NATIONAL LAW UNIVERSITY, JODHPUR

SUMMER SESSION (2017-18)

SYNOPSIS

TOWARDS PARTIAL FULFILMENT OF EVALUATION IN THE SUBJECT OF

STRATEGIC MANAGEMENT
ON

A STUDY OF THE EXTERNAL ENVIRONMENT FACTORS AFFECTING INDIA CEMENT

LTD.

DATE: 18TH JULY, 2017

SUBMITTED BY: SUBMITTED TO:

HARSH SALGIA (1271) DR. ARCHI MATHUR

V SEMESTER ASSOCIATE PROFESSOR

B.B.A.LL.B. (HONS.) ASST. DEAN FACULTY OF

MANAGEMENT STUDIES
TOPIC A STUDY OF THE EXTERNAL ENVIRONMENT FACTORS OF INDIA CEMENTS

INTRODUCTION

The formula for business success requires two elements - the individual and the
environment. Remove either value and success becomes impossible. Business
environment consist of all those factors that have a bearing on the business. The term'
business environment implies those external forces, factors and institutions that
are beyond the control of individual business organisations and their management and
affect the business enterprise. It implies all external forces within which a business
enterprise operates. Business environment influence the functioning of the business
system.1 On the basis of the extent of intimacy with the firm, the environmental factors
may be classified into different types- Internal and External.

EXTERNAL ENVIRONMENT
It refers to the environment that has an indirect influence on the business. The factors
are uncontrollable by the business. There are two types of external environment.

Micro Environment
The micro environment is also known as the task environment and operating
environment because the micro environmental forces have a direct bearing on the
operations of the firm.
The micro environment consists of the actors in the companys immediate
environment that affects the performance of the company. These include the suppliers,
marketing intermediaries, competitors, customers and the public. The micro
environmental factors are more intimately linked with the company than the macro
factors. The micro forces need not necessarily affect all the firms in a particular industry
in the same way.2

Macro Environment
Macro environment is also known as General environment and remote environment.
Macro factors are generally more uncontrollable than micro environment factors. When
the macro factors become uncontrollable, the success of company depends upon its

1
Business Management, Alex Smith, 2nd Edition, Page 70.
2
Business Policy and Startegic Management, Vipin Gupta, page 145
adaptability to the environment. Some of the macro environment factors are economic,
legal, technological etc.3

ABOUT INDIA CEMENT

The India Cements Limited is a cement company. The Company's brands include
Sankar Super Power, Coromandel King and Raasi Gold. These brands are also available
under sub brands, such as Shankar Shakti and Coromandel Super Power. The
Company's plants are located in various locations in India, including Malkapur,
Vishnupuram, Chilamkur, Yerraguntla, Vallur, Sankari, Dalavoi, Sankarnagar,
Banswara and Parli.4

The Company, based on customer requirement, also supplies its brands in High-density
polyethylene (HDPE), Paper and Laminated packing. It produces both the variants viz
Blended Cement, as well as Ordinary Portland Cement under different grades. The
Company's subsidiaries include ICL Securities Ltd., ICL Financial Services Ltd., ICL
International Ltd., Industrial Chemicals & Monomers Ltd., Trishul Concrete Products
Ltd., PT. Coromandel Mineral Resources, Trinetra Cement Ltd., Coromandel Mineral
Pte Ltd., Coromandel Electric Company Ltd. and India Cements Infrastructures Ltd.5

RESEARCH OBJECTIVES

To identify and classify the relevant external environmental factors affecting

India Cement Ltd. by environmental scanning

To analyse the impact of the external environment on the performance of India

Cement Ltd.

To identify solutions for the challenges posed by factor/s of external

environment.

3
Essentials of Management, Harold Keentz, 7th Edition, Page 219.
4
Our Legacy, India Cements, http://www.indiacements.co.in/.
5
Reuters, Full description of India Cement. (Accessed at
http://in.reuters.com/finance/stocks/companyProfile?symbol=ICMN.NS)
 RESEARCH METHODOLOGY

Subject: Strategic Management

Topic: A Study of the External Environmental Factors affecting India Cement

Ltd.

The research methodology employed in the project shall be a non-empirical,

descriptive and doctrinal research in which both primary and secondary sources,
and published data, shall be collected, analysed and interpreted to study the
concept of external environment, in theory as well as in practice. A majority of
the research work shall be done from articles, papers, journals, independent case
studies, market observer reports, and books available in online databases. Other
authoritative sources such as treatises on the subject of strategic management
and external environment in particular shall also be extensively referred to and
cited wherever relevant.
 TENTATIVE CHAPTERISATION

Executive Summary

Research Objectives

Research Methodology

Chapter 1 - External Environment Factors

Chapter 2 India Cement Ltd.

Chapter 3 Data tabulation

Chapter 4 Analysis

Chapter 5 Recommendation

Chapter 6 Conclusion

Annexures

Limitations (if any)

Bibliography
 BIBLIOGRAPHY

TREATISES

Competitive advantage, Michael E. Porter, The Free Press

Competitive Strategy, Techniques for analyzing industries and competitors,

Michael E. Porter, The Free Press, 1980

ARTICLES AND WEBLINKS

What is strategy?, M.E. Porter, Harvard Business Review, November-

December, 1996
Porters Competitive Strategies, Institute for manufacturing, University of
Cambridge
http://www.hindustantimes.com/business-news/rs-300-cr-pulse-candy-
success-leaves-sweet-taste-for-rajnigandha-pan-masala-makers/story-
NZoCVqy2xgfRelcdL2XwFN.html
https://www.cleverism.com/competitive-strategies/
http://www.ifm.eng.cam.ac.uk/research/dstools/porters-generic-competitive-
strategies/
http://www.afaqs.com/news/story/47821_How-Pulse-candy-captured-the-
market-The-Full-Story