business enviornment - copy.pptx

Upload: hemantnc3850

Post on 07-Aug-2018

227 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/20/2019 Business Enviornment - Copy.pptx

    1/77

    Business is the organized eforts o enterprises tosupply consumers with goods and services or aprot

    What is Business???

  • 8/20/2019 Business Enviornment - Copy.pptx

    2/77

  • 8/20/2019 Business Enviornment - Copy.pptx

    3/77

  • 8/20/2019 Business Enviornment - Copy.pptx

    4/77

    Classication o Business %nviornment

    2+%3ternal ( "acro

  • 8/20/2019 Business Enviornment - Copy.pptx

    5/77

    External Environment

    • 4ncludes all actors outside the organizationwhich provide opportunities or pose threatsto the organization

    • 5ncontrolla*le actors

    • Consists of Macro and Microenvironment

  • 8/20/2019 Business Enviornment - Copy.pptx

    6/77

    "acro %nvironment

    It comprises general trends andforces that may not immediately

    aect the organization butsooner or later ill alter the ayorganization operates!

  • 8/20/2019 Business Enviornment - Copy.pptx

    7/77

    "icro %nvironment

      "It consists of the factors in thecompany#s immediate environment

    that aect the performance of thecompany$!

  • 8/20/2019 Business Enviornment - Copy.pptx

    8/77

    Internal Environment

    6eers to all the actors that are within an organization which

    impart strengths or cause ea%nesses of strategic nature+

    Controlla*le actors+ .hese include7

      8alue system

      "ission and ,*9ectives

     

    "anagement tructure and :ature

     

  • 8/20/2019 Business Enviornment - Copy.pptx

    9/77

    Components of InternalEnvironment

    ;uman 6esources

    Company 4mage and Brand %

  • 8/20/2019 Business Enviornment - Copy.pptx

    10/77

    &vervie of Business Environment

    MACRO ENVIRONMENT 

    ECONOMICEnvironment 

    MICRO ENVIRONMENT 

    BUSINESS 

    Internal Environment 

    Values,Mission & Objectives

    !uman Resources,Co Ima"e & Bran# E$uit% 

    TEC!NOO'ICA(ACTORS 

    MAR)ETIN'INTERME*IARIES 

    *EMO'RA+!IC(ACTORS 

      SOCIACUTURA(ACTORS 

    'on ( Economic

    Environment

  • 8/20/2019 Business Enviornment - Copy.pptx

    11/77

    Environmental )nalysis

    %nvironmental canning

     .he process *y which organizations monitortheir opportunities and threats afecting

    their *usiness is #nown as environmentalscanning

    W,. )nalysis

  • 8/20/2019 Business Enviornment - Copy.pptx

    12/77

    • *as% Environment o an organizationis the environment which directly afects

    the organization rom attaining *usinessgoals+

    • 4t is the set o conditions originating

    rom suppliers distri*utors customersand competitors which directly afectsthe organization rom achieving itsgoals+

  • 8/20/2019 Business Enviornment - Copy.pptx

    13/77

    %3amples o how tas# environmental actors in0uencethe *usiness

      Customers

    • Customers decide the ate o any company and hence companies try their level*est to lure them+

      +uppliers

    • uppliers have high *argaining power i the raw materials *eing supplied are

    rare or i there are less num*er o suppliers in the mar#et+

    • o it@s important to hold on the suppliers and maintain good relationship withthem+

    )cting intelligently companies oten maintain more num*er o suppliers toreduce ris# o deserting *y anyone+

      Wholesalers , -etailers

    •  .hey play a vital role in a tas# environment+

      Competitors

    • >irect competitors ' 4ndirect Competitors

    • %+g+ Pharmaceutical Companies• ;ealth clu*s !yms

  • 8/20/2019 Business Enviornment - Copy.pptx

    14/77

    • Characteristics of BusinessEnvironment

    • 4nterrelatedness  ) change in one element can cause

    changes in others

    e+g+ ocial pressures led to anti pollutionlaws

    ( 4n >elhi new registrations o the 58s

    a*ove A cc capacity are *anned• i+e+ ;igh %nd diesel cars

    • ;igher prices o >iesel leads

    to increase in prices o the

  • 8/20/2019 Business Enviornment - Copy.pptx

    15/77

    A+ 8olatility

    5npredicta*le shits in the economy

    6apid changes in the customer preerences

    6apidly changing technology

    ;ence *usiness environment is volatile

    + Comple3ity

    =irms reependence

     .he e3tent to which an organization is dependent on itsenvironment+

     .he degree o dependence depends upon theorganization@s need or vital resources rom outside+

