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Unit 01

BUSINESS AND BUSINESS ENVIRONMENT


BM 33

Acknowledgement
I feel a big thank to my professors for pushing me to complete my tasks on time. Working
through this project has given me an excellent understanding of the subject BBE. And I'd want
to express my gratitude to my friend for the good support during this semester.

Thank You.

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Unit 01
BUSINESS AND BUSINESS ENVIRONMENT
BM 33

Table of Contents
Acknowledgement..............................................................................................................................................................

LIST OF TABLE.....................................................................................................................................................................

LIST OF FIGURE...................................................................................................................................................................

LOL 01.................................................................................................................................................................................

TASK O1..............................................................................................................................................................................

1) WHAT IS AN ORGANIZATION?...........................................................................................5
2) TYPES OF ORGANIZATIONS AND THEIR CLASSIFICATIONS...................................5
3) CLASSIFICATION BASED ON DOMAIN EXTENSIONS..................................................7
4) CLASSIFICATION BASED ON ECONOMY........................................................................7
5) CLASSIFICATION BASED ON SIZE...................................................................................9
6) GROWTH OF INTERNATIONAL TRADE.........................................................................11
7) DIFFERENT TYPES OF BORDERS..................................................................................12
8) TRANSACTION.....................................................................................................................12
9) GLOBALIZATION..................................................................................................................13
10) DRIVERS OF GLOBALIZATION....................................................................................13
LOL 02.................................................................................................................................................................................

TASK O2..............................................................................................................................................................................

01) ROLE OF TECHNOLOGY...............................................................................................15


a) Microprocessor and telecommunications..........................................................................15
b) Internet and the World Wide Web.......................................................................................15
c) Ecommerce............................................................................................................................15
d) Transportation technology...................................................................................................16
e) Social media..........................................................................................................................16
02) Details about 5 Sri Lankan companies 16

i) JOHN KEELS HOLDINGS...................................................................................................16


ii) SAM PATH BANK.................................................................................................................17
iii) SOFT LOGIC COMPANY................................................................................................18
iv) DIALOG COMPANY...................................................................................................................20
v) Hatton National bank (HNB)................................................................................................21

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03) STAKEHOLDER ANALYSIS 21

i. COMMON STAKEHOLDERS OF CEYLON TOBACCO COMPANY AND THEIR


OBJECTIVES................................................................................................................................21
ii. COMMON STAKEHOLDERS OF SEYLON BANK AND THEIR RESPONSIBILITIES
22
iii. IDENTIFYING THE FOLLOWING ORGANIZATIONS AND THEIR STAKEHOLDERS
ALONG WITH THE OBJECTIVES AND RESPONSIBILITIES USING POWER
INFLUENCE MATRIX..................................................................................................................22
1. JOHN KEELS HOLDING..........................................................................................................23
2. DIALOG COMPANY.........................................................................................................23
3. SOFT LOGIC COMPANY........................................................................................................24
TASK O3..............................................................................................................................................................................

01) BRIEF DESCRIPTION ABOUT THE FUNCTIONS OF THE FOLLOWING DEPARTMENTS 26

a) HUMAN RESOURCES........................................................................................................26
b) MARKETING.........................................................................................................................26
c) FINANCE................................................................................................................................26
d) OPERATION MANAGEMENTS..........................................................................................26
02) INTER-RELATIONSHIP BETWEEN ORGANIZATIONAL FUNCTIONS 27

i. Relationship between marketing and Hrm.........................................................................27


ii. Relationship between marketing and finance...................................................................27
iii. Relationship between marketing and operation management........................................28
iv. Relationship between operation management and finance........................................28
v. Relationship between HR and finance...............................................................................29
d) Relationship between HR and operation management...................................................30
03) INTER-RELATIONSHIPS BETWEEN ORGANIZATIONAL FUNCTIONS.......................................30
LOL 03 AND 04....................................................................................................................................................................

1. SWOT analysis 31

i. SWOT analysis of the Australian Telecom Company Telstra.........................................31


Strengths....................................................................................................................................31
2. PESTLE ANALYSIS.............................................................................................................32
3. Pestle analysis for a telecom company in Australia.........................................................35
A) STRENGTH OF TELECOM COMPANY........................................................................................36

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B) WEAKNESS OF TELECOM COMPANY........................................................................................36
C) OPPORTUNITY OF TELECOM COMPANY.................................................................37
D) THREATS OF TELECOM COMPANY...........................................................................37
4. How does a macro factor influence business decision make?.......................................38
5. How does a micro factor influence business decision make?.........................................39
CONCLUSION......................................................................................................................................................................

References..........................................................................................................................................................................

LIST OF TABLE
Table 1-john keels............................................................................................................................18
Table 2-sampath bank.....................................................................................................................19
Table 3-soft logic...............................................................................................................................20
Table 4 - dialog company................................................................................................................21
Table 5 - Hatton national bank........................................................................................................22
Table 6- John keels holding............................................................................................................24
Table 7 - dialog company................................................................................................................25
Table 8 - soft logic company...........................................................................................................26
Table 9...............................................................................................................................................36

LIST OF FIGURE
Figure 1- Types of organization........................................................................................................7
Figure 2 - classification based on economy....................................................................................9
Figure 3 - between marketing and Hrm.........................................................................................28
Figure 4- marketing and finance.....................................................................................................29
Figure 5-marketing and operating management..........................................................................29
Figure 6-operating management and finance...............................................................................30
Figure 7-HR and finance..................................................................................................................30
Figure 8-HR and operation management......................................................................................31
Figure 9-Pestel analysis...................................................................................................................34

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LOL 01

TASK O1

1) WHAT IS AN ORGANIZATION?
An organization, such as a neighborhood association, a foundation, a union, or a business,
is a collection of individuals who work together. The act of developing or establishing
anything is also known as organization. It may also refer to a system of organization or
order, as well as a classification framework. Organizations exist because people can
accomplish more when they work together than if they worked alone.

WHAT IS VISION?
A vision statement explains what the company stands for, what it aspires to be, and what it
wants to accomplish or achieve the long term goal of an organization.
Example -: “To improve the well-being of our customer’s community and people connected
to our enterprise.” (PIZZA HUT).

WHAT IS MISSION?
A mission statement describes a company’s goal and how it plans to achieve those goals.
Breakdown of vision which states the company to achieve the goals.
Example -: “To take pride in making the perfect pizza while providing helpful service at all
times” (PIZZA HUT).

WHAT ARE VALUES?


The values statement explains what the company stands for and how employees are
handled within the company, including how they interact within the company, including how
they interact with one another, consumers and suppliers and other stakeholders.

Example -: “To promote the well-being of our customers, community, and individuals
connected to our enterprise,” says Pizza Hut's vision statement.

