Environmental Factors

(Affecting the Policy & Strategy of Corporate Management)

Social Factors Culture Values Tastes & Preferences Social integration & disintegration Social Institution

Economic Factors
Per capita income National income Resource Mobilization Exploitation of natural resources Infrastructure Development Capital formation Employment generation Propensity to consume Industrial development Economic Stability (Price stability and Forex stability) Economic System ( Capitalism, Communism and Mixed Economy)

Cultural Factor
- Social & Religious Practices (social stratification and cultural differences) - Education - Knowledge - Rural Community norms and beliefs Geographical Factors - Geographical Locations - Seasonal Variations - Climatic Conditions

Technological Factors

Use & transfer of technology Industrial policy resolutions Industrial Licensing Policies MRTP FERA regulations Liberalized Policies Technology Imports & foreign technical collaboration

Political Factors
- Industrial Disputes & Man Days Lost - Influence of Politically affiliated Trade Unions - Influence/ Interference of Ruling Political Parties on Corporate affairs/Business (e.g. sufferings of IBM & Coca Cola- Janata Party at
Centre, Instability in Stock market- Cong. Govt., Stock Market CrashedUnstable Minority Govt. of the National Front etc.)

Legal Factors
Industrial Licensing Company Formation Factory Administration Industrial Disputes Payment of Wages Trade Unionism Monopoly Control Foreign Exchange regulation Shops and establishments Important Legislation regarding business Environment

Ecological Factors
- Biotic factors (Plants, animals & micro-organisms) - Abiotic factors (Water , air, sunlight, soil) - Interaction of these two factors ( a component of sustainable growth) - Use of Pollution free technology - Recycling of Industrial wastes - Legal Measures: Prevention & Control of Pollution Act 1974 (for preventing water pollution) Prevention & Control of Pollution Act 1981 (for preventing air pollution) Environment Pollution Act 1986 (for protecting and improving the quality of the environment)

The Govt. Policies

Industrial Policies Licensing Policies Trade Policies Labour Polices Taxation Policies Credit Policies Foreign Exchange Policies Export-Import (EXIM) Policies Monetary & Fiscal Policies etc.

Labour factors
Trade Unionism Motivation Wage Policy Market Stability (Demand & Supply of Labour) Competitive Market Condition Nature of the Market for various products Demand & Supply of Products Market Regulations and Conditions etc. Locational Factors Ranking of Risk factors (associated with all the above factors)