Questions

1. BUSINESS
• OUTLINE WHAT U UNDERSTAND BY THE TERM “BUSINESS”.
• Identify any 2 challenges businesses currently face and give suitable examples.
• What is the role of business in society List the key business objectives and use an
example to highlight the success of failure of any one objective.
• Tata motors have had a turnaround recently. Discuss the steps they have
undertaken to ensure that they meet their business objectives.

Outline of "Business"
Business encompasses a wide range of activities that involve the exchange of goods or services
for profit. It encompasses various sectors, including manufacturing, retail, services, and
technology.
1. Two Challenges Businesses Currently Face
Challenge 1: Adapting to Technological Advancements
Businesses face the constant challenge of keeping up with the rapid pace of technological
advancements. This can be difficult, as new technologies can emerge quickly and disrupt
existing business models. Companies that are unable to adapt to these changes may be left
behind and lose market share.
Example: The rise of e-commerce has disrupted the retail industry, as many consumers are now
shopping online instead of at brick-and-mortar stores. Companies that have not invested in e-
commerce platforms have lost significant market share to online retailers.
Challenge 2: Managing Global Competition
Businesses are also facing increasing competition from companies all over the world. This can
be difficult, as companies in different countries may have different costs, regulations, and
cultures. Companies that are unable to compete effectively in the global marketplace may lose
market share to foreign competitors.
Example: The Chinese smartphone company Huawei has become a major competitor to Apple
and Samsung in the global smartphone market. Huawei has been able to undercut its
competitors on price and has also developed innovative features that have attracted consumers.
2. The Role of Business in Society
Businesses play a vital role in society by creating jobs, producing goods and services, and
contributing to economic growth. Businesses also provide opportunities for individuals to
innovate and pursue their entrepreneurial dreams. In addition, businesses can play a role in
social responsibility by supporting charitable causes and promoting sustainable practices.
3. Key Business Objectives and an Example of Success and Failure
Key Business Objective 1: Profitability
Profitability is a key business objective that is essential for long-term survival. A company that
is not profitable will eventually go out of business.
Example of Success: Apple Inc. is a highly profitable company that has consistently generated
billions of dollars in profits each year. This is due in part to the company's strong brand
reputation, innovative products, and efficient supply chain.
Example of Failure: Blockbuster Inc. was once a dominant company in the video rental
industry, but it failed to adapt to the rise of streaming services such as Netflix. As a result, the
company filed for bankruptcy in 2010.
Key Business Objective 2: Market Share
Market share is another key business objective that is important for companies that want to be
leaders in their industry. A company with a high market share has a larger customer base and
is able to generate more revenue.
Example of Success: Coca-Cola is a global beverage company that has a dominant market share
in the soft drink industry. This is due in part to the company's strong brand recognition,
effective marketing campaigns, and wide distribution network.
Example of Failure: BlackBerry was once a leading smartphone manufacturer, but it failed to
keep up with the competition from Apple and Samsung. As a result, the company's market
share has plummeted in recent years.
4. Tata Motors' Turnaround
Tata Motors has undergone a significant turnaround in recent years. The company has taken a
number of steps to improve its financial performance and market position. These steps include:
• Focusing on new product development: Tata Motors has invested heavily in developing
new products that are more appealing to consumers. The company has also launched
new models in key segments, such as SUVs and compact cars.
 • Improving quality and efficiency: Tata Motors has made significant improvements in
the quality of its vehicles. The company has also implemented lean manufacturing
practices to improve efficiency.
• Expanding into new markets: Tata Motors has expanded its operations into new
markets, such as South America and Africa. This has helped the company to diversify
its revenue base and reduce its reliance on the Indian market.
As a result of these efforts, Tata Motors has seen a significant improvement in its financial
performance. The company's profits have increased, and its market share has grown. Tata
Motors is now well-positioned for continued growth in the future.

2. The Broad Factor Analysis

• List the Elements of The Broad Factor Analysis
• Using any 2 elements, specifically state giving examples as to how a company
benefits in the elements u have chosen.
• Give 4 examples of the micro – environment. Explain the role of any 2 examples
as
to how they can influence the business environment of a company.
• Taking a suitable company example, compare the internal versus external
business
environment. Which is more manageable and why?

Broad Factors Analysis, commonly called the PEST Analysis, is a key component of external
analysis. A Broad Factors Analysis assesses and summarizes the four macro-environmental
factors — political, economic, socio-demographic (social), and technological.

Benefits of Two Specific Elements of the Business Environment

Element 1: Technological Advancements
• Example: The development of cloud computing has enabled businesses to store and
access data more efficiently and cost-effectively.
• Benefits:
o Increased productivity: Cloud-based applications can be accessed from
anywhere, allowing employees to work remotely and more efficiently.
o Reduced costs: Cloud computing eliminates the need for businesses to invest in
hardware and software infrastructure, which can save a significant amount of
money.
o Improved collaboration: Cloud-based tools make it easy for employees to share
information and collaborate on projects, which can lead to improved innovation
and productivity.
Element 2: Economic Conditions
• Example: A period of economic growth can lead to increased consumer spending and
business investment.

• Benefits:
o Increased sales: As consumers have more disposable income, they are more
likely to spend money on goods and services, which can boost a company's
sales.
o Increased investment: Businesses may be more willing to invest in new
products, services, and expansion during periods of economic growth, which
can lead to long-term growth and profitability.
o Improved access to capital: Businesses may have easier access to financing
during periods of economic growth, which can help them to fund their
expansion plans.

Four Examples of the Micro-Environment and Their Influence on Business

The micro-environment encompasses the specific actors and forces that directly influence a
business's operations and decision-making. Here are four key elements of the micro-
environment and their impact on businesses:
1. Customers: Customers are the lifeblood of any business, and their needs, preferences,
and purchasing behavior drive a company's marketing strategies, product development,
and overall business direction. Understanding customer demographics, buying habits,
and feedback is crucial for businesses to succeed.
2. Competitors: Competitors are other businesses that offer similar products or services
to the same target market. Identifying and understanding competitors' strengths,
weaknesses, pricing strategies, and marketing tactics is essential for businesses to
differentiate themselves, gain a competitive advantage, and attract customers.
3. Suppliers: Suppliers provide the raw materials, components, or services that a business
needs to produce its products or offer its services. Maintaining strong relationships with
reliable suppliers ensures a consistent supply of quality inputs, which is crucial for
production efficiency, cost control, and product quality.
4. Marketing Intermediaries: Marketing intermediaries are companies that assist a
business in promoting, selling, and distributing its products or services. These
intermediaries include wholesalers, retailers, advertising agencies, and public relations
firms. Businesses rely on marketing intermediaries to reach their target market, expand
their distribution channels, and enhance their brand image.
Internal Versus External Business Environment
The internal business environment is more manageable than the external business environment
because it is within the control of the company. Companies can make changes to their internal
environment to improve their performance, such as hiring more qualified employees, investing
in new technology, or implementing new marketing strategies.
The external business environment is less manageable because it is outside of the control of
the company. Companies cannot control factors such as economic conditions, government
regulations, or the actions of their competitors. However, companies can take steps to mitigate
the risks associated with the external business environment, such as developing contingency
plans for economic downturns, building relationships with government regulators, or
conducting market research to understand the competitive landscape.
In general, companies should focus on managing their internal business environment as
effectively as possible, and then take steps to mitigate the risks associated with the external
business environment. By doing so, they can increase their chances of long-term success.

3. DEFINE THE TERM STAKEHOLDER

• List examples of internal and external stakeholders using a suitable company as an
example.
• It is stated that stakeholders have conflicting interests and company has to manage
these to succeed. Take a suitable company and explain the conflict of interest.
• Using the influence interest stakeholder grid, analyse the position of at least 6 key
stakeholder group (3 internal and 3 external) for a company. Discuss how each of them
can exercise their influence over the company

1. Examples of Internal and External Stakeholders

Company: Apple Inc.
Internal Stakeholders:
• Employees: Apple's employees are its primary internal stakeholders. They have a
vested interest in the company's success, as their jobs and livelihoods depend on it.
They also have a significant influence on the company's culture and reputation.
• Managers and executives: Apple's managers and executives are responsible for making
decisions that affect the company's direction and performance. They have a high level
of power and influence within the organization.
 • Shareholders: Apple's shareholders are the owners of the company and have a financial
stake in its success. They have the right to vote on major corporate decisions, such as
the election of directors and the approval of mergers and acquisitions.
External Stakeholders:
• Customers: Apple's customers are its primary external stakeholders. They are the ones
who purchase the company's products and services. They have a strong interest in the
quality, innovation, and price of Apple's offerings.
• Suppliers: Apple's suppliers provide the company with the materials and components it
needs to make its products. They have a significant impact on Apple's costs and
production capabilities.
• Government regulators: Apple is subject to various government regulations, such as
those related to environmental protection, labor practices, and product safety. These
regulators have the power to fine or even shut down the company if it fails to comply
with their rules.
• Community: Apple operates in communities around the world, and its activities can
have a significant impact on the environment and the local economy. The company has
a responsibility to be a good corporate citizen and to engage with the communities in
which it operates.
Conflicting Interests of Stakeholders
Stakeholders often have conflicting interests, which can create challenges for companies. For
example, shareholders may want the company to maximize profits in the short term, while
employees may want the company to invest in employee training and development. Customers
may want the company to offer low prices, while suppliers may want the company to pay them
higher prices for their products and services.
Companies must carefully manage these conflicting interests in order to succeed. They must
do this by balancing the needs of all of their stakeholders and by finding ways to create value
for all of them.
 Influence Interest Stakeholder Grid
Apple Stakeholder Analysis
Here is an analysis of the position of six key stakeholder groups for Apple using the influence
interest stakeholder grid:

Stakeholder
Influence Interest Strategy for Engaging
Group

Communicate openly and honestly with employees,

Employees High High involve them in decision-making, invest in training and
development.

Managers
Provide clear direction and goals, hold them accountable
and High High
for results, offer competitive compensation and benefits.
executives

Communicate financial results regularly, hold

Shareholders High Medium
shareholder meetings, respond to shareholder concerns.

Offer high-quality products and services, provide

Customers High High
excellent customer service, listen to customer feedback.

Develop strong relationships with suppliers, negotiate

Suppliers Medium Medium
fair prices, work collaboratively on innovation.

Comply with all applicable laws and regulations, build

Government
Medium Low relationships with regulators, advocate for policies that
regulators
support the company's business.
4. WHAT ARE THE COMMON LABELS USED FOR SWAN EVENTS
• Identify some key characteristics of any two swan events
• Give an example of events for any two swan events
• How did Amul manage – case (thinkschool.com)

Examples of events for black swan and grey swan events:

Black Swan Events
• The Spanish Flu pandemic of 1918: This catastrophic pandemic killed an estimated
50 to 100 million people worldwide. The flu virus was highly contagious and deadly,
and it spread rapidly due to the lack of modern medical treatments and global
transportation networks.
• The Chernobyl nuclear disaster of 1986: This nuclear meltdown was the result of a
flawed reactor design and a series of human errors. The disaster released a massive
amount of radioactive material into the environment, causing widespread
contamination and long-term health problems for affected populations.
• The 9/11 terrorist attacks of 2001: These coordinated attacks on the United States by
al-Qaeda terrorists were a shocking act of violence that reshaped global security and
international relations. The attacks led to the War on Terror and had a profound impact
on aviation security, civil liberties, and foreign policy.
Grey Swan Events
• The rise of artificial intelligence (AI): AI is rapidly transforming the world, with
significant implications for industries, economies, and societies. While the potential
benefits of AI are immense, there are also concerns about job displacement, algorithmic
bias, and the potential for AI to surpass human intelligence.
• The climate crisis: The effects of climate change, such as rising sea levels, extreme
weather events, and biodiversity loss, are becoming increasingly apparent. These
challenges will require global cooperation and innovative solutions to mitigate and
adapt to the changing climate.
• The aging population: The global population is aging rapidly, with significant
implications for healthcare systems, labor markets, and social security programs. This
demographic shift will require new approaches to care for the elderly and support a
growing population of retirees.

5. Expand the term VUCA and BANI.

• Compare the two and what is needed to help companies to manage themselves
better.
• Briefly discuss how you could apply the present crisis of COVID – 19 in China in
the context of a BANI world.

VUCA and BANI are acronyms that describe the complex and rapidly changing business
environment that organizations face today.
VUCA stands for:
• Volatility: The rapid and unpredictable change in business conditions.
• Uncertainty: The lack of clarity and certainty about future events.
• Complexity: The increasing interconnectedness and interdependence of systems and
processes.
• Ambiguity: The difficulty in interpreting or making sense of information.
BANI stands for:
• Brittle: Fragile and easily disrupted.
• Anxious: Characterized by a sense of urgency and fear.
• Nonlinear: Non-linear and unpredictable in its trajectory.
• Incomprehensible: Difficult to understand or explain.
Comparison of VUCA and BANI
While VUCA and BANI both describe the challenges of the business environment, they also
have some key differences.
• VUCA is more focused on the external environment, while BANI is more focused on
the internal environment of organizations.
• VUCA is more concerned with the speed and unpredictability of change, while BANI
is more concerned with the fragility and anxiety that change can create.
• VUCA is more linear in its thinking, while BANI is more nonlinear and complex.

What Companies Need to Manage VUCA and BANI Environments

In order to thrive in the VUCA and BANI worlds, companies need to be:
• Agile: Able to adapt quickly and effectively to change.
• Resilient: Able to withstand and recover from disruptions.
• Empathetic: Able to understand and respond to the needs of their employees, customers,
and stakeholders.
• Visionary: Able to see the future and make strategic decisions that will position the
company for success.

COVID-19 Crisis in China as an Example of BANI

The COVID-19 crisis in China is a prime example of a BANI event. It is a brittle event, as it
has caused widespread disruption to the Chinese economy and supply chains. It is an anxious
event, as it has caused fear and uncertainty among the Chinese population and businesses. It is
a nonlinear event, as it has had a complex and unpredictable impact on the global economy.
And it is an incomprehensible event, as the full extent of its impact is still not fully understood.
Businesses in China can apply the BANI framework to manage the COVID-19 crisis by:
• Being brittle: Recognizing that they are vulnerable to disruption and taking steps to
mitigate risk.
• Being anxious: Acknowledging the anxiety and fear that the crisis has caused and taking
steps to support their employees and customers.
• Being nonlinear: Recognizing that the crisis is complex and unpredictable and
developing strategies to adapt to changing circumstances.
• Being incomprehensible: Accepting that they will not fully understand the crisis until
it is over and making decisions based on the best available information.
By understanding and applying the BANI framework, businesses in China can better manage
the COVID-19 crisis and emerge stronger in the long run.
6. List the primary activities of a value chain.
Take any two and discuss the impact the changing business environment elements may
have on the activity.
Outline a value chain of a company. Identify the challenges which the activities you have
listed face in terms of support activities and how the overall economic environment can
impact them

Primary Activities of a Value Chain

The primary activities of a value chain are the activities that directly create and deliver a
product or service to the customer. These activities are often divided into five categories:
1. Inbound Logistics: This activity involves receiving and storing raw materials and
components.
Example: A company that produces bicycles may source its components from various suppliers
around the world. Changes in global trade policies or transportation costs could significantly
impact the company's inbound logistics costs and efficiency.
2. Operations: This activity involves converting raw materials and components into
finished products.
Example: A company that manufactures smartphones may rely on highly automated production
processes. Advancements in robotics and automation could significantly impact the company's
operations, potentially reducing costs and increasing efficiency.
3. Outbound Logistics: This activity involves delivering finished products to customers.
Example: A company that sells clothing online may utilize a network of warehouses and
shipping partners to deliver products to customers worldwide. Changes in consumer
preferences or e-commerce trends could significantly impact the company's outbound logistics
strategies.
4. Marketing and Sales: This activity involves creating awareness and generating
demand for a company's products or services.
Example: A company that develops software applications may invest heavily in digital
marketing and social media campaigns to reach potential customers. The rise of new marketing
channels and the evolving digital landscape could significantly impact the company's
marketing and sales strategies.
5. Service: This activity involves providing customer support and after-sales service.
Example: A company that manufactures automobiles may have a network of dealerships that
provide customer service, maintenance, and repairs. Changes in customer expectations or the
emergence of new technologies could significantly impact the company's service activities.
Impact of Changing Business Environment Elements
The changing business environment can have a significant impact on the primary activities of
a value chain. Here are some examples:
• Technological advancements: New technologies can automate tasks, improve
efficiency, and reduce costs. However, they can also lead to job displacement and
require companies to invest in training and upskilling their workforce.
• Economic conditions: Economic downturns can lead to decreased consumer demand,
reduced production, and increased pressure on profit margins. However, periods of
economic growth can lead to increased demand, expanded production, and
opportunities for innovation.
• Global competition: Companies face increasing competition from around the world.
This can put pressure on prices, drive innovation, and require companies to adapt their
strategies to remain competitive.

Value Chain of a Company

Using Apple as an example, here is an outline of its value chain:

Inbound Logistics: Apple sources components from various suppliers around the world,
including China, Taiwan, and South Korea.
Operations: Apple's manufacturing partners assemble iPhones and iPads in factories located
in China and other countries.
Outbound Logistics: Apple utilizes a network of warehouses and shipping partners to deliver
products to customers worldwide through its online store, retail stores, and authorized resellers.
Marketing and Sales: Apple invests heavily in digital marketing, social media campaigns,
and product launches to create awareness and generate demand for its products.
Service: Apple provides customer support through its online portal, Genius Bars at its retail
stores, and authorized service providers worldwide.

Challenges in Support Activities

The support activities of a value chain provide the infrastructure and resources that enable the
primary activities to function effectively. However, these support activities can also face
challenges:
• Infrastructure: Companies may need to invest in upgrading their IT infrastructure,
telecommunications networks, and physical facilities to support the demands of their
business.
• Human Resource Management: Companies need to attract, retain, and develop a skilled
workforce that can adapt to the changing business environment.
 • Technology Development: Companies need to invest in research and development to
stay ahead of the competition and develop innovative products and services.
• Procurement: Companies need to manage their supply chains effectively to ensure the
timely and cost-effective procurement of raw materials and components.
Impact of Economic Environment
The overall economic environment can significantly impact the support activities of a value
chain. For instance:
• Economic downturns: During periods of economic downturn, companies may face
reduced financing options, increased costs for resources, and a more competitive labor
market.
• Economic growth: Periods of economic growth may provide companies with greater
access to capital, lower costs for resources, and a more favorable hiring environment.
Companies need to be aware of the potential impact of the changing business environment on
their value chains and develop strategies to mitigate risks and seize opportunities. By
effectively managing their primary and support activities, companies can enhance their
resilience, adaptability, and overall competitive advantage.

7. In the context of SWOT which elements are external to the organization and which
are internal?
Why is T replaced by C i.e. SWOC?
Map out a suitable company and discuss the elements you have listed in terms of
how these may change overtime or due to environmental impacts.
Identify one key threat and one key opportunity which you foresee the company
facing/benefitting from in the next decade.

Internal and External Elements in SWOT Analysis

SWOT analysis is a strategic planning tool that helps organizations identify and analyze their
Strengths, Weaknesses, Opportunities, and Threats. Strengths and Weaknesses are considered
internal elements, meaning they are within the control of the organization. Opportunities and
Threats are considered external elements, meaning they are outside of the organization's
control.
Internal Elements (Strengths and Weaknesses)
• Strengths: Strengths are the positive attributes of an organization that give it an
advantage over its competitors. Examples of strengths include:
o Strong brand reputation
o Innovative products or services
o Highly skilled workforce
o Efficient operations
o Strong financial position
• Weaknesses: Weaknesses are the areas where an organization can improve. Examples
of weaknesses include:
o Weak brand recognition
o Outdated technology
o High employee turnover
o Inefficient supply chain
o Limited financial resources
External Elements (Opportunities and Threats)
• Opportunities: Opportunities are favorable external conditions that an organization can
exploit to its advantage. Examples of opportunities include:
o Expanding into new markets
o Developing new products or services
o Partnering with other organizations
o Acquiring competitors
o Benefiting from favorable government policies
• Threats: Threats are unfavorable external conditions that can negatively impact an
organization. Examples of threats include:
o Increased competition
o Economic downturns
o Technological disruptions
o Changes in consumer preferences
o Unfavorable government regulations
Why T is Replaced by C in SWOC Analysis
In some cases, the distinction between Threats and Challenges can be blurry. Therefore, some
organizations prefer to use the SWOC analysis framework, where Threats are replaced by
Challenges. Challenges represent a wider range of external factors that can pose obstacles to
an organization's success, and they may not necessarily be as immediate or severe as Threats.

SWOC Analysis Example: Tesla

Here is an example of how SWOC analysis can be applied to Tesla, an electric vehicle and
clean energy company:
Strengths:
• Strong brand reputation
• Innovative products and services
• Highly skilled workforce
• Efficient operations
• Vertical integration of manufacturing and technology
Weaknesses:
• High production costs
• Limited production capacity
• Reliance on government subsidies
• Potential battery supply chain disruptions
• Perceived quality issues
Opportunities:
• Expanding into new markets, particularly in China and Europe
• Developing new products, such as autonomous vehicles and energy storage solutions
• Expanding its charging network
• Benefiting from government incentives for electric vehicles and clean energy
Challenges:
• Increasing competition from established automakers
• Economic downturns that could reduce consumer demand for luxury vehicles
• Technological disruptions that could outpace Tesla's innovation
• Regulatory challenges, such as changes in emissions standards or subsidies
• Public perception issues related to safety and environmental impact
Key Threat and Opportunity for Tesla in the Next Decade
Key Threat:
• Increasing competition from established automakers as they invest heavily in electric
vehicle development. This could erode Tesla's market share and put downward pressure
on prices.
Key Opportunity:
• Expanding into new markets and product categories, potentially including autonomous
vehicles, energy storage solutions, and commercial vehicles. This could diversify
Tesla's revenue streams and drive long-term growth.
Tesla will need to continue to innovate, expand its production capacity, and manage its costs
effectively to remain competitive in the increasingly crowded electric vehicle market.
Additionally, the company will need to address any perceived quality issues and maintain a
strong brand reputation to maintain customer loyalty.

8. PESTLE
• Elements of the MODEL can have interrelatedness. Using and suitable example,
show how this is possible.

• List what factors are normally included in P and E environments and discuss how
they impact each other
Using a suitable example, map out the PESTEL for a suitable company. Identify 3
changes in the PESTLE which can be a challenge and three which can be a boon to
it

Interrelatedness in the PESTLE MODEL

The PESTLE MODEL is a framework used to analyze the external environment of an
organization. The acronym PESTLE stands for:
• Political factors: These factors include government policies, regulations, and laws that
affect the organization's operations.
• Economic factors: These factors include economic conditions, inflation, interest rates,
and exchange rates that impact the organization's costs, revenue, and profitability.
• Social factors: These factors include cultural trends, demographics, consumer
preferences, and lifestyle choices that influence the organization's target market and
demand for its products or services.
 • Technological factors: These factors include technological advancements, innovation,
and the adoption of new technologies that can disrupt industries, create new
opportunities, and challenge existing business models.
• Legal factors: These factors include labor laws, environmental regulations, intellectual
property laws, and consumer protection laws that govern the organization's operations.
• Environmental factors: These factors include climate change, resource scarcity,
pollution, and sustainability concerns that can affect the organization's supply chain,
operations, and reputation.
The elements of the PESTLE MODEL are often interrelated, meaning that they can influence
and impact each other. For example, a change in government policy (political factor) could
lead to new economic conditions (economic factor), which in turn could affect consumer
preferences (social factor).
Example of Interrelatedness in the PESTLE MODEL
Consider the example of a company that produces and sells bottled water. A government policy
banning the use of single-use plastic bottles (political factor) could lead to increased demand
for reusable water bottles (social factor). This shift in consumer preferences could drive the
development of new technologies for producing and cleaning reusable water bottles
(technological factor), which could impact the company's supply chain and operations
(economic factor).

Factors Included in P and E Environments and Their Impact

The Political (P) and Economic (E) environments are often closely intertwined, as government
policies can have a significant impact on economic conditions. For instance, government
policies that promote economic growth, such as tax cuts or infrastructure investments, can lead
to increased consumer spending, higher corporate profits, and greater business opportunities.
Conversely, government policies that restrict economic activity, such as trade tariffs or
regulations on business operations, can hinder economic growth, reduce consumer demand,
and pose challenges for businesses.
The impact of the P and E environments on each other can be positive or negative. In the case
of the water bottle example mentioned earlier, the government policy banning single-use plastic
bottles (political factor) had a positive impact on the economic environment (E) by creating
new market opportunities for reusable water bottle manufacturers. However, this policy could
also have a negative impact on the economic environment (E) by disrupting the supply chain
and operations of companies that produce and sell single-use plastic bottles.
Organizations need to carefully consider the interrelatedness of the PESTLE MODEL factors
and develop strategies to adapt to and manage the external environment effectively. By
understanding the impact of political, economic, social, technological, legal, and
environmental factors on their business, organizations can make informed decisions, mitigate
risks, and seize opportunities for growth and success.
9. EXPAND THE TERM ESG
• What are the 4 main sub categories under S?
• List some examples of what should be considered under E and do so using a
company of your choice.
• Explain what you mean by a triple bottom approach and why this is critical in
today’s business environment. Take a suitable example and demonstrate how a
company can attempt to follow this environment.

ESG stands for Environmental, Social, and Governance.

It is a set of standards for a company's operations that socially conscious investors use to screen
potential investments. ESG factors are considered to be non-financial factors that can affect a
company's long-term financial performance.
Environmental factors include a company's impact on the environment, such as its energy
consumption, water usage, and greenhouse gas emissions.
Social factors include a company's relationship with its employees, customers, and
communities. This includes things like labor practices, product safety, and philanthropy.
Governance factors include the way a company is managed. This includes things like
executive compensation, board diversity, and accounting practices.

The 4 main subcategories under S are:

• Social equity: This refers to the fairness and justice in a society. It includes things like
access to education, healthcare, and housing, as well as equal opportunities for
employment and advancement.
• Labor practices: This refers to the working conditions of employees. It includes things
like wages and benefits, safety standards, and freedom of association.
• Product responsibility: This refers to the impact of a company's products on society. It
includes things like product safety, environmental impact, and fair trade practices.
• Community: This refers to the relationship between a company and the communities in
which it operates. It includes things like philanthropy, community involvement, and
environmental stewardship.

Here are some examples of what should be considered under E, using the example of
Nike:
• Energy consumption: Nike is committed to reducing its energy consumption by 25%
by 2025. The company has implemented a number of energy-saving measures, such as
installing LED lighting and using renewable energy.
 • Water usage: Nike is committed to reducing its water usage by 20% by 2025. The
company has implemented a number of water-saving measures, such as using recycled
water and installing water-efficient fixtures.
• Waste reduction: Nike is committed to diverting 99% of its manufacturing waste from
landfills. The company has implemented a number of waste reduction measures, such
as recycling and composting.
• Greenhouse gas emissions: Nike is committed to reducing its greenhouse gas emissions
by 30% by 2030. The company has implemented a number of measures to reduce
emissions, such as using renewable energy and improving its supply chain efficiency.

What is a Triple Bottom Line Approach?

The triple bottom line (TBL) approach is a business concept that encourages companies to
consider their social, environmental, and economic impact alongside their financial
performance. This approach goes beyond traditional profit-driven business models and
emphasizes the importance of sustainability and responsible practices.

Why is the Triple Bottom Line Approach Critical Today?

Managing Risk: By considering their social, environmental, and economic impact, companies
can identify and mitigate potential risks that could harm their reputation, operations, and long-
term financial stability.
Attracting and Retaining Talent: Employees, particularly millennials and Gen Z, are
increasingly seeking employment with companies that align with their values and demonstrate
a commitment to sustainability. A triple bottom line approach can help companies attract and
retain top talent.
Enhancing Brand Reputation: Consumers are becoming more discerning and are choosing to
support companies that demonstrate ethical and responsible practices. A triple bottom line
approach can help companies build a strong brand reputation and gain customer loyalty.
Long-Term Financial Success: Companies that adopt a triple bottom line approach are often
more resilient and adaptable, making them better equipped to navigate changing market
conditions and achieve long-term financial success.

Example: Patagonia – A Triple Bottom Line Pioneer

Patagonia, an outdoor apparel company, is a prime example of a company that has successfully
embraced the triple bottom line approach. Patagonia is renowned for its commitment to
environmental sustainability, using recycled materials, reducing its carbon footprint, and
supporting environmental organizations.
Patagonia also prioritizes social responsibility, ensuring fair wages and working conditions for
its employees, promoting ethical sourcing practices, and advocating for social justice causes.
Despite putting social and environmental impact at the forefront, Patagonia has maintained
financial success. The company's strong brand reputation, loyal customer base, and
commitment to quality products have contributed to its enduring profitability.

10. Why is business ethics important for business and how does it help them in long
term?
• One often says that there should be a third E in Pestle. The ethical environment.
Would u agree? Defend your argument with a suitable example of its
importance/unimportance.
• Take a suitable example and analyse the cost outcomes the company has had to
face on account

The Importance of Business Ethics for Long-Term Business Success

Business ethics encompasses the principles and standards that guide a company's behavior and
decision-making processes. It ensures that a company operates in a responsible and sustainable
manner, considering the interests of its stakeholders, including employees, customers,
investors, and the wider community.
Business ethics is not just a matter of doing the right thing; it is also essential for long-term
business success. Here are some of the key benefits of ethical business practices:
1. Reputation and Brand Image: A strong reputation for ethical behavior can attract and
retain customers, investors, and talented employees. A positive brand image can lead
to increased sales, reduced customer acquisition costs, and improved employee morale.
2. Reduced Risk and Legal Compliance: Ethical business practices can help companies
avoid legal and financial risks associated with unethical behavior, such as lawsuits,
fines, and regulatory sanctions.
3. Increased Innovation and Productivity: An ethical workplace fosters a culture of trust,
collaboration, and innovation, leading to higher productivity and better decision-
making.
4. Sustainable Growth and Profitability: Ethical business practices can contribute to a
company's long-term sustainability and profitability by building relationships with
stakeholders, enhancing brand reputation, and attracting top talent.
The Ethical Environment as the Third E in PESTLE Analysis
PESTLE analysis is a strategic planning tool used to assess a company's external environment.
The traditional PESTLE framework considers Political, Economic, Social, Technological,
Legal, and Environmental factors. However, some argue that an Ethical Environment (EE)
should be added as the seventh factor.
The ethical environment refers to the societal norms, values, and expectations regarding ethical
behavior that influence a company's operations. This includes factors such as consumer
attitudes towards ethical practices, government regulations on ethical conduct, and the ethical
practices of competitors.

Considering the ethical environment as part of PESTLE analysis can help companies:
1. Identify Ethical Risks: Understanding the ethical expectations of stakeholders can help
companies identify potential ethical risks and proactively address them.
2. Adapt to Ethical Trends: By staying attuned to evolving ethical norms and consumer
expectations, companies can adapt their practices to remain relevant and competitive.
3. Gain a Competitive Advantage: Companies that demonstrate a strong commitment to
ethical behavior can differentiate themselves from competitors and gain a competitive
advantage.

Example: Volkswagen Emissions Scandal

Volkswagen's emissions scandal serves as a stark reminder of the importance of business ethics
and the potential costs of unethical behavior. In 2015, Volkswagen was caught using illegal
software to cheat emissions tests for its diesel vehicles. The scandal resulted in billions of
dollars in fines, lawsuits, and reputational damage for the company.
The scandal had a significant impact on Volkswagen's financial performance, brand image, and
customer trust. The company's stock price plummeted, and sales declined sharply. Volkswagen
has since taken steps to improve its ethical culture and regain the trust of its stakeholders.
This example highlights the importance of ethical business practices for long-term
sustainability and the potentially devastating consequences of unethical behavior. Companies
that prioritize ethical conduct can protect their reputation, maintain customer loyalty, and
achieve sustainable growth.
11. Map The Outline Flow Of Income With The Government In The Middle
Outline the formula normally used to calculate GDP.
Why is one element generally negative for most countries? Is GDP growth without
employment good in the long run? Does GDP measure human well-being?

