BBA

BUSINESS ENVIRONMENT
 MODULE-II
 UNIT-I

By
 Dr. Venkateswarlu chandu
 Aim

• The aim of this unit includes the following:

• To introduce students to Functions of the state
• Familiarise students with important concepts such as Economic roles
of government, Regulatory role, Entrepreneurial (Promotional role),
Planning role

Instructional Objectives

To make you enthusiastic about learning Economic roles of

government, this unit will:
• Demonstrate Regulatory role
• Explain to you the Entrepreneurial (Promotional role),
• Discuss the significance of planning role
 Learning Outcomes

Upon completion of this unit, the student will be able to:

• Explain why Regulatory role
• Identify the Entrepreneurial roles of government
• Describe significance of planning role
SIGNIFICANCE OF POLITICAL ENVIRONMENT

 The political climate may be of the utmost significance to a

firm. Economic policies and decision-making procedures of a
government can have an impact on a company's potential
for success or failure.
 While boosting one sort of business can increase profits for
that industry and its members, it can also hurt other
companies' bottom lines.
 The government also considers all these risks and
repercussions since prolonged or abrupt changes in the
political environment may have an effect on GDP and the
overall health of the economy.
FACTORS INFLUENCE POLITICAL ENVIRONMENT
1. Stability
This is among the most important things. The stability of the
political climate has a significant positive impact on the economy
and business in general. If a country's political structure is erratic
and subject to frequent changes, it cannot be economically stable. In
a vicious cycle, both the GDP and stock market index would
decrease.
2. Taxation
The taxation system has a significant impact on the political
climate. If a government is fiscally and tax-wise balanced,
businesses are encouraged to produce more and expand.
3. Foreign Policies
A country's political environment should achieve a balance between
growth and international investment. Without foreign investment,
difficulties with growth and technological expertise may arise, but
too much foreign investment may result in the exodus of domestic
players.
 ECONOMIC ROLES OF GOVERNMENT

 The basic roles of the government include the provision of

property rights, macroeconomic stability, control of
infectious diseases, safe water, roads, and protection for
the poor.
 The state's functions range from the most basic minimum
requirements to active participation in a number of other
sectors. In many nations, the government doesn't even
offer these.
 The intermediate tasks, like managing externalities
(pollution), controlling monopolies, and providing social
insurance, go beyond these fundamental services
(pensions, unemployment, benefits).
 REGULATORY ROLE
 Government regulation of business operations may span
a wide range, from starting a business to evaluating its
performance.
 The restriction of certain industries to small-scale,
public, and cooperative sectors, as well as the licencing
system, among other things, govern admittance.
Regulation of the product mix, promotional tactics, etc. is
equivalent to regulation of company activity.
 The two main types of government regulation of the
economy are direct controls and indirect controls.
 Indirect controls are typically implemented through a
variety of financial incentives, disincentives, and
penalties. Through financial and fiscal incentives and
disincentives, some activities may be promoted or
discouraged.
 For instance, a high import duty may deter imports, but
financial and fiscal incentives may promote the growth of
industries focused on exports. physical or direct
administrative controls
 ENTREPRENEURIAL ROLE (PROMOTIONAL ROLE)
 The state will be directly responsible for creating and bolstering the
development infrastructures that are required, including institutions for
training and guidance, marketing, finance, power, transportation, and
other promotional activities.
 The provision of various fiscal, monetary, and other incentives,
including measures to cover some risks, for the development of
particular priority sectors and activities is also included in the state's
promotion role.
 In many economies, the government also assumes the role of an
entrepreneur, creating and running businesses and taking on the
associated risks.
 Numerous factors, including socio-political ideologies, a lack of private
enterprise, private entrepreneurs' disregard for particular industries,
such as the unprofitable ones, a lack of or insufficient competition in
certain markets, and the consequent exploitation of consumers, etc.

