Professional Documents
Culture Documents
Unit II:
Indian Financial System:
Current Financial Structure, Non Banking Finance Companies (NBFCs) and
Financial Institutions. Reforms of the banking sector and Financial Sector, Role
of SEBI, FEMA. The changing dimensions of these laws and their impact on
business.
Unit III:
Macro Economic policies of India:
Indian tax system, Direct and Indirect taxes. MODVAT, CENVAT and Value
Added Tax. An evaluation of recent fiscal policy of Government of India –
Highlights of Budget. Monetary Policy: RBI , Objectives of monetary and
credit policy, Policy tools and Recent trends of Monetary Policy.
Unit IV:
Micro Economic policies of India:
Public sectors reforms and disinvestment, Industrial Policy in recent years,
MRTPAct. policy, Foreign investment Policy, EXIM Policy, Flow of Capital,
Acquisition, Mergers, India and WTO.
Unit V:
LPG Liberalization, Privatization and Globalization:
New Economic Policy , Privatization, Liberalization Globalization, their
Implication for Indian Business, its Impacts and emerging trends and issues of
Technological Environment
Natural Environment
Determinants of International Environment for Business
Dynamic
Uncertain
Opportunity & Threat
Internal & External factors
Economic and Non Economic factors
Significance of Business Environment
Compensation protection
Credibility
Social Environment
Social responsibility
Welfare expenditure
Types of Business Environment Risk
Legal Risks
Regulatory Risks
Political Risks
Social Risks
Natural Risks
Process of Environment Analysis :
Assessment: Identifying & evaluating how & why current and projected environment
changes will affect strategic management of organization
Environment Scanning
External Scanning:
Acquisition, analyses, use of information about events & establishing the
relationship of business with its environmental variables.
SWOT analysis
Important Information :
Economy
Government
Legal
Technology
Ecology
Socio-cultural
Potential suppliers
Stakeholders
Economy
GDP per capita
economic growth
unemployment rate
inflation rate
consumer and investor confidence
inventory levels
currency exchange rates
merchandise trade balance
financial and political health of trading partners
balance of payments
future trends
Government
attitudes towards:
materialism, capitalism, free enterprise
individualism, role of family, role of government, collectivism
role of church and religion
consumerism
environmentalism
importance of work, pride of accomplishment
wage expectations
educational facilities
Material suppliers
quality, quantity, price, and stability of material inputs
delivery delays
Service providers
quantity, quality, price, and stability of service facilitators
special requirements
SWOT analysis
Strengths: attributes of the person or company that are helpful to achieving the
objective.
List Strengths:
Develop a list of all of the internal strengths of the agency incorporating
feedback from the team members, emails and surveys. Discuss the
strengths and clarify any questions or confusion.
Examples of strengths could include an experienced staff or good employee
training program.
Identify Weaknesses
Identify Threats:
Threats are also external factors. Threats could have a negative impact on your
workforce planning and could include a projected increase in the cost
of employee health insurance or an expected reduction in government funding.
Again it is possible that an opportunity may also be perceived as a threat. For
example, new technology tools might be an opportunity, but also threaten
staffing levels.
Establish Priorities
SWOT Analysis
Strengths Weaknesses
What good opportunities are What trends could affect you negatively?
available to you? What are competing communities doing?
What trends would you take How would a weakness be potential
advantage of? threat?
How can you turn your strengths
into opportunities?
Responses
When an issue is detected, there are generally six ways of responding to
them:
opposition strategy - try to influence the environmental forces so as to
negate their impact - this is only successful where you have some control
over the environmental variable in question
adaptation strategy - adapt your marketing plan to the new environmental
conditions
offensive strategy - try to turn the new influence into an advantage - quick
response can give you a competitive advantage
redeployment strategy - redeploy your assets into another industry
contingency strategies - determine a broad range of possible reactions -
find substitutes
passive strategy - no response - study the situation further
Role of Business Economists: