Assignment Semester 1

Marketing Management

Explain the different Marketing Environments and the role of culture and sub culture.

How do we define Marketing Environment- Marketing Environment is the combination of external

and internal factors and forces which affect the company’s ability to establish a relationship and
serve its customers. The marketing environment of a business consists of an internal and an external
environment. The internal environment is company specific and includes owners, workers,
machines, materials etc. The external environment is further divided into two components: micro &
macro. The micro or the task environment is also specific to the business but external. It consists of
factors engaged in producing, distributing, and promoting the offering. The macro or the broad
environment includes larger societal forces which affect society as a whole. The broad environment
is made up of six components: demographic, economic, physical, technological, political-legal, and
social-cultural environment.

Philip Kotler- “A company’s marketing environment consists of the actors and forces outside
of marketing that affect marketing management ability to build and maintain successful
relationships with target customers”.

The marketing environment is made up of the internal and external environment of the business.
While internal environment can be controlled, the business has very less or no control over the
external environment.

Internal Marketing Environment –

The internal environment of the business includes all the forces and factors inside the
organisation which affect its marketing operations. These components can be grouped
under the Five Ms of the business, which are: Men, Money, Machinery, and Materials &
Markets. The internal environment is under the control of the marketer and can be changed
with the changing external environment. Nevertheless, the internal marketing environment
is as important for the business as the external marketing environment. This environment
includes the sales department, marketing department, the manufacturing unit, the human
resource department, etc.

External Environment

The external environment constitutes factors and forces which are external to the business and on

which the marketer has little or no control. The external environment is of two types:
 Micro Environment

The micro component of the external environment is also known as the task environment. It

comprises of external forces and factors that are directly related to the business. These

include suppliers, market intermediaries, customers, partners, competitors and the public

 Suppliers include all the parties which provide resources needed by the organisation.
 Market intermediaries include parties involved in distributing the product or service of the
organisation.
 Partners are all the separate entities like advertising agencies, market research
organisations, banking and insurance companies, transportation companies, brokers, etc. which
conduct business with the organisation.
 Customers comprise of the target group of the organisation.
 Competitors are the players in the same market who targets similar customers as that of the
organisation.
 Public is made up of any other group that has an actual or potential interest or affects the
company’s ability to serve its customers.

Macro Environment

The macro component of the marketing environment is also known as the broad environment. It

constitutes the external factors and forces which affect the industry as a whole but don’t have a

direct effect on the business. The macro environment can be divided into 6 parts.

Demographic Environment

The demographic environment is made up of the people who constitute the market. It is

characterised as the factual investigation and segregation of the population according to their size,

density, location, age, gender, race, and occupation.

Economic Environment

The economic environment constitutes factors which influence customers’ purchasing power and

spending patterns. These factors include the GDP, GNP, interest rates, inflation, income distribution,

government funding and subsidies, and other major economic variables.

Physical Environment
The physical environment includes the natural environment in which the business operates. This

includes the climatic conditions, environmental change, accessibility to water and raw materials,

natural disasters, pollution etc.

Technological Environment

The technological environment constitutes innovation, research and development in technology,

technological alternatives, innovation inducements also technological barriers to smooth operation.

Technology is one of the biggest sources of threats and opportunities for the organisation and it is

very dynamic.

Political-Legal Environment

The political & Legal environment includes laws and government’s policies prevailing in the country.

It also includes other pressure groups and agencies which influence or limit the working of industry

and/or the business in the society.

Social-Cultural Environment

The social-cultural aspect of the macro environment is made up of the lifestyle, values, culture,

prejudice and beliefs of the people. This differs in different regions.

Culture, as a “complex whole,” is a system of interdependent components.

Culture is part of the external  influences that impact the consumer. That is, culture represents
influences that are imposed on the consumer by other individuals. Culture is - “That complex whole
which includes knowledge, belief, art, morals, custom, and any other capabilities and habits acquired
by man person as a member of society.”  Culture has several important characteristics:  Culture
is comprehensive.  This means that all parts must fit together in some logical fashion. 

1. Culture is learned  rather than being something we are born with.

2. Culture is manifested within boundaries  of acceptable behaviour. 

3. Cultures fall somewhere on a continuum between static and dynamic depending on how quickly
they accept change.

5. Organizational Behaviour
Explain Organisational Behaviour and its different major aspects.
Organizational Behaviour has included two terms in it. Therefore, these two terms should be
detailed first before diving into the title in question.

What is an Organization: It is a group of people who are collected to work for a common goal with
collective efforts. Organization works through two concepts i.e. coordination and delegation among
its group members. Delegation is necessary to allocate group members with equal work according to
their capability, and coordination is required to achieve organizational goal with precision.

Behaviour: It is a verbal or physical response shown by a person as a consequence of the impact of

his/her surroundings. Individual Behaviour varies in accordance with their mental reactivity to
particular circumstances because of their deeply imbibed morals and value system.

Organizational Behaviour: Organizational Behaviour is the observation of individual and/or group

Behaviour in response to the other individuals or group as a whole. It studies Behaviour of people or
group to know their attitude towards particular circumstances.

Different aspects of Organizational Behaviour

1. People: The existence of organization is impossible without people. People make up the
internal social system of the organization. People consist of individuals and groups. Groups
may be formal or informal, small or large, interrelated or complex. People are dynamic in
nature as they interact with each other and also influence each other.
2. Structure: In an organization, structure defines, the roles and relationships of people. It leads
to division of work. The structure clarifies the authority responsibility relationships. All of
these people are related to each other to accomplish the objectives in a coordinated
manner.
3. Technology: In today’s world without technology work is impossible. It provides the
economic and physical resources to make people job easy. The people are given assistance
of machines, tools, methods and resources.
4. External Environment: An organization, operates in a larger social system, are influenced by
external environment which includes, social-cultural, economic, political, legal,
technological, and geographical forces. These forces influence people’s attitudes, motives,
and working conditions in an organization.

1.Principles and Practices of Management

Explain the different activity levels of Management.
Management is a universal phenomenon. It is a very popular and widely used term. All
organizations - business, political, cultural or social are involved in management because it is the
management which helps and directs the various efforts towards a definite purpose. 

Management involves creating an internal environment: - It is the management which puts into
use the various factors of production. Therefore, it is the responsibility of management to create
such conditions which are conducive to maximum efforts so that people are able to perform
their task efficiently and effectively. It includes ensuring availability of raw materials,
determination of wages and salaries, formulation of rules & regulations etc. Management is a
purposive activity. It is something that directs group efforts towards the attainment of certain
pre - determined goals. It is the process of working with and through others to effectively
achieve the goals of the organization, by efficiently using limited resources in the changing
world. 
 Levels of Management

Top Level

It consists of board of directors, chief executive or managing director. The top management is the
ultimate source of authority and it manages goals and policies for an enterprise. It devotes more
time on planning and coordinating functions.

The role of the top management can be summarized as follows -

a. Top management lays down the objectives and broad policies of the enterprise.
b. It issues necessary instructions for preparation of department budgets, procedures,
schedules etc.
c. It prepares strategic plans & policies for the enterprise.
d. It appoints the executive for middle level i.e. departmental managers.
e. It controls & coordinates the activities of all the departments.
f. It is also responsible for maintaining a contact with the outside world.
g. It provides guidance and direction.
h. The top management is also responsible towards the shareholders for the performance of
the enterprise.

Middle Level

The branch managers and departmental managers constitute middle level. They are responsible to
the top management for the functioning of their department. They devote more time to
organizational and directional functions. In small organization, there is only one layer of middle level
of management but in big enterprises, there may be senior and junior middle level management.
Their role can be emphasized as -

a. They execute the plans of the organization in accordance with the policies and directives of
the top management.
b. They make plans for the sub-units of the organization.
c. They participate in employment & training of lower level management.
d. They interpret and explain policies from top level management to lower level.
e. They are responsible for coordinating the activities within the division or department.
f. It also sends important reports and other important data to top level management.
 g. They evaluate performance of junior managers.
h. They are also responsible for inspiring lower level managers towards better performance.

Lower Level

Lower level is also known as supervisory / operative level of management. It consists of supervisors,
foreman, section officers, superintendent etc. According to R.C. Davis, “Supervisory management
refers to those executives whose work has to be largely with personal oversight and direction of
operative employees”. In other words, they are concerned with direction and controlling function of
management. Their activities include -

a. Assigning of jobs and tasks to various workers.

b. They guide and instruct workers for day to day activities.
c. They are responsible for the quality as well as quantity of production.
d. They are also entrusted with the responsibility of maintaining good relation in the
organization.
e. They communicate workers problems, suggestions, and recommendatory appeals etc to the
higher level and higher level goals and objectives to the workers.
f. They help to solve the grievances of the workers.
g. They supervise & guide the sub-ordinates.
h. They are responsible for providing training to the workers.
i. They arrange necessary materials, machines, tools etc for getting the things done.
j. They prepare periodical reports about the performance of the workers.
k. They ensure discipline in the enterprise.
l. They motivate workers.
m. They are the image builders of the enterprise because they are in direct contact with the
workers.

Human Resources Management

Explain the functions of Human Resources Management covering the major areas like Personnel
Administration, Employee Welfare and Functional Areas

Major objectives of Human Resources are :

• To help the organization reach its goals.

• To ensure effective utilization and maximum development of human resources.

• To ensure respect for human beings. To identify and satisfy the needs of individuals.

• To ensure reconciliation of individual goals with those of the organization.

• To achieve and maintain high morale among employees.

• To provide the organization with well-trained and well-motivated employees.

• To increase to the fullest the employee's job satisfaction and self actualization.

• To develop and maintain a quality of work life.

• To be ethically and socially responsive to the needs of society.

• To develop overall personality of each employee in its multidimensional aspect. • To enhance
employee's capabilities to perform the present job.

• To be ethically and socially responsive to the needs of the society.

Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the
organization. Human Resource Management can also be performed by line managers.

HRM can be defined as a process of procuring, developing and maintaining competent resources in
the organization so that goals of an organization are achieved in an effective and efficient manner. In
other words HRM is an art of managing people at work in such a manner that they give best to the
organisation.

Personnel management can be defined as obtaining, using and maintaining a satisfied workforce. It

is a significant part of management concerned with employees at work and with their relationship
within the organization.

1. Personnel management includes the function of employment, development and

compensation- These functions are performed primarily by the personnel management in
consultation with other departments.
2. Personnel management is an extension to general management. It is concerned with
promoting and stimulating competent work force to make their fullest contribution to the
concern.
3. Personnel management exist to advise and assist the line managers in personnel matters.
Therefore, personnel department is a staff department of an organization.
4. Personnel management lays emphasize on action rather than making lengthy schedules,
plans, and work methods. The problems and grievances of people at work can be solved
more effectively through rationale personnel policies.
5. It is based on human orientation. It tries to help the workers to develop their potential fully
to the concern.
6. It also motivates the employees through its effective incentive plans so that the employees
provide fullest co-operation.
7. Personnel management deals with human resources of a concern. In context to human
resources, it manages both individual as well as blue- collar workers.

Employee Welfare :

Employee welfare means the efforts to make life worth living for the employees. According to Todd
“employee welfare means anything done for the comfort and improvement, intellectual or social of
the employees over and above the wages paid which is not a necessity of the industry.”

The objective is in the interest of the employee, the employer and the society as a whole. It helps to
improve, It improves the loyalty and morale of the employees, It reduces the labour turnover and
absenteeism, and welfare measures help to improve the good will and public image of the
enterprise.

6. Principles of Economics
 How economics work and discuss the relations between the main economic players
and institutions.
How economics work and discuss the relations between the main economic players and
institutions.

How economics work and discuss the relations between the main economic players and
institutions.
How economics work and discuss the relations between the main economic players and
institutions.
How economics work and discuss the relations between the main economic players and
institutions.
How economics work and discuss the relations between the main economic players and
institutions.
How economics work and discuss the relations between the main economic players and
institutions.
How economics work and discuss the relations between the main economy

Economics is a broad term given to the social science of how choices are made in face of limited
resources. Various definitions include: “the study of people in the ordinary business of life, “the
science which studies human behaviour as a relationship between given ends and scarce means
which have alternative uses, and the “study of how societies use scarce resources to produce
valuable commodities and distribute them among different people.

Economics is the science, which studies economic problems. Economic problems arise; due to
following reasons;

(a) Man has unlimited wants or ends;

(b) The means or resources to satisfy them are limited

(c) These resources are not specific but have alternative uses; and

(d) Man has, therefore, to choose between wants.

Economics, according to Smith, was the study of wealth, how to increase its production and how to
distribute it. The classical definition of the subject matter and scope of economics came in for bitter
criticism for its narrow individualistic view of the scope of economics. Economists have generally
looked for some’ fundamental assumption” about human behaviour from which most of the
principles of economics can be ultimately deduced. Every decision-maker in an economic system-
whether he is a consumer or producer, whether it is a house hold or a firm- is assumed to have in a
rational manner and go in for maximum gain. Economic rationality presupposes that every person
knows his interest and selects that course of action, which promises him the greatest amount of
satisfaction. The economists have, generally assumed that human beings are rational and that they
are influenced by the ‘maximization principle’. For example, every consumer is said to maximize his
satisfaction with a given amount of expenditure, every producer maximizes his output and minimizes
his cost; every seller minimizes his profit, as so on.
Economics focuses on the behaviour and interactions of economic agents and
how economies work. Microeconomics  analyses basic elements in the economy, including individual
agents and markets, their interactions, and the outcomes of interactions .

Economy is the large set of inter-related production and consumption activities that aid in
determining how scarce resources are allocated. This is also known as an economic system.

Market-based economies allow goods to flow freely through the market, according to supply and
demand. This type of economy has a tendency to naturally balance itself: as the prices in
one sector for an industry rise due to demand, the money and labor necessary to fill that demand
filter to the places where they are needed.

Command-based economies are dependent on a central political agent, which controls the price and
distribution of goods. Supply and demand cannot play out naturally in this system because it is
centrally planned, so imbalances are common.

Green economies depend on renewable, sustainable forms of energy. These systems operate with
the end goal of cutting carbon emissions, restoring biodiversity, relying on alternative energy sources
and generally preserving the environment. This report from the United Nations Environment
Program, "Examples of the Green Economy in Practice," gives a few examples of societies that are
embracing this system.

The study of the economy and the factors affecting the economy is called economics. The discipline
of economics can be broken into two major areas of focus, microeconomics and macroeconomics.
Microeconomics studies the behaviour of individuals and firms in order to understand why they
make the economic decisions they do and how these decisions affect the larger economic system. It
focuses on specific industries and markets, rather than on the market as a whole. Macroeconomics,
on the other hand, studies the entire economy, focusing on large-scale decisions and issues,
including unemployment and gross domestic product (GDP). Macroeconomics can be used on a
national scale to a global scale.

3. Financial Management
Explain the interface between finance and other functions

Finance is the study of money management, the acquiring of funds (cash) and the directing of these
funds to meet particular objectives. Good financial management helps businesses to maximize
returns while simultaneously minimizing risks.

Financial management is an integral part of overall management and not merely a staff function. It is
not only confined to fund raising operations but extends beyond it to cover utilisation of funds and
monitoring its uses. These functions influence the operations of other crucial functional areas of the
firm such as production, marketing and human resources. Hence, decisions in regard to financial
matters must be taken after giving thoughtful consideration to interests of various business
activities. Finance manager has to see things as a part of a whole and make financial decisions within
the framework of overall corporate objectives and policies.

Let us discuss in greater detail the reasons why knowledge of the financial implications of their
decisions is important for the non-finance managers. One common factor among all managers is that
they use resources and since resources are obtained in exchange for money, they are in effect
making the investment decision and in the process of ensuring that the investment is effectively
utilized they are also performing the control function.
 Marketing-Finance Interface

There are many decisions, which the Marketing Manager takes which have a significant location, etc.
In all these matters assessment of financial implications is inescapable impact on the profitability of
the firm. For example, he should have a clear understanding of the impact the credit extended to the
customers is going to have on the profits of the company. Otherwise in his eagerness to meet the
sales targets he is liable to extend liberal terms of credit, which is likely to put the profit plans out of
gear. Similarly, he should weigh the benefits of keeping a large inventory of finished goods in
anticipation of sales against the costs of maintaining that inventory. Other key decisions of the
Marketing Manager, which have financial implications, are:

 Pricing
 Product promotion and advertisement
 Choice of product mix
 Distribution policy.

Production-Finance Interface

As we all know in any manufacturing firm, the Production Manager controls a major part of
the investment in the form of equipment, materials and men. He should so organize his
department that the equipment’s under his control are used most productively, the
inventory of work-in-process or unfinished goods and stores and spares is optimized and the
idle time and work stoppages are minimized. If the production manager can achieve this, he
would be holding the cost of the output under control and thereby help in maximizing
profits. He has to appreciate the fact that whereas the price at which the output can be sold
is largely determined by factors external to the firm like competition, government
regulations, etc. the cost of production is more amenable to his control. Similarly, he would
have to make decisions regarding make or buy, buy or lease etc. for which he has to evaluate
the financial implications before arriving at a decision.

Accounting – Finance Interface

The firm’s finance (treasurer) and accounting (controller) activities are typically within the
control of the financial vice president (CFO). These functions are closely related and
generally overlap; indeed, managerial finance and accounting are often not easily
distinguishable. In small firms the controller often carries out the finance function, and in
large firms many accountants are closely involved in various finance activities. However,
there are two basic differences between finance and accounting; one relates to the
emphasis on cash flows and the other to decision making.