SOCIO-CULTURAL

1. culture & globalization 2. culture determines goods & services 3. people's attitude to business & work 4. caste system 5. education 6. family & marriage 7. ethics in business 8. social responsibility 9. social audit 10.Corporate governance

Technological Environment

Technology & Business Increased Productivity Need to spend on R&D Fast changing technology Rise & decline of products & co.s

Problem of techno structure System complexity Demand for capital Social change High expectation of consumers

Economic Environment

Growth Strategy Economic system Agriculture, Industry, Services Infrastructure Money & Capital mkt Per capita Income & National income

Population Economic policy

Political Environment

Role of legislature Role of executive Role of judiciary Constitution Role of government The form of the Govt. (federal) The ideology of the ruling party (rightist pro Business, leftist- nationalisation) ( nationalisation of banks, LPG policy, Slowdown of II gen. reforms) The strength of the opposition

The role and responsibility of the bureaucracy Political stability The velocity of Govt. policies, plan and programmes Socio-economic legislations Politico-legal institutions

International Environment

Increasing opportunity Improving quality Competition from MNCs Capital & technology transfers How & in which mkt to enter India & WTO

THE WTO IMPACT

GATT/GATS

TRIMS

TRIPS

Liberalization of trade in goods and services

Liberalization of international investments

Provides monopoly power to owners of intellectual property

increases competition from foreign goods/service

Increases foreign investment and competition from foreign firms

Target to domestic firms

Threat to domestic firms

Benefits consumers

Benefits the economy

Increases comparativeness of domestic firms

Facilitates joint ventures and technology acquisition

Facilitates global sourcing

Benefits the domestic firms

Opportunity for Indian firms to export

Facilitates foreign investment by Indian firms

Encourage globalization of Indian firms

Natural Environment

Manufacturing depends on physical inputs Mining & Drilling depend on natural deposits Agriculture depends on nature Trade betw. Two regions depends on geographical factors Transport & communication depends on geographical factors