Submitted to Submitted By

Dharmendra Prakhya shah

Semester –2
Section-B
 analysis
STEEPLED analysis is one variant of the very popular and simple strategic management method for
of external environment of the organization. It is based on PEST analysis method, with
addition of additional Environmental, Ethical and Legal factors. STEEPLE is more advanced
as it deals with macro-environmental external factors. STEEPLE offers an overview of
various external fields. It is an acronym for Social, Technological, Economic, Environmental,
Political, Legal and Ethical. You can get a practical insight on each of these factors. These
elements can affect your business. So, carry out the analysis and take fitting measures.

Each letter in STEEPLED stands for an external factor which

Main factors of STEEPLE analysis

Five external factors influencing organization is considered:

Socio-cultural - social forces influence our attitudes, interests, opinions, moreover create our behaviour
and ultimately what we purchase. Trends’ changes have correspondingly direct impact on enterprises. These
factors contain: structure of population, falling rates, competition, increase of global population, traditions,
level of education, cultural diversity and standards. More examples of Social and cultural factors affecting
business.

Technological - technological advances have greatly changed the manner in which businesses operate.
Nowadays technological progress created a society which expects instant results. Here we can mention: new
technologies, absorptive capacity for innovation, globalization. New technologies shorten Product life cycle and
increase demand for new products. This revolution has increased the rate at which information is exchanged
between stakeholders. A faster exchange of information can benefit companies as they are able to react quickly
to changes. More examples of Technological factors affecting business.

Economic - national interest rates and fiscal policy is set around economic conditions, besides has
influence on purchasing power of consumers and structure of their expenditure. These factors include: gross
domestic product (GDP) creating by demand, stock quote, currency rate fluctuations, rate of inflations, market
substitutive and complementary, tax policy, price changes, revenues, savings and level of unemployment. More
examples of Economic factors affecting business.

Environmental - environmental protection legislation, pollution, waste management and disposal, clean
air and water, energy saving technologies, attitudes towards ecology in society.

Political - factors could create plenty of advantages and opportunities for organizations. These factors
include: political situation, political stability, state interference, market regulations, trade agreements, tariffs or
restrictions, taxes, lobbying and clarity of law. More examples of Political factors affecting business,

Legal - (subset of above-mentioned political factors) involve all regulatory and law determinants that can
negatively or positively affect results of market actions and decisions of management of company functioning
in particular country. International companies must analyse and identify those factors (legal environment)
independently for every state they function. More examples of Legal factors affecting business.

Ethical -factors involve duties, morality, integrity, behaviour, what is good and bad for company, employees
and society as a whole. More examples of Ethical factors affecting business.
Demographic factors
In this project we will do a comparative study of INDIA and SWEDEN on the basis of steeple analysis method.

INTRODUCTION TO INDIA
It is the seventh largest country by area and with more than 1.3 billion people, it is the second
most populous country as well as the most populous democracy in the world. Bounded by the
Indian Ocean on the south, the Arabian Sea on the southwest, and the Bay of Bengal on the
southeast, it shares land borders with Pakistan to the west; China, Nepal, and Bhutan to the
northeast; and Bangladesh and Myanmar to the east. In the Indian Ocean, India is in the
vicinity of Sri Lanka and the Maldives, while its Andaman and Nicobar Islands share a
maritime border with Thailand and Indonesia.
Indian economy was the world's sixth largest by nominal GDP [19] and third largest by
purchasing power parity. Following market-based economic reforms in 1991, India became
one of the fastest-growing major economies and is considered a newly industrialised country.
However, it continues to face the challenges of poverty, corruption, malnutrition, and
inadequate public healthcare. A nuclear weapons state and regional power, it has the second
largest standing army in the world and ranks fifth in military expenditure among nations.
India is a federal republic governed under a parliamentary system. A pluralistic, multilingual
and multi-ethnic society, it is also home to a diversity of wildlife in a variety of protected
habitats.
India is a federation with a parliamentary system governed under the Constitution of India,
which serves as the country's supreme legal document. It is a constitutional republic and
representative democracy, in which "majority rule is tempered by minority rights protected by
law". Federalism in India defines the power distribution between the union, or central,
government and the states. The government abides by constitutional checks and balances.
The Constitution of India, which came into effect on 26 January 1950, states in its preamble
that India is a sovereign, socialist, secular, democratic republic. India's form of government,
traditionally described as "quasi-federal" with a strong centre and weak states, has grown
increasingly federal since the late 1990s as a result of political, economic, and social changes.

According to the International Monetary Fund (IMF), the Indian economy in 2017 was
nominally worth US$2.611 trillion; it is the sixth-largest economy by market exchange rates,
and is, at US$9.459 trillion, the third-largest by purchasing power parity, or PPP. With its
average annual GDP growth rate of 5.8% over the past two decades, and reaching 6.1%
during 2011–12, India is one of the world's fastest-growing economies. However, the country
ranks 140th in the world in nominal GDP per capita and 129th in GDP per capita at PPP.
Until 1991, all Indian governments followed protectionist policies that were influenced by
socialist economics. Widespread state intervention and regulation largely walled the economy
off from the outside world. An acute balance of payments crisis in 1991 forced the nation to
liberalise its economy; since then it has slowly moved towards a free-market system by
emphasising both foreign trade and direct investment inflows.
economic inequality between India's states has consistently grown: the per-capita net state
domestic product of the richest states in 2007 was 3.2 times that of the poorest. Corruption in
India is perceived to have decreased. According to Corruption Perceptions Index, India
ranked 76th out of 176 countries in 2016, from 85th in 2014
 CH.1-PESTEL ANALYSIS OF INDIA
Basically, a framework used for scanning and analysing an organization’s
external macro environment by considering factors which include political,
economic, socio-cultural, technological, legal and environmental
So, here is the PESTLE analysis of India, which will provide you with a
detailed analysis of the six significant factors that affect its external macro
environment.

1.POLITICAL FACTOR
Being one of the largest democracies in the world, India runs on a federal form of
government. The political environment is greatly influenced by factors such as government’s
policies, politician’s interests, and the ideologies of several political parties. As a result, the
business environment in India is affected by multivariate political factors. The taxation
system is well-developed and several taxes, such as income tax, services tax and sales tax are
imposed by the Union Government. Other taxes, such as octroi and utilities, are taken care of
by local bodies. Privatization is also influenced and the government encourages free business
through a variety of programs.
India is the biggest democracy in the World. The government type is federal republic. Based
on English common law, judicial review of legislative acts, accepts compulsory ICJ
jurisdiction with reservations, separate personal law codes apply to Muslims, Christians, and
Hindus. The political Situation in the India is more or less stable. Most of its democratic
history, the federal Government of India has been led by the (INC) Indian

National Congress. State politics dominated by several national parties including the INC.
The Bhartiya JanataParty (BJP), the Communist Party of India (CPI), andvarious regional
parties. In the 2009 Indian elections, the INC won the biggest number of Lok Sabha seats and
formed a government with an alliance called the United Progressive Alliance (UPA),
supported by various left-leaning parties and members opposed to the Poxviral India
currently has a coalition led governmentand both major political parties the UPA and BJP,
whichever comes in power. It comprises political stability and the policies of the government.
Ideological inclination of political parties, personal interest on politicians, influence of party
forums etc. create political environment. For example, Bangalore established itself as the
most important IT centre of India mainly because of political support. In India many political
factors those effect in business environment. Political pressures in ruling government and
vote bank problems. These are the major factors those effect on political environment:
2. Economic Factors
The economy of India has been significantly stable, since the introduction of the industrial
reform policies in 1991. As per the policy, reductions in industrial licensing, liberalization of
foreign capital, formation of FIBP and so on, has resulted in a constant improvement of
India’s economic environment. The country registered a GDP of $5.07 trillion in 2013
following a further improved GDP growth rate of 5% in 2014 as compared to 4.35% in 2013.
It includes interest rates, taxation changes, economic growth, inflation and exchange rates. As
you will see throughout the "Foundations of Economics" book economic change can have a
major impact on a firm’s behaviour. For example:
• higher interest rates may deter investment because it costs more to borrow
•a strong currency may make exporting more difficult because it may raise the price in terms
of foreign currency
•inflation may provoke higher wage demands from employees and raise costs
•higher national income growth may boost demand for a firm's products in order to solve
economic problems of our country, the government took several steps
including control by theState of certain industries, central planning andreduced importance of
the private sector. The mainobjectives of India’s development plans were:
•Initiate rapid economic growth to raise thestandard of living, reduce unemployment and
poverty

Become self-reliant and set up a strong industrial base with emphasis on heavy and basic
industries,
•Reduce inequalities of income and wealth

3.Social Factors
The social factors refer to any changes in trends which would impact a business environment.
For instance, the rise in India’s ageing population is resulting in a considerable rise in pension
costs and increase in the employment of older workers. India has a population of more than
1.2 billion people with about 70% between the ages of 15 and 65. Therefore, there are
structures with percentages according to age. These structures contain varying flexibility, in
education, work attitudes, income distribution, and so on.
Changes in social trends can impact on the demand fora firm's products and the availability
and willingness
of individuals to work. In the India, for example, thepopulation has been ageing. This has incr
eased the costs for firms who are committed to pension
paymentsfor their employees because their staff are livinglonger. It also means some
firms have started to recruit older employees to tap into this growing labour pool. It describes
the characteristics of the society in which the organization exists. Literacy rate, customs,
values, beliefs, lifestyle, demographic features and mobility
of population are part o the social environment. It is important for managers to notice the
direction in which the society is moving and formulate progressive policies according to the
changing social scenario India is the second most populous nation in the world
with an approximate population of over 1.1billionpeople. This population is divided in the
following age structure: 0-14 years – 31.8%, 15-64 years – 63.1% and65 years and above –
5.1%. There has a(I)Mobility(ii)Income distribution(iii)Population demographics(iv)Attitude
to work and leisure(v)Standard of education and skills.

4.Technological Factors
Technology significantly influences product development and also introduces fresh cost-
cutting processes. India is served with both 3G and 4G technology which has facilitated
several of their technological projects. Furthermore, the country also possesses one of the
strongest IT sectors in the world, promoting constant IT development, software upgrades and
other technological advancements. Recently, India has also attempted to launch their satellites
into space.
New technologies create new products and newprocesses. MP3 players, computer games, onli
negambling and high definition TVs are all new
marketscreated by technological advances. Online shopping,
bar coding and computer aided design are all improvements to the way we do business as a
result of better technology. Technology can reduce costs,
improve quality and lead to innovation. Thesedevelopments can benefit consumers as well as
theorganisations providing the products. Today in India 3Gtechnology starts. A heavy
infrastructure for bandwidth’s and Reliance has more covered city by
opticalfibre. India have many Technological Projects. GoodService provider in IT sector ex
TCS, Infosys and many more. Today India is a big market in mobile sector here5-6 player
operators and new operators launch their services soon. (I) IT Development(ii)New Materials
and processes(iii)Government technology funding(iv)Speed of technology
transfer(v)Software upgrades.
5.Environmental Factors
when it comes to environment, the quality of air in India has been adversely affected by
industrialization and urbanization, also resulting in health problems. As a result, there have
been establishments of environmental pressure groups, noise controls, and regulations on
waste control and disposal.
Environmental factors include the weather and climate change. Changes in temperature can
impact on manyindustries including farming, tourism and insurance.
With major climate changes occurring due to globalwarming and with greater environmental
awarenessthis external factor is becoming a significant issue
forfirms to consider. The growing desire to protect theenvironment is having an impact on
many industriessuch as the travel and transportation industries (forexample, more taxes being
placed on air travel and the success of hybrid cars) and the general move towards more
environmentally friendly products and
processesis affecting demand patterns and creating businessopportunities.In India we know th
at many types of enviormentalproblems this are basic things but more important for our
environment. also, biotic factors, abiotic factors and
their interaction with one another. pollution free industrial activity i.e. is necessary condition
of industrial organization. Industrialization and urbanization have resulted in a profound
deterioration of India's air quality. Of the 3million premature deaths in the world that occur
each year due to outdoor and indoor air pollution, the highest number are assessed to occur in
India.
(I)
Pollution problems
(ii)
Planning permissions

6.Legal Factors
In the recent past, a number of legal changes have been implemented in India, such as
recycling, minimum wage increases and disability discrimination, which has directly affected
businesses in India
These are related to the legal environment in which firms operate. In recent years in the India
There have been many significant legal changes that have affected firms' behaviour. The
introduction of discrimination and disability discrimination legislation, an increase in the
minimum wage and greater requirements for firms to recycle are examples of relatively
recent laws that affect an organisation's actions. Legal changes can affect a firm's costs and
demand. This consists of legislation that is passed by the parliament and state legislatures.
Examples of such legislation specifically aimed at business operations include the Trade mark
Act 1969, Essential Commodities Act 1955, Standards of Weights and Measures Act 1969
and Consumer Protection Act 196.In India take many types of permission to the sate govt or
central govt. In India many types of act like license permission, copyright permission, and
many types of other permission. (I)Employment law(ii)Trade and product
restrictions(iii)Health and safety regulations(iv)EU and international laws(v)Monopolies
commission
 INTRODUCTION TO SWEDEN
Sweden, officially the Kingdom of Sweden, is a Scandinavian Nordic country in Northern
Europe.
Sweden has a total population of 10.2 million of which 2.5 million has a foreign background.
It has a low population density of 22 inhabitants per square kilometre (57/sq. mi). The highest
concentration is in the southern half of the country.
Sweden maintains a Nordic social welfare system that provides universal health care and
tertiary education for its citizens. It has the world's eleventh-highest per capita income and
ranks highly in numerous metrics of national performance, including quality of life, health,
education, protection of civil liberties, economic competitiveness, equality, prosperity and
human development.
Sweden is a constitutional monarchy and King Carl XVI Gustaf is the head of state, but the
role of the monarch is limited to ceremonial and representative functions. Under the
provisions of the 1974 Instrument of Government, the King lacks any formal political power.
Sweden is the sixteenth-richest country in the world in terms of GDP (gross domestic
product) per capita and a high standard of living is experienced by its citizens. Sweden is an
export-oriented mixed economy. Timber, hydropower and iron ore constitute the resource
base of an economy with a heavy emphasis on foreign trade. Sweden's engineering sector
accounts for 50% of output and exports, while telecommunications, the automotive industry
and the pharmaceutical industries are also of great importance. Sweden is the ninth-largest
arms exporter in the world. Agriculture accounts for 2% of GDP and employment. The
country ranks among the highest for telephone and Internet access penetration.
An estimated 4.5 million Swedish residents are employed and around a third of the workforce
completed tertiary education. In terms of GDP per-hour-worked, Sweden was the world's
ninth highest in 2006 at US$31, compared to US$22 in Spain and US$35 in the United States.
GDP per-hour-worked is growing 2.5% per year for the economy as a whole and the trade-
terms-balanced productivity growth is 2%. According to the OECD, deregulation,
globalisation, and technology sector growth have been key productivity drivers. Sweden is a
world leader in privatised pensions and pension funding problems are relatively small
compared to many other Western European countries. A pilot program to test the feasibility of
a six-hour workday, without loss of pay, will commence in 2014, involving the participation
of Gothenburg municipal staff. The Swedish government is seeking to reduce its costs
through decreased sick leave hours and increased efficiency
 CH.2 STEEPLED ANALYSIS OF SWEDEN
Sweden is a federal state located in Northern Europe, bordering the Baltic Sea, the Gulf of
Bothnia, Finland, and Norway. The country covers an area of 449,964 square kilometres
(173,732 square miles). The Swedish GDP growth rate was hampered by the 2008-2009
global financial crisis which affected its overall performance during 2001-2012.Global GDP
is expected to grow to $99.5 trillion by 2018, while Sweden’s economy is likely to grow $591
billion at the current price by 2018 with a slim CAGR of just 0.02% during 2013 to 2018.

This report includes an analysis of the macroeconomic position of Sweden, as well as its
political scenario, and social and technological analyses. This report provides knowledge on
leading industries and the emerging industries in the country.
1. SOCIAL FACTORS
Sweden has very high standard of living it has one of the highest hourly labour cost(wages) in
the world. This leads to higher production (output)costs for business as they are required by
law to provide a generous wage. Sweden faces the problem of aging population 17% of the
countries population is old which leads to the government and organizations implementing
policies to support entrepreneurship in order to stimulate job creation for young population.
Sweden population is growing old fast and they have high rates of divorce that’s why it is
facing a problem of aging population. Sweden’s main religion is Christianity but a large
number of its population does not follow any religion.
2. TECNOLOGICAL FACTORS
Sweden has been one of the top users and innovators of advanced technology in recent years,
used primarily in industries where a significant, consistent amount of output is required in
order to maintain economic stability. Among the newer technological investments have been
in renewable energy, especially wind and solar power. Sweden has among the top countries
whose technological growth is very high. Governments investment in research and
development

Swedish society has long been fostering innovation and entrepreneurship. There are several
factors that might explain why, for example the country’s social stability and the access to
government support, as well as a high degree of equality.

The welfare state has been key to developing Sweden’s low-stakes business environment. The
fact that there is a social safety net to fall back on if a venture fails to take off, offers the
freedom for entrepreneurs to experiment and take risks.

3. Economic Factor
High consumer confidence + high end spending patterns many swedes are very confident
about their country’s economy and consumer environment. Along with the fact that most are
found of purchasing quality products (consumer is buying more” normal goods” as incomes
rise), operating a business in Sweden will allow businesses to maximize profits by being able
to provide a good or service at a high price and make significant.
But still it has the largest influx of immigrants. That is why it is creating unemployment for
(immigrants’ youth). Sweden government and multiple business supporting organization have
formed strategies and promotions encouraging diversity in businesses to lower the rate of
unemployment in the country.
Sweden has an economy heavily oriented toward foreign trade with timber, hydro-power, and
iron ore constituting its resource base. Engineering sector accounts for about 50 percent of
output and exports. On the expenditure side, household consumption is the main component
of GDP and accounts for 46 percent of its total use, followed by government consumption (26
percent) and gross fixed capital formation (23 percent). Exports of goods and services
account for 45 percent of GDP while imports account for 41 percent, adding 4 percent of total
GDP.

Sweden’s gross domestic product (GDP) per capita is among the highest in the EU, it has low
inflation and a healthy banking system.
The World Economic Forum ranks Sweden among the top ten most competitive countries in
the world. Sweden is also one of the easiest countries in the world to do business with,
according to the World Bank.
A key feature of the Swedish economy is its openness and liberal approach to trade and doing
business. Sweden has traditionally been an export-orientated nation, and typically maintains a
trade surplus, i.e. the value of goods and services its exports is greater than the value of
imports.

4. Environmental Factors
Sweden government support companies which use renewable sources of energy such as solar,
wind and hydro energy by giving subsidies. This financial support from government also
support environmentally friendly society and which can also help producers to increase
output.
Sweden is a large producer and consumer of ecological product. It produces many ecological
variants such as milk, bread, egg this product in Sweden are slightly more expensive than the
normal kinds but have actually increased in sales every year. Swedes are very well aware and
conscious about their environment and what they consume is natural and does not have
negative impact on environment.
Renewable energy sources account for more than half (52 per cent) of Swedish energy
production. Swedish environmental technology companies export their green knowhow to the
rest of the world in technology areas such as biofuels, bioenergy, wind power, solar power
and wastewater treatment The Kingdom of Sweden is a constitutional monarchy.

5. Political Factor
Executive Power
The monarchy is hereditary. The King is Head of State but he exercises no political power
and functions in an entirely ceremonial capacity. After a general election, the Prime
Minister is first nominated by the parliamentary spokesperson before being confirmed for a
four year term by the Parliament. The King plays no role in this process. The Prime Minister
is the head of the government and holds executive power. The Council of Ministers is
nominated by the Prime Minister and then submitted for the approval of Parliament.
The Swedish legislative power is unicameral. The Parliament, called Riksdag, has 349 seats
and its members are elected by universal suffrage on the basis of proportional representation
for a four-year term.
Swedes have trust in their government. Government makes rules and regulations which are
implemented very strictly and government imposes very high fines if rules are broken by its
citizens.

6. Legal Factor
Starting a business in Sweden is a very easy and takes very little time. It is also very
inexpensive the government encourages new start-ups it only takes 1 week to start a business
in Sweden the government is very liberal in allowing new start-up. The short and affordable
start-up process encourages entrepreneurs to open more businesses and stimulate the
economy.
But their multiple strict rule and regulations despite Sweden being an inexpensive location to
invest a business in, the operating costs are high: taxes and fixed to start and grow costs. In
addition, there are multiple strict rules and regulation that require to be followed by business
owners, the consequence being costly fines and the confiscation of privileges.
 7. Ethical Factors
The government and start up support organization have begun to implement policies
supporting equality in work place. A law called Discrimination Act stresses the importance of
equality in recruitment salaries and working conditions. Meanwhile, the country’s
entrepreneurship equality goals are: “to provide the same opportunity for everyone to
establish, operate, and develop companies so businesses across all industries are supported”.
Sweden environmental protection active measures to respect human rights and improve work
environments, and fighting corruption.
The Sweden Finns are a large ethnic minority comprising approximately 50,000 along the
Swedish-Finnish border, and 450,000 first and second generation immigrated ethnic Finns,
mainly living in the Malaren Valley region. Meänkieli Finnish has official status in parts of
northern Sweden near the Finnish border. In addition, Sweden's indigenous population groups
includes the Sami people, historically a nomadic reindeer herding group that has been native
to Fenno-Scandinavia for at least 5000 years. Today, the Sami language holds the status of
official minority language in four municipalities in the Norrbotten county.

8. Demographic Factor
Sweden is a federal state located in Northern Europe, bordering the Baltic Sea, the Gulf of
Bothnia, Finland, and Norway. The country covers an area of 449,964 square kilometres
(173,732 square miles).
The demography of Sweden is monitored by Statistics Sweden (SCB). As of August 2018,
the population of Sweden was estimated to be 10.2 million people, making it the 90th most
populous country in the world. The three largest cities
are Stockholm, Gothenburg and Malmö. Approximately 85% of the country's population
resides in villages with 200 persons or cities. Six out of ten Swedes do not live in an urban
system with 50,000+ inhabitants, as defined by OECD.
Population little increases during 2004–2012 have mainly been attributed to immigration
from Muslim-majority countries like Iraq, Afghanistan, and Somalia. This implies a larger
influx of Muslim immigrants as opposed to any other religious group.

Demographic statistics according to the World Population Review.

 One birth every 4 minutes
 One death every 6 minutes
 Net gain of one person every 8 minutes
 One net migrant every 14 minutes
Demographic statistics according to the CIA World Factbook, unless otherwise
indicated
 Population
 10,040,995 (July 2018 est.)
 Religions
Church of Sweden (Lutheran) 63%, other (includes Roman Catholic, Muslim, Orthodox,
Buddhist, Baptist and Jewish) 17% (2016 est.)

CH-3 EDUCATION AND CONSULTANCY OF INDIA

Education
Education in India is provided by public schools (controlled and funded by three levels:
central, state and local) and private schools. Under various articles of the Indian Constitution,
free and compulsory education is provided as a fundamental right to children between the
ages of 6 and 14. The approximate ratio of public schools to private schools in India is 7:5.
India has made progress in increasing the attainment rate of primary education. In 2011,
Approximately 75% of the population, aged between 7 to 10 years, was literate. India's
improved education system is often cited as one of the main contributors to its economic
development. Much of the progress, especially in higher education and scientific research,
has been credited to various public institutions. While enrolment in higher education has
increased steadily over the past decade, reaching a Gross Enrolment Ratio of 24% in 2013,
there still remains a significant distance to catch up with tertiary education enrolment levels
of developed nations, a challenge that will be necessary to overcome in order to continue to
reap a demographic dividend from India's comparatively young population
While more than 95 percent of children attend primary school, just 40 percent of Indian
adolescents attend secondary school (Grades 9-12). Since 2000, the World Bank has
committed over $2 billion to education in India. Some of the reasons for the poor quality
include absence of around 25% of teachers every day. States of India have introduced tests
and education assessment system to identify and improve such schools.

Although there are private schools in India, they are highly regulated in terms of what they
can teach, in what form they can operate (must be a non-profit to run any accredited
educational institution) and all other aspects of operation. Hence, the differentiation of
government schools and private schools can be misleading.

In January 2019, India had over 900 universities and 40,000 colleges. In India's higher
education system, a significant number of seats are reserved under affirmative action policies
for the historically disadvantaged Scheduled Castes and Scheduled Tribes and Other
Backward Classes. In universities, colleges, and similar institutions affiliated to the federal
government, there is a maximum 50% of reservations applicable to these disadvantaged
groups, at the state level it can vary.
Quality of education in India is still not at its best. Kerala has the highest literacy rate of
93.91% whereas Bihar averaged 61.8% literacy.

Consultancy industry
The consulting industry can trace its roots back to the late 19th century, when the world's first modern
consulting firms were founded. From the turn of the century, management consulting – which focused
mainly on engineering and finance early on – increasingly gained terrain in the business world.
However, it wasn’t until the 1930s that consulting firms started to grow their size beyond a few
founding partners and small teams.
The consulting industry started its internationalisation in the early 1960s, when the large American
management consultancies expanded into Europe, bringing their management models and experience
to transform European organisations. Nearly two decades down the line, the consulting industry has
developed into one of the most mature sectors in the professional services industry, generating
between $100 billion to $300 billion in revenues, with the precise estimate depending on the
definitions used. At the heart of the industry stand six main domains – Strategy Consulting,
Management Consulting, Operations Consulting, Financial Advisory, HR Consulting and IT
Consulting – that when combined,
Historically, the Indian consulting industry was dominated by a demand for basic services such as
market research, supply chain optimization, information technology implementation, and financial
restructuring (including equity and debt funding). However, as the Indian economy opened up to
foreign competition and with Indian corporations venturing into international markets, with
deregulation, and the rise of the value-conscious middle- and lower-income customers (also known as
the bottom-of-pyramid or BOP markets), firms have begun to realize the opportunity cost to the firm
because of poor strategy. Therefore, the demand for high-end strategy consulting has begun attracting
global strategy consulting firms to India.an services and offerings in over 200 industry and functional
areas.

1. Management consultancy
Management consulting, often referred to as business consulting, is defined as “advisory and/or
implementation services to the (senior) management of organisations with the aim of improving the
effectiveness of their business strategy, organisational performance and operational processes”.
Management consulting is – due to the great diversity in disciplines and differences in required
capacities of advisors – the broadest area within the consulting industry, and covers between 50% -
55%

 What does a management consultant do?

Management consultants are hired by decision makers for advice on, among others, strategy and
organisational matters. They can be asked to develop a new strategic plan to realise more growth, for
instance, or commissioned to advise on innovation or cost reduction strategies. Implementing the
proposed solutions also features among their tasks, and the execution side of consulting forms the
largest market for management consultants in practice. Assignments can vary from improving the
efficiency of business processes, the implementation of new IT systems, outsourcing of non-core
tasks, or optimising the supply chain. Management consultants typically remain involved until change
transitions are complete and new ways of working have become part of 'business as usual' operations.

 Management consulting firms

Since management consulting represents over half of the consulting industry, most players in the
market are either specialised management consultancy firms or organisations with a business unit that
offers management consulting services. In the case of the latter, it mostly concerns large IT service
providers (who often provide implementation support and change management), recruitment firms
(that often extend their recruiting and interim services with HR advisory) or temporary employment
agencies (who add upscale consulting services to their temp and contracting portfolio). In terms of
numbers, a large part of the market consists of freelancers – freelance management consultants who
are active as independent advisors or contractors.

2. HUMAN RESOURCE CONSULTANCY

Human resource (HR) consulting, also referred to as human capital advisory or HRM consulting,
spans advisory and implementation activities related to the management of an organisation’s human
capital and the HR function. The scope of services ranges from overarching work on human capital
strategy to the design and deployment of a compensation & benefits framework down to the
transformation of the HR function.

human capital strategy to the design and deployment of a compensation & benefits
framework down to the transformation of the HR function.

HR consulting services
The market for human resource consulting services consists of eight main disciplines: Human
Capital Strategy, Compensation & Benefits, Organisational Change, HR Function, Talent
Management, HR Analytics, Learning & Development and HR Technology.
 CH-4 EDUCATION AND CONSULTANCY OF SWEDEN
Education
In Sweden, fascial (pre-school) is provided by municipalities for children ages one to five.
The amount of municipal subsidy for pre-school depends on the child’s age and whether the
parents work, study, are unemployed or on parental leave for other children.
Swedish pre-school emphasises the importance of play in a child’s development, with a
curriculum aiming to ensure children’s individual needs and interests. Gender-aware
education is increasingly common, striving to provide children with the same opportunities in
life regardless of gender.
Compulsory schooling
Swedish compulsory schooling consists of four stages: förskoleklass (‘pre-school
year’), lågstadiet (years 1–3), mellanstadiet (years 4–6) and högstadiet (years 7–9). Children
between ages six and thirteen are also offered out-of-school care before and after school
hours.
Compulsory education also includes sameskolor (Sami schools) for children of the
indigenous Sami people.
Upper secondary school
Gymnasium (upper secondary school or high school, years 10–12) is optional. There are
eighteen regular national programmes of three years to choose from, six of which are
preparatory for higher education such as university, and twelve of which are vocational.
While entrance requirements vary between programmes, all of them demand students to have
passing grades in Swedish, English and mathematics from their final year of compulsory
school Benchmarking internationally
The quality of Swedish education has been keenly debated over the past decade, following
declining results among Swedish students in international comparisons. Sweden has moved to
improve performances and to raise the status of the teaching profession for long-term
benefits.
International studies such as Programme for International Student Assessment (PISA) and
Trends in International Mathematics and Science Study (TIMSS) have indicated a
deteriorating performance among Swedish children in recent years.
Most recently, the Organisation for Economic Co-operation and Development (OECD),
which is behind the PISA assessment, followed up on the trends in May 2015 with a detailed
review of Sweden’s educational quality.
The study, done on the request of the Swedish Government, confirms that Sweden needs to
improve the quality of education and in particular raise the performance level of students in
reading, math and science. This can be seen in light of Sweden having invested a larger share
of its GDP on education (6.8 per cent) compared with the OECD average (5.6 per cent) in
2018.

CONSULTANCY
1. Management consultancy
The Nordic consulting market grew strongly in 2017, reaching a market value of €2.77 billion on the
back of a healthy 5.7% growth rate. The consulting market growth rate of every Nordic country has
accelerated compared to two years previous, with Sweden posting both the fastest growth rate and the
highest revenues.

The Nordics are made up of four Northern European nations: Sweden, Norway, Finland and
Denmark*. Sweden is about twice as populated as the other three Nordic countries – which each have
around 5 million inhabitants.
According to data from Source Global Research – which studies the market for consultancies above a
certain staff count and revenue size – all four nations have experienced robust consulting market
growth. Within the Nordics, Sweden’s consulting market has put in the strongest performance, posting
6.9% growth and reaching revenues of almost €1 billion. The Swedish consulting market grew from
€800 million in 2015 to reach €944 million in 2017 – accounting for over a third of the Nordic
market.t
Digitalisation was also a major touchpoint for public sector consulting. This was driven by Nordic
central and regional governments striving to deliver e-government initiatives – cutting costs and
improving accessibility to government services. The switch to e-services entails changing both the
interface as well as the back-office processes that support service delivery.
Sweden’s consulting market has grown by 5.5% last year, taking it to a value of just under €800
million, making it the largest management advisory industry in the Nordics.
In recent years the Swedish consulting market has booked strong growth, in particular in the light of
the lacklustre progress in other mainland European countries. According to data from Source
Information Services (Source), a UK-based analyst firm, Sweden’s management consulting market
was worth just over €700 million in 2011*. Following three years of (strong) growth, 2.5% in 2012,
4.8% in 2013 and 5.5% in 2014, the market is now estimated at nearly €800 million. Last year, growth
was driven primarily by digitisation (digital strategy / operations / technology) and operational
improvement, the services most in demand says the analysts. From an industry perspective, public
sector, retail and financial services remain key client sectors for external consultants.
 2. HUMAN RESOURCE CONSULTANCY
Swedish companies are not just leaders in HR policies; they are also frontrunners when it
comes to digital innovations in human resources. According to a Recent Digital
Transformation Report, published by Microsoft, Sweden is considered to be one of the most
prolific technology hubs in the world. One of the ways that companies are using new
technologies is by creating digital tools to enable better communication, closer collaboration,
and improved employee productivity and flexibility.

Digital start-ups in Sweden try to take their share of the new developments in HR. Especially
The successful start-up culture in Sweden can be partially put down to the fact that the
country arguably has the ideal market to test new products in. Swedes are not only very open
to innovation and change, but they also benefit from a well invested technical infrastructure,
which ensures mobile and internet usage.

CH-5 COMPARISON OF EDUCATION BETWEEN INDIA AND SWEDEN

Education systems in Sweden and India have many similarities as well as difference in India
compulsory education for children is from 6years-14years and education is provided by both
government and private institutions. In Sweden compulsory education for children is only till
9years and its only provided by local municipalities.

