BUSINESS ENVIRONMENT FUNDAMENTALS

Submitted By: kiran kumar jena

Supervised By: Asst. Prof. Amita Panda

ASTHA SCHOOL OF MANAGEMENT, BHUBANESWAR

Month and year of Submission  :    Jan 2021

1. What do you understand by Business Environment?

ANS:- all of the internal and external factor that affect how the company functions including employees, customers, and management, supply and demand and business regulation.

2 . What are the type of Business Environment?

ANS:- There are two types of business environment like 

 a) Internal Environment . 

b) External Environment.

3. What is Internal Environment?

ANS :- Internal environment consists of those relevant physical and social factor within the boundaries of the organization or specific decision unit that are taken directly into consideration in the decision making behavior in that system.

4. What is Macro Environment?

ANS :- Macro environment refers to all forces that are part of the larger society and affect the micro environment. It includes concept such as demography, economy, natural forces, technology, politics and culture.

5. What is Micro Environment?

ANS :-   Micro Environment, refers to the environment comprising of all the actors of an organization’s immediate environment which influences the performance of the company, as they have a direct bearing on the firm’s regular business operations.

6. What are market intermediaries?

ANS :-  Market intermediaries refers to reseller, physical distribution firms, marketing services agencies, and financial intermediaries. These are the people that help the company promote, sell, and distribute its products to final buyer.

7. Describe Customer and competitors?

ANS :- Customers are the individuals and businesses that purchase goods and services from another business. Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. 

8. What is PESTEL?

ANS :- A PESTEL analysis or PESTLE analysis is a framework or tool used to analysis  and monitor the macro-environmental factors that may have a profound impact on an organization’s performance.

9. Elaborate political Environment.

ANS:- 

Political environment includes political conditions such as general stability and peace in the country and the attitude of elected government towards business. A stable political system can make business-friendly decisions that promote local businesses and attract foreign investors.

 Political environment

10.  Discuss Technological Factors?

ANS:- Consider both the existing technology  required to run business, and the new and emerging technologies that could positively or negatively affect business now or in the future.

 

1.What other laws impact your business?

ANS:- Governments impose different rules and regulations on businesses and some of these rules and regulations apply to both small and big businesses. As a business owner, it is very important for you to understand business law and the regulations that affect your type of business.

• Employment law
• Consumer protection
• Competition law

2. Are there any licenses or certifications to start business?

ANS:- the most commonly referred to licenses and registrations required for a business in India.

1. General business license. Businesses generally require a general business license in order to operate a business in the city or county in which they are located.
2. "Doing business as" license or permit. If you'll be running your business under a fictitious business name (also known as a DBA name), your state may require you to register your business name.
3. Federal and state tax identification number. Most businesses will have to apply for a federal EIN, or employer identification number, also known as a tax identification number. Your state or local government might also require you to obtain a state tax identification number as well.
4. Sales tax permit. If your business sells goods, whether online or offline, and your state requires you to collect sales tax, you may be required to obtain a business permit usually known as a sales tax permit or a seller's permit.
5. Zoning permit. ...
6. Home occupation permit. ...
7. Professional/occupational licenses. ...
8. Health permits. Etc.. 

3. What taxes affect business?

ANS:- Business taxation affects a business's costs. For example, a rise in corporation tax has the same effect as an increase in costs which can lead to raised prices within the business. Other business taxes include environmental taxes such as

1.  Landfill tax, 
2. VAT (value-added tax).
3. Tariffs, a tax on imported foreign products,
4. Capital gain taxes :are levied on the sale of appreciated capital assets, investments, and property.

4. Identify important economic characteristics of your customer base?

ANS:- Demographic Characteristics of Consumer Markets

Characteristics of consumer markets based on demographics include differences in gender, age, ethnic background, income, occupation, education, household size, religion, generation, nationality and even social class. Most of these demographic categories are further defined by a certain range. For example, companies may identify the age of their consumers in the 18 to 24, 25 to 34, 35 to 54, 55 to 65, and 65+ age groups

.

Psychographic Characteristics of Consumer Markets

Consumer market characteristics can also be psychographic in nature. Psychographic characteristics of consumers include interests, activities, opinions, values and attitudes. Obviously, many magazines are geared toward a consumer's interest. For example, prenatal magazines target expectant mothers who are interested in learning more about caring for a baby.

Behavioralistic Characteristics of Consumer Markets

Behavioralistic characteristics can also be garnered through marketing research. Behavioralistic characteristics of consumer markets include product usage rates, brand loyalty, user status or how long they have been a customer, and even benefits that consumers seek. Companies like to know how often their consumers visit their restaurants, stores or use their products.

Geographic Characteristics of Consumer Markets

Consumer markets also have different geographic characteristics. These geographic characteristics are often based on market size, region, population density and even climate

5. What does the market population look like? 

Q.1 What is the impact of corona virus in Indian Economy? Explain in 100 words? 

ANS:- The economic impact of the 2020 coronavirus pandemic in India has been largely disruptive. India's growth in the fourth quarter of the fiscal year 2020 went down to 3.1% according to the Ministry of Statistics.

Total Economic Stimulus:

29.87 lakh crore (US$420 billion) [15% of national GDP]

(uptil 31 October 2020)

Impact:

• Largest GDP contraction ever in Q1 (April–June) FY2020–2021 at -24%

• Sharp rise in unemployment

• Stress on supply chains

• Decrease in government income

• Collapse of the tourism industry

• Collapse of the hospitality industry

• Reduced consumer activity

• Plunge in fuel consumption. Rise in LPG sales.

• Trade tensions with China

India's GDP growth rate since FY16

FY         GDP growth%

FY16            8

FY17            8.3  (+0.3%)

FY18            6.6  (-1.4%)

FY19            6.1   (0.5%)

FY20            4.2   (-1.9% est.)

FY21            -5     (-9.2% est.)

So india GDP growth rate is downward.

 The economic impact of the 2020 corona virus pandemic in India has been largely disruptive. India's growth in the fourth quarter of the fiscal year 2020 went down to 3.1% .The Chief Economic Adviser to the Government of India said that this drop is mainly due to the corona virus pandemic effect on the Indian economy. Notably India had also been witnessing a pre-pandemic slowdown, and according to the World Bank, the current pandemic has "magnified pre-existing risks to India's economic outlook".Major companies in India such as Larsen & Toubro, Bharat Forge, UltraTech Cement, Grasim Industries, Aditya Birla Group, BHEL and Tata Motors have temporarily suspended or significantly reduced operations. Young startups have been impacted as funding has fallen.Fast-moving consumer goods companies in the country have significantly reduced operations and are focusing on essentials. Stock markets in India posted their worst loses in history on 23 March 2020.However, on 25 March, one day after a complete 21-day lockdown was announced by the Prime Minister, SENSEX and NIFTY posted their biggest gains in 11 years. 

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