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Introduction PESTLE Analysis in Business Environment In business PESTLE analysis role is very important.

Originally designed as a business environmental scan, the PESTLE analysis is an analysis of the external macro environment in which a business operates. These are factors which are beyond the control or influence of a business, however are important to be aware of when doing product development, business or strategy planning. PESTLE means: P- Political E- Economical S- Social T- Technological L- Legal E-Environmental The PESTLE subject should be a clear definition of the market being addressed, this is the followings: A company looking at its market A product looking at its market A brand in relation to its market A local business unit or function in a business A strategic option, such as entering a new market A potential acquisition A potential partnership An investment opportunity Now we see in details of PESTLE factors/Impact in India

POLITICAL
These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidising firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce, the

health of the nation and the quality of the infrastructure of the economy such as the road and rail system. India is the biggest democracy in the World. The government type is federal republic. Based on English common law, judicial review of legislative acts, accepts compulsory ICJ jurisdiction with reservations, separate personal law codes apply to Muslims, Christians, and Hindus. The political Situation in the India is more or less stable. Most of its democratic history, the federal Government of India has been led by the (INC) Indian National Congress. State politics dominated by several national parties including the INC. The Bharatiya Janata Party (BJP), the Communist Party of India (CPI), and various regional parties. In the 2009 Indian elections, the INC won the biggest number of Lok Sabha seats and formed a government with a alliance called the United Progressive Alliance (UPA), supported by various left-leaning parties and members opposed to the BJP. Overall India currently has a coalition led government and both major political parties the UPA and BJP, whichever comes in power. It comprises political stability and the policies of the government. Ideological inclination of political parties, personal interest on politicians, influence of party forums etc. create political environment. For example, Bangalore established itself as the most important IT centre of India mainly because of political support. In India many poltical factors those effect in business environment. Political pressures in ruling government and vote bank problems. These are the major factors those affect on political environment

Taxation policy
India has a well developed tax structure with a three- tierfederalstructure,comprising the Union Government, the State Governments and the Urban & Rural Local Bodies. The power to levy taxes and duties are distributed among the three tiers of Governments, in accordance with the provisions of the Indian Constitution. The main taxes/duties that the Union Government is empowered to levy are Income tax income, Customs duties, Central Excise and Sales Tax and Service Tax. The principal taxes levied by the State Governments are Sales, Stamp Duty, State Excise, Land Revenue, and Duty on Entertainment and Tax on Professions & Callings. The Local Bodies are empowered to levy tax on properties, Octroi Tax on Markets and Tax/User Charges for utilities like water supply, drainage, etc

Privatisation
Reduce the political interface in the management of enterprises, leading to improved efficiency and productivity. In India this time do many govt company Good performance but some time later there are facing many problems so the go for privatisation

Deregulation
India Govt makes some Act to freely do business in India.

International trade regulations


International trade regulation day by day India makes it flexi able for foreign trade.

General initiatives
Some policy to first Political initiat In India past 10 years govt is stable. Before 10 years India facing govt stability. If govt stability not market is not improve and no one come here for investment.

International stability
No wars, no any country home problems, and no any type of war r like Iraq they make uncertainty in market

ECONOMICAL
It includes interest rates, taxation changes, economic growth, inflation and exchange rates. As you will see throughout the "Foundations of Economics" book economic change can have a major impact on a firm's behaviour. For example: higher interest rates may deter investment because it costs more to borrow a strong currency may make exporting more difficult because it may raise the price in terms of foreign currency inflation may provoke higher wage demands from employees and raise costs higher national income growth may boost demand for a firm's product

In order to solve economic problems of our country, the government took several steps including control by the State of certain industries, central planning and reduced importance of the private sector. The main objectives of Indias development plans were: Initiate rapid economic growth to raise the standard of living, reduce unemployment and poverty, Become self-reliant and set up a strong industrial base with emphasis on heavy and basic industries, Reduce inequalities of income and wealth Adopt a socialist pattern of development based On equality and prevent exploitation of man by privatision As a part of economic reforms, the Government of India announced a new industrial policy in July 1991, The broad features of this policy as follows: The Government reduced the number of industries Under compulsory licensing to six. Disinvestment was carried out in case of many public sector industrial enterprises. Policy towards foreign capital was liberalized. The share of foreign equity participation was increased and in many activities 100 per cent Foreign Direct Investment (FDI) was permitted. Automatic permission was now granted for technology agreements with foreign companies. Foreign Investment Promotion Board (FIPB) was set up to promote and channelise foreign investment in India. The economic factors in India are improving continuously. The GDP (Purchasing Power Parity) is estimated at about 3.965 trillion U.S. dollars in the year 2009. The GDP- real growth rate in 2009 was 6%. India has the third highest GDP in terms of purchasing power

parity just ahead Japan and behind U.S. and China. Foreign direct investment rose in the fiscal year ended September 2009 to about US$ 10.532 billion.There is continuous growth in per capita income; Indias per capita income is expected to reach Rs. 33283 by the end of 2009-2010. This will lead to higher buying power in the Hands of the Indian consumers. India GDP is now 6.5. Today India reserve Us dollor in Good condition. In Indian economy is strong. We see in recession our economy is less affect from recession compression to western countries. These following factors: (i) Interest rates (ii) Money supply (iii) Credit control

(iv) Financial markets (v) Inflation (vi) Competitors pricing & Globalization

SOCIAL
Changes in social trends can impact on the demand for a firm's products and the availability and willingness of individuals to work. In the India, for example, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staff are living longer. It also means some firms have started to recruit older employees to tap into this growing labour pool. It describes the characteristics of the society in which the organization exists. Literacy rate, customs, values, beliefs, lifestyle, demographic features and mobility of population are part o the social environment. It is important for managers to notice the direction in which the society is moving and formulate progressive policies according to the changing social scenario India is the second most populous nation in the world with an approximate population of over 1.1billion people. This population is divided in the following age structure: 0-14 years 31.8%, 15-64 years 63.1% and 65 years and above 5.1%. There has a, Mobility,Income distribution,Population demographics,Attitude to work and leisure ,Standard of education and skills Working conditions

TECHNOLOGICAL
New technologies create new products and new processes. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of better technology. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organisations providing the products. Today in India 3G technology starts. A heavy infrastructure for bandwidth. BSNL and Reliance have more covered city by optical fibre. India have many Technological Projects. Good Service provider in IT sector ex TCS, Infosys and many more.Today India is a big market in mobile sector here 5-6 player operataors and new operators launch their services soon IT Development (ii)New Materials and processes (iii)Government technology funding (iv)Speed of technology transfer (v)Software upgrades

LEGAL
These are related to the legal environment in which firms operate. In recent years in the India There have been many significant legal changes that have affected firms' behaviour. The introduction of discrimination and disability discrimination legislation, an increase in the minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organisation's actions. Legal changes can affect a firm's costs and demand. This consists of legislation that is passed by the parliament and state legislatures. Examples of such legislation specifically aimed at business operations include the Trade mark Act 1969, Essential Commodities Act 1955, Standards of Weights and Measures Act 1969 and Consumer Protection Act 196. In India take many type of permission to the sate govt or central govt. In India many type of act like license permission, copyright permission, and many types of other permission. (i)Employment law (ii)Trade and product restrictions

(iii)Health and safety regulations (iv)EU and international laws (v)Monopolies commission

ENVIORNMENTAL
Environmental factors include the weather and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. The growing desire to protect the environment is having an impact on many industries such as the travel and transportation industries (for example, more taxes being placed on air travel and the success of hybrid cars) and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities. In India we know that many types of enviormental problems this are basic things but more important for our enviorment. also biotic factors ,abiotic factors and their interaction with one another. pollution free industrial activity i.e is nessary condition of industrial organization Industrialization and urbanization have resulted in a profound deterioration of India's air quality. Of the 3 million premature deaths in the world that occur each year due to outdoor and indoor air pollution, the highest number are assessed to occur in India. (i)Pollution problems (ii)Planning permissions (iii)Waste disposal (iv)Noise controls (v)Environmental pressure groups

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