2) TYPES OF ORGANIZATIONS AND THEIR CLASSIFICATIONS


Different forms of ownership are used to classify different types of businesses in the
business. There are 3 types of organizations.

 Private sector
 Public sector

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 Voluntary sector.

ORGANIZATION

PRIVATE PUBLIC VOLUNTARY


SECTOR SECTOR SECTOR

Figure 1- Types of organization.

PRIVATE SECTOR
Individuals own businesses in the private sector. Benefit is the driving force behind these
businesses.

A sector of a country’s economy made up of manufacturing and commercial businesses that


aren’t owned or operated by the government.

Private sector employees have higher wage rises, more career options, more promotion
opportunities, less job security, and less welfare benefits than public sector employees.

Examples for private sector are; BCAS Dialog, Aviation, Hospitality, Financial services
etc….

PUBLIC SECTOR
The government owns all of the companies in the public sector. They give back to the
community by providing goods and services.

The government is in charge of them. Taxes are used to fund their operations.

The public sector assists the government in maintain trade and business guidelines to
ensure that goods and projects are distributed fairly. Public area associations are non-profit
entities that exist to serve the public goods.

Examples for public sector are as follows;


 Sri Lanka Police Service.
 Sri Lanka Customs Service.
 Sri Lanka Educational Administrative Service.
 Sri Lanka Immigration Service.
 Sri Lanka Inland Revenue Service.

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 Sri Lanka Accountants' Service.
VOLUNTARY SECTOR
Trustees are the owners and operators of voluntary association.

The organizations are not run by the need to make profit by the need to help the community.

They work with money received as gifts and blessings. Any profits are put back into the
organization.

The aim of Voluntary sector is to achieve their main goal and functions for everyone’s
advantage in some specific way. This usually means they concentrate on problems in a way
that a company does not.

Examples for Voluntary sector are as follows;


 Trade associations
 Trade unions
 Learned societies
 Environmental groups

3) CLASSIFICATION BASED ON DOMAIN EXTENSIONS


The development of domain name extensions made it much easier to access the internet. It
wasn't the main cause of the internet's rise to prominence, but it definitely helped it.

Domain extensions are the last part of a domain name. For example, in ‘hostgator.com,’
the domain name extension is .com. Your domain name and area name extension provide
you with a working space name that your target audience can type into their browsers to get
to your site.

. Com – It’s a business word. That a corporation is multinational in the sense that it does
business in many countries.

.CO- Co is a written abbreviation for country before the names of certain nations. It’s used
as an abbreviation for business when it’s part of an organization’s name.

.org-This extension was first created to be used by nonprofits. However, this is no longer
enforced and is a common TLD for education-based websites, schools, and more. Like a
public library, offer free information and services to the general public.

.Gov. - Gov. Domain is a government-specific top-level domain Organization. This can


assist a state or local election office in establishing its digital resources (such as websites
and emails) as official, reliable sources of voter information.

4) CLASSIFICATION BASED ON ECONOMY


These industries or the sectors form a supply chain that delivers finished products or
services to consumers.

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CLASSIFICATION
BASED ON
ECONOMY

PRIMARY SECONDARY TERTIARY


SECTOR SECTOR SECTOR

Figure 2 - classification based on economy

PRIMARY SECTOR
 Primary sector defined as the totality raw materials.
 This business becomes a significant source of financial growth, jobs, charge revenue,
and fare benefit.
 This would increase labor productivity, allowing jobs to move away from agriculture and
into other industries such as manufacturing and service.

Examples -: mining, Fishing, farming, foresting, oil extraction, diamond mining.

SECONDARY SECTOR
 Secondary sector defined as converting raw material into finish goods.
 This helps to significant movement to advance financial development and improvement,
for engineering job opportunities etc….
 It is a major source of well-paying employment for the middle class in developing
countries, allowing for greater social mobility for future generations.
 Enables countries to specialize and benefit from economies of scale.
 Manufacturing allows for higher real wages than farming.

Examples -: car manufacturers, food production or building companies, Government,


industry etc…

TERTIARY SECTOR
 Tertiary sector defined as commercial services that assist in the creation and delivery of
product.
 Unskilled and uneducated employees have a lot of resources in the tertiary sector.
 The tertiary sector distributes the consumer goods to different suppliers
 Demand for tourism, shopping, private schools, private hospitals, etc….

Examples -: banking, insurance, education, healthcare or hospitals.

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5) CLASSIFICATION BASED ON SIZE


 SMALL
 MEDIUM
 LARGE

Small and medium scale industry {SME}


Small and mid-size businesses (SMEs) are firms with sales, properties, or employees that
fall below a certain level. This has a major effect on any economy by creating jobs,
contributing to GDP growth, promoting innovation, and stimulating other economic activities.
This is particularly significant in developing countries, where poverty and unemployment are
common issues.

SME'S are described as businesses with fewer than 250 employees, and they can be further
divided into;

A) MICRO ENTERPRISES
A micro-business, also known as a micro-business, is a small company with a small
workforce.

By delivering a product or service in their communities, these businesses help to improve the
lives of people in developing countries. A micro business has less than ten employees.

Examples=Etsy owners, Amazon suppliers, solo consultants, freelance graphic designers,

B) SMALL ENTERPRISES
A small business is one that employs between 10 and 49 people with the goal of making a
profit.

Small companies produce more patents than large corporations. Employees will have more
ability to innovate, work independently, and make decisions as a result of this.

Examples= Cleaning Services, Catering Services, Online Tutoring.

C) MEDIUM ENTERPRISES
A medium enterprise has between 50 and 249 employees.

operates to extend life outside of the normal

Example= manufacturers, wholesalers, engineers, transport companies and labor


hire/recruitment service providers.

Large scale industry


Large-scale industries are described as those that require a lot of infrastructure, raw
materials, a lot of labor, and a lot of capital.

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Large scale industries can be divided as;

A) MULTINATIONAL ORGANIZATION
The multinational corporation is a worldwide non-profit enterprise so seeks according
to associate particular production demand. The point of a multinational corporation is to
make profits for stockholders. The organizations are present in more than one country.
Multinational companies maintain production and marketing operations in different countries.
The company may have multiple offices in each region, each of which is managed through a
network of foreign branches.

Multinational companies are large businesses that operate in many countries around the
world. Apple, Ford, Coca-Cola, Alphabet (Google), and Microsoft are only a few
examples.

B) INTERNATIONAL ORGANIZATION
An international organization is a community of people who share common values and work
together to accomplish a common purpose, such as human rights or environmental
protection. Basic political and social shifts and reforms are discussed by the international
organization. You should campaign for greater legal and economic accountability, making it
easier for a multinational company to fulfill deals and conduct business. An international
organization can provide them with security, trade opportunities, stronger partnership
opportunities, and, eventually, a stronger voice in the international arena. Smaller states will
benefit from international organizations by gaining economic strength.

