Hi

Just trust yourself & keep hard work. U will surely get success

Originally posted by : Ankur Garg
	Awesome...   I would say....b wid us.....please !!!

Thanks a ton

that's a gud start...ur updates will definitely help u & others as well,,al d best

Firstly, Thanks 2 everyone of u for encouraging me........nd sorry for delay in last two days topics as i wz suffering from severe fever..........but here is the remaining topics as covered in dinesh madaan notes........

Respected All, I am going to appear for my IPCC-May’ 2011 exams. As I am running short of time due to my job, so I have decided to do it through online as well. Here, I am following Dinesh Madaan notes for SM, so I’ll cover the topics from it and will try to share it with you in my own language on daily basis.       

You all are requested to please correct me/update me on each & every topic /s wherever required.

You can update the points in this file and can send it on my email id: gaurav.kumar2005 @ rediffmail.com and please highlight the Para in this file (in case of updating)

Chapter -1 (Dinesh Madaan Notes)

What is business?

1)      Business means busy in some activities.

2)      Business means conducting of some activities like sales, purchase, after sale service & customer management etc. to achieve the company growth & profitability.

3)      In general we can refer it to some company, enterprise & corporation.

Objectives of Business?

1)      Profitability: Does it means by hook & crook, No it should earn by employees prosperity & customer satisfaction.

2)      Growth: it is related to growth in company employees satisfaction, customer satisfaction and revenue & profits growth.

3)      Survival: There should be a separate competitive strategy to survive in the market.

4)      Efficiency: it means efficiency in productivity & cost control etc.

5)      Stability: Company motive should be to earn long term profits and for just short term, so they can only get it by stability in the market.

Environment?

                All the surroundings around the  human being like friends, peers, family etc & even man made structures like roads, buildings etc is called environment.

Business Environment?

                Similarly, a business is surrounded by the following factors:

Demand, Supply, Laws and competitions & Technology. These factors can influence the business on day to day basis.

A)     A Business environment takes the inputs from the environment and gives it back to the environment.

B)      These factors are largely not under the control of the business

C)      The business environment factors can be differing from industry to industry.

Is it necessary to analyze the b. environment?

Yes, it is very necessary to analyze the impact of business environment/factors on the business on regular basis otherwise company will be lost. Because, supply & demand and technical changes and competitive moves influence the business most. Moreover, there should be a separate competitive strategy to gain competitive advantage in the market.

Legal Framework or Steps to analyze the impact?

A)     First step is to analyze the b. environment that how uncertain it is? How complex it is?

B)      Second step is to consider the impact of such factors on the business that at what extent they will influence the business?

C)      In final step, we should have a separate competitive strategy to compete with.

09.12.2010

Characteristics of Business environment:

1)      B. Environment is uncertain & complex to understand: Yes, it is true that b. environment is uncertain & complex to understand but it is very important to understand the impact of the same on the business by making alternative strategies.

2)      B. environment is dynamic: It influences the business on day to day basis. Long term & short term as well. Especially the changings in the market conditions, competitions etc.

3)      It has a far reaching impact on the business: The growth & profitability of the business depends on the b. environment in which it exits.

4)      It is multi-faceted: Because some organizations take it as threat and some as opportunities.

What are external & internal environment:

External or Macro environment: The factors which influences the company on long term basis and are not under the control of the organization is called external or macro environment.

Internal or Micro environment:  The factors which influences the company on day to day basis and are some under the control of the organization is called internal or micro environment.

Components of Internal environment:  

1)      Employees/organization

2)      Suppliers

3)      Competitors

4)      Consumers/customer

5)      Market

6)      Intermediaries

Components of External environment: 

1)      Economic environment

2)      Demographical factors

3)      Technological changes

4)      Globalization

5)      Legal & Political factors

6)      Social factors

What is Globalization?

Today it is not possible for any co. to retain No. 1 position in the world by doing business in a single level market so it is very necessary for any co. to go global.

It means: 1) multiple units under common ownership

2)            Common use from pool of sources like Patents, advertising etc.

3)            With a common strategy.

Why do companies go global?

1)      As “world is a small place” so today we can reach in any part of the world conveniently. So, it is easy for companies to go world wide to expand their business globally.

2)      Some times co. can not take the full advantage of their domestic market so they can sale their products in international markets as well.

3)      Due to company brand name, internationally demand can arise.

4)      Due to cheaper materials, labor & resources at global sites.

5)      In the field of minerals & mines.

6)      To earn more profits by selling into new markets etc.

What are strategic responses to the business environment?

Or what are social business environment factors?

1)      Conservative approach: In this approach businesses are PASSIVE in their operations and react only when environment forces them to do so. These are also known as slow moving organizations. Government banks are example of it.

2)      Cautious approach: Under this approach, organizations adapt the strategy very quickly but with a cautious approach. TATA’s are example of it.

3)      Confident approach: In this approach, the organizations adapt the quick response policy towards the environment & taking a trend setter seat in the market. It is risky but more productive.

What is competitive strategy? Why it is necessary?

If a company wants to stable in the market for a long time then it is very necessary for them to adopt a separate competitive strategy to compete with market. They should have a separate strategy by considering following factors:

a)      Who are the competitors?

b)      Their financial position?

c)       Their key management persons?

d)      Their products & services?

e)      Prices?

f)       Their competitive strategy?

g)      Their target areas /segments etc.

After analyzing the above company will form a strategy…………….

Sometimes, the growing competition market conditions will suit the customers needs but not to the company and economy. So, there is a need for “Co-operation in competitive environment”

1)      Cartelization: Under this sometimes organizations, make a group to suit the market conditions to their interest. Like under stock market, some group of the people arise the market share value of a particular product/share.

2)      Kieretsus: Under this companies, will shake hand to each other for helping to selling & buying their products in the market on each behalf. Like Coke is selling with MC Donald burgers etc.

3)      Family owned business: As name suggests like TATA, BIRLA, AMBANIs are doing the businesses & taking care of all the managerial decisions as well.

Porter’s 5 Forces Model.

This model helps the organizations to compete within the market & to gain competitive advantage over the competitors. These 5 forces will suggest the company different alternative strategies plans.

1)      New entrants: 

a)      Who are new entrants?

b)      What are their products & services?

c)       Their price policy?

d)      Financial situation etc.

2)      Buyer’s power: Analyze the buyer demands in the market etc.

3)      Supplier’s powers: Analyze the Supply chain management & powers in the market etc.

4)      Substitute product: Analyze the threats from new substitute products from the new rivals.

5)       Rival analysis: it is must for drawing a successful competitive strategy.

END OF CHAPTER……………my according………but YOUR SUGESSTION ARE ALWAYZ WELCOME.