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Module-1
MEANING AND NATURE
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O egy efe o e ide  l  d


uo e fi  e loy o co ee
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dvgeµ

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iio

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lobl
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evegig
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deciio d cio eulig i fo io
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o Pece
   
     
ð i eio of egic eciio
ð o liy i egic Mge e

ð eefi of egic Mge e

ð i of egic Mge e

ð e egic Mge e Poce

ð Co oe of e egic Mge e Model

ð egic Mge e   Poce


Õ  Õ m Õm
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o be bed o be vilble leive
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oduciviy-ed elioi
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e loyee  ei iciio clifie
diffeece i ole eice o cge i
educed
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 e ogizio d fo d  i execed
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O Hel e  d fuciol de e o o


 ey e looig fo

O cilie bee delegio coodiio oioig


efo ce evluio d cool

Module-2
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º The business environment is an aggregate of all
conditions, events and influences that surround and
affect it
- Keith Davis
º Economic Environment consists of all external and
internal factors that influence the complex interaction
of the market , production and finance .
- J.A.King & C.J.Duggan
º External Environment represents a set of conditions,
circumstances and influences that surround and affect
the functioning of a organization.
- Randall B.Duham & John L Pierce
weneral
Environment

Economic
Environment

Industry
Environment

Suppliers
Competitors
Substitutes
customers

 
ECONOMIC
ENVIRONMENT
* weneral Economic Conditions
* Economic System
* Economic Policies
* Economic wrowth
* Interest Rates
*Exchange Rates
wLOBAL TECHNOLOwICAL
ENVIRONMENT ENVIRONMENT

Components

POLITICAL AND
SOCIAL
LEwAL ENVIRONMENT
ENVIRONMENT
DEMOwRAPHIC
ENVIRONMENT
è Market Size and wrowth Rate
è Scope of competitive rivalry
è Number of Rivals
è Buyer needs and Requirements
è Production capacity
è Pace of Technological change
è Vertical Integration
è Product Innovation
è Degree of Product Differentiation
è Economies of Scale
è Learning and Experience Curve Effect
ÑIndustry driving forces are those that have the
biggest influence on what kinds of changes
will takes place in the industry is structure and
competitive environment.
ÑDriving forces analysis is made up of two steps
such as
a. Identifying what the driving forces are,
b. Assessing the impact that they will
have on the industry.
º Technology Related KSF͛s
º Manufacturing Related KSF͛s
º Distribution Related KSF͛s
º Marketing Related KSF͛s
º Skills and Capability Related KSF͛s
Value Chain Analysis
˜ Concept of value chain:
˜ Value chain is identifying the separate
activities , functions and business process of
the organization that are performed in
designing , producing , marketing , delivering
and supporting a product and services.
Value chain of the organization creates the
value for the product and services.
Value Creation Functions
º weneral Administration
º Operations
º Material Management
º Research and Development
º Human Resource
º Infrastructures
º Procurement
º Marketing
Value Creation Process

Primary
Activities
Value
Chain

Secondary
Activities
Primary Activities
º Purchased supplies and in-bound logistics
º Operations
º Distributions and out-bound logistics
º Sales and Marketing
º Services
Supporting Activities
º Research , Technology and systems
development
º Human Resource Management
º weneral Administration
º Efficiency
º Quality
º Innovation
º Customer Reponsiveness
Company Value Chain
Company Value Chain

* Primary activities and costs


* Purchased supplies and
* In ʹ bound Logistics
* Operations
* Distributions and out-bound
Logistics
* Sales and marketing
* Services
* Profit Margin