    e+g+ ) rm re

  • 8/20/2019 Business Enviornment - Copy.pptx

    16/77

    • 5ncertainty

    •  .he *usiness environment is less

    predicta*le•  >ecision ma#ing *ecomes diGcult due

    to environmental uncertainty+

      .he *usiness environment is moreuncertain ' unpredicta*le due to

    6apid changes

    4nterrelatedness *etween its variouscomponents

    6esources constraints

      %nvironmental uncertainty is due to its

  • 8/20/2019 Business Enviornment - Copy.pptx

    17/77

    =actors afecting 4nternal %nvironment

    • ,*9ectives o the rm

    • What are the goals o the company ?

      e+g+ ales Prot ' !rowth o*9ectives

    ,rganizational 6esources

    2+=inancial 6esources

    a+ )c

  • 8/20/2019 Business Enviornment - Copy.pptx

    18/77

    A+Physical resources

    a+Plant

    %Gciency o the mg+ plantWarehouses

    ,Gce *uildings

    *+ $ocation o the plantCloseness to the suppliers consumer

    mar#ets

    )ccessi*ility to the transportation)vaila*ility o la*ors

    c+6aw material resources

    )vaila*ility

  • 8/20/2019 Business Enviornment - Copy.pptx

    19/77

    + ;uman 6esources ( People

    People are the #ey resource or any *usiness rm

    cientists

    %ngineers

    Computer operators

    Proessional managers

    a+ )*ilitiesDnowledge ' s#ills o the employees

    =ullling training needs o the employees ordevelopment

    *+ :eeds

    Weather *usiness org+ is ta#ing care ' satisyingindividual personal needs to #eep them highly

    motivated ?

  • 8/20/2019 Business Enviornment - Copy.pptx

    20/77

    c+ )ptitudes

    ) person@s potential capacity to perorm certain tas#+

    5nless people with the right aptitude are selected training will *e a waste+

    d+ %3pectations

    )*ility o management to ulll the reasona*le e3pectations o theemployees

    e+ Perceptions

    Perceptions o the employees strongly in0uence their e3pectation'*ehavior+

    + )ttitudes

    4t means li#es ' disli#es

    )ttitude afects the perceptions ' *ehavior o the people

    )ttitude o the employee towards the wor# in0uence the perormance atwor#

    H+ 8alues

    8alues are general *elie a*out what is good or *ad

    right or wrong

    %thics "orality

    $eadership styles also in0uence the *ehavior ' perormance o the peoplein an organization+

  • 8/20/2019 Business Enviornment - Copy.pptx

    21/77

    F+ystem and .echnological resources

     .his is related to the manner in which

    the goods ' services are produced+ .echnology

    a+ ystem capa*ilities 7

    6eer to the process aspect&uality control

    6eward policies

    >istri*ution system

    ,rganizational structure

  • 8/20/2019 Business Enviornment - Copy.pptx

    22/77

    *+.echnological Capa*ilities

      .echnology includes com*ination o s#ills e

  • 8/20/2019 Business Enviornment - Copy.pptx

    23/77

    =actors afecting %3ternal %nvironment

    %conomic =actors

    a+ %conomic conditions*+%conomic policies

    c+ %conomic ystems

    a! Economic conditionsChanges in demand pattern

    e+g+

    >eveloped %conomy 7 >emand or lu3ury goodsis more ;igh spending power o the people

    >eveloping %conomy7 People are willing to *uylu3urious goods at lower costs+

  • 8/20/2019 Business Enviornment - Copy.pptx

    24/77

    b!Economic policies

    Economic policies are decided by thegovernment!