Examples;

 Bank for International Settlements (BIS)


 European Central Bank (ECB)
 Food and Agriculture Organization of the United Nations (FAO)
 International Labor Organization (ILO)
 International Monetary Fund (IMF)
 International Telecommunication Union (ITU)
 Organization for Economic Cooperation and Development (OECD)
C) GLOBAL ORGANIZATION
An organization that works across national boundaries, across nations, and even across
continents. You gain access to a much wider customer base by spreading your business
globally. Even if your domestic markets are saturated, if your product or service is a success,
you will benefit from increased sales from these new customers. Globalization may be the
once-in-a-lifetime opportunity that your company requires to reach new heights in sales.
Businesses that can effectively go global organization and sell their products to a
completely different demographic would be able to claim the title of multinational company.
Internal and external continuing education, as well as on-the-job training, is both ways that
global businesses invest in their employees' professional growth. They expect you to

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advance and develop within the business. By implementing best practices in terms of
policies and tactics, you will broaden your understanding of the global economy.
D) TRANSNATIONAL ORGANIZATION
The term "transnational organization" is used in academic literature. It refers to foreign
organizations (usually international nongovernmental organizations) that "transcend" the
nation-state definition. Your company will gain access to new potential clients, different ways
of doing business, and more competitive manufacturing opportunities by establishing even a
limited presence in a few strategic countries in transnational organization.

Some of the benefits of using transnational organizations are as follows;

Expanded Business Opportunity

 Various Regulatory Structures


 Lower Labor Costs
 Favorable Taxation

6) GROWTH OF INTERNATIONAL TRADE


i. INTERNATIONAL BUSINESS

The exchange in products, services, technology, money, and/or information across national
boundaries and on a global or transnational scale is referred to as international business. A
significant advantage of international trade is market diversification.

Benefits of international business are as follow;

It helps in the advancement of a country's growth prospects and the creation of additional
employment opportunities. International companies make it easier for people to use goods
and services from other countries to help them better their living conditions. When
businesses become more aggressive and diverse, their corporate vision expands.

Examples; Amazon, Citigroup, Coca-Cola, etc. These companies have independent


operations in each country, and each country has its own set of offices, employees, etc.

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7) DIFFERENT TYPES OF BORDERS


Political borders.
A political border is an invisible line that separates one political organization from that other,
such as a nation or state. Examples are; a barbed-wire fence or a checkpoint

Psychology borders
In certain cases, border psychology’s collective mental system reflects the psychic
processes that describe the character of some people with border disorders. Examples are;
thinking psychology.

Economical borders
Economic borders mean a measure of country’s or region’s degree of economic growth.
Examples are; Country’s region

Cultural borders.
Cultural border is a line that separates people based on their race, such as language and
religion. (Examples)

8) TRANSACTION
A transaction is an exchange between a buyer and a seller to trade goods, services, or
financial properties. Depending on whether the business uses accrual accounting or cash
accounting, a transaction can be reported in advance or later. This Provide features for use
in custom business packages, such as the ability to access data, communicate with
computers, and design and monitor the user interface.

Examples of accounting transactions are:

 Sale in cash to a customer.


 Sale on credit to a customer.
 Purchase fixed assets from a supplier.
 Purchase fixed assets from a supplier.

How are these exchanged?

 Import and exchange goods and services.


 Investment [High ways].
 Contractual agreement [Port].

What is exchanged between countries?

As we all know that exchange between countries are import and export services, as
examples;

 Srilanka import

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 Petroleum oil
 Clothing
 Motor cars
 Srilanka export
 Tires of rubber
 Tea
 Clothing.

9) GLOBALIZATION
Globalization is a term used to describe the increasing interrelationship of the sector's
economies, societies, and populations, as a result of cross-border trade in products and
services, technology, and investment, human, and data flows.

The benefits of globalizations are as follows;

 Access to New Cultures


 The Spread of Creativity and Technology.
 Globalization allows companies to find low cost ways to produce their products
 It also increases global competition, which lower costs and provides customers with
more options.

OFFSHORING
Offshoring is the process of exporting activities to remote areas, typically with the help of
businesses from developing countries, with the intention of lowering the cost of doing
business. The process of moving company operations from one country to another across
the globe.

Examples are; a company located in the United States producing items in Mexico is an
example of offshore.

OUTSOURCING
Outsourcing is the practice of transferring some company tasks to third-party service
providers. Outsourcing services were once only available to large, international businesses.
In many situations, outsourcing services aren't just a cost-cutting tactic; they're a need.
Company is an important method in which an organization employs a third party to provide
services and manufacture products that were previously done in-house by the company's
own employees and staff. Examples are; supply chain management, accounting, customer
support and service, marketing, computer aided design, research, design, content writing,
engineering, diagnostic services

10) DRIVERS OF GLOBALIZATION


 Globalization is led by the decline of trade barriers, rising market demand, lower shipping
and manufacturing costs, and technical advances in communication and transportation.

Declining trade and investment barrier

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When a company sells products or services to customers in another country, it is known as
international trade. When a company participates in business activities outside of its home
country, it is known as foreign direct investment (FDI).

FDI -: when a corporation invests in and retains leverage over business ventures outside of the
country.

FDI FLOW -: after inflow and outflow, the amount of FDI undertaken over period.

FDI STOCK -: Total value of foreign assets accumulated over a period of time.

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LOL 02

TASK O2
01)ROLE OF TECHNOLOGY
Globalization and trade barriers, a lack of common ethical standards, transportation costs,
and information exchange delays have all been overcome thanks to technology.

Access to new talent.

Access to new market.

Managing Employee immigration.

Countries that have been able to integrate are seeing faster growth and reduced poverty.

a) Microprocessor and telecommunications


The microprocessor is the heart of a computer system, performing arithmetic and logic
operations such as adding, subtracting, moving numbers from one location to another, and
comparing two numbers.

Technology assists in smooth communication between individuals or companies by


providing alternatives that contribute to successful communication.

b) Internet and the World Wide Web


The Internet is the most valuable technology of our day, assisting us in both our personal
and professional lives. It is commonly used in educational settings to collect information,
conduct research, and expand one's knowledge on a variety of topics. In education, the
internet is very important.

The World Wide Web connected the world in a way that was not possible before and made
it much easier for people to get information, share and communicate. It allowed people to
share their work and thoughts through social networking sites, blogs and video sharing.

c) Ecommerce
In reality, technology plays a key role in many aspects of the e-commerce value chain,
including recruiting, marketing, and advertisement, to name some.

Example = Online shopping, Online payment

E- E-commerce businesses should adapt and customize their marketing efforts to provide a
more satisfying experience and attract more customers, and the following are the different
forms of E-commerce;

i. B2C - it means business to consumer and it most common from e commerce


Ex: Amazon

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EBay.
A customer purchases goods and services online and pays for them with credit cards, debit
cards or cash at the time of delivery.

ii. B2B- it means business to business


Transaction happens between two commercial entities online.
Ex: Skype.

iii. C2C- it means consumer to consumer.


