PRESENTED BYKALYANI KHOSLA SIDDHARTH SINGH PARUL SHARMA SOMU KAPOOR RAHUL DOSHAR

The internal environment of a business includes those factors over which one has no control(uncontrollable). These are Management Manpower Money Minutes Materials

The organizational structure ,the composition of Board Of Directors ,staff,etc. If the management has specific knowledge of operating in a global context, their experience and market knowledge will reduce the fear of international trading in certain countries. EX:Honda.

Ethnocentric: Management of an organisation see the home market as superior, but see similarities in other markets to their own. Polycentric: Management view each country as unique and outline the differences associated with each new country. Regiocentric: Both the similarities and differences are viewed of each country in relation to the world. Geocentric: Management have a worldwide view and can see the differences and similarities in home and host countries.

The characteristics of human resources like skill, morale,quality,commitments,attitudes,etc contribute towards the strengths/weaknessess of the organization. Effective human resource planning helps in determining the gaps present in the existing manpower of the organization. It also helps in determining the number of employees to be recruited and what qualification they must possess.

The capital requirements of entering a specific market are also a consideration for an organisation.Post market research, the organisation will outline a cost-benefit analysis on each specific country and more importantly the capital requirements that will be required for the initial outlay of a global orientation, into this country.The results will help them analyse whether to enter the market or not.

Time is a valuable commodity in the business environment. The decision of the company on which country to select for international trading, etc gets affected by the element of time allotted for that decision.Ex:Bajaj

The materials include raw material used, machinery , technology, etc. The organisation having better technology, raw materials will have an edge over its competitors in gaining market share, doing better business .Ex : Automobiles.

International division organization structure. Geographic organization structure. Product organization structure. Matrix organization structure. Functional organization structure.

International division organization structure

Advantages
Firms activities separated into 2 parts- domestic & international To develop the firms foreign business ventures.

Disadvantages
Corporate planning can become awkward because of two autonomous units. Technical department cant be easily decentralized

Geographical organization structures

Advantages
Coordination of product sales and manufacturing is enhanced. Foreign and domestic operations are not isolated but integrated.

Disadvantages
Large number of super executives are needed to run the organization. Individual product may suffer because no single executive is responsible for specific product.

Product organization structure

Advantages
Decentralization of authority to add new product and old ones dropped. The control of a product through the product life cycle.

Disadvantages
Coordination problems among various product divisions can arise. Product can be suffer in specific market.

Matrix organization structure

Advantages
Greater flexibility than single line of command structures. Responsibility are defined for product and market both.

Disadvantages
Very costly in compare to other structures. Struggles result from the dual command system.

Quality of management. Diversity of product lines. Size of firm. Location of subsidiaries and their markets.

What is a product? A product can be defined as a bundle of a attributes that satisfies a customer demand. It may be offered in the form of a tangible item, a service, or a idea. What is the production system? A bundle of process which use to make product is called production system.

Commitment of quality. Quick and effective response to customer requirement. Cost competitiveness. Innovativeness. Delivery schedules.

 Importance

An information system is a formal way of structuring the information flow in an organisation.

Helps management to take decision. Helps management for planning & operation rectification. Helps management to provide market research, geographical information, competitor price, resource information etc.

Undefined hierarchy level. Decentralized department. Time management. Improper record maintenance. Improper information source selection.

Competition:
From local player From national player From international players Example: Soap companies , Automobiles etc

Existing Demand: Latent Demand:

It refers to a product bought to satisfy a particular need
Applies in a condition where a particular need has been recognized, but no product is offered.

Incipient demand:

Describes a projected need that will emerge when customers became aware of it in future.

It is commonly known that selling foreign cars in Japan is not easy. In 1987, BMW sold almost 50,000 cars to the Japanese. Because Japanese consumers increasing interest in luxury cars, a new market segment has been emerging that was not tapped by the Japanese companies. BMW took advantage of the situation.

The suppliers of a company are also an important aspect of the micro-environment because even the slightest delay in receiving supplies can result in customer dissatisfaction. Suppliers are firms and individuals that provide the resources needed by the company to produce goods and services.

It includes:

Consumer markets Business markets Government markets International markets Reseller markets.

Customer

Lifestyle

Behavior pattern

Action in market place

Impact on firms market decision

Share holders are any group that has an actual or potential interest in or impact on an organizations ability to achieve its objectives.

Marketing Intermediaries:

help the company to promote, sell, and distribute its goods to final buyers. Resellers are distribution channel firms that help the company find customers or make sales to them. Exwholesalers and retailers Physical distribution firms help the company to stock and move goods from their points of origin to their destinations. Ex-warehouses Marketing service agencies (marketing research firms, advertising agencies, media firms) help the company target and promote its products.

The main factor that affects most business is the degree of competition how fiercely other businesses compete with the products that another business makes. The other factors that can affect the business are: Social - Change is when the people in the community adjust their attitudes to way they live. Businesses will need to adjust their products to meet these changes, e.g. taking sugar out of childrens drinks, because parents feel their children are having too much sugar in their diets.

Legal The way in which legislation in society affects the business. E.g. changes in employment laws on working hours.
Legal

environment includes flexibility and adaptability of law and other legal rules governing the business. It may include the exact rulings and decision of the courts.

These affect the business and its managers to a great extent. For instance, in 1992, the Supreme Court ordered the closure of a number of tanneries in Kanpur as they were polluting Ganga. In August 1993 several foundries around the famous Taj Mahal were ordered to be closed down because of air-pollution caused by them had adverse impact on the whiteness of Taj Mahal. Economic How the economy affects a business in terms of taxation, government spending, general demand, interest rates, exchange rates and European and global economic factors. Economic environment refers to the aggregate of the nature of economic system of the country, business cycles, the socio-economic infrastructure etc. The successful businessman visualizes the external factors affecting the business, anticipating prospective market situations and makes suitable to get the maximum with minimize cost Political How changes in government policy might affect the business e.g. a
decision to subsidize building new houses in an area could be good for a local brick works.

The political environment of a country is influenced by the political organisations such as philosophy of political parties, ideology of government or party in power, nature and extent of bureaucracy influence of primary groups etc. political stability in the country, foreign policy, Defence and military policy, image of the country and its leaders in and outside the country.
The political environment of the country influences the business to a great extent. For instance, the Government of India, bottling and sale of cocoacola was discontinued in India in the late seventies following policy of restricting the growth of multinationals in Indian markets. Technological The business in a country is greatly influenced by the technological development. The technology adopted by the industries determines the type and quality of goods and services to be produced and the type and quality of plant and equipment to be used. Technological environment influences the business in terms of investment in technology, consistent application of technology and the effects of technology on markets. In India, advancements in automation and information technology have posed the challenging situation for the organization in future.

Ethical What is regarded as morally right or wrong for a business to do. For instance should it trade with countries which have a poor record on human rights.