    *hey have great impact on the businesses!

    e!g! Monetary , .iscal policies

    e+g+ 6estrictive import policy is *enecial or

    protecting domestic industries+  While additional incentives to e3porters will

    *oost the e3port oriented *usinesses+

    e+g+ Banning e3ports o agricultural commodityli#e onion sugar have great impact on therespective *usinesses+

    e+g+ =le3i*le =>4 policy will *e having adverse

    efect on the domestic industry+

  • 8/20/2019 Business Enviornment - Copy.pptx

    25/77

    c! Economic +ystems

    =ree "ar#et %conomy or Capitalist

    ystem  do not utilize price controls or su*sidies

    and preer less regulation o industry

    and production+• "ar#et decisions rely on supply and

    demand or pricing+

    • "ar#et economies are *ased onconsumers and their *uying decisionsrather than under government control+

  • 8/20/2019 Business Enviornment - Copy.pptx

    26/77

    • Command E6estrictiveE Planned economy(Communism

    •  .he government controls all economic activity+ 4n a

    government-directed economy the mar#et playslittle to no role in production decisions+

    •  .hey are less 0e3i*le than mar#et economies andreact slower to changes in consumer purchasing

    patterns and 0uctuations in supply and demand+&ther /ey 0ariables1Indicators

    • 4n0ation

    • 4nterest 6ates

    • !>P

    • toc# "ar#et

    • Currency %3change 6ate

    • Balance o Payments

  • 8/20/2019 Business Enviornment - Copy.pptx

    27/77

    • "i3ed %conomy

    • ) mi3ed economy com*ines

  • 8/20/2019 Business Enviornment - Copy.pptx

    28/77

    • A+ Political =actors

    • !overnment is *elonging to the political parties

    CountryIs economic legal policies arein0uenced *y leading political parties+

    •  .here has to *e perect coordination *etweenthe govt+ ' the *usiness community+

    • Business community should actively participatein policy ma#ing process *y advising givingnecessary suggestions inormation to thegovt+

      Political in0uence may afect the prospects othe *usiness+

    Business should not adopt malpractices in order

    to grow ' survive+

  • 8/20/2019 Business Enviornment - Copy.pptx

    29/77

    +$egal actors

    $egal ramewor# or the *usinesses is created *y

    govt+

    e+g+ Consumer protection act

    "inimum wages act

    Wor#man@s compensation act

    "6.P )ct ( "onopolistic 6estrictive .radePractices

    4ncome .a3 )ct

    Company )ct

    %ssential Commodity )ct etc

     .oo stringent legal structure afects the growth '

    survival o the *usinesses+

    4t should *e easy to understand ' operate

  • 8/20/2019 Business Enviornment - Copy.pptx

    30/77

    F+;uman =actors

    Pu*lic 6elations

    • C6• ocial contri*utions

     .o ensure the positive image ' the

    rwputation o the companye+g+ .).) 7 Cancer ;ospital

      >onations *y the corporate houses

    to Prime "inister 6elie =und( :atural Calamities

    :>.8 7 ave .iger "ission

  • 8/20/2019 Business Enviornment - Copy.pptx

    31/77

    J+Cultural =actors

    Culture is dominated *y religion and customs+

    4ndia is having everal customs ' traditions+

     .he *usiness is or the society ' the society@sconsumption pattern is greatly afected *y itsculture+

