BUS INES S ENVIRONMENT

-Divya s hre e Ma nga lorka r(283090)

P olitica l Environme nt
How will Oba ma pre s ide ncy a ffe ct Outs ourcing in India .
Chine s e goods ove rta king India n Marke ts .
 Political Impact on business and outsourcing industry of India
Much have been written and talked in every sphere of business and political bureau that the new election will have good
and bad impacts on India. Outsourcing industry of India is in panic since, the statements of Obama have had been
twisted by media and intellectuals in such a manner that a havoc got created that outsourcing work to India will be
curtailed. The negative sentiment of such interpretation has also impacted the stocks of TCS, Wipro etc especially when
due to meltdown of US economy, entire worlds economy was shattered and Indian stock exchanges were no exception to
it.On careful study of all the speeches so far given by Obama, nothing specific has been found which can conclude that
outsourcing industry will have to see dark moon.Rather, Obama has stated in his statements that India and China are
going to boost the economy of USA. If this single statement is analyzed then it means there will be growth in mutual
business relationships between India and USA . If such is the statement of Obama where he is considering India amongst
one of economy partners , then an imagination of gray days for outsourcing sector of India is not sustainable .This all
started with the speech of Obama that had two statements“US tech firms have thousands of jobs, but not enough
talent at home” “tax sops will not be given to companies that outsource work out of the country” But at the same ,
he has openly given a statement "I will start giving them (tax breaks) to companies that create good jobs right here
in America" So going by the employment factor being generated by Indian companies in US, there seems that the worry
of outsourcing industry is useless. At the most, worst to worst, the companies that are not creating employment for US
citizens may face the mar of any policy if made against outsourcing companies. At the same, it should be noted that
Indian major outsourcing companies, say Infosys, TCS and Wipro, have major revenue to the tune of 70 % coming from
US. This was the reason that the Indian software and services exports segment grew by 29 per cent in F.Y 2007-08 than
what it had in F.Y 2006-07.In overall scenario and going by the given circumstances, US cannot afford not  to outsource
work to India and if stops then in that case, from where it will generate the talents to cater the needs of its industry which
requires talent for growth. Even, if Obama had in his mind to check outsourcing to India , he will have to revisit his views
after knowing the naked truth of over dependency of US companies over India for outsourcing in IT sector. On the
contrary, Indian Healthcare and Pharma companies have every reason to cheer over the victory of Obama in US as he
has pledged to strengthen global fund. This fact has been attested by Bill Gates who on 4th November 2008 was in India
and reacting to Obama has said to have stated that his win will help strengthening the global health fund and improve
healthcare in India and abroad as well. As regards to other industries, be it power sector also, the impact will not be
negative after the new governance in US
Chinese Gensets capture Indian markets, threatening domestic industry
Earlier, there were around 200 such industrial
units in Agra, but today there number has been
reduced to a mere 50 units. Chinese diesel
powered units are preferred due to their better
technology, low pollution and above all
comparatively cheaper prices. While Indian
manufacturers try to sell their wares citing
reliability, there are few takers in the market.”
Chinese generators and the pumps are almost
one-third of our cost and they are easy to
carry. We offer generators with a life of atleast
15-20 years. As of now our production has
been reduced to just 60 percent, it might
further decline. Unemployment will increase
and it surely is not good for the industry,” said
Manish Dunoriya, Director of Dunoriya
group of companies. The government’s
decision to remove the protection to the Indian
industry from foreign competition sounded the
death knell for the domestic manufacturers of
diesel powered generating units
.” Due to the low cost of Chinese products
farmers are attracted towards them. The
agricultural policy of the government is a
big flaw as the farmers get the money from
the banks by bribing the bank managers
but engine is not sold,” said Kiran
Dhawan, President, Foundry Nagar
Industries Association. A good number of
units have already closed down or have
diversified into other businesses.” Earlier
there used to be so much activity for
shopkeepers but today there is no business
for them. It is clearly visible how the
Chinese have taken over the market from
the Indian manufacturers,” said Rajiv
Gupta, an entrepreneur.Domestic
manufacturers strongly believe that
unless the government takes some
drastic steps including imposing higher
customs duty on imported electrical
items, the Indian units would close down
soon.(ANI)
Economical Environment
Recession hits Asia
Luxury Goods bargained
 Indian markets slide as recession hits Asia
New Delhi - India's stock indices dipped downward by more than Meanwhile, Indian Finance Minister P Chibambaram, talking about the G20
3 per cent Monday after a meeting of the world's leading summit, said world leaders had adopted a detailed and ambitious plan to meet
economies failed to throw up any immediate solutions to the the global financial crisis. He said the impact on the global economy would
global economic crisis and Japan announced its economy had slid result in a slowdown in some sectors in India, but immediate rate cuts to
into recession. The Bombay Stock Exchange's benchmark 30- increase liquidity were unlikely as inflation, still above 8 per cent, was still not
share Sensex was trading at around 8,990 at noon, about 4.21 per in a comfort zone. India needs to strike a balance between growth and inflation,
cent below its previous close. The broader 50-share S&P CNX he said in an interview to NDTV. India, one of the world's fastest growing
Nifty of the National Stock Exchange was hovering around economies, has posted gross domestic product growth of over 9 per cent since
2,704.80, 3.76 per cent below Friday's close. All sectors on the 2006. But the forecast for the financial year 2008-2009 has been lowered to 7.5
Sensex were trading in red, with banking and real estate the worst per cent by government and less than 6 per cent by independent agencies.
affected. The Japanese government announced Monday that its
economy had slid into recession for the first time since 2001
joining several European countries. "Since major economies of the
world are in the midst of recession, the slowdown would affect
India also. But the Reserve Bank of India is quite pro-active and
inflation is also on a decline so Indian markets are relatively better
off when compared to developed economies," Sanjay Sachdev of
the Shinsei Bank Group was quoted as saying on the NDTV
television channel.
SOCIAL ENVIRONMENT
o Iraq War Disrupts Diamond Trade

