Professional Documents
Culture Documents
Business Environment (ch-1)
Business Environment (ch-1)
Business Environment (ch-1)
commercial activity.
• Other Factors
• Uncontrollable factors
11
Micro Environment
“It consists of the factors in the company’s
immediate environment that affect the performance
of the company”.
Suppliers
Customers
Marketing Intermediaries
Competitors
Publics
Financial Community
Micro Environment of a typical car manufacturer
Potential
Supplier
Components
Supplier
Local Potential
Communities Customers
Stakeholders Customers
Car
Pressure
Manufacturer
Groups
Potential
Dealers
For For
Customers Supplies
Macro Environment
Macro Environment :-
▪ Economic
▪ Non Economic
Economic Environment
– Economic stages that exists at a given time in a country
– Economic Problems
– Functioning of economy
• Economic Indices such as
• National Income - total amount of money earned within a country.
• Per Capital Income, - average income earned per person in a given area (city, region, country,
etc.) in a specified year.
• Disposable Income - income remaining after deduction of taxes and social security charges,
available to be spent or saved as one wishes.
• Rate of growth of GNP - total value of goods produced and services provided by a country during
one year, equal to the gross domestic product plus the net income from foreign investments.
• Distribution of Income - equality with which income is dealt out among members of a society.
• Rate of savings - amount of money, expressed as a percentage or ratio, that a person deducts
from his disposable personal income to set aside for future financial goals.
Non Economic Environment
– Regulatory Environment
– Socio- Cultural Environment
– Demographic Environment
– Technological Environment
– Political Environment
Non- Economic Environment
• Cultural Environment
◻ Demographic Environment
¤ Growth of population
¤ Age Composition
¤ Life Expectancy
¤ Sex Ratio
¤ Fertility and Mortality rates
¤ Inter-state migration