    K+ 4nternational =actors!lo*al *usiness environment

    4mport ' e3port rules ' regulations o eachcountry

    eparate ta3 ' tarif rules

    Political sta*ility worldwide

    Wars

    !lo*al recession

  • 8/20/2019 Business Enviornment - Copy.pptx

    32/77

    H+ .echnological =actors

     .echnology contri*utes towards the

    success growth ' eGciency o the*usiness+

    6apid changes in the technology

    e+ g+4nnovations in communicationtechnology

     .echnological changes in the automo*ile

    industry+5se o the latest technology is essential

    or *usinesses to survive to succeed+

    Positive as well as negative efects

  • 8/20/2019 Business Enviornment - Copy.pptx

    33/77

    L+ :atural =actorsPlays vital role in the success ' the growth o the *usiness

    )vaila*ility o $and Water 6aw "aterial

    =avora*le climatic conditions%+!+ )griculture sector

    Cultiva*le land

    4rrigation ascillities

    "ining industry

    e+g+ Coal mines 7 uGcint resources o coal

    )luminum "anuacturing 4ndustry

    uGcient resources o Bau3ite ( ore is needed

    %astern "aharashtra 7 Cotton grown region

     .e3tile 4ndustry is dominant+

    Western "aharashtra 7 ugarcane grown region

    ugar 4ndustry is dominant

  • 8/20/2019 Business Enviornment - Copy.pptx

    34/77

    M+ ocial =actors

    Business has to wor# or the society ' in thesociety

    )spirations demands o the society need to *eloo#ed ater *y the *usiness+

    &uality products ' services at the reasona*le

    prices%cological *alance has to *e maintained *y the

    *usiness community

    Businesses improve the lie style

    =ocus on reducing consumer dissatisaction levels

    )voiding unair practices in the *usiness

    Building social awareness

    2 > hi =

  • 8/20/2019 Business Enviornment - Copy.pptx

    35/77

    2+>emographic =actors

    Population

    )ge Composition

    !ender4ncome

    =amily ize

    %ducational $evels

    ,ccupatione+g+ >iscount retailers tend to ocus more on lower-to-middle income earners *y emphasizing value aforda*ilityor low-cost products and services or people on a *udget+

      W)$-")6. - %>$P

      ;igh-end retailers commonly target customers with higher-level incomes ( hoppers top

      e+g+ "a9or occupation in rural 4ndia is =arming

    hence it is a most attractive mar#et or the products li#e

     .ractors =ertilizers Pesticides eeds etc

    Ch t A

  • 8/20/2019 Business Enviornment - Copy.pptx

    36/77

    Chapter APro*lems o !rowth

      !rowth is a sign o dynamicorganization

      !rowth can *e measured *y theincrease in sales prots production+

    4 a *usiness does not grow it will *ediGcult or it to survive in the long run+

  • 8/20/2019 Business Enviornment - Copy.pptx

    37/77

    =eatures o !rowth

    • 2radual , Continuous process

    %ssential or prots ' survival• )chievement through expansion 3 diversi4cation

    and merger

    • !rowth is a sign o an active and living organization

    • Important ob5ective of business

    •  .o ensure growth optimum utilization o resources is must

    • Measurement of 2roth

    • !rowth can *e measured

    ( 4ncrease in sales Prots Production o an enterprise• 0isibility

    • !rowth is visi*le

    • ( 4ncrease in sales Prots Production o an enterprise

    0 l f )

  • 8/20/2019 Business Enviornment - Copy.pptx

    38/77

    • 0alue of )ssets

    • !rowing value o assets

    • *otal number of or%ers employed

    • But this indicator may not *e accurate

    • %+g+ =irm having $a*or 4ntensive method '

    • =irm having capital intensive methods may

    have same rate o growth

    6uantity of poer , materials used

    )n increase in the consumption o power

    material water etc *y a rm is an indicatoro its growth+

    $imitations 7 4ncrease might *e due to wastage' ineGcient use o these materials+

  • 8/20/2019 Business Enviornment - Copy.pptx

    39/77

    0olume of &utput

    4ncrease in production

    0alue of output  4 a rm@s value o output has

    continuously increased due to a specic

    period a rm is said to *e growing+  $imitation 7 .he volume o output may

    remain same *ut the value may

    increase due to increase in the pricelevel+

      ;ere the increase in the value o output

    does not indicate the real growth o the

    0ol me of +ale

  • 8/20/2019 Business Enviornment - Copy.pptx

    40/77

    0olume of +ale

    4ncrease in volume o sales is an indicator o growth

    8olume o sales is more important than the volume o output

    )n increase in volume o output will *e useless without acorresponding increase in total sales+

    ales are *etter indicator than output+

    *otal pro4t earned

     .he total prot increases with increase in sales

    ;owever sometimes a rm may increase price per unit whichlead to increases prots+ But the overall output may *esame as *eore+

    Capacity of plant

    ) rm may raise its plant@s production capacity or add a newplant or higher production+

    Consumption of resources

    )n increase in the annual consumption o resources li#e rawmaterial electricity etc+ indicates that the rm is growing+

  • 8/20/2019 Business Enviornment - Copy.pptx

    41/77

    trategies =or !rowth o Business

    7!Internal 2roth +trategies

      When strategies that *ring growthrom Nwithin@ the enterprise +

    )!Expansion

    B! 8iversi4cation9orizontal

    0ertical

    Concentrate

    Conglomerate

  • 8/20/2019 Business Enviornment - Copy.pptx

    42/77

    A+%3ternal !rowth trategies

    "erger

    )malgamation)c

  • 8/20/2019 Business Enviornment - Copy.pptx

    43/77

    7!Internal 2roth +trategies

    )!Expansion

    Business e3pansion reers to raisingthe mar#et share sales revenue andprot o the rm+

    •.  Mar%et penetration•.  Mar%et 8evelopment

    •.  :roduct 8evelopment

    *o mar%et existing products in nemar%ets

    'e :roducts in existing mar%ets

    )chieving economies of +cale

  • 8/20/2019 Business Enviornment - Copy.pptx

    44/77

    B! 8iversi4cation• Concentric

    • Concentric diversication involves adding newproducts or services that are related to your currentoferings+

    • Concentric diversity aims or synergy

    • %+g+

    M,M

     .ractor *usiness

    58s *usiness

     .wo Wheelers *usiness()utomo*ile 4ndustry

    Colgate ; *oothpaste3 *ooth brush3 Mouth ash

    < 8ental Care segment=

    C l t di i4 ti

  • 8/20/2019 Business Enviornment - Copy.pptx

    45/77

    • Conglomerate diversi4cation;

    • When a rm diversies into *usiness which is not related to its e3isting*usiness it is called conglomerate diversication+

    • 4t reers to diversication *y entering entirely new and unrelated lines

    o *usiness+• 4t involves totally a new area o *usiness+ .here is no relation *etween

    the new product and the e3isting product+

      4n *usiness a conglomerate is a company involved in multiple lineso *usiness+

    e+g+

    • -eliance Big *0

    • -eliance Communication

    • -eliance 8igital

    • -eliance Capital

     .ata "otors•  .ata Chemicals

    •  .ata Communication

    •  .ata Consultancy ervices

    •  .ata teel

     .his strategy helps to reduce ris# in the *usiness+

    9 i l 8i i4 i

  • 8/20/2019 Business Enviornment - Copy.pptx

    46/77

    • 9orizontal 8iversi4cation

    •  .his diversication strategy involves thecreation o products that may not *e directlyrelated to current products ofered toconsumers *ut that are highly li#ely to stillappeal to the company@s e3isting client *ase+

    • 4t involves addition o parallel products to thee3isting product line+

    • ) company manuacturing rerigerator mayenter into manuacturing air conditioners+

    • %+g+ ) retail organization involved in selling

  • 8/20/2019 Business Enviornment - Copy.pptx

    47/77

     Bac%ard integration;

    • 4n *ac#ward integration the company e3pands its *usinessactivities in such a way that it moves *ac#ward o itspresent line o *usiness+

    • Example;• >espite o *eing the leaders in .e3tiles to strengthen his

    Position >hiru*hai )m*ani decided to integrate *ac#wardsand produce *res+

    • ii! .orard integration;

    • 4n orward integration the company e3pands its activities insuch a way that it moves ahead o its present line o*usiness+

    • Example;

    • :ew ealand *ased :atural health care products companyComvita purchased its ;ong Dong distri*utor !reen $ie $td+)nd thus achieved orward integration *y having access togreenlie@s retail stores sales staf and in store promoters+

  • 8/20/2019 Business Enviornment - Copy.pptx

    48/77

    • )n e3ample would *e a supermar#etrm that instead o contracting with

    reight companies purchases its owntruc#s and distri*ution acilities that ituses to get ood items and household

    products out to its various locations+

    A %3ternal !rowth trategies

  • 8/20/2019 Business Enviornment - Copy.pptx

    49/77

    A+%3ternal !rowth trategies

    "erger

    • "erger is usion o two or more entities and it is a processin which the identity o one or more entities is lost+

    • "erger reers to a riendly 9oining together o twoorganizations

    • "ergers are usually *ased on the core competencies orms+

    • )c

  • 8/20/2019 Business Enviornment - Copy.pptx

    50/77

     >oint 0enture

    • ) contractual agreement 9oining together two ormore parties or the purpose o e3ecuting a particular*usiness underta#ing+

    • )ll parties agree to share in the prots and losses o theenterprise+

    • Example

    • +ony(Ericsson is a 9oint venture

    •  Oapanese consumer electronics company onyCorporation and

    •  wedish telecommunications company Ericsson toma#e mo*ile phones+

    •  .he reason or this venture is to com*ine onyIsconsumer electronics e3pertise with %ricssonIstechnological leadership in the communications sector+

