business environment assignment (group 9)

8/3/2019 Business Environment Assignment (Group 9)

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1. Mukesh Jaiswal (59), 2. Prashant Varma (50), 3. Sandeep Kesarwani (22) , 4. Satish Dandwate (08)

5. Irwin Marwah (25), 6. Rohit Jaiswal (16) 7.SheshNarayan Tiwari (45) 1

BUSINESS

ENVIRONMENT

NEW PRODUCT

LAUNCH

STRATEGY


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M,

SUBJECT INDEX

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1. Product introduction

2. Economic environment

3. Political and legal environment

4. Socio-cultural impact

5. Competitive environment

6. Ecological issues and social responsibility

7. Pricing strategies

8. Promotion and distribution strategies

9. References


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PRODUCT INTRODUCTION

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SMPS 2GENDOOR VIEWER

Image Sensor 2 Mega Pixel CMOS

Optical lens View Angle 54 degrees

Peephole View Angle: 190 degrees

LCD Screen 2.5inch TFT

Power Source 2 AA Batteries (good for approx.1700 peeps)

Barrel 14mmDoor Thickness barrel will fit doors that are 35~55 mm (1.38~2.17)wide

AccessoriesBase flange, Tightening tool, Peephole,

User manual, warranty card

Size 146mm x 90mm x 30mm

Weight 0.4g or 180g

Price INR 2000

Highest-quality Superior Home Guardian


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.

Product Survey

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Weve conducted survey in the market to find out the

acceptability of our product.

10

5

2

20

8

5

15

9

3

0

5

10

15

20

25

Will go for it Not required Will come back later

Mumbai Delhi Kolkatta

58% of people liked the product andare ready to buy it.

29% of people dont required it. 13% said they will let us know about it

later.


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Economic environment

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The Indian economy has moved decisively to a higher growth phase incomparison to the previous years.

Economic Environment is made up to two words

Economic + Environment Economic activity

In ordinary sense, a person to satisfy his wants is called economic activity.Economic is all about in economy, about its limited or scarce resources and

limited human wants.

Environment refers to the conditionseffects and forces which influence individual and group behavior of human lifewith natural, social, political and cultural surroundings.


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.

Economic environment

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The Per capita income in India has doubled between 2004-05 and 2010-11 to touch Rs54,835 per annum. The PCI figure gives a fair idea of the standard of living of the people.

India's per capita income in 2009-10 was Rs 46,492.

The size of Indian economy at current prices is projected to rise to Rs 72,56,571 crore atthe end of the 2011, up 18.3 per cent from Rs 61,33,230 crore in FY 2010.

The per capita income of the States where were launching our products are as below:

1. Delhi It scores high on per capita income and GDP growth rate. Its annual per capitaincome stands at Rs 135,814.

2. MaharashtraIts the second most urbanised in the country. It's per capita income is Rs83,471.

3. West BengalIts the sixth largest contributor to Indias. In 2009-10, the per capitaincome of West Bengal was Rs 41,219.

The GDP ( purchasing power parity) of India is $3586 in 2010 as per World Banksurvey. Its 124th in the list.


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Political Environment

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Political Environment :

The present political scene in India is quite exceptional due to the relatively strong positionof the ruling Congress-led UPA coalition; the governing coalition continues to maintain itsmajority in parliament.

The Government is likely to refrain from pursuing unpopular reforms throughout much of2011 due to upcoming state assembly elections.

The security environment is dominated by the threats posed by the Islamic militants andNaxalite insurgent activities.

Tensions with Pakistan have threatened regional stability since 1947. Several years ofpeace talks on the disputed Jammu - Kashmir territories have resulted in little progress. TheMumbai attacks led to deterioration in Indo-Pakistani relations due to Indian government

allegations of Pakistani government agencies involvement in the attacks.


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Legal Environment

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Starting a business in India takes on an average of 35 days compared to the world averageof 48 days.

Though India has a quasi-federal structure, the judiciary is unified. Broadly, thereis a three tier structure. First, each administrative district (there are over 600 districts) isheaded by a District Court. Then each State has a High Court. Since some States share thesame High Court, there are 21 High Courts in India. At the apex is the Supreme Court ofIndia situated at New Delhi.

OTHER LEGAL REQUIREMENTS AND FORMALITIES, WHICH ARE APPLICABLE :

1. Obtaining license from the Ministry of Industries.2. Registration.3. Registration with the Labour Commissioner of the State4. Environmental clearance certificate from the state Pollution Control Board.

5. Registration with the excise department.6. Registration with Sales or Trade Tax Authority.7. Registration with the Shop and Establishment Authority.8. Registration with the local authority.9. Patenting its intellectual properties like designs, copy rights, etc.10.Insuraning of plants and machinery, buildings, top executives etc.


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Socio-cultural impact

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Socio-cultural impact on the business :

Business is an activity undertaken by people whose values and attitudes areshaped by the culture and society of which they are a part. To some extent the roles weperform in business are quite discrete from other aspects of our lives and require thatwe adopt different behaviours and personas. However there is not, of course, acomplete separation between work and life. We carry values and attitudes shaped by

the wider culture and society into our roles as managers, employees and consumers.

We always think that business is operating according to a distinctive instrumentalrationality of profit-and-loss but the bottom line is that it is also influenced by thesocial-cultural setting in which it is embedded.

In broad terms, the social-cultural environment includes everything that is not includedin the economy or the political system.

Socio-cultural impact of the product on the market:

Like the society has some impact on the product same way the product also can havesome impact on the market or the society in which it is sold.


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Competitive Environment Threats & Opportunities

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Threats :

The main threat for our product is from the traditional door viewer which rule the market.We have identified the current competitors, however there can be those that couldrepresent a threat tomorrow.Our competitor analysis process will be like : (copyright: Christian and Hulbert, 1998.)

Opportunities :

Well review the further opportunities available for our product after

reviewing its initial launch success in the three metropolitan cities.

Basis the outcome that we have well try to find furtheropportunities in other regions of India.


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Ecological Issues and Social Responsibility

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Ecological Issues :

Term "ecological problems" is today mostly used to describe different environmentalproblems. After all, ecology is top environmental science, and many people identify ecology as somesort of science that is primarily oriented on protection of our environment.

Problems of environment are also problems of ecology because environment is really acenter of all ecological research. Climate change, all sorts of pollution, deforestation, endangeredanimals, these are all ecological problems since ecology uses scientific approach to find potentialsolutions to these problems.

Our product is designed in such a way that it doesnt affect the environment. The rawmaterial (plastic) used to produce the final product is a recycled one so its helping environment.

Social Responsibility :

Though profit making is the main objective of doing business it has to be backed by some socialresponsibility.

In recent business environment organizations are expected to fulfill some sort of Corporate SocialResponsibility. These can be helping some privileged sector, or stand towards the society when theyare in need i.e. floods, drought, or any of the natural calamities.

A significant number of studies have shown that there is no negative influence on shareholder resultsfrom CSR but rather, a slightly positive correlation with improved shareholder returns.


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Pricing strategies

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The targeted customer for our product is middle class income group.

Pricing is one of the most important elements of the marketing which generates a turnoverfor the organization. It costs to produce and design a product, it costs to distribute aproduct and costs to promote it.

Cost Sheet

Cost of Production 300

Promotion cost 500

Packaging & Distribution cost 100

Cost of final product 900

Selling cost 1,500


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Promotion strategy

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Its the function of informing, persuading, and influencing a consumer decision.

Some promotional strategies are aimed at developing primary demand, thedesire for ageneral product category.

Our promotional strategy will be to differentiate our product from those of our competitorsselling traditional door viewers. To accomplish this, well attempt to occupy a"position" in the market that appeals to our targeted customers.

Well use a combination of personal selling and non-personal selling.Personal selling is a promotional presentation made on a person-to-person

basis with a potential buyer.Nonpersonal selling consists of advertising, sales promotion, and public

relations.


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Distribution strategy

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Our distribution strategy is created after getting the answers for these questions:

1) How do our customers want to shop and buy? E-commerce Retail store

2) Which distribution channel best supports our brand?E-commerce Retail store

Well use Intensive distributionstrategy and our aim is to provide saturation coverage ofthe market by using all available outlets.

For many products, total sales are directly linked to the number of outlets used (e.g.cigarettes, beer).

As there are other traditional door viewers are available - Intensive distribution is requiredas customers have a range of acceptable brands to chose from.

In other words, if one brand is not available, a customer will simply choose another.


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References

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1. SETTING UP A SMALL BUSINESS - http://www.nos.org/srsec319new/319EL26.pdf

2. Impact of socio-cultural on businesshttp://www.oup.com/uk/orc/bin/9780199203055/wetherly_ch05.pdf - page 127

3. Competitive Environment Threats - http://media.wiley.com/assets/1009/27/Chp3.pdf

4. Pricing strategy - http://www.seobook.com/pricing

5. Promotion strategy -http://faculty.piercecollege.edu/rskidmore/Ghost/library/Chapters/CHPT13-04.pdf - chapter13 pg 13-7
http://www.nos.org/srsec319new/319EL26.pdfhttp://media.wiley.com/assets/1009/27/Chp3.pdfhttp://www.seobook.com/pricinghttp://www.seobook.com/pricinghttp://media.wiley.com/assets/1009/27/Chp3.pdfhttp://www.nos.org/srsec319new/319EL26.pdf


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business environment assignment (group 9)

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