BUSINESS STUDIES PROJECT​

MADE BY:- POOJA PATEL​

CLASS:-12TH COMMERCE
PROJECT ASSIGNED BY:-DEVENDRA SIR
TOPIC:-‘BUSINESS ENVIRONMENT'
Acknowledgement
 I would like to express my special thanks and
gratitude to my subject teacher Mr. Devendra
Sir and Principal Mr. Melroy McDonald Sir for
their constructive advice and constant
motivation have been responsible for the
successful completion of my project.
 My sincere thanks to my parents and my

classmates for their motivation and support.

Index
Topic Page No

Meaning of Business Environment 3

Features of Business Environment 5

Importance of Business Environment 9

Elements Of Business Environment 13

Coca Cola and Fanta in the Seventies to Thumbs Up 16

and Campa Cola in the Eighties to Pepsi and Coke in
the Nineties

The Linkages 34
Meaning of Business Environment
 The word ‘business environment’ indicates
the aggregate total of all people,
organisations and other forces that are
outside the power of industry but that may
affect its production.
Features of Business Environment

 The main features of business environment are:-

 1. All the external forces:-Business Environment
includes all the forces, institutions and factors
which directly or indirectly affect the Business
Organizations.
 2. Specific and general forces:-Business
environment includes specific forces such as
investors, customers, competitors and suppliers.
Non-human or general forces are Social, Legal,
Technological, Political, etc. which affect the
Business indirectly.
 3. Inter-relatedness:-All the forces and factors of
Business Environment are inter-related to each other.
For example with inclination of youth towards western
culture, the demand for fast food is increasing.
 4. Uncertainty:-It is very difficult to predict the
changes of Business Environment. As environment is
changing very fast for example in IT, fashion industry
frequent and fast changes are taking place.
 5. Dynamic:-Business environment is highly flexible
and keep changing. It is not static or rigid that is why it
is essential to monitor and scan the business
environment continuously.
 6. Complexity:-It is very difficult to understand the
impact of Business environment on the companies.
Although it is easy to scan the environment but it is
very difficult to know how these changes will
influence Business decisions.
 7. Relativity:-All forces of the Business environment
are interrelated and dynamic, which makes it
difficult to understand.
 Complex nature of Business environment can be
understood if we study it in parts.
Importance of Business Environment:

 1. It Helps in Identifying Opportunities and Making

First Mover Advantage:-The environment provides
numerous opportunities, and it is necessary to
identify the opportunities to improve the
performance of a business.
 2. It Helps the Firm Identify Threats and Early
Warning Signals:-The business environment helps
in understanding the threats which are likely to
happen in the future.
 Environmental awareness can help managers
identify various threats on time and serve as an
early warning signal.
 3. It Helps in Tapping Useful Resources:-Business
and industry avail the resources (inputs) from the
environment and convert them into usable
products (outputs) and provide to society.
 The environment provides various inputs
(resources) the like finance, machines, raw
materials, power and water, labour, etc.
 4. It Helps in Coping With Rapid Changes:-The
business environment is changing very rapidly, and
the industry is getting affected by changing market
conditions.
 5. It Helps in Assisting in Planning and Policy
Formulation:-The business environment brings both
threats and opportunities to a business.
 Awareness of business environment helps in deciding
future planning or decision making.
 (F) It Helps in Improving Performance:-Environmental
studies reveal that the success of any enterprise is
closely bound with the changes in the environment.
 The enterprises which monitor and adopt suitable
business practices not only improve their performance
but become leaders in the industry also.
Elements Of Business Environment
 1. Economic Environment:- It has immediate
and direct economic impact on a business.
Rate of interest, inflation rate, change in the
income of people, monetary policy, price level
etc. are some economic factors which could
affect business firms.
 2. Social Environment:- It includes various

social forces such as customs, beliefs, literacy

rate, educational levels, lifestyle, values etc.
Changes in social environment affect an
organization in the long run.
 3. Political environment:- It 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.
 4. Technological environment :- It refers to the
changes in the output, production methods, use of
equipment and quality of product. It includes
forces related to scientific innovations and
improvements in products as well as production
technology.
 5. Legal Environment:- It constitutes the laws and
legislations passed by the Government,
administrative orders, court judgments, decisions
of various commissions and agencies. Businessmen
have to act according to various legislations and
their knowledge very necessary.
Coca Cola and Fanta in the Seventies to
Thumbs Up and Campa Cola in the Eighties to
Pepsi and Coke in the Nineties
Soft Drink
 A soft drink is any water-based
flavored drink, usually but not
necessarily carbonated, and typically
including added sweetener. Flavors used can
be natural or artificial. The sweetener may be
a sugar, high-fructose corn syrup, fruit juice,
a sugar substitute or some combination of
these. Soft drinks may also
contain caffeine, colorings, preservatives and
other ingredients.
History Of Coca Cola
 The Coca-Cola Company re-entered India through
its wholly owned subsidiary, Coca-Cola India
Private Limited and re-launched Coca-Cola in 1993
after the opening up of the Indian economy to
foreign investments in 1991. Today, this brand is
the leading brands in most beverage segments.
 The Coca-Cola Company’s brands in India
include Coca-Cola, Fanta Orange, Limca,
Sprite, Thums Up, Burn, Kinley, Maaza,
Minute Maid Pulpy Orange, Minute Maid
Nimbu Fresh and the Georgia Gold range of
teas and coffees and Vitingo.
Entry And Exit Of Coca Cola
 Coca-Cola came to India in the year 1956. Since India
had not any foreign exchange act, Coca-Cola made
huge money operating under 100% foreign equity. A
new Indian foreign exchange act was implemented in
the year 1974. After that government instructed Coca-
Cola to either write up a new plan or to leave the
country. In 1977, The Janta Party came into the power
and stressed that Coca-Cola should either accept the
foreign exchange act or leave the country.
Thums Up
 Its strong and fizzy taste makes it unique
carbonated Indian cola. As of February 2012,
Thums Up is the leader in the cola segment in
India, commanding approximately 42%
market share and an overall 15% market
share in the Indian aerated waters market.
Campa Cola
 Campa Cola is a soft drink brand in India. It
was a market leader in the Indian soft drink
market in the 1970s and 1980s in most
regions of India until the advent of the
foreign players Pepsi and Coca Cola after
the liberalisation policy of the P. V. Narasimha
Rao government in 1991.
Re-Entry Of Coca Cola
 Coca Cola has re-entered India in 1993, giving its
competitor Pepsi Co a huge four year heads up into
the Indian market which used this opportunity to
capture much of the Indian consumer’s
imagination. Coca-Cola re-entered after
government approval, due to the new liberalization
policies that were coming to India.
Pepsi
 Pepsi is a hundred-year-old brand loved by
over 200 million people worldwide. The
largest single selling soft drink brand in
India.
FACTORS RESPONSIBLE FOR ENTRY OF PEPSI IN INDIA

 The company claimed that it would play a central

role in bringing about an agricultural revolution in
the state and would create many employment
opportunities.
 To make its proposal even more lucrative, PepsiCo
claimed that these new employment opportunities
would tempt many of the terrorists to return to
society.
Between 1977-1988
 The company knew that the political and
social problems that plagued Punjab were an
extremely sensitive issue for India in the
1980s. Pepsi Co’s decision to link its entry
with the development and welfare of the state
was thus a conscious one, aimed at winning
the government over.
Mirinda
 Mirinda s a brand of soft drink originally
created in Spain in 1959 and distributed
globally by PepsiCo since 1970. Its name
comes from the Esperanto translation of
"admirable" or "amazing"
Mountain Dew
 Mountain Dew, stylized as Mtn Dew in some
countries, is a carbonated soft drink brand,
produced and owned by PepsiCo. The original
formula was invented in 1940
by Tennessee beverage bottlers Barney and
Ally Hartman.
7 Up
 7 Up or Seven Up is an American brand
of lemon-lime–flavored non-caffeinated soft
drink. The brand and formula are owned
by Keurig Dr Pepper, although the beverage is
internationally distributed by PepsiCo.
Sprite
 Sprite is a clear, lemon-lime flavored soft
drink created by the Coca-Cola Company.
Sprite comes in multiple flavors,
including cranberry, cherry, grape
and orange. Ice, peach, Berry clear remix, and
newer versions of the drinks are artificially
sweetened.
Limca
 Limca is an Indian multinational brand
of lemon- and lime-flavoured carbonated
soft drink made primarily in India and certain
parts of the U.S. It contains 60 calories per
150ml can. The formula does not include
fruit, relying instead on artificial flavours.
Fanta
 Fanta is an American-owned brand of fruit-
flavored carbonated soft drink created
by Coca-Cola Deutschland under the
leadership of German businessman Max
Keith. There are more than 200 flavors
worldwide. Fanta originated in Germany as
a Coca-Cola alternative in 1941 due to the
American trade embargo of Nazi Germany.
The Linkages
 Presence of Pesticides:- In 2003, the Centre
for Science and Environment (CSE) findings
stirred the beverage industry in India. CSE
claimed to find dangerous levels of pesticides
in all the 57 samples of 11 soft drinks brands
collected by the organization from 25
different manufacturing units of Coca-Cola
and PepsiCo spread over 12 states.
Effect On Industry

 Both Coke and Pepsi published newspaper

advertisements to spread message against
the report. The companies attacked the
credibility of the CSE and their lab results,
citing regular testing at independent
laboratories proving the safety of their
products.
Ground Water Crisis

 Coca-Cola was recently accused of ground

water depletion in many areas of the country.
Coca-Cola’s bottling operations – which
extract hundreds of millions of liters of water
from the groundwater resource – have
significantly worsened the water crisis as
groundwater levels have dropped sharply
since Coca-Cola started its operations.
Conclusion
 A positive change in Business Environment
leads to growth of business while a negative
change leads to decline in business. A
business should identify the sign of threats to
protect itself from negative change while it
should identify the early opportunities to get
maximum benefit out of it.
Bibliography
 www.google.com
 www.youtube.com
 www.comgyan.com
 www.cocacolaindia.com
 www.wikipedia.com
 www.byjus.com
THANK YOU!!!