Palak Shah Pratiksha Patel Nikunj Shah Anand Singh Gaurav Bora Nilesh Mishra

38 24 06 12 15 39

What is business environment?

Business environment includes the climate or set of conditions:- economic, social, political or institutional which have a direct or indirect bearing on the functioning of business It signifies external forces, factors and institutions that are beyond the control of the business and they affect the functioning of a business enterprise.

Business Environment

Business decisions are influenced by two sets of factors

Internal factors (The Internal Environment External Factors( The External Environment)

Business Environment presents two challenges to the enterprise

The challenge to combat the environmental threats Exploit the business opportunities

Environmental Analysis is one of the first steps in Strategic Management

Types of environment

Internal environment

External environment

Micro environment

Macro environment

ENVIRONMENT OF BUSINESS

Internal environment
The internal environment is the environment that has a direct impact on the business.

Value system Vision, mission and objectives Management structure and nature Internal power relationship Human resources Company image

External environment
Micro environment consists of the Factors in the companys immediate environment that affect the performance of the company. They are more intimately linked with the company. Macro environment consists of larger societal forces that affect all the Factors in the companys micro environment.

What is SWOT Analysis?

A technique that enables a group or individual to move from everyday problems and traditional strategies to a fresh perspective.

Factors affecting an organization can usually be classified as: Internal factors

Strengths (S) Weaknesses (W)

Strengths

Weaknesses

External factors
Opportunities (O) Threats (T)

Opportunities

Threats

The SWOT matrix

Parent Company Mahindra & Mahindra Ltd. Sector Category Mission Automotive & Farm Equipment Tractors, Utility Vehicles Commercial & Passengers, Two-Wheelers To create India's largest automobile and automobilerelated products distribution network by providing dealers and customers with the largest choice of unique world-class products and services. To create a fully collaborative environment in which suppliers can deliver exactly what the company needs, when it needs it, and at a competitive cost.

Vision

SWOT ANALYSIS
1.

Strengths

1. Trust people are having in the brand name Mahindra motors. 2. Market leader in Tractors & 3-Wheeleer. 3. Number of authorize service station is in good number than that of competitors. 4. Competitive Advantage. 5. Stylish & Safer than the Tata Product.

2. Weaknesses
1. The company highly dependent on the rural sectors, for Tractors & Farm equipments. 2. Average is less than that of Tata product & Maintenance cost is high. 3. Rising cost of raw materials resulting in low margins. Therefore discounts cant be offered.

SWOT ANALYSIS
3. Opportunities
1. In India, the penetration of tractors is 10 tractors per 1000 hectares of cropped area, which is much below the world average of 19 tractors for the same. 2. Improving road infrastructure. 3. Standard of living of country people are improving day by day. 4. Growing in the market through luxury SUVs cars and entry into two-wheeler segments.

4. Threats
1. 2. 3. 4. Entry of foreign players Lack of Technology for Indian Companies. Cut throat competition. Threat of Subsititutes.

THANK YOU.