o Bird Flu Affects Poultry Business

 Iraq war disrupts diamond trade
SURAT, 16 Apr 2003: With the US-led coalition forces Out of every 10 rough diamonds in the world, nine are processed in
bringing an end to the Saddam Hussein regime in Iraq, the India. Of these nine, eight are processed in Surat, said industry sources.
phase of uncertainty in the global diamond Industry too is “International business gets affected due to war, which destabilizes
expected to be over soon. According to diamond merchants, markets. To put things on track, postwar rush for making up the loss is a
the blockage in the supply of rough diamonds from other common occurrence. So diamond processors and exporters here should
countries coupled with no forward movement of processed gear up for any such sudden market trend,” said city-based Indian
ones due to the uncertainty in the international market, Diamond Institute (IDI) director K K Sharma. Market analysts,
particularly the US, have led to a substantial disruption in however, say that it would take at least a month for normalcy to return
trade for the Rs 40,000-crore diamond, gems and jwellery to global diamond trade. “The US alone accounts for 60 per cent of the
industry in Surat. Surat Diamond Manufacturers’ total export of diamonds, gems and jwellery from India. So the postwar
Association president Pravin Nanavati told TNN, “The situation in the US markets would determine the global trend in the
industry here is suffering as there is a shortage of rough precious metal industry,” GJEPC executive director Meena Dharod
diamonds and the demand for processed ones in the said.
international market is yet to regain normalcy.” The war on  
Iraq has disturbed the global diamond, gems and jwellery
industry to a large extent. Even the world’s biggest jwellery
fair held recently in Switzerland witnessed a substantial
decline in the number of visitors. Market operations are
currently sluggish,” said Gems & Jwellery Export Promotion
Council chairman Sanjay Kothari.He said that the export of
precious metals from India rose to $9.10 billion (Rs 43,939
crore) in 2002-03 compared with $7.53 billion (Rs 35,753
crore) in the previous financial year. The export of cut and
polished diamonds from India rose 6.9 per cent to $1,956
million in the first quarter of this calendar year compared
with the year-ago figure of $1,830 million, Kothari added.
 Bird flu hits poultry business in West Bengal
Siliguri, Jan 6: The epicenter of the flu is Benoy Krishna Pally village in Darjeeling
Poultry business has been hit hard due to bird district. The latest outbreak of the virus in poultry is the fourth in West
flu in West Bengal. The spread of deadly Bengal since 2007. Bird flu first broke out in India in 2006 and millions of
H5N1 avian influenza across the state has led chicken and ducks had been culled to contain the virus. Although it has
to mass culling of birds. The sale and resurfaced from time to time, there have been no reports of any human
movement of poultry has been prohibited. infections in India. Earlier, hundreds of thousands of birds had been culled
Poultry farm owners said that they would be in Assam and neighboring Meghalaya after bird flu was detected in
completely ruined if it continues for a long November last year. Experts have warned that the H5N1 virus might
time. "The bird flu hits us every year and due mutate or combine with the highly contagious seasonal influenza virus and
to this we are suffering heavy loses. We will spark a pandemic that could kill millions of people across the world.
be completely ruined if it continues like this," (ANI)
said Som, a farm owner.” If it continues for a   Poultry Stats
long time how long can we survive even the
government is not helping us," said Sanjeev
Karmakar, another farm owner
Meanwhile, Health and veterinary workers
continued culling of poultry birds. Officials
have been culling birds since Saturday when a
fresh outbreak of bird flu was reported in the
region bordering Bangladesh.
LEGAL ENVIRONMENT
 Smoking Ban fumes Tobacco Companies !

