 35
    China’s Credentials as a Market Economy 49
    China’s Credit Tightening: Impact on Small & Medium Enterprises 63
    China’s Healthcare System: The Price for Economic Progress 75
    Chinese Economy – Structural Problems and Bank Overlending 93
    Chinese State-Owned Enterprises: The Challenges 109
    Corporate Tax in the European Union: Tax Harmonisation vs Tax Competition 125
    Credit Card Debt in Britain 139
    FDI: India vs China 155
    India: An Automobile Hub in the Making 163
    Indian Tourism Industry over the Decades 179
    Ireland: Turnaround by Tax Policy 191
    Medical Tourism: India’s Competitive Advantage 209
    New Work-Time Regulations: Is Britain Ready? 227
    Non-Performing Loans in Chinese Banking Industry 237
    Reforms in US Patent Law: Business Implications 247
    Rigid German Labour Laws: The Business Migration 265
    Rise of Millionaires in Asia: Opportunities and Challenges for Wealth Managers 283
    SMEs in Thailand: The Governmental Initiatives 293
    Startups in Europe: A New Lease of Life? 305
    The Advent of the Internet and the Bargaining Power of the Customer 317
    The End of Multi-Fiber Arrangement: Opportunities for China’s Textile Industry 333
    The French 35-hour Workweek 343
    US Anti-Dumping Duties on Shrimp Imports – Irrational Protectionism? 359
    WTO vs USA: The Byrd Amendment 367
    OVERVIEW

    Organisations operate in a ‘pluralistic society’, where its various claimants with divergent
    goals, seek optimal benefits from the organisation. But at the same time, the economics
    on which businesses operate makes the organisation dependent on these claimants. As
    a result, each group has an impact on the other group, but not inordinate powers. This
    would imply that a business strategy initiated by the organisation should hold good
    throughout the lifetime of the organisation. But we see that the case is otherwise. The
    manner in which businesses are managed differs from region to region and from industry
    to industry. Organisations, irrespective of the country or the industry they operate in, are
    forced to re-examine their strategy from time to time. The reasons for this are the various
    factors and forces - many a time beyond the control of the organisations - that exist in the
    environment in which the business operates.
    Business environment is a set of political, economic, social, technological, ethical and
    competitive forces that are largely outside the control and influence of a business, and that
    can potentially have both a positive and a negative impact on the business. It involves the
    organisation’s internal as well as external environment (Exhibit I).

    Exhibit I
    The Business Environment of an Organisation

    L G
    OBA External LO
    GL Competition
    BA
    Ec L
    on
    m

    om
    ste

    r M ic
    osy

    bo on
    a ey
    Ec

    L
    Te

    Organization
    ch
    l
    tura

    nolog
    t
    en

    M
    pm

    at
    Cul

    er

    ical

    Internal
    ui

    ia
    Eq

    ls

    Pol
    ic itic
    raph al/L
    g ega
    mo l
    De

    GLOBAL

    Source: http://telecollege.dcccd.edu/mgmt1374/book_contents/1overview/business_environment/
    bus_envior.htm

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