In Sweden the amount of municipal subsidy for pre-school depends on the child’s age and
whether the parents work, study, are unemployed or on parental leave for other children.
Swedish pre-school emphasises the importance of play in a child’s development, with a
curriculum aiming to ensure children’s individual needs and interests.
India has a high rate of primary school education but secondary school percentage is still low
government invest very huge amount in education but because of the following reason India
lacks behind:-
 Facilities
As per 2016 Annual Survey of Education Report (ASER), 3.5% schools in India had no toilet
facility while only 68.7% schools had usable toilet facility. 75.5% of the schools surveyed
had library in 2016, a decrease from 78.1% in 2014.
 Curriculum issues
Modern education in India is often criticised for being based on rote learning rather than
problem solving. New Indian Express says that Indian Education system seems to be
producing zombies since in most of the schools students seemed to be spending majority of
their time in preparing for competitive exams rather than learning or playing
 Women's education
Women have a much lower literacy rate than men. Far fewer girls are enrolled in the schools,
and many of them drop out.[122] In the patriarchal setting of the Indian family, girls have
lower status and fewer privileges than boys.[123] Conservative cultural attitudes prevent
some girls from attending school.

The quality of Swedish education has been keenly debated over the past decade, following
declining results among Swedish students in international comparisons. Sweden has moved to
improve performances and to raise the status of the teaching profession for long-term
benefits.
International studies such as Programme for International Student Assessment (PISA) and
Trends in International Mathematics and Science Study (TIMSS) have indicated a
deteriorating performance among Swedish children in recent years.
The study, done on the request of the Swedish Government, confirms that Sweden needs to
improve the quality of education and in particular raise the performance level of students in
reading, math and science. This can be seen in light of Sweden having invested a larger share
of its GDP on education (6.8 per cent) compared with the OECD average (5.6 per cent)
New education act-The new Swedish Education Act of 2011 contains basic principles and
provisions for compulsory and further education, pre-school, pre-school year, out-of-school
care and adult education. It promotes greater oversight, freedom of choice, and student safety
and security.
COMPARISON OF CONSULATNCY INDUSTRY BETWEEN INDIA AND SWEDEN
Management consulting is referred to the practice of helping businesses to improve their
performance, mainly through the analysis of existing organizational challenges as well as
competitive environment. It also involves the development of detailed plan of action for
improvement. Organizations may seek the consulting services for a number of reasons which
includes gaining external advice and access to the consultants’ specialized expertise.
Having said that, the significance of management consulting in India can’t be undervalued. In
India Management consulting is estimated to be a Rs. 22,000 crore industry which is growing
at a CAGR of 30%.

The Indian management consulting industry is diverse, consisting of a wide variety of

organizations, including global strategy firms, consulting arms of technology firms (such as
IBM and Accenture) and the big-four accounting firms (such as PwC and KPMG), and a host
of niche consulting firms (including Universal Consulting, Avalon Consulting, and Oliver
Wyman). Malhotra (2013) estimated that around 500–600 high-value consulting assignments
are awarded every year by Indian clients, catering to an US$250–300 million market,
including about 30–40 projects worth over US$2 million each. Indian clients, despite being
value conscious, were willing to engage a variety of consulting firms to address specific
concerns. It is not unlikely that multiple consulting firms could be working at the same time
with a single client, engaged in different facets of the business. For instance, Deloitte
Consulting considers India as a long-term play, where the key to success is to provide value
innovation, leveraging their investments in big data and analytics.
Over the past few years, the Indian management consulting industry has witnessed three
major trends: increasing importance of high-end strategy consulting, evolution of greater
market segmentation, and focus on the outcomes of the consulting assignment. The second
trend in the Indian management consulting industry is the increasing segmentation of the
industry. The MNC strategy-consulting firms offer their services in the domains of strategy
and corporate restructuring, based on extensive global experience of similar projects.
Challenges For Indian Consulting Organisations
Keeping in mind the differences of the domestic market in India with respect to the Global
market, the major challenges Indian Consultants usually face in India are:
Competition and differentiation: The biggest challenge for the Indian consulting firms is to
compete with the global players in the market. There is need for Indian consultancy sectors to
define their specializations and differentiate themselves from their competitors.
Adoption of New Organizational design: With increasing globalization of consulting firms,
Indian consultancy sectors need to adopt new organizational design that best suit their
contexts and identities.
Outsourcing to India acts as a challenge as well as driver: Though outsourcing assists
development and globalization, many Indian consulting firms find that it restrains their
growth in the outsourced regions.
Managing the Knowledge Flows: The firms have a challenge to leverage the organizational
knowledge efficiently so that there would be a proper balance between utilization of existing
knowledge and creating new knowledge.

In Sweden the consultancy sector is expansive, but also that many of the companies are
facing vast challenges and need to develop new business models and make new strategic
choices. In recent years the Swedish consulting market has booked strong growth, in
particular in the light of the lacklustre progress in other mainland European countries.
According to data from Source Information Services, a UK-based analyst firm, Sweden’s
management consulting market was worth just over €700 million in 2011. Following three
years of (strong) growth, 2.5% in 2012, 4.8% in 2013 and 5.5% in 2014, the market is now
estimated at nearly €800 million.
BIBLIOGRAPHY

 https://sweden.se/society/education-in-sweden/
 https://www.consultancy.eu/country/sweden
 https://www.ibef.org/
 https://prezi.com/ewpp4ll377xl/steeple-analysis-sweden/