Assignment for Unit 1

Q1) Take any organization, a firm, farm factory, establishment or institution you are
familiar with. Considering its present operations, identify some of its environmental
factors as in the model given below.
Answer : Your Organization AMUL
Environmental factors/forces
Social

Political

Economic

Physical

Cultural aspects and

include health
consciousness,

Tax policy,

Economic growth,

Ecological and
environmental aspects,

Labour law,

Interest rates,

Environmental law,

Exchange rates

Trade restrictions,

Inflation rate.

Tariffs,

For example,
interest rates
affect a firm's cost
of capital and
therefore to what
extent a business
grows and
expands.

Population growth rate,

Age distribution,
Career attitudes and
emphasis on safety.

Political stability.
Trends in social factors
affect the demand for a
company's products and
how that company
operates.

Governments have
great influence on the
health, education, and
infrastructure of a
nation.

R&D activity,
Automation,

Exchange rates
affect the costs of
exporting goods
and the supply and
price of imported
goods in an
economy

Technology incentives
and
the
rate
of
technological change.
They can determine
barriers to entry,
Minimum
production
influence
decisions.

efficient
level and
outsourcing

Furthermore,
technological shifts can
affect costs, quality, and
lead to innovation.

Q2) Collect news clippings for the last one quarter (current) which show how
changes in international economic environment affects domestic macroeconomic
environment. It can be in form of small collage.