Nikunj Shah 06Nilesh Mishra 39

Gaurav Bora 15Anand Singh 12

Palak Shah 38

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.

What is business environment?

Business EnvironmentBusiness decisions are influenced by two sets of

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

Business Environment presents two challenges to the enterpriseThe challenge to combat the environmental threatsExploit 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

Important internal factors which have a bearing on the decisions of a business firm and which are generally controllable because the company has control over these factors:

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

Internal environment

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

Micro environment consists of the actors in the company’s 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 actors in the company’s micro environment.

External environment

Input suppliers

Workers & their unions

Public

Competitors

Marketing intermediaries

Customers

BUSINESS

Micro environment

BUSINESS

SOCIAL

GLOBAL

POLITICAL

TECHNOLOGICAL

Macro environment

ECONOMIC

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)

• External factors– Opportunities (O) – Threats (T)

Strengths

Opportunities

Weaknesses

Threats

The SWOT matrix

Parent Company Mahindra

Category Sedans, SUV’s, Two-wheelers

Sector Automobiles

Tagline/ Slogan Rise; Every 2 minutes a Mahindra is born

USPMahindra SUV’s have a stronghold in the Indian commercial taxi market which have good performance o tough terrains

Strength

1. Mahindra has been one of the strongest brands in the Indian automobile market2. Mahindra group give employment to over 110,000 employees3. Excellent and , and low after service cost4. Sturdy SUV’s good for Indian roads and off-road terrain

Weakness1. Mahindra’s partnership with Renault did not live up to international quality standards through their brand Logan

Opportunity

1. Developing hybrid cars and fuel efficient cars for the future2.Tapping emerging markets across the world and building a global brand3.Fast growing automobile market4.Growing in the market through electric car Reva (controlling stake) and entry into two-wheeler segments

Threats

1. Government policies for the automobile sector across the world2. Ever increasing fuel prices3. Intense competition from global automobile brands4. Substitute modes of public transport like buses, metro trains etc

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