Identify 2 countries which have this as positive and describe how they achieve it.

It is said water is the next oil. Using this, map out the relevance of water and its
impact on the GDP. Additionally, take a suitable example of a company where water
is a main/major input and how they will be affected by a water crisis either in excess
or as a scarcity.
If you were an FMCG company, could you suggest a model which will help sustain
high GDP per capita? How would you deploy the model? Please create a table and
answer in bullet points
GDP Formula and Negative Element
The formula for calculating Gross Domestic Product (GDP) is:
GDP = C + G + I + NX
Where:
• C = Consumption (private sector spending)
• G = Government spending
• I = Investment (business spending)
• NX = Net exports (exports minus imports)
The element that is generally negative for most countries is NX (net exports). This is because
most countries import more goods and services than they export. This means that they are
sending more money out of the country than they are bringing in, which can have a negative
impact on the economy.

GDP Growth without Employment

GDP growth without employment is not sustainable in the long run. This is because economic
growth is ultimately driven by people working and producing goods and services. Without
employment, there will not be enough people working to generate the economic activity
necessary for sustainable growth.
In addition, GDP growth without employment can lead to inequality and social unrest. When
people do not have jobs, they are less likely to be able to afford basic necessities like food and
housing. This can lead to social unrest and instability.

GDP as a Measure of Human Well-being

GDP is not a perfect measure of human well-being. While it does measure economic activity,
it does not take into account other important factors such as health, education, and
environmental quality. For example, a country with a high GDP could still have a high level of
poverty or a polluted environment.
A more comprehensive measure of human well-being is the Human Development Index (HDI),
which takes into account life expectancy, education, and income.

Countries with Positive NX

Two countries that have a positive NX are Germany and China. Germany has a positive NX
because it exports more goods and services than it imports. China has a positive NX because it
has a large manufacturing sector that produces goods for export.
Relevance of Water and Its Impact on GDP
Water is a critical resource for economic activity. It is used in agriculture, manufacturing, and
industry. Without water, economies would not be able to function.
A water crisis can have a significant negative impact on GDP. If there is not enough water for
agriculture, crops will fail and food prices will rise. If there is not enough water for
manufacturing, factories will have to shut down and people will lose their jobs.
Example of Company Affected by Water Crisis
The Coca-Cola Company is an example of a company that is heavily reliant on water. Coca-
Cola uses water in its production process and in its products. A water crisis could have a
significant negative impact on the company's operations and profitability.

Model for Sustainable GDP Growth for an FMCG Company

Here is a table outlining a model for sustainable GDP growth for an FMCG company:

Strategy Description

Develop new products and services that meet the needs

Focus on innovation
of consumers.

Reduce the company's environmental impact and

Invest in sustainability
improve its social responsibility practices.

Enter new markets to grow the company's customer

Expand into new markets
base.

Build strong relationships Ensure a reliable supply of raw materials and

with suppliers ingredients.

Invest in employee training

Develop a highly skilled and motivated workforce.
and development
Deployment of the Model
The model can be deployed by implementing the following steps:
1. Create a company-wide commitment to sustainable GDP growth.
2. Develop a detailed plan for implementing the strategies outlined in the model.
3. Allocate resources to support the implementation of the plan.
4. Monitor and evaluate progress on a regular basis.
By following these steps, FMCG companies can increase their chances of achieving sustainable
GDP growth.

12. BRIEFLY OUTLINE THE BUTTERFLY AND DOMINO EFFECTS

• Briefly outline multiplier and income effects.
• Describe the Pigou Effect
• The forces of business cycle express business cycle in non-conventional way. What
are the four stages? Give 2 symptoms/ characteristics for each cycle.
• What are the characteristics of a traditional business cycle? What would be an
appropriate monetary policy response for each phase.
• What are the internal and external causes of business cycles?
• What are some tips for managing a downturn in the business cycle?

Butterfly Effect and Domino Effect

The butterfly effect and domino effect are two metaphors that describe how seemingly small
events can have large and unpredictable consequences.
• Butterfly Effect: The butterfly effect refers to the idea that a small change in one part
of a system can lead to a large and unpredictable change in another part of the system.
The name comes from the idea that a butterfly flapping its wings in Brazil could
eventually cause a tornado in Texas.
• Domino Effect: The domino effect refers to the idea that a series of events can be
triggered by a single event, causing each event to cause the next one in a chain reaction.

Multiplier and Income Effects

• Multiplier Effect: The multiplