Business environment for BBA students internal and external

this ppt is all about external environment with SWOT being internal environment

1. CHAPTER3
BUSINESSENVIRONMENT

2. CONTENTSOFCHAPTER3
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
•Understandtheconceptof‘BusinessEnvironment’.
•DescribetheimportanceofBusinessEnvironment
•DimensionsofBusinessEnvironment-Economic,Social,
Technological,PoliticalandLegal
•Demonetization-conceptandfeatures
•ImpactofGovernmentpolicychangesonbusinesswithspecial
referencetoliberalization,privatizationandglobalizationin
India
•Discussmanagerialresponsetochangesinbusiness
environment
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3. Whatisenvironment?
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
??????Thesurroundings
animal, orplantlivesoroperates.
??????Thenaturalworld,asawholeorina
orconditionsinwhichaperson,
particular
geographicalarea,especiallyasaffectedbyhuman
activity.
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4. MeaningofBusinessEnvironment
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
Theterm‘businessenvironment’meansthe
sumtotalofallindividuals,institutionsand
otherforcesthatareoutsidethecontrolofa
businessenterprisebutthatmayaffectits
performance.
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5. Examplesofbusinessenvironmentonbusiness:
??????COVID-19→Higherdatapackssold byVodafone
→BigBazaarstartedhomedeliveryservices
??????RatanTatadonated1500Cr.forCOVID-19(Socialchanges)
??????Landline→Cordless→Nokia→Android/Apple(Tech.)
??????Orkut→Facebook→Selfies→Instagram→TikTok
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??????Highertaxes→expensiveproducts(GST)
??????Increaseinpetrolprices→increaseinoverallpricesofproducts/
services
??????Cart→Rails→LocalTrains→Airplanes→MetroTrains
??????RetailShopping→Weeklymarkets→Malls→Internet(Amazon,Flipkart)
??????Demonetisation→Paytm,PhonePe,DebitCards,CreditCards
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI

6. FeaturesofBusinessEnvironment
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
??????Totalityofexternalforces
??????Specificandgeneralforces
??????Inter-relatedness
??????Dynamicnature
??????Uncertainty
??????Complexity
??????Relativity (different)
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7. ImportanceofBusinessEnvironment
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
??????Itenables thefirmtoidentifyopportunitiesand getting
thefirstmoveradvantage
??????Ithelpsthefirmtoidentifythreatsandearlywarning
signals
??????Ithelpsintappingusefulresources
??????Ithelpsincopingwithrapidchanges
??????Ithelpsinassistinginplanningandpolicyformulation
??????Ithelpsinimprovingperformance
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8. ELEMENTS/COMPONENTS/DIMENSIONSOF
BUSINESSENVIRONMENT
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
??????POLITICAL
??????ECONOMIC
??????SOCIAL
??????TECHNOLOGICAL
??????LEGAL
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9. POLITICALENVIRONMENT
•General stability
•Peace in country
•Government leadership
•Investment in business projects
•Industrial policy
•Red tapismand bureaucracy
•Political morality
•Relations with foreign countries

10. ECONOMICALENVIRONMENT
•Interest rates
•Inflationrates
•Stock market indices
•Value of rupee
•Changes in disposable
income of people
•Per capita income
•GNP
•Foreign trade
•Rates of saving and
investment
•Agriculture and Industrial
sector
•Role of Public and private
sector
•Profitearningrate
•Productivityrate
•Employmentrate

11. ECONOMICAL ENVIRONMENT
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
??????GDP
??????Highinflationrate→Highcostofproductionleadingtoriseinprices
ofproducts
??????Fallinrateofinterest→Increaseindemandforhomeloans
??????GST→increaseinpricesofproducts
??????Demonetisation →slowdownofcashbasedbusinesses
→Jewelersbusinessinboom
??????Bankingsector→schemes
??????Savingsandinvestmentrates
??????Roleofprivateandpublicsector
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12. SOCIALENVIRONMENT
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
•Customsandtraditions
•Values and belief systems
•Social trends
•Culture–wayoflife(eatinghabits,clothinghabits)
•Moneyspendinghabits(saveorspend)
•Standardofliving
•Tastesandpreferences
•Festivals→Sweets,clothes,decorations
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13. SOCIALENVIRONMENT
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
•Life expectancy
•Consumption habits / consumer preferences
•Composition of family
•Birth and death rates (shortage of medical facilities)
•Population shifts
•Educational system and literacy rates
•Expectations from workforce
•Role of women in society
•Attitude towards innovation, lifestyle, occupational
choices, etc.
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14. TECHNOLOGICALENVIRONMENT
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
•Scientific improvements
•Innovations
•New techniques of production
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15. TechnologicalEnvironment
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
??????Floppytopendrive
??????Onlinegrocery
??????Onlinebooking
??????Trivago,Oyo
??????CompactLaptops
??????Plasticmoney
??????BookMyShow
??????E-ticketingbyrailways
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16. LegalEnvironment
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
•Legislations passed by government
•Administrative orders issued by government authorities
•Court judgements
•Decisions rendered by various commissions and agencies
•The Companies Act, 2013
•Factories Act, 1948
•Workmen’s Compensation Act, 1923
•Competition Act, 2002
•Industries (D&R) Act, 1951
•FEMA and Import Exports Control Act, 1947
•Trade Union Act, 1926
•The Consumer Protection Act, 2019
•Industrial Dispute Act, 1947
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17. LegalEnvironment
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
•Legislations passed by government
•Administrative orders issued by government authorities
•Court judgements
•Decisions rendered by various commissions and agencies
•Advertisement of alcoholic beverages
•Statutory warning on cigarettes
•Baby food
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18. Government Policies and its
impactonbusinesses(LPG)
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
??????LIBERALISATION
??????PRIVATISATION
??????GLOBALISATION
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19. LIBERALISATION
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
??????Endoflicense,quotaandrestrictionsprevailingbefore1991
??????Abolishinglicensing
??????Freedomofexpansionofbusiness
??????Lessertaxesandcontrols
??????Lesserrestrictionsonimportsandexports
??????Easyandsimpleproceduresofforeigntrade
??????Freedominmovementofgoodsandservices
??????Freedominfixingprices
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20. PRIVATISATION
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
??????Public sector is owned by govt. whereas private sector by
individuals
??????Greaterrole ofprivatesectorthanpublicsector
??????TransferfromPublicsectortoPrivateSector
??????BIFR(Reconstruction)–ReviveorClosesick units
??????DilutionofPublicsector
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21. GLOBALISATION
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
??????Removalofpoliticalboundaries,worldbecameaglobalvillage.
??????Integrationofeconomiesofworld
??????Till1991therewerestrictrestrictionsonimports
??????Importliberalization
??????FERAwasreplacedbyFEMA
??????Newtariffstructure
??????Reductionofimportduty
??????Abolitionofexportprotocols
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22. DEMONETISATION
??????8
thNov.,2016
??????Rs.500andRs.1000denominationnoteswithdrawn
??????Exchangeofnotesinbanks
??????Restrictiononcashwithdrawal
??????Curbcorruption
??????Controlblackmoney
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CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI

23. FeaturesofDemonetisation
??????Demonetizationasataxadministrationmeasure
??????Nontoleranceoftaxevasion
??????Taxadministratingandchannelizingsavingsintoformal
financialsystem
??????Creating lesscashorDigitalCashliteeconomy
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CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI

24. ImpactofchangesinEconomicPolicyon
theBusiness/
EffectsofLiberalizationandGlobalization
??????Increasingcompetition
??????MoreDemandingCustomers
??????Rapidlychangingtechnologicalenvironment
??????Necessityforchange
??????DevelopedHuman Resources
??????Marketorientation
??????LossofBudgetarySupporttoPublicSector
??????ExportamatterofSurvival
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CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI

25. Managerial responses to changes in
Bus.Env.
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
??????Diversification(newbusinessesareas)
??????JointVentures(mergers)
??????BrandBuilding(Goodwill)
??????Useoflatesttechnology(innovation)
??????Improvedcompensationlevel(HRpolicies)
??????Customerfocus (consumerism)
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26. Questions
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
(a)Importanceofopportunitiesandthreats
(c) Copingwithrapidchanges
(b)Improvementinperformance
(d)Allofthese
3.Whichenvironmentprohibitsadvertisement ofalcoholicbeverages?
(a)Political(b)Social(c) Economical(d)Legal
4.NamethecomponentofbusinessenvironmentwhichincludesKiosks,Internet,Pendrive.
(a)Political(b)Social(c)Technological(d)Legal
5.Liberalisationmeans:
(a)Integrationofeconomies
(b)Reducedgovernmentcontrols
(c)Planneddisinvestment
(d)Noneofthese
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1.Whichofthefollowingdonotcharacterizebusinessenvironment?
(a)Uncertainty(b)Employees (c) Relativity(d)Complexity
2.Whichofthefollowingbestindicatesimp. ofbusinessenvironment?

27. Questions
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
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6.Nametheserviceindustry.
(1)Coalmining(2)Banking(3)Tourism(4)Cellphones
(a)Only1 (b)(2)&(3) (c)Only2 (d)Only3
7.Withdrawaloflargedenominationcurrencynotes.
(a)Privatization(b)Liberalization(c)Demonetization
8.ABCTechnologiesLtd.IsaleaderintechnologyinnovationintheUS,creatingproductsandsolutionsfor
connectingtheworld.TheydevelopedthefirstsmartwatchS-19whichhashealthparameterfeatureslikeheart
beat,bloodpressure,etc.otherthanshowingtimeoptions.Whileinsearchofmarketsabroad,thecompanyfound
thatinIndia,thereformprocesswasunderwaywiththeaimofacceleratingthepaceofeconomicgrowth.The
companydecidedtotakeadvantageofsimplifiedexportprocedureandremovalofquantitativeaswellastariff
restrictions.ItsetupitscompanyinJamnagarwithaviewtocapturetheIndianMarket.Inashortspanoftimethe
companyemergedasamarketleader.Successinthecompanyattractedmanyotherplayerstoenterthemarket.
Competitionresultedinreductioninprices,therebybenefittingthecustomers.
(a)Intheaboveparagraphtwomajorconceptsrelatedtogovernmentpolicyhavebeendiscussed.Identifyand
explaintheseconcepts.
Ans.Liberalization&Globalization
(b)ExplainbrieflyanythreeimpactsoftheseconceptsonIndianbusinessandindustry.
Ans.Explainimpactofeach

28. Thankyou
CBSE-XII-BUSINESSSTUDIES-BYHENNAPUNJABI
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