 Visa Restrictions affect Indo-US Business !

 Rise in Tax Hits Small business firms !

 India bans smoking in public, tobacco firms fume
NEW DELHI: India banned smoking in public places on Thursday in an attempt Official figures say that with its 240 million tobacco users
to fight tobacco use blamed, directly or indirectly, for a fifth of all deaths in the India has annual cigarette sales of about 102 billion sticks. But
world's third-largest consumer. The ban, which includes all offices and that is still a small market compared to China's, where, says
restaurants, will hit its estimated 240 million tobacco users, who are likely to find the WHO, one of every three cigarettes in the world is smoked.
their homes and cars among the last few places to light up. The government cites With cigarette sales growing at an average annual rate of about
the economic costs and the need to stem the loss of human lives but tobacco firms 5-6 percent, ICICI Securities estimates, India is one of the few
say the ban infringes on individual rights. Everyone agrees, though, that world markets to show growth in cigarette consumption. So,
implementing the ban could be a problem and much will depend on compliance much is at stake for India's top cigarette maker, ITC Ltd,
rather than enforcement. The ban includes schools and colleges, pubs and which has challenged the ban in court. The case is scheduled to
discotheques, hospitals and bus stops. Offenders will be fined 200 rupees ($4). come up in Supreme Court on Nov. 18, an ITC spokesman
On average, a packet of cigarettes costs around 50 rupees.” Don’t wait for said. With the ban, India follows countries such as Britain,
enforcing authorities to catch you," said Health Minister Anbumani Ramadoss France, South Africa and Thailand. Worldwide, more than five
who has long championed a ban on tobacco, urging Bollywood actors not to million people die of tobacco related illnesses now. This, the
encourage smoking by lighting up on screen. Past attempts to ban spitting and WHO says, will rise to more than eight million in the next 20
urinating in public in India have drawn little success, and the impoverished and years, most of them coming from low and middle income
lawless state of Bihar has already expressed reservations about the practicalities countries such as India.
of implementing the ban. While rules limiting advertising, marketing and sales
existed before, implementation was not very effective. Not everyone is happy
with the ban. Many say a lack of smoking rooms mean they would be deprived of
a stress-busting puff in offices and other public places.” The intention may be
good, but are we a nanny state?" asked Sanjay Yadav, a furtive puffer on a New
Delhi road. He said the ban could be an incentive for those smokers wanting to
quit. Rajesh Kumar, a tobacco products seller, says he did not expect sales to
drop. "Smokers will smoke," he said, adding he hoped to continue selling about
50 packets a day he sold now. Hitting back at the tobacco industry, Sian Griffiths,
public health professor at the Chinese University of Hong Kong, said a debate
about rights must balance the greater good against the rights of the individual.” If
you look at other countries where smoking has been banned in public places, it
has only done good, not harm," he said.
Visa restrictions to affect Indo-US business flow
Sunday, November 16 2003 18:39 Hrs (IST)
small businesses for hitting them with tax rises
Kolkata: Concerned at the possible impact of Visa restrictions by US and red tape.
Government for Indian professionals, NASSCOM today (Nov 16)
said it would seek help of the Information Technology Association of
America in this regard and try to sensitize the US about its adverse
effect on Indo-US business and the US companies. "The cap (on
granting of H1B Visa to Indians going for employment in US) would
act as a dampener, leading to disruption in Indo-US business. In the
short term it will disrupt flow of business and the US companies will
also be affected," NASSCOM president Kiran Karnik, said. Asked
what steps NASSCOM would take to neutralize the protectionist
measure, Karnik said, "We are taking help of the ITAA. We will try
to make the US understand that it will also affect their companies.”
The reduction in the sealing of the annual quota for H1B Visa to
Indian professionals from 1.95 lakhs to 65,000 was "very low" given
that the US economy was picking up and more people were expected
to look for opportunities there.
 
