Scribd Logo
Upload

Welcome to Scribd!

  • 392 views

    Business Environment in An Economy Has Three Basic Propositions

    Uploaded by

    Saif Khan
    The document discusses the business environment in an economy. It notes that business is an economic activity, firms are economic units, and business decision making is an economic process. The business environment has both economic and non-economic factors. The economic environment includes macro factors like political, socio-cultural, demographic, and technological forces, as well as the micro environment of input suppliers, customers, competitors, and other organizations. Non-economic factors include the social, political, and legal environments as well as global forces. Managing businesses must understand how these internal and external forces shape opportunities and risks.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    Business Environment in An Economy Has Three Basic Propositions

    Uploaded by

    Saif Khan
    392 views19 pages
    The document discusses the business environment in an economy. It notes that business is an economic activity, firms are economic units, and business decision making is an economic process. The business environment has both economic and non-economic factors. The economic environment includes macro factors like political, socio-cultural, demographic, and technological forces, as well as the micro environment of input suppliers, customers, competitors, and other organizations. Non-economic factors include the social, political, and legal environments as well as global forces. Managing businesses must understand how these internal and external forces shape opportunities and risks.

    Original Title

    Business Environment Slides

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses the business environment in an economy. It notes that business is an economic activity, firms are economic units, and business decision making is an economic process. The business environment has both economic and non-economic factors. The economic environment includes macro factors like political, socio-cultural, demographic, and technological forces, as well as the micro environment of input suppliers, customers, competitors, and other organizations. Non-economic factors include the social, political, and legal environments as well as global forces. Managing businesses must understand how these internal and external forces shape opportunities and risks.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    392 views19 pages

    Business Environment in An Economy Has Three Basic Propositions

    Uploaded by

    Saif Khan
    The document discusses the business environment in an economy. It notes that business is an economic activity, firms are economic units, and business decision making is an economic process. The business environment has both economic and non-economic factors. The economic environment includes macro factors like political, socio-cultural, demographic, and technological forces, as well as the micro environment of input suppliers, customers, competitors, and other organizations. Non-economic factors include the social, political, and legal environments as well as global forces. Managing businesses must understand how these internal and external forces shape opportunities and risks.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 19

    BUSINESS ENVIRONMENT IN AN ECONOMY

    HAS THREE BASIC PROPOSITIONS:

     BUSINESS IS AN ECONOMIC ACTIVITY

     BUSINESS FIRM IS AN ECONOMIC UNIT

     BUSINESS DECISION-MAKING IS AN
    ECONOMIC PROCESS
    BUSINESS ENVIRONMENT

    ECO. NON- ECO.


    ENVT. ENVT.
    MACRO- ENVIRONMENT OF BUSINESS
    ECO. ENVT

    NATIONAL GLOBAL

    BUSINESS

    NATURAL
    POLITICAL

    TECHNOLOGICAL
    SOCIO-
    CULTURAL
    LEGAL
    DEMOGRAPHIC

    NON-ECO. ENVT
    MICRO- ENVIRONMENT OF BUSINESS

    INPUT SUPPLIERS

    WORKERS &
    THEIR UNIONS PUBLIC

    BUSINESS

    CUSTOMER COMPETITORS

    MARKET INTERMEDIARIES
    MICRO/MACRO
    INTERNAL BUSINESS EXTERNAL
    ENVT. ENVT.

    • SOCIAL ENVT.

    • POLITICAL ENVT.

    • LEGAL ENVT.
    • GLOBAL ENVT.
    BUSINESS SECTOR HAS TO DEAL WITH:

     GOVERNMENT

     CAPITAL MARKET

     HOUSEHOLD SECTOR

    IT DEPENDS UPON THE TYPE OF GOVT. IN A


    PARTICULAR ECONOMY
     
    THE BASIC PROBLEM OF EVERY ECONOMY IS:
     
    Contd..
    ALLOCATION OF RESOURCES & SUBSEQUENT
    PRODUCTION i.e.
     WHAT TO PRODUCE
     HOW TO PRODUCE
     WHOM TO PRODUCE
     WHEN TO PRODUCE

    DUE TO OPEN UP OF THE ECONOMY:


    • ENGAGED IN INT. TRADE AND COOPERATION

    • TECHNICAL REVOLUTION

    • ROLE OF MNC
    • ECOLOGICAL BALANCE
    ROLE OF THE GOVT. TOWARDS SOCIAL SECTOR

     IS IT GOVT. ONLY? OR

     WHO COULD BE THE OTHER PLAYERS:


    •PRIVATE SECTOR

    • NGO’S
    • SOCIAL ACTIVIST/ORGANISATIONS

    • INTERNATIONAL BODIES

    THEREFORE, MANAGER SHOULD KNOW ABOUT THE


    MAGNITUDE AND DIRECTION OF CHANGES AT NATIONAL
    AS WELL AS AT INTERNATIONAL BUSINESS
    ENVIRONMENT.
    WHAT ARE THE CRITICAL ELEMENTS OF ECO.
    ENVT. OF BUSINESS

    • INSTITUTIONAL FRAMEWORK:

     RELATIVE ROLES & RESPONSIBILITIES OF


    THE
     PRIVATE SECTOR
     PUBLIC SECTOR
     GOVT.

