BUSINESS ENVIRONMENT

PRESENTATION
 WHAT DO YOU MEAN BY
BUSINESS ENVIRONMENT??..

According to “DAVIS KEITH”

“The aggregate of all conditions, events, influence

that surrounds and affect business.”
Factors influencing business environment:

Internal factors (Controllable factors)

 Organization resources
 R & D and technological capabilities
 Financial capability
 Marketing capability
 Operations capability
External factors (uncontrollable
factors)

External factors are divided into two parts:

 Micro environment
 Macro environment
Micro environment includes:-

 Suppliers
 Marketing intermediaries
 Customers
 Competitors
 Public
Macro environment includes:-
 Economic condition
 Economic policies
 Economic system(type of economy)
 Political factors
 Government or legal factors
 Market factors
 Technological factors
 Social and cultural factors
 International factors
 SWOT ANALYSIS
Swot means :

S - Strengths of an business enterprise

 W- Weakness of an business enterprise
 O- Opportunities there to grab and expand
 T- Threats needed to be overcome to meet
targets
 BUSINESS ENVIRONMENT
ANALYSIS BHARAT PETROLEUM
CORPORATION LIMITED (BPCL)
 SWOT ANALYSIS OF
BPCL
 Strengths:
• Properly renowned company with 22.5MMT production of
petroleum products.
• Sound marketing strategies and capabilities
• Highly financially sound company with total assets of worth
Rs. 19716 crores.

 Weakness:
• Government company with 54.73% of holdings in the hand of
government.
• Highly influenced by political and government factors.

 Opportunities:
• India a developing economy with a target of
maintaining 8% GDP over next decade.
• India among the top 10 oil consuming countries in the
world.
• Oil and gas represent 40% of total energy consumption
in India.
 Threats:
• Raw material like crude oil and gas is a
natural commodity and fixed in quantity.
• Significant increase in consumption of oil
and petroleum products is increasing the
price of raw material like crude oil.
• Innovations in technology shifting source
of energy from oil to power, bio gas and
hydrogen.
 Internal factors of business
environment influencing working
of BPCL
 R & D and technological capabilities:
• Set up at Noida a R&D centre with a vision to produce
high value product, services, processes and create
innovative R&D solutions to earn consumers delight.
• Imported fixed bed platforming process from USA for
production of high octane motor spirit in2003.
• Hydro finishing technology from M/s Chevron for
production of group II oil base stocks in 2003
• Naptha HDS catalyst from M/s Haldor Topsoe.
 Financial capability:
• Share capital of Rs.6436.30m
• Reserves and surplus of Rs.131237m
• Net fixed assets worth Rs.143554.42m
• Investments worth Rs.88093.17m
• Net current assets worth Rs.53612.83m
• Earning per share(EPS) basic Rs.48.94.

 Marketing capability:
• Achieved marketing company of the year
award on 28 march 2008
• Having 6553 retail outlets and 1007
kerosene dealers of Mak Lubricant.
• 25 million homes in India using Bharat
gas.
• Caters approx 8000 industrial customers.

 Operations capability:
• Having four refineries i.e Mumbai refinery,
Kochi refinery, Numaligarh refinery and
Bina refinery producing in total 22.5MMT
of pertoleum.
 EXTERNAL FACTORS- MICRO
ENVIRONMENT
Suppliers:
• 40% of the crude oil is supplied by ONGC India.
• 60% of crude oil is imported from middle east.

Customers:
• Millions of automotive customers using petroleum
and lubricant.
• 25 million homes using bharat gas.
• Fueling industries by supplying petroleum products
to around 8000 industrial customers.
• Fueling skies by supplying aviation fuel to
well known companies like Air India, Jet
airways etc.

 Competitors:
• Indian oil company(IOC)
• Hindustan Petroleum Corporation
limited(HPCL)
• Essar oil
• Reliance petroleum limited(RPL)