    • Both companies have stopped ma#ing their own mo*ile

    phones+

    • /Centurion *an# o Pun9a*1 is merged

    http://www.investorwords.com/9295/contractual.htmlhttp://www.investorwords.com/19249/agreement.htmlhttp://www.investorwords.com/623/business.htmlhttp://www.investorwords.com/8794/agree.htmlhttp://www.investorwords.com/4525/share.htmlhttp://www.investorwords.com/3880/profit.htmlhttp://www.investorwords.com/1710/enterprise.htmlhttp://www.investorwords.com/1710/enterprise.htmlhttp://www.investorwords.com/3880/profit.htmlhttp://www.investorwords.com/4525/share.htmlhttp://www.investorwords.com/8794/agree.htmlhttp://www.investorwords.com/623/business.htmlhttp://www.investorwords.com/19249/agreement.htmlhttp://www.investorwords.com/9295/contractual.html

  • 8/20/2019 Business Enviornment - Copy.pptx

    51/77

    • Centurion *an# o Pun9a* is mergedwith /;>=C *an#1

    *ata +teels )cuired Corus3&ctober @AA8eal size; 7@!D billion3 Country;Fnited /ingdom

    • *&MC& merged ith 9FG

  • 8/20/2019 Business Enviornment - Copy.pptx

    52/77

    • 4n amalgamation two or morecompanies 9oin orces to orm a single

    entity+• )malgamation is *lending together o

    two or more *usiness entities in aashion that *oth lose their identitiesand a new separate entity is *orn+

    • %3ample

     

    4 t l ! th t t i

  • 8/20/2019 Business Enviornment - Copy.pptx

    53/77

    • 4nternal !rowth trategies aredeensive in nature+

    •  .hey ensure survival ' progress inplanned manner ensuring sta*ility ande3pansion o the enterprise+

    • %3ternal !rowth trategies areofensive in nature+

    5seul in order to achieve signicantmar#et share growth ' prot+

    Fnemployment

  • 8/20/2019 Business Enviornment - Copy.pptx

    54/77

    Fnemployment

      4t is a situation when any one who is

    not gainully employed in a productiveactivity+

      )n unemployed person is one who is

    see#ing any wor# or wages *ut isuna*le to nd any 9o* suited to hiscapacity+

      5nemployment is oten used as ameasure o the health o the economy+

  • 8/20/2019 Business Enviornment - Copy.pptx

    55/77

    +tructural Fnemployment

  • 8/20/2019 Business Enviornment - Copy.pptx

    56/77

      when wor#ers loose their 9o*s *ecause their s#ills are o*solete or *ecause their 9o*s are transerred to other countries then they are structurally unemployed+

      .here is a mismatch *etween the s#ills o the unemployed wor#ers and thes#ills needed or the 9o*s that are availa*le+

    tructural unemployment occurs when a la*or mar#et is una*le to provide 9o*s oreveryone who wants one *ecause there is a mismatch *etween the s#ills o theunemployed wor#ers and the s#ills needed or the availa*le 9o*s+

      -easons

    "a9or advances in technology

    =inding lower cost o la*ors overseas

    +easonal Fnemployment

    &ccurs hen there is limited need for a speci4c type of or% to beperformed during a certain time of the year!

    4ndustries where seasonal unemployment is common include arming tourism etc

    sugar mills and rice mills in which production activities are seasonal innature+ o they ofer employment or only a certain period o time in a year+

     

    4nvoluntary 5nemployment

  • 8/20/2019 Business Enviornment - Copy.pptx

    57/77

    4nvoluntary 5nemployment

    •  .his is when people are una*le to wor#

    *ecause there are insuGcient 9o*savaila*le in an economy+

    8oluntary 5nemployment

    4n every society there are some people

    who are unwilling to wor# at theprevailing wage rate+

    8isguised unemployment

  • 8/20/2019 Business Enviornment - Copy.pptx

    58/77

    8isguised unemployment+

    When people do not have productive

    ull-time employment+

      %3ample

    People doing part-time wor#+People orced to ta#e early retirement and

    redundancy

     

    • Casual Fnemployment;

  • 8/20/2019 Business Enviornment - Copy.pptx

    59/77

    Casual Fnemployment;

    • 4n industries such as *uilding construction cateringor agriculture where wor#ers are employed on a

    day- to-day *asis there are chances o casualunemployment occurring due to short-termcontracts which are termina*le any time+