 
Alistair Darling faces a growing backlash from
Business groups said the 2p increase in fuel duty from next Monday
 
increased thousands of firm’s overheads. The £300m estimated
administration cost of complying with the temporary 2.5 percentage
point fall in VAT to 15pc also appears to wipe out any additional
sales small firms may see from the tax cut. Mr Darling said the rise
in fuel duty would have no effect on pump prices because of the cut
in VAT. "I will offset the VAT reduction, by increasing... duties by
an amount which should keep the overall cost to consumers the
same this year," he said. But the change means the self-employed
and company owners pay more tax as they can only claim back
VAT at 15pc rather than 17.5pc.Mark Sleep, founder of Hampshire-
based vintage car hire company Ages Past, was among those
business owners expressing their fury at the fuel duty rise.” We are
worse off than we were before the pre-Budget and he's stood up
there saying 'I want to help small businesses'. Every shop that has a
delivery van, every bus and taxi will be affected," he said. The
Federation of Small Businesses said it would lobby the Treasury to
rethink a further 1.84p duty rise already planned for next April. "It
greatly effects those businesses where fuel is a major part of their
operating expenses. And rural businesses get another hit - just when
they least need it," said the FSB's Andrew Cave. Alan Duncan,
shadow business secretary, said: "The Government tried to sell their
Tax Bombshell as bringing relief to business – but a look into the
small print reveals a web of hidden costs and tax tricks."
TECHNOLOGICAL ENVIRONMENT
Warrior Spy Technology Boosts Business !
India buys Warrior spy in the sky for government and military snooping
January 19, 2009

Antenna Technology Communications (ATCi) has sold its Warrior

Satellite Monitoring and Surveillance System to the Indian region. The
Warrior Satellite Monitoring System is designed for government and military
use and allows snooping on satellite communications. It can manage, control,
and archive the data, voice and video content being carried on any given
satellite on any given transponder in its viewing arc simultaneously. It also
allows search and retrieval technology, which can load metadata into an
interlinked network of IP storage servers to provide high grade snooping
tools. In a press release, Antenna Technology said that, thanks to the terror
attacks in Mumbai, there has become a heightened requirement for extensive
monitoring and surveillance of everything in the sky for India and other
countries around the world. ATCi’s CEO, Gary Hatch, said that the company
had a long-standing history in successfully implementing several
surveillance and monitoring systems for the Department of Defense and
other like government and military agencies in the US. This made it logical
to build a similar system for the Indian defense network. He said that it was
not enough to simply monitor satellites, as they must also have the ability to
associate and provide critical algorithm patterning data which can ultimately
process and associate unlimited IP data, thereby delivering greater security. 
CULTURAL ENVIRONMENT
No Loudspeakers For Kala Ghoda,great Loss for Speaker Companies !
 1990

“No loudspeakers for Kala Ghoda festival”