    • PHYSICAL ANATOMY OF NATIONAL ECONOMY:

    Contd…
     LEVEL OF PCI INDICATE THE LEVEL OF
    GROWTH & DEVELOPMENT

     AVAILABLE NATURAL, HUMAN & MATERIAL


    RESOURCES OF A COUNTRY.

     OCCUPATIONAL DISTRIBUTION OF LABOUR


    FORCE, PATTERN OF FOREIGN TRADE,
    STRUCTURE OF SAVINGS, INVESTMENT &
    CAPITAL FORMATION, PATTERN OF INCOME
    DISTRIBUTION & THE DEGREE OF
    URBANISATION.
    • FUNCTIONING OF THE ECONOMY:

     NATURE OF MONETARY TRANSACTIONS


    AFFECT THE PRICE LEVEL-WHICH
    INFLUENCE THE REAL VALUE OF ALL
    ECONOMIC VARIABLES.

     ROLE OF CENTRALISED PLANNING,


    ADMINISERED PRICE MECHANISM & FREE
    MARKET PRICING & CENTRAL BANKING.

    • ECONOMIC PLANNING & PROGRAMMES


    • ECONOMIC POLICY STATEMENTS AND
    LEGISLATIONS:

     POLICY STATEMENTS AFFECTING BOTH


    INDUSTRY AND AGRICULTURE

     RBI WORKS THROUGH THE INSTRUMENT OF


    MONEY AND CREDIT POLICIES

     GOVT. CONTROLS THROUGH FISCAL-CUM-


    BUDGETARY POLICIES.

    • FLUCTUATIONS & TRENDS IN MACRO-


    ECONOMIC VARIABLES:
    • ECONOMIC PROBLEMS & PROSPECTS:
     INFLATION/RECESSON
     UNEMPLOYMENT

    NON-ECONOMIC ENVT. OF BUSINESS

     POLITICAL ENVT. OF BUSINESS:

    • GOVT. IS A POLITICAL INSTITUTION:- ENACTS &


    EXECUTES SOCIAL POLICIES IN ORDER TO
    MAXIMISE SOCIAL BENEFITS & MINIMISE
    SOCIAL COSTS.

    • IN THE PRESENT GLOBAL BUSINESS SCENARIO,


    GOVT. POLICIES, PROGRAMMES & LEGISATIONS
    AFFECT THE BUSINESS MOST.
     CRITICAL ELEMENTS:

    • FROM & STRUCUTURE OF THE GOVT.

    • STRENGTH OF THE OPPOSITON IN LEGISLATURE

    • ROLE & RESPONSIBILITY OF THE BUREAUCRACY

    • DIRECTION & SPEED OF THE GOVT.

    • POLICIES & PROGRAMMES.

    • SOCIO-ECONOMIC LEGISLATIONS

    • POLITICO-LEGAL INSTITUTIONS
     SOCIO – CULTURAL ENVT. OF BUSINESS:

    • BUSINESS MUST CHARGE SOCIAL


    RESPONSIBILITY, SOCIAL OBLIGATION &
    SOCIAL COMMITMENT

     CRITICAL ELEMENTS:

    • SOCIAL INSTITUTIONS & SYSTEMS: CASTE


    SYSTEM, JOINT FAMILY SYSTEM, CHILD
    MARRIAGE ETC.
    EVOLVED THROUGH HISTORY, CULTURE &
    HERITAGE.
     
    • SOCIAL VALUES & MOVES: WHICH HAVE GONE FOR
    RAPID CHANGES

     CUSTOMS, TRADITIONS & CONVENTIONS ARE NOT


    RIGID ANYMORE.

     VIEWS TOWARDS AUTHORITY, RESPONSIBILITY &


    DELEGATION OF POWER.

     VIEWS TOWARDS ACHIEVEMENT & WORK

     VIEWS TOWARDS OWNERSHIP & MANAGEMENT


    THEREFORE, THERE IS A NEED FOR BUSINESS
    EDUCATION & ITS IMPACT ON BUSIENSS ETHICS,
    BUSIENSS MORALITY & ORG. CULTURE.
     
     SOCIAL RESPONSIBILITY OF THE GOVT.

     SOCIAL GROUPS & SOCIAL MOVEMENTS:

    SHOULD CREATE BUSINESS CLIMATE


    THROUGH SOCIAL MOVEMENTS & SOCIAL
    POLICY FORMULATLION ON SUBJECTS LIKE:
     
     SCIENCE & TECHNOLOGY
     ECOLOGY & FORESTRY
     FAMILY PLANNING ETC
     SOCIAL PROBLEMS & PROSPECTS:

     AS SOCIETY MOVES FROM ‘PRE-INDUSTRIAL’ TO ‘POST


    INDUSTRIAL’ STAGES OF DEVELOPMENT IT MAY
    EXPERIENCE:-

     GROWING UNEMPLOYMENT & POVERTY

     POOR HOUSING & SANITATION

     PRESSURE ON INFRASTRUCTURE

     URBAN CONGESTION, POLLUTION & INCREASING


    INCIDENCE OF ANTI-SOCIAL ACTIVITIES.
    WHAT IS NEEDED?

    SOCIAL COST-BENEFIT ANALYSIS OF


    INDUSTRIAL DEVELOPMENT.
     
    ECONOMIC ROLES OF THE GOVERNMENT:
    • AS A REGULATOR
    •AS PROMOTOR TO BUSINESS
    •AS A GOOD ENTREPRENEUR &
    •A VERY EFFECTIVE PLANNER

    You might also like