    • *echnological Fnemployment

    • ) #ind o structural unemployment may ta#e placein an economy as a result o technologicalimprovement+ uch unemployment may *edescri*ed as technological unemployment+ >ue to

    the introduction o new machinery improvement inmethods o production la*our-saving devices etc+some wor#ers tend to *e replaced *y machines+

     .heir unemployment is termed as /technologicalunemployment+1

    • 4n most underdevelopedEdeveloping

  • 8/20/2019 Business Enviornment - Copy.pptx

    60/77

    • 4n most underdevelopedEdevelopingcountries 5nemployment can *e o

    ma9or types+• ,pen 5nemployment

    • 4t reers to a situation where large no+ o

    la*or orce does not get employmentopportunities that may yield themregular income+

    •  .he wor#ers have willingness anda*ility to wor# *ut they are not gettingthe 9o*+

    • >ue to lac# o capital resources+

    @!8isguised Fnemployment

  • 8/20/2019 Business Enviornment - Copy.pptx

    61/77

    @!8isguised Fnemployment

    • When people do not have productive ull-timeemployment+

    • >isguised unemployment is *asically due tohigh population pressure in a particular sectorand lac# o alternative 9o* opportunities+

    • disguised unemployment may also *e oundamong wor#ers employed on a wage *asis+

    • 8ery common in 6ural 4ndia+ ( )griculturesector

    • )lso 4ndustrially developed countries maysufer due to cyclical unemployment( slowdown o *usiness cycle recession

    • 5nderemployment

  • 8/20/2019 Business Enviornment - Copy.pptx

    62/77

    • 5nderemployment

    • 4t can *e dened in two ways+

    a+ ) situation where a wor#er does not getthe type o wor# he is capa*le o doing+

      ;e has the a*ilities ' can yield greater

    income *ut he is denied the opportunitydue to the lac# o suita*le 9o*+

      *+ ) wor#er does not get suGcient wor#

    load to get him a*sor*ed as a ull timeemployee+ ( easonal unemployment

    • :ature o 5nemployment in 4ndia

  • 8/20/2019 Business Enviornment - Copy.pptx

    63/77

    :ature o 5nemployment in 4ndia

    • HR population lives in rural 4ndia+

    •  .hey are directly or indirectly dependant on the

    agricultural sector ( )griculture ' allied activities li#edairy poultry arming etc

    • >isguised unemployment is dominant in rural sector( 6ural unemployment

    • Both unemployment ' underemployment e3ist inrural 4ndia+

    • =arming is a ma9or occupation

    • >ecline o handicrats ' village cottage industries

    • low development o advanced cultivation practices• )*sence o alternative occupation

    • 4ntroduction o agricultural machinery leads topro*lem o more no+ o unutilized la*or or disguised

    unemployment+

    Pro*lem o seasonal unemployment leads

  • 8/20/2019 Business Enviornment - Copy.pptx

    64/77

    Pro*lem o seasonal unemployment leadsto underemployment situation+

    $ac# o irrigation acilities;ence rural unemployment ischaracterized *y the e3istence ounderemployment in the orm odisguised unemployment and seasonalunemployment+

  • 8/20/2019 Business Enviornment - Copy.pptx

    65/77

    • %ducated unemployment or White Caller

  • 8/20/2019 Business Enviornment - Copy.pptx

    66/77

    %ducated unemployment or White Caller5nemployment

    4n the ur*an areas+•  .he rate o unemployment is higher

    among the educated than among theuneducated people+

    • 2MK27 .otal educated unemploymentJ+HM lacs

    • 2MH2 7 AA+M lacs

    • 2ML7 A22 lacs

    • Causes o 5nemployment

  • 8/20/2019 Business Enviornment - Copy.pptx

    67/77

    p y

    2+ Bac#ward )griculture

    "ethod o techni

  • 8/20/2019 Business Enviornment - Copy.pptx

    68/77

    p os e popu a o g o

    2+A *n population

    Poverty

    5nderdeveloped ' developing countries havehigher level o poverty+

    4nadeeective employment

    planning"ore emphasis on capital intensive techni

  • 8/20/2019 Business Enviornment - Copy.pptx

    69/77

    y g

     .he traditional handicrat was the main source o

    employment or village cratsman artisans as

    well as non agricultural wor#ers+ .hese *usinesses got hampered due to machine

    made goods+

    6egional disparities

    $ac# o *alanced inrastructural ' industrialdevelopment across the various regions+

    M+ >eective education system

    $ac#s in developing manpower according to themanpower re

  • 8/20/2019 Business Enviornment - Copy.pptx

    70/77

    22+$ac# o vocational guidance ' training acilities

     .echnical training 9o* oriented courses are reeective social system  e+g+ lac# o importance o education amily planning

    2F+ "iscellaneous reasons 7

    >ecline in e3ports

    5nderutilization o capacitylow growth o 4

    $ac# o raw material power availa*ility

    $ac# o inrastructural acilities

    • "easures or the eradication o unemployment '

  • 8/20/2019 Business Enviornment - Copy.pptx

    71/77

    !overnment Policy

    2+ 6apid 4ndustrialization

    • %3pansion o e3isting ' the development o newindustries +

    A+ 6econstruction o )griculture

    "a9or occupation in 4ndia is arming+

     .as# o converting arming as a highly prota*leoccupation+

    %nsure the use o improved methods o cultivation

    %nsuring 2R 4rrigation across all agricultural land

    %fective water management

    4mproving the production o agricultural comodities

    )*sor*ing the surplus wor#orce in agriculture sector

    in other trade ' industries+

    • )doption of labor intensive techniues

  • 8/20/2019 Business Enviornment - Copy.pptx

    72/77

    • )doption of labor intensive techniues

    • ( =or production

    -eorientation of education system•  Oo* oriented

    • Proessional courses

    • #ill development courses etc

    • Control over population

    • K+ %ncouragement to small enterprises

    • =or *oosting sel employment

    %ntrepreneurship+• "a#ing availa*le li*eral nance technical

    training inrastructural acilities ' mar#etingsupport

    • 6ural >evelopment chemes

  • 8/20/2019 Business Enviornment - Copy.pptx

    73/77

    6ural >evelopment chemes

    • 6ural ' agriculture developmentschemesEinvestments

    • 4ncreasing investments in rural sector+

    • !uiding Centers ' more employmente3changes

    • >ecentralization• $ac# o proper opportunities o employment

    in villages ' small towns has led to themigration o people to ur*an areas or 9o*s+

    •  .his has resulted in the pro*lem o overcrowdedness ' ur*anization+

    • ;ence it is re

  • 8/20/2019 Business Enviornment - Copy.pptx

    74/77

    4n the rural areas

    4n the areas o education ' health

    !overnment Policy "easures

    :ational 6ural %mployment Programme( :6%P

     .raining 6ural Touth =or el %mployment

    ( .6T%"mall =armers >evelopment )gency (=>)

    >rought Prone )rea Programme (>P)P

    4ntegrated 6ural >evelopment Programme( 46>P

     Oawahar 6ozgar To9na( O6T

    "ahatma !andhi :ational 6ural %mployment!uarantee )ct( "!:6%!)

    ) new deal or el %mployment

  • 8/20/2019 Business Enviornment - Copy.pptx

    75/77

    ) new deal or el %mployment

    • Pu*lic 4nstitutions can provide assistance or selemployment with respect to

    •  .raining

    • Credit

    • "ar#eting

    • !eneral guidance or starting own ventures•  .raining Programmes

    • 4nitiative o .6T%" ( .he :ational cheme o .raining 6ural Touth or el %mployment

    • =or matriculates ( C

    • "anagement accounting "ar#eting

    • hort training courses *y ;andicrat Board >airy

    >evelopment Board

    Credit =acilities

  • 8/20/2019 Business Enviornment - Copy.pptx

    76/77

    =inance *y commercial *an#s

    "ar#eting =ascilities

    Providing support to the 4 in mar#eting

    "ar#et research

    ales Promotion

    !uidance

    "any unemployed persons are unaware othe various acilities availa*le or starting

    their own ventures+ .he university employment *ureaus

    %mployment e3changes provide the

    guidance+

    ,ther "easures

  • 8/20/2019 Business Enviornment - Copy.pptx

    77/77

    ,ther "easures

    ) large no+ o ur*an sel-employed

    consists o petty vendors tradershaw#ers home *ased producers+

     .he ollowing steps will *e ta#en to assist

    such persons+"unicipal Corporations will survey thepopulation o sel employed wor#ers *ytheir occupation+

    >etermine their *asic minimum needs

    Providing wor# sheds within industrialt t