An e-commerce platform facilitates a direct payment between a buyers and sellers.
EX: Etsy
Craigslist.
iv. B2E- it means business to enterprisers
Business takes place between companies of the same parent company.
EX: Online insurance.

d) Transportation technology
Connected and autonomous vehicle technologies will help maximize highway use,
potentially saving billions in infrastructure expansion costs in the future.

e) Social media
Presentation apps, groupware, email systems, telecommunications networks, Voice over
Internet Protocol communications, videoconferencing, social networks, online chats, virtual
message boards, and websites are all examples of technology that lends itself well to social
networking.

Benefits of social media are as follows;

 Provide better customer service


 Positioning power over your competition.
 Increase brand awareness
 Improve search ranking.

02)Details about 5 Sri Lankan companies

i) JOHN KEELS HOLDINGS


John Keels Holdings is Sri Lanka's largest company, owning approximately 70 companies in
seven sectors, including delivery and logistics, consumer food, leisure, property development,
retail, financial services, and information technology. The owners of John Keels Holdings,
Englishmen Edwin and George John, accelerated the company in the 1870s. Then, in the
1970s, JKH eagerly joined the tourism industry, which is now without a doubt Sri Lanka's
most important economic driver. Following that, in 1979, JKH founded a commons Ltd
organization. JKH obtained a listing on the Colombo Stock Exchange in1986, and became Sri
Lanka's first foreign-listed company by issuing Global Depository Receipts (GDRs) traded on
the Luxembourg Stock Exchange. Then, in 1991, JKH launched the "Elephant House"
business, which specializes in beverages and ice cream. JKH made a step into the banking

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sector in 1999 when it founded "Nation Trust Bank." JKH continued to expand, and for the
sake of the country's prosperity, JKH invested in landmark projects that will define Sri Lanka.
By investing in the previous PVT foundation severe into the United States name South Asia
Gateway Terminals (SAGT), which includes USD 900 million, 4.5 million square foot,
integrated management old complex branded so Cinnamon Life, which is the best large

Name of Legal Size and Mission Vision Values Products and


the entity scope services
company
JOHN PublicLtd Large We are also Known Adaptability Keels.
KEELS company scale committed to Elephant
HOLDINGS (PLC) industry sustainable to constantly re- Enhancement
House.
development invent,
Aspiration Union
and greater re-align Assurance.
social
Nations Trust
responsibility and reposition
Bank.
, in a multi- ourselves
stakeholder Cinnamon
context. in exploring Hotels
new avenues & Resorts
Of growth.

Investment in Sri Lanka.

Table 1-john keels

ii) SAM PATH BANK


Sam path Bank PLC is a legal commercial bank with 229 branches and 373 ATMs in Sri
Lanka. It was established in 1987. For the second year in a row, it was named "Bank of the
Year" by "The Banker" of Financial Times Limited – London, as well as the "Global Business
Excellence Awards 2010. In 1988, Sampath Bank began operating a multi-point network of
automatic teller machines (ATMs) for the first time in the world, dubbed "Sampath Electronic
Teller" and later "Collection." Then came MasterCard (in 1989), PBU (Personal Banking
Unit), and Uni-Banking System, as well as the acceptance of ATM banking. Sampath Bank
launched the previous evermore Cheque Imaging & Adjusting (CIT) website online between
Sri Lanka in 2004. Sampath Bank was established in Sri Lanka to introduce automated teller
machines (SET), MasterCard, Personal Banking Unit Facility, Uni Banking System, and
Debit Cards. After that, Sampath Bank received a Gold and Merit Award from the in division
of the National best.

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Name of the Legal entity Size and Mission Vision Values Products and
company scope services
SAM PATH Public limited Large scale Treat all “The Treat both Savings,loans,T
BANK liability industry internal and Growing internal and erm Deposits
company external force in external
customers the sri customers
way we would Lankan with the
like to be financial regard with
treated services” which we
really want to
be handled.

iii) SOFT LOGIC COMPANY


Soft logic Holdings PLC is regarded as one of Sri Lanka's most powerfully built and forward-
thinking conglomerates, with leadership in six industry verticals: ICT, Healthcare, Retail,
Financial Services, Cars, and Leisure, in which we employ over 8,000 people across 46
companies. Soft logic was founded in 1991 by Ashok Pathirage and twelve other employees
as a software development company. Soft logic went through a period of aggressive growth
between 2006 and 2009 where they entered the retail sector with the acquisition of Uni
Walkers (Pvt) Ltd. Soft logic, which had started expanding into the retail and leisure markets,
opened furniture stores and showrooms all over the island. Panasonic, Samsung, Nokia,
Dell, Apple, Candy, Russell Hobbs, and Kelvinator were added to Soft
Table 2-sampath bank
Logic’s Consumer Electronics portfolio as approved dealers.

Soft logic Holdings is represented in the healthcare sector, there are some of the example
as follows;

 Asiri Medical Hospital


 Asiri Surgical Hospital
 Asiri Central Hospital
 Asiri Hospital Matara
 Asiri Hospital Galle
 Asiri Hospital Kandy
 Asiri Laboratories
 Asiri Blood Bank
 Soft logic Holdings is represented in the finance and the examples as follow;
 Soft logic Finance PLC
 Soft logic Life Insurance PLC
 Soft logic Stockbrokers
 Soft logic Holding represented in the Information technology and the examples as
follow;
 Soft logic Information Technologies
 Soft logic Computers
 Soft logic Communications

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 Soft logic International
 Soft logic Australia
 Soft logic Mobile Distribution
Name of Legal entity Size Mission Vision Values Products
the and and
company scope services
Soft logic Soft logic Large Providing the right To become the most Reliable Financial
company Corporate S scale choices in order to popular and , trust services
ervices (Pvt) industry optimize the return on trusted product/ process ICT
Ltd. Compa investment in order to provider, providing high Healthcare
ny maximize business quality solution Automobile
opportunities and then to businesses and
become srilanka’s most consumer to raise
respected corporation market standards and
increase shareholder
value

For the nine months ended December31,2020, Soft logic Holdings PLC's gross profit was
Rs. 18.8 billion, with a quarterly gross profit of Rs. 7.8 billion. During the quarter, group
turnover increased at Rs. 22 billion, while overall revenue for the first nine months of the
financial year was Rs. 57.9 billion.

Table 3-soft logic

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iv) DIALOG COMPANY

Dialog Axiata PLC is one of Sri Lanka's major telecommunications service providers, as well
as the country's largest mobile network operator, with 16.287 million customers, or 57
percent of the country's smartphone market. Dialog is the fifth largest listed company in Sri
Lanka, with a market capitalization of LKR 86.3 billion (US$573 million) as of February 2017.
In2015, the "Dialog" brand was priced at LKR 28.6 billion (US$204 million), making it the
third most profitable company in the United States, according to business publication LMD's
annual research. Dialog uses 2.5G, 3G, 3.5G, and 4G LTE 5G network services, and on
August16, 2006, it became the first operator in South Asia to begin commercial 3G and
HSPA+ operations. Dialog Axiata is an investor under the supervision of the Sri Lankan
Board of Investment, and has invested US $1.96 billion in the growth of telecommunications
infrastructure, making it the single largest ratepayer in terms of Sri Lankan foreign advice
funding (FDI) to present. Dialog Global, Dialog Axiata's international arm, provides global
services such as voice tourism in 230 countries on 670 networks and 4G LTE roaming in 88
countries on 210 networks, as well as bilateral agreements with global carriers. Supun
Weerasinghe is the CEO of Dialog Axiata, which has annual revenue of about Rs 120,141
billion and a value of Rs 187,692 billion on assets held by Dialog. Dialog hires about 2225
Name of Legal Size and Mission Vision Values Products and
the entity scope services
company
Dialog Public Large To be the leader in To be the Create the Fixed phone
company Ltd scale providing technology leader in inter future. service.
company industry enabled communication, Responsibl Digital
(PLC) communication that resulting in the e education.
reaches multiple empowerment leadership. Business
human senses and and enrichment networks.
facilities through of Sri Lankan
confirming and the and lives and
provision of quality businesses at
services. all times.

People and generates an annual profit of Rs 87.9 billion.

Table 4 - dialog company

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v) Hatton National bank (HNB)


Hatton National Bank is a leading private commercial bank in Sri Lanka, with 251 branches
throughout the country. From 2007 to 2017, the Central Bank of Sri Lanka Magazine called
the bank the “Best Retail Bank in Sri Lanka” ten times. The Banker Magazine in the United
Kingdom named HNB the Bank of the Year in 2012, 2013, including 2017. In addition, HNB
is one of The Banker's Top a thousand banks in the world. The "Hatton Bank" was
established in 1888 to serve the growing tea industry in Sri Lanka's central area. Jonathan
Alles is the owner of HNB, which has revenue of Rs 145,401 billion in its anniversary year.
HNB has a total asset value of Rs 1,196,384 billion and employs over 4950 workers. The
success of HNB's youth community organizations requires being able to provide goods and
services that address the needs of young people while also contributing to the success of a
financial institution that is focused on the future.
Name of the Legal Size Mission Vision Values Products
company entity and and
scope services
Hatton A public Large To meet To be Integrity Products,
national bank limited scale production recognized as Mutual Banking,
Company industry stakeholder the industry respect financial
expectations, leader and Passionate. and related
we combine preferred services.
entrepreneur participant in
ship with giving
motivate additional
people. solutions by
motivate
people.

03)STAKEHOLDER ANALYSIS
A stakeholder is someone who has an interest in a company and may affect or be influenced
by anything. Investors, staff, consumers and suppliers are the key stakeholders.

i. COMMON STAKEHOLDERS OF CEYLON TOBACCO COMPANY


AND THEIR OBJECTIVES
CEO – Managing the overall operation and resources of this company. To make customer
satisfactions.
Manager – To support employees in achieving business objectives and staying true to
company values and expectations.
Customers –Expects excellent customer support, resolve
Table 5 - Hatton national bank service issues, to get quality services as well as quality products.
Employees-To get reasonable salaries, Production and Supply of Quality Goods and
Services.

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Government –government always here to uplift their objectives of aiming for infrastructure
success in order to improve people’s living standard of by producing more services and
products.
Investors- Investors are those that benefit the most from the company’s profit growth. An
investor is someone who spends money in the intention of getting a profit or having a
success in the future.

ii. COMMON STAKEHOLDERS OF SEYLON BANK AND THEIR


RESPONSIBILITIES
CEO- responsible for in charge of the bank’s goods, clients, staff, stockholders and
objectives. He must update the understanding of banking laws and regulations in order to
remain on top of the banking world
Manager-managers are in charge of leading and managing the day to day operations of
banking firms including banks, building societies, managing employer satisfaction salaries on
time.
Directors- Directors set the vision and long term-term goals of the organization. Directors
are responsible for ensuring that the company complies with all relevant laws and stays
financially secure.
Customer- Bank customer service people answer customers’ questions regarding basic
banking services such as bank transactions, interest rates, and fees.
Employees-accepting deposits, paying out money, tracking transactions, orienting receipts,
cashing checks etc...
Suppliers-suppliers are an important part of bank, as they help the group achieve its goal of
helping our customers, employees and societies etc…
Government-provides funding for developing and promoting the rest of the economy when
the economy is weak.
Shareholders- control on financial performance of commercial banks
Competitors-banking competition is beneficial to society as long as proper system and
supervision get into operation.
Investors- Responsible for investment Advice, quality service, review your accounts
regularly, use the right resources carefully.
Business Partners-Responsible for financial goals, client development strategies, general
day to day management.
Distributors-They can reduce response times, extend a company’s reach and even build
investment products that support a company’s product offering or range.
Retail-responsible for serving customer, handling payments, helping with special promotions.
Media-providing information, influences decisions helping shape public opinions, attitudes
and values.
Environmental Agencies-overall responsibility is the protection and enhancement of the
environment.

iii. IDENTIFYING THE FOLLOWING ORGANIZATIONS AND THEIR


STAKEHOLDERS ALONG WITH THE OBJECTIVES AND
RESPONSIBILITIES USING POWER INFLUENCE MATRIX.

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1. JOHN KEELS HOLDING
Low interests – high power High interest – high power
Government CEO
Responsibilitie
Environmental Agency media Share holders s and
objectives

i. Low power - low interest Low power- high interest Responsibilities


Customer Managers :
Employees
suppliers Low interest –
Distributors high power
 Government
Table – Having
6- John keels a hard time dealing with economic conditions.
holding
• Environmental agency – to carry out environmental protection
• Media – Raising or creating recognition of the brand.
ii. Objectives:

Low interest – high power


 Government – focus on price stability
 Environmental agency – polluting prevention.
 Media –As a result, profit will continue to grow indefinitely.
High interest – high power
• CEO – Deciding on large cooperative projects.
• Competitors – to study the market
• Shareholders – To reduce risk associated with their investments.
Low power- low interest
• Customer -resolve customer issues
Low power high interest
• Managers- To concentrate on providing High quality products and services.
• Employees – Decision making, self-activation and self-drive.
• Suppliers – worldwide contracts, supplier development
• Distributors – Taking care of and protecting products before delivering them to
consumers.

2. DIALOG COMPANY
Low interests – high High interest – high power
power
CEO
Government
Share holders
Environmental Agency

Media
Low power - low interest Low power- high interest

Customer Managers

Employees

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Suppliers

Distributors

Table 7 - dialog company

Responsibilities and objectives

i. Responsibilities:

Low interest – high power


 Government – Having a hard time dealing with economic conditions.
• Environmental agency – to carry out environmental protection
• Media – Raising or creating recognition of the brand.
ii. Objectives:

Low interest – high power


 Government – focus on price stability
• Environmental agency – polluting prevention.
• Media –As a result, profit will continue to grow indefinitely.
High interest – high power
• CEO – Deciding on large cooperative projects.
• Competitors – to study the market
• Shareholders – To reduce risk associated with their investments.
Low power- low interest
• Customer -resolve customer issues
Low power high interest
• Managers- To concentrate on providing High quality products and services.
• Employees – Decision making, self-activation and self-drive.
• Suppliers – worldwide contracts, supplier development
• Distributors – Taking care of and protecting products before delivering them to
consumers.

3. SOFT LOGIC COMPANY


Low interests – high power High interest – high power

Government CEO

Environmental Agency Share holders

Media
Low power - low interest Low power- high interest

Customer Managers

Employees

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Suppliers

Distributors

Table 8 - soft logic company

Responsibilities and objectives

i. Responsibilities:

Low interest – high power


 Government – Having a hard time dealing with economic conditions.
• Environmental agency – to carry out environmental protection
• Media – Raising or creating recognition of the brand.
ii. Objectives:

Low interest – high power


• Government – focus on price stability
• Environmental agency – polluting prevention.
• Media –As a result, profit will continue to grow indefinitely.
High interest – high power
• CEO – Deciding on large cooperative projects.
• Competitors – to study the market
• Shareholders – To reduce risk associated with their investments.
Low power- low interest
• Customer -resolve customer issues
Low power high interest
• Managers- To concentrate on providing High quality products and services.
• Employees – Decision making, self-activation and self-drive.
• Suppliers – worldwide contracts, supplier development
• Distributors – Taking care of and protecting products before delivering them to
consumers.

TASK O3

01) BRIEF DESCRIPTION ABOUT THE FUNCTIONS OF THE


FOLLOWING DEPARTMENTS

a) HUMAN RESOURCES
Human resources management or HRM is described as the process of people management
within the organizing, which includes recruiting, firing, coaching and motivating employees. A
very good example of human resources management is when an organization recruits
temporary employees and trains them.

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HRM can be viewed as strategic approach to developing, managing and motivating an
organization’s key resources.

b) MARKETING
The process through which a company encourages the consumption or sale of a product or
service is known as marketing. Marketing includes advertising, selling, and delivering goods
to customers or other businesses. Associates help a company advertise its products.

Example-: Television ads, billboards on the side of the road, and magazine adverts are all
instances of marketing at work.

The functions of marketing are as follows;

 Promotional channel
 Product and service management.
 Distribution
 Selling
 Distributing
 Create value to the customer
 Identifying customer needs and wants.

c) FINANCE
Finance management refers as strategic planning, coordinating, directing and controlling of
source of collecting in an institution or institute is referred to as financial management. It also
involves applying management concepts to an organization’s financial assets, as well as
playing an important role in economic performance.

Example-: Individuals must manage monthly budgets, spending, and shopping, among
other things.

d) OPERATION MANAGEMENTS
Operation management is a division of management which is concerned with the
development of production processes, and reorganizing in terms of effects and services. The
word operations management refers to the planning, arranging, and overseeing of
operations in the settings of production, manufacturing, or improving connectivity. As a
result, it is delivery-oriented, guaranteeing that an organization efficiently converts inputs to
outputs.

Example-: If a company makes furniture, it must make decisions about obtaining wood and
fabric, hiring and training employees, the placement and layout of the facility, and buying
cutting tools and other manufacturing equipment, among other things.

1. Planning information systems.


2. Managing delivery to customers on time.
3. Managing projects.
4. Planning and implementing manufacturing facilities.

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02) INTER-RELATIONSHIP BETWEEN ORGANIZATIONAL


FUNCTIONS

i. Relationship between marketing and Hrm

Figure 3 - between marketing and Hrm

 HRM and marketing are combining to develop the organization's identity.


 HRM recognizes the most qualified individuals to support and grow the brand, while
marketing develops and communicates the brand message to employees.
 Meetings with leaders are needed for both the HR and marketing departments in order to
address goals and strategies. HRM is in charge of organizing the activities, while
marketing is in charge of promoting them both publicity and internally. HRM and
marketing will exchange information from exit and stay interviews, as well as information
from customer feedback. Both HRM and marketing will use social media to learn more
about how customers feel about the brand and how current and former employees feel
about the business. With this information HRM and marketing will help us to develop
internal and external communication and brand messaging improvements.

ii. Relationship between marketing and finance

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Figure 4- marketing and finance


 Marketing wants to spend money and Finance wants to control it
 Finance wants method and technique, while marketing wants empowerment and action.
 Their business aim is often the same; modify the company they work for to make more
efficient, raise sales or preserve cash flow.
 Financial managers may build a mutually beneficial and productive partnership if they
recognize the roles of the marketing development; they can create a mutually beneficial
and profitable relationship.

iii. Relationship between marketing and operation management

Figure 5-marketing and operating management

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 Customer demand is generated by marketing and supply and fulfillment of that demand
is managed by operation management.
 Marketing is in charge of functions such as pricing, advertising, establishing and
maintaining a distribution system, attracting buyers and sales forecasting while
operation management is in charge of planning, production, purchasing, labor
requirement etc., Marketing focus on the maintain existing clients, and attracting new
ones while operations management are often focused on lowering operating costs,
optimizing cost efficiency in distribution business.

iv. Relationship between operation management and finance

Figure 6-operating management and


finance
 Finance departments provide data that is required by company’s ongoing operations
while the operation department is in charge of overseeing the experience of everyday
activities.
 A finance department must take advantage of revenues and expenses and create
annual and quarterly financial statement and operation management develops internal
policies and procedures and manages the operations staff.
 The finance department must support the business in obtaining sufficient funds and
distributing income as dividends and operation department support with the monitoring
and control of the company’s finances and investment.

v. Relationship between HR and finance

Figure 7-HR and finance

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 Human resources always live by slogan, “People are our most important assets while
finance department follow the old saying that’” cash is the king”.
 Both Hr. and finance are both working toward the same objective of a successful and
healthy business.
 Finance leaders have learned valuable lessons about the international aspect of
business, and HR leaders have learned how their work or actions impact the wishes of
the organization’s success.
 Finance helps in adjusting capital to meet an organizing’s goal while maintain a cost
revenue balance while HR hires, trains and motivates employees to achieve the same
objectives.

d) Relationship between HR and operation management

Figure 8-HR and operation management


 When a problem arises, HR is in charge of dealing with it. When an employee’s leaves,
they will create a new position and operation management department take the
appropriate steps with strategic recruiting strategies in place, helping to build a safe
workplace.
 Both Human resources managers and operation managers mainly communicate about
payroll and other logistical problems.

03) INTER-RELATIONSHIPS BETWEEN ORGANIZATIONAL FUNCTIONS


ADVANTAGES

It helps in specializing by allowing you to do more or better work in less time. It helps in the
establishment of teamwork because staffs in a department are well qualified in their
respective positions, so they can easily coordinate with each other at the branch level. It
supports the agency in performing work in accordance with the function, preventing any work
duplication. It helps to facilitate training.

DIS-ADVANTAGES

It could create a lack of unity. Since projects are managed by many functional managers,
clients cannot obtain much more down project status. It has the ability to weak on the

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company’s interpersonal relationships. It can lead to conflict between functional managers,
which could obstruct project progress.

LOL 03 AND 04

1. SWOT analysis
 Swot analysis is a useful planning technique that helps an individual or company
recognize strengths, weaknesses, opportunities and risk in business or project planning.

S- Strength

W-weakness

O-Opportunities

T- Threats

Strengths and weaknesses - internal

Opportunities and threats - external

i. SWOT analysis of the Australian Telecom Company Telstra


Strengths –
An ability or power than organization can efficiently use to achieve its goal is called strength.
An internal and external factor that helps you achieve success in the external world is known
as Strength. This may include employee encouragement, access to specific products or a
robust collection of manufacturing processes.

As an example – If all of the customers offer high-quality goods, a high-quality


manufacturing process isn’t a competitive advantage; it’s a requirement.
a) Strategic marketing position
b) strategic differentiation by being leaders of the network
c) business in largest technology
d) very strong customer base
Weaknesses-
Weaknesses keep a company from reaching its full potential A poor brand, higher-than-
average turnover, high levels of debt, an ineffective supply chain, or a lack of resources are
examples of places where the company needs to change in order to stay competitive.

a) operational inefficiencies
b) in certain cases, unsatisfied customer service

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c) suffers delay issues when compared with their main competitor Vodafone and Octus
d) limited success for outside core business
e) limited market share

Opportunities-
External factors that may provide a competitive advantage to a company are referred to as
opportunities. A car maker, for example, may export its cars into a new market if a country
lowers taxes, rising revenue and market share.
Venture into international markets like China and Asia pacific

a) Step into new businesses and products.


b) reward on focused service
c) increasing demand on telecom sector
d) growing IT service market

Threats
Threats are factors that have the potential to cause harm to a business. A drought, for
example, poses a risk to a wheat-producing business because it can kill or reduce crop
yield. Other common challenges include rising material prices, increased competition, and a
limited labor supply, among others.
a) Saturated mobile market in Australia.
b) complex telecom regulatory complaints
c) different laws in different countries
d) rapidly changing technology
e) strict regulations
f) increasing competition

2. PESTLE ANALYSIS
A PESTLE analysis is a method for analyzing the main factors affecting an organization from
the outside (Political, Economic, Sociological, Technological, Legal, and Environmental). It
provides people managers with information about the external factors that affect their
business.

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Figure 9-Pestel analysis

P-political

E-economical

S-social

T-technological

E-ethical

L-legal

Political Factors
Political factors affect how the government works collaboratively in the economy. Political
factors include tax reform, labor law, environmental law, trade barriers, taxation, and political
stability.

1) Government policy
2) Foreign policy
3) employment practices
4) health and safety laws
5) environmental laws

Economic factors
The success of a country's economy is influenced by economic factors. Economic growth,
exchange rates, inflation, interest rates, consumer income, and unemployment rates are all
considerations. These factors can have a long-term direct or indirect impact on a company

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because they affect consumer purchasing power and can change economic supply models.
The success of a country's economy is influenced by economic factors. Economic growth,
exchange rates, inflation, interest rates, consumer income, and unemployment rates are all
considerations. These factors can have a long-term direct or indirect impact on a company
because they affect consumer purchasing power and can change economic supply models.

1) Inflation rate
2) Exchange rate
3) taxation
4) economic growth
5) bank interest rates

Social Factors
Population development, age distribution, health literacy, work patterns, and other variables
are some of them. These variables are particularly interesting because they have a direct
impact on how marketers understand consumers and what motivates them.

1) cultural beliefs
2) religious beliefs

Technological Factors
Technological factors are variables related to the existence, availability, and development of
technology. This may be a factor in anything from computing power to engine efficiency.

1) communications
2) online technology

Legal Factors
They are the factors that have an effect on businesses as a result of or in direct role of
government regulations. They have a significant impact on how businesses operate, how
much money they collect, and how their customers behave.

1) laws and regulations


2) safety standards
3) employment laws

Ethical factors
Ethics are important because they discuss both corporate and social responsibilities. These
PESTLE factors may be vulnerability or an advantage for an organization or company,
depending on the situation.

1) ways of doing business


2) accepting bribes

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3) Overall levels of corruption in the country.

3. Pestle analysis for a telecom company in Australia


Positives Negatives

Political  Stable political environment  Increased trade agreement


 low government efficiency
 low efficiency of financial sector

Economic  good economic background  economy suddenly changes


 increases the income inequality
 acceptable infrastructure
and abundant labor

 reduce poverty

 changes in the life of local  changing attitudes and population


people  increased crime and anti-social
Social  improvement in activities
infrastructure leading to  less moral and religious values
lifestyle changes because of increased pollution

Technological  high technological  Technology has created


development distraction by causing a reduction
in the education levels of people.

Environmental  conservation and  impact of energy consumption has


improvement in resulted in depletion of natural
environmental quality and resources
infrastructure  loss of human habitat

Legal  obeys the rules and  too many laws prevent


regulations economic growth

Table 9

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A) STRENGTH OF TELECOM COMPANY


A stable political environment - Because of a secure political climate, well-distributed
government regulation, decreased restrictions across national borders, political reform, and
less interference, businesses can easily develop and prosper in the market.

Good economic background -The economic history plays a significant role in the corporate
world because it is used to classify an organization's growth, as well as its success and
failure. The advantage of a strong economy is that if a company runs out of jobs, they can still
hire workers at a low cost.

High technological development - Tech companies and robotic process automation help
telecommunications companies improve customer support and loyalty, and artificial
intelligence drives these technologies behind the scenes.

Obey the rules and regulation- Employees who follow laws and regulations are better able
to understand what is required of them and what will happen if they break them. As a result,
the team performs better when everyone follows clearly communicated rules and regulations,
and the organization profits more.

B) WEAKNESS OF TELECOM COMPANY


Increased trade agreement- Any trade deal would result in the failure of less competitive
businesses. They can't cope with the foreign country's more strong industry. They lose their
price advantage as price increases are withdrawn.

Low government efficiency- Government revenue falls as government spending falls,


regardless of tax policy, and the economy shifts to the left. As net exports decline, the
increase in income will change left due to an external decrease in demand for exported
goods or an external increase in demand for imported goods.

Low efficiency of financial sector - Lack of Co-ordination among financial institutions,


High Rate of Interest, Capital Market Is Dead.

Increased crime and ant-social activities - An antisocial lifestyle includes a variety of


associated behaviors such as abusive and aggressive crime, drug abuse, child neglect,
reckless driving, and sexual behavior, some of which are clearly harmful to one's health.

Less moral and religious values because of increased population - Though religious
attitudes and perspectives can lead to workplace conflict, religion can also encourage
positive values to arise. Religion, for example, may have a positive impact on a worker's
commitment, productivity, and connectivity.

Loss of human habitat - Employees can find it difficult to establish and maintain a
successful relationship with an organization that lacks human resources. If workers are
dissatisfied with their employment or with the business, production will suffer, and income
may suffer as a result. In case of human habitat, the net income or the business growth
would be falls down.

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C) OPPORTUNITY OF TELECOM COMPANY


Acceptable infrastructure and abundant labor- Economic growth in resource-rich and
labor-rich economies... Being a little poorer allows an economy to achieve rapid
development. It began as a logging company but has now expanded into the unskilled labor
market of, because infrastructure will improve labor productivity.

Reduce poverty- Reduced poverty helps to reduce people's financial stress and allows
them to live a life in which they can meet their basic needs and desires. As a result,
businesses can sell more goods and services and gradually grow.

Changes in the life of local people- the value of changes in the workplace encourages
workers to gain new skills, pursue new opportunities, and exercise their creativity in ways
that support the company through new ideas and increased engagement.

Improvement in infrastructure leading to lifestyle changes- improvement in information


System includes improvements in construction materials, adequate power supply, and well-
maintained highways. These can assist businesses in gaining access to a safe working
atmosphere, which can also aid in the establishment of new businesses.

Conservation and improvement in environmental quality and infrastructure - When a


country grows, it opens up more opportunities for businesses to grow, but without proper
management and regulations, the environment suffers. However, the creation of a better
atmosphere, as well as a good infrastructure, will assist organizations in increasing labor
supply, which contributes to improved motivation and makes business much easier.

D) THREATS OF TELECOM COMPANY


Economy suddenly changes - The economy involves all activities in a country that include
the production, distribution, and consumption of goods and services, therefore in case of
sudden change in economy may leads business downfalls and the production and services
would be collapsed.

Increases the income inequality - If income inequality has an effect on how people
behave... Their ability to invest in education and their lower health levels, among other
things, can have an impact on their development. Its demand for goods and services may be
reduced. They can obtain savings, which banks can then lend out, resulting in increased
investment in the economy.

Changing attitudes and population- A negative work environment and poor motivation
may result from a negative work environment. As a result, there is a decrease in productivity
and trouble retaining workers. It is important to shift workplace behaviors so that they are
supportive and friendly to a healthy business climate.

Too many laws prevent economy growth – new form tax will be increase, business cash
flow will be going down.

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4. How does a macro factor influence business decision make?


a) Demographic forces: Country/region; age; ethnicity; education level; home
lifestyle; cultural features and movements all have an influence on various market
segments.
Example-: Sales growth forecasts, relative profitability, and competitive pressure

b) Economic factors: Both the organization's output and the consumer's decision-
making process are affected by the economic climate.

Example-: Interest rate, exchange rate, unemployment.

c) Natural/physical forces: It is necessary to address the regeneration of Earth's


natural resources, such as forests, agricultural products, and marine items. Oil, coal,
minerals, and other nonrenewable natural resources may have an impact on the
organization's production.

Example-: The amount of light, temperature, and disturbances in your office may all
have an impact on your productivity. Working in a workplace with insufficient light might
cause you to get stressed.

d) Technology factors: The skills and expertise used in product and service
production, as well as the technology and materials required, all have an influence on the
Smooth performance of the company and must be considered.

Example-: When a worker is efficient, he also happens to be productive. Furthermore,


the more in contact a company is with its current and future consumers, the more likely it
is to develop a strong customer loyalty base.

e) Political and legal forces: Political and/or legal events affecting the
organization and its markets should constantly be considered when making marketing
decisions.

Example-: Political factors can have an influence on a company by making the market
climate more or less favorable to it. Governments often possess a lot of control over
businesses, and there isn't much that businesses can do about it.

f) Social and cultural forces: The social effect of the products and services your
company puts to market must be examined. To establish that your company is socially
responsible, any parts of the manufacturing process or goods that are damaging to
society should be removed.

Example-: The environment is a current example of this, with many industries being
pushed to rethink their goods or services in order to become much more economically
beneficial

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Unit 01
BUSINESS AND BUSINESS ENVIRONMENT
BM 33

5. How does a micro factor influence business decision make?


a) Suppliers -Suppliers can control the success of the business when they hold power.
Suppliers hold the power when they are only larger supplier of the raw material/goods.
The supplier’s product is a core part of the buyer’s finished product.

Example-: A wood business, an electrical company, and a toolmaker might all be


among your suppliers. They provide you with wood, electricity, and furniture-making
equipment.

b) Re-sellers- if the product is taken into the market by 3rd party re-sellers such as
retailers, whole sellers, then the marketing success is impacted by those re-sellers.

c) Customer - who the customers are and their reasons for buying the product will pay
a large role in how you approach the marketing of your products and services to them.

Example-: A customer is someone who purchases a television from an electronics


retailer.

d) Competitors – those who sell same or similar products and services as your
organization and the way they sell it needs to be taken into accounts.

Example-: Two fast food chains are McDonald's and Burger King. Indirect competitors
are businesses who provide a product or service in the same category as you, but that is
unusual enough to serve as a replacement for your product or service. McDonald's and
Subway are two examples of fast food restaurants. Frozen dinners are sold by
McDonald's and Stouffer's, for example.

e) General public – any org has a duty to satisfy the general public. The company
should consider how any action of them can affect the general public. General public has
the power to help the company to reach its goals; they can also prevent the company
from reaching its goal.

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Unit 01
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CONCLUSION
Due to a lack of information on the organization, I had great challenges in collecting
information about it, and identifying the organization's negative and positive features was
hard. I faced difficulties to provide the reference. In any event, I gave it my best for this task.
This is my first time completing a task. Mr. Shankar and the other BCAS professors
supported me in performing research work for this project, and I'd want to say thanks to
them.

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Unit 01
BUSINESS AND BUSINESS ENVIRONMENT
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References
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