S.K.

School of Business Management

H.N.G.U , Patan

Presented To : Presenting By :

Name Roll No.

Dr. C.P. Thakor Desai Dhaval 09
Asst. Professor Pankhaniya Nikunj 33
S.K.School of Business Management, Thakkar Manisha 45
HNGU, Patan Rabari Reshma 40
• Business :
Business is an economic activity, concerned
with the provision of goods and services with
an aim of earning a profit.

the industry is all about the production goods,

whereas commerce focuses on their
distribution of goods and services.
 Business
Business environment Environment
Business environment
may be defined as the
total surroundings,
which have a direct or
indirect bearing on
the functioning of
business.
Components of business environment
• A) Internal environment
– Plans & policies
– Human resources
– Financial resources
– Plant & machinery
– Labour management
• B) external environment

– 1)Micro environment
• Customer
• Supplier
• Competition (Pepsi, Cola ,Pepsodent Colgate
• Intermediate
• 2) Macro environment

– Economic environment (Per Capita income

National income)
– Political environment (system ,Scheme)
– Social environment (Demand)
– Legal environment
– Technical environment (Technology)
 Meaning of Globalization
Globalization essentially means integration of
the national economy with world economy.
It implies a free flow of information , ideas,
technology, goods & services, capital and
even people across different countries and
societies.
It increases connectivity between different
markets in the from of trade, investment and
cultural exchange.
• Improved Communication

• Improved Transport

• Global Banking

• The Growth of MNC’s

• Export and Import of goods and service
become easier.
• Adaptation of new Technology.
• Increase export promotion scheme.
• Connect world wide economy
• Open economy.
Global Market
(Buy & sell)
Foreign Trade
(Crude Oil)
Transfer of Resources
(technology Metro Train Bullet Train)
Foreign Investment
Competition
Job insecurity
(technology )
Loss of domestic industries
(Competition Amazon Flipkart)
Unemployment
(domestic industry)
Transfer of natural resources
• The economic environment refers to all the
economic factors that affect commercial and
consumer behavior.

• The economic environment consists of

external factors in a business market and the
broader economy that can influence a
business.
 •Factors Affecting the Economic Environment

 Economic Systems:

Capitalist Economy:
no restrictions
private ownership of factors of production.
UAE

Socialist Economy:
characterized by government control and central planning
authority.
 North Korea

Mixed Economy:
India
 Economic Conditions:
 GDP
 4.5% (Q2, FY 2019-20)
 per capita income :
 $2,199 (2019 est.)
• National income:
9.45 lakh crores PPP dollars (2017)
• Balance of payments:
• Unemployment
– 6.1% (FY 2018)
 Economic Policies:

 Industrial Policy:
 Rules, laws, notifications, policies, etc through which the
government controls and governs the industrial sector of
the economy.
 Fiscal Policy:
 This is the government policy with regard to public
expenditure, taxation, and public debt.
 Monetary Policy:
 decide the supply of money to the market and level of
savings and investments.
 control the credit supply in the economy.
 Foreign Investment Policy:
 This deals with keeping the foreign investments in-check
for all sectors. So, we can benefit from the new
technologies in all sectors.

 Import Export Policy:

 This is how the government controls the export and
imports of a country.
 will lay out the duties, taxes, subsidies, etc.