MUMBAI, 29 Jan 2004: Organizers of the eight-day Kala Ghoda festival, Shyam Diwan, counsel for the Bombay
scheduled to start on February 7, suffered a setback on Wednesday when the Environmental Action Group, and anti-
Bombay high court refused their plea to allow them to use loudspeakers in a noise pollution activists Sumaira
silence zone. However, the court said that if any festival event was being held Abdulali and Yashwant Oke opposed
outside a silence zone, then the organizers could seek permission from the police the plea on grounds that if the court
commissioner to use loudspeakers. Silence zones are areas that are within 100 made one exception, it would soon be
meters of courts, educational institutions, religious places and hospitals. The arts flooded with similar requests. Mr.
festival is traditionally held in the Kala Ghoda precinct, which falls in a silence Diwan said the law is clear that no
zone due to its proximity to Elphinstone College, a church and a synagogue. amplifiers should be permitted in
Using loudspeakers is banned in silence zones, according to an order passed by silence zones and there is no question
the court last September. Organizing secretary of the Kala Ghoda festival, Shirin of the order being waived.
Bharucha, had moved the court urging that the ban not apply to the festival, as it
is an educational and cultural event. But a division bench comprising Chief
Justice C.K. Thacker and Justice Sharad Bobde said the organizers should
comply with the Noise Pollution (Control) Rules. In a hotly argued plea, senior
counsel Janak Dwarkadas, who represented Ms Bharucha, said loudspeakers
should be allowed at the festival as it was not a residential area. He also said that
the authorities at the nearby college and church were not objecting. Mr.
Dwarkadas argued that if decibel norms were adhered to as per law, loudspeakers
should be permitted, like they were allowed for the 125th anniversary celebration
of the high court building.
SOCIAL RESPONSIBILITY
ITC PVT LTD.
Women empowerment and Education.
Wasteland Development:Social & Farm forestry.
Soil & Moisture Conservation.
Integrated Agricultural Development.
Community Development:Primary Education.
Health & Sanitation.
Zero Solid Waste programme.
ITC's e-Choupal has won numerous awards:

United Nations Industrial Development Organization (UNIDO) Award at the international conference on Sharing Innovative Agribusiness Solutions 2008
at Cairo for ITC's exemplary initiatives in Agri business through the e-Choupal.
The Ashoka - Change makers ‘Health For All’ Award 2006 for the Rural Health Services model for delivery of health services through the e-Choupals.
The Stockholm Challenge 2006. This award is for using information technology for the economic development of rural communities.
Innovation for India Award 2006 for ITC e-Choupal in the Social Innovations category for business organizations. The first of its kind in India, based on
parameters of number of lives impacted, degree of impact on organization and environment, uniqueness, leverage of resources and whether it was scalable and
sustainable, e-Choupal was declared as one of ‘India’s Best Innovations’.
The Development Gateway Award 2005 (previously known as the Petersberg Prize) for the trailblazing e-Choupal initiative. ITC is the first Indian company
and the second in the world to win this prestigious award.
The 'Golden Peacock Global Award for Corporate Social Responsibility (CSR) in Emerging Economies for 2005'. The Company received this award for its
e-Choupal and social and farm forestry initiatives that are impact fully transforming lives and landscapes in rural India.
The Corporate Social Responsibility Award 2004 from The Energy and Resources Institute(TERI) for its e-Choupal initiative. The Award provides impetus to
sustainable development and encourages ongoing social responsibility processes within the corporate sector.
The inaugural 'World Business Award', instituted jointly by the International Chamber of Commerce (ICC), the HRH Prince of Wales International Business
Leaders Forum (IBLF) and the United Nations Development Programme (UNDP). This award recognizes companies who have made significant efforts to
create sustainable livelihood opportunities and enduring wealth in developing countries.
The ‘Enterprise Business Transformation Award’ for Asia Pacific (Apac), instituted by Infosys Technologies and Wharton School of the University of
Pennsylvania.
PC Quest’s IT Implementation Award in the ‘Best Project’ category.
The Golden Peacock Innovation Award 2004.
The NASSCOM award for 'Best IT User in FMCG' in 2003. The Award is a recognition of ITC's successful integration of its IT usage with its business processes.
The Seagate Intelligent Enterprise of the Year 2003 Award, for the most innovative usage of Information Technology.
 Project By:
Divyashree Mangalorkar

Roll No:
283090

Class:
F.Y.B.M.S

Division:
Alpha

College:
L.S.Raheja College Of Arts & Commerce

Subject:
Business Environment

THANK YOU !