Q.

No 1 The External Analysis examines opportunities

and threats that exist in the environment.
How is it done? What should business managers do to
access the business environment?
Ans:

External Ananlysis:

The external analysis examines opportunities and threats that

exits in the environment. Both opportunities and threats exits
independently of the firm. The way to differentiate between a
strength or weakness from an opportunity or threat is to ask:
would this issue exist if the company did not exist? If the
answer is yes ,it should be considered external to the firm.
opportunities refer to favorable conditions in the environment
that could produce rewards for the organization if acted upon
properly. That is, opportunities are situations that exist but
must be acted on if the firm is to benefit from them. Threats
refer to conditions or barriers that may prevent the firms from
reaching its objectives.
The following area analyses are used to look at all
external factors affecting a company:
Customer analysis: segments, motivations, unmet needs
Competitive analysis: identify completely, put in strategic
groups, evaluate, performance, image, their objectives,
strategies, culture, cost structure, strengths, weakness
Market analysis: overall size, projected growth,
profitability, entry barriers, cost structure, distribution
system, trends, key success factors
Goal: To identify external opportunities, threats, trends,
and strategic uncertainties
The SWOT matrix helps visualize the analysis. Also, when
executing this analysis it is important to understand how these
element work together. When an organization internal strengths
to external opportunities, it creates core competencies in

meeting the needs of its customers. In addition, an organization

should act to convert internal weaknesses into strength and
external threats into opportunities.
Table 1: Linking the SWOT Analysis and the
Internal and External Environment
INTERNAL
EXTERNAL
STRENGTHS
OPPORTUNITIES
WEAKNESSES
THREATS
Step for business managers:
Business managers are doing following steps:
Here you will get to understand the kind of issues that need to
be dealt with in order to understand the business environment.

Focus on your strengths.

Shore up your weaknesses.
Capitalize on your opportunities.
Recognize your threats.
1. Now identify
2. Next evaluate
3. Size and growth
4. Profitability
5. Cost Structure
6. Distribution Systems
7. Market trends
8. Key success factors
9. Environmental Analysis
10.
Economic
11.
Technological
12.
Government
13.
Socio-cultural
14.
Future
15.
Internal Analysis
16.
Resourses

17.

Capabilities

Q.NO 2 Differentiate between capitalist and

socialist economies.
Capitalist Economy
Resources
are
owned by privet
individuals.
Competition is an
essential part.
Maximization
of
profit
is
the
principal objective.
Price is determined
by
the
price
mechanism.
Freedom
of
consumption
and
freedom
of
production.
Minimum
intervention by the
government.
Concentration
of
economic power in
the hands of the
capitalist class.
Inequality in the
distribution
of
income
leads
to
class conflict

Socialist Economy
All
economic
resources owned by
the state.
Co-operation is an
essential part.
Social welfare is the
chief motive.
Price is determined
by
the
central
planning authority.
Loss
of
economic
freedom.
Concentration
of
economic
and
political power in the
hands
of
the
government.
The idea of equality
aims at establishing a
classless society.

Q No : 3 discuss the industrial laws applicable in india.

Explanation of industrial laws applicable to business in
india.

Leal environment plays a curical role in the economy of a

nation. Legal environment consist of the policy framework, the
laws and regulations pertaining to all aspects of business,
commerce and trade; and the broder politico-legal ideology of
the government. The government of india has enacted several
laws for the regulation of industries in the country. These
enactment play a very important role in the countrys overall
progress and development. These legislation are amended from
time to time in accordance with the changing circumstances
and environment.
All business organization have to
function as per the statutory framework of the country. Every
enterprise must take in to account the legal set up while
framing the basic aims and objectives of its company . The
efficient and healthy functioning of an organization is possible
only if it adheres to the stipulation laid down by the law of the
land. Knowledge about the various laws that impact business
helps the business houses to know about the right,
responsibilities as well as the challenges that they may have to
face. Following are some of the major laws and key regulation
that impact business I india.
The Companies Act, 1956: It is the most important law which
regulates all aspect relating to a company as it lays down the
provision relating all formation of a company. Powers and
responsibilities of the directors and managers, rising of capital,
holding company meetings, maintences and audit of company
accounts, power of inspection and investigation of company
affairs, reconstruction and amalgamation of a company and, if
necessary, its winding up also.
In response to the changing business
environment, the companies Act, 1956 has been amended from
time to time so as make it commensurate with changing
business requirement and to provide more transparency in
corporate governance. It also aims to protect the interest of
small investors, depositors and debenture holders, ect.

Industries [Development and Regulation] Act, 1951

[IDRA]
This Act provides the Central Government with the means to
implement its industrial policies. The main objective of the Act
is to empower the Government to take necessary steps for the
development of industries; to regulate the pattern and direction
of industrial development ;and to control the activities,
performance and result of industrial undertaking, in the public
interest.
The Act empowers the government in the following
ways:
1. To take necessary step for the development of industries
2. To regulate the pattern and direction of industrial
development
3. To control the activities performance and result of
industrial undertakings in the public interest. The Act
applies to the Scheduled Industries listed in the first
schedule of the Act. Small scale
industries and ancillary units are exempted from the
provision of this Act.

Q No:4 Write a note on the three pillars of three

economy namely liberalization, privatization and
globalization.
Liberalization means to free the company from the direct and
physical control imposed by the Government on the private
sector.
Privatization means contracting the role of the public sector
and encouraging the expansion of the private sector.
Globalization means is a process of integration of nation. Nation
are linked together economically and socially by trade,
investment and governance.

Effect on Indian economy:

Q No 5: Describe the corporate social responsibility of
business houses towards human resourceswith an
example of an Indian Company.
Explain Corporate Social Responsibility Business is an activity
of making, buying or selling goods or service for money. Social
responsibility means to serve the people or the community
without expecting anything. Business is meant to create weath,
new markets, provide employment and procedure enough
goods
to
sustain
itsactivites
and
to
improve
its
competitiveness. Society should provide an environment for the
business to grow and prosper which will allow the investors to
earn money. The survival and the growth of the business
depend upon society. Resource like people, services, raw
material and infrastructure can be provided by society for the
business to flourish.
Explain CSR with an example of an Indian Company
In the age of Globalization business has become international.
Business Organization use natural resource to increase their
profit. The responsibility of business organization towards
society and community/environment has increased as they
intervene in so many areas of social life. Now a Days people are
realizing the relation between business and society. Business
organizations are created by society, so they should serve
society and not merely make money from it. Thus the role of
the business in society has been put under corporate social
responsibility [CSR].
India is a democratic country and wants to achieve
welfare of the people through democratic means. Business
enterprise which fit into this specification would have a better
scope to survive and florish. Every business organization has a
responsibility towardsthe welfare of the society.
The social need of society should be taken care of, by
each and every organization. Social provides the basis, scope

and demand for the business enterprises, so it is the duty of

the business organization to help society when it needs. They
can help in various field such as social, economic, political,
poverty and unemployment, nature calamities such as flood,
earthquake and draught. The social needs of society are looked
after
by
various
governmental
organizations,
nongovernmentalorganizations
[NGOs],people who are socially
conscious and so on.
Now a days CSR is an all-year-round responsibility that
companies take, for the welfare of the people around them.
Recognition comes not only from the quality of products they
make, fair prices and novelty, but also from their attitude
towards companys work force, community and environment.
Q No 6: Explain the Indian economy with reference to
the service sectors like Education and Health care
Explain Service Sector: The Service sector is the largest
contributor to the countrys GDP [more than half of Indias
GDP]. It has maintained a stedy growth since 96-97, except for
a fall in 2000-2001 which was because of the global dot com
bubble bursting. India has the title of being the worlds second
largest fastest growing economy, in the service sector in
particular.
Explain the progress made by services sectors like
Education and Health care in India:
Education:
Elementary Education:
Expanding the provision of primary, formal and non-formal
education to realize the goal of Universalization of ELEMENTARY
Education [UEE] for sustaining reforms in educatin has been
done. The National Programme of Nutritional. Support to
primary Education [school meal programme] has boosted UEE
in terms of increased enrolment, retention and attendance in
primary classes.

Secondary Education:
India has at more present more than 1.2 lakh institution
catering to secondary education which serves as a bridge
between primary and higher education.
Higher Education:
India has one of the largest higher educational system in the
world. About 71 lakh student are taught by 3.31 lakh student
are taught 3.31 lakh teachers in 15,000 colleges. Central
Government provides grants to the UCG and establishes central
Universities in the country.
Health Care:
These has been a definite growth in the overall healthcare
resources and health related man power in the last decade. The
number of hospitals have grown from 11,174 in 1991 to more
than 19,000 now. The country has one doctor for every 1,800
peoplen approximately. There is an annual pharmaceutical
production of about 26 billion [INR] and a large proportion in
rural areas is fifteen times lower than that of urban ares. The
ratio of doctor to population in rural areas is almost 6 times
lower than that to the urban population. Per capital expenditure
on public health spending for urban area. Indian public health
spending for underfunded. As a result of this dismal and
unequal spending on public health the infructure of health
system it self is many times ineffective.Initiatives such as
AamAdmiBima Yojana and Rastriya Swasthya Bima Yojana
have been made for social development.