 In many developing nations, the public sector tended to hold a

prominent position. In capital-intensive industries like steel, capital
goods, petrochemicals, and fertilisers, where investment requirements
were high and expected private returns, at least in the short term, were
too low to encourage private profitability, public sector dominance was
typically established.
 PLANNING ROLE
 The State is a highly important planner, especially in
emerging nations. Jawaharlal Nehru, the principal
proponent of development planning in India, frequently
emphasised the value of planning to a less developed
economy.
 Whatever it may be in other nations, in underdeveloped
countries like ours, which have to develop rather swiftly, the
time aspect is vital and the question is how to use our
resources to the best advantage, remarked with great
accuracy.
 It won't matter how we use our resources if they are plenty.
They will merge into a single development pool. However,
when resources are scarce, one must ensure that they be
used wisely to support the development of whatever
BBA

BUSINESS ENVIRONMENT
 MODULE-II
 UNIT-II

By
 Dr. Venkateswarlu chandu
 Aim

• The aim of this unit includes the following:

• To introduce students to technological environment
• Familiarise students with important concepts such as
innovation, technology and competitive advantage, sources of
technological dynamics, IT revolution of business environment,
ICT & Marketing
Instructional Objectives
• To make you enthusiastic about learning technological
environment, this unit will:
• Demonstrate Innovation
• Explain to you the technology and competitive advantage
• Discuss the significance of sources of technological dynamics
• Explain IT revolution of business environment
• Describe the various ICT & Marketing
 Learning Outcomes

Upon completion of this unit, the student will be able to:

• Explain why technological environment is important
• Identify the innovation, technology and competitive
advantage
• Describe significance of Sources of technological
dynamics
• Summaries IT revolution of business environment
• Identify ICT & Marketing
 TECHNOLOGICAL ENVIRONMENT

 While other surroundings, such as the economic, social,

political, and governmental elements, indicate the propulsive
potential for development, the natural and technological
settings show the impulsive potential for development.

 The external means of exploitation of the development

potential, as well as the direction, pace, and pattern of
development, are determined by the natural and technical
environments and the driving forces. One of the key factors
influencing a company's performance as well as the economic
and social advancement of a country is technology.
 TECHNOLOGY AND COMPETITIVE ADVANTAGE

• Technology development is "one of the major drivers of

competitiveness," according to Michael Porter, who makes this point
in his well-known book Competitive Advantage. Both the
reorganisation of existing industries and the emergence of new ones
depend greatly on it. It also acts as a great leveller, reducing the
competitive advantage of even long-established businesses and
elevating others to the fore. Many of the big businesses of today
were able to capitalise on technical advancements.
• In the following situations, a firm's technological innovation will
result in a lasting competitive advantage, according to Porter.
• The technological advancement itself reduces costs or improves
distinctiveness, and the enterprise maintains its technological
advantage.
 SOURCES OF TECHNOLOGICAL DYNAMICS
The technological dynamics of a corporation are influenced by a variety of elements.
Technology change can come from both internal and external sources. The following are
some crucial elements that affect a company's technological dynamics: Drive for Innovation
at the Company Many businesses place a high value on R&D because they see it as a key
driver of competitiveness and development.

 Ranbaxy, for instance, has positioned itself as a multinational corporation centred on

research because it recognises the crucial role that R&D plays in the pharmaceutical
industry.
 Client Needs and Expectations: The wants and expectations of the customer may also have
an impact on a company's technological orientation and R&D efforts. In many instances, the
supplier and the client work together to develop new products or services.
 IT REVOLUTION OF BUSINESS ENVIRONMENT

The corporate environment is particularly dynamic due to the quick

development of related technologies and the widely recognised "machine
that changed the world" known as the computer. According to Lucas, IT
offers novel organisational design methodologies that could produce a
structure resembling the T-Form organisation.
By providing huge efficiency in the industrial and service sectors, creates
new linkages between clients and providers who connect electronically and
supports just-in-time manufacturing. provides tools for organising work
through groupware, creating a knowledge base of organisational
intelligence. This changes the basis for competition and the structure of
the industry, as in the case of the airline and securities sectors. The
following advantages of business from information technology
1. Enhances the flexibility and productivity of knowledge employees.
2. Provides the manager with technological alternatives for direct
 ICT & Marketing

• Technology for telecommunications, audiovisual processing, and network-

based management and monitoring operations are collectively referred to
as information communication technology (ICT). ICT is used in
organisations to increase their capabilities because it is essential to the
majority of enterprises. Internet-enabled and mobile-powered technology
are both included in ICT.

• It aids businesses in spotting possibilities and putting marketing messages

across a variety of channels into practise. Additionally, it facilitates market
expansion, a variety of revenue sources, 24-hour accessibility, ease, value
addition, customer pleasure, enhanced sales performance and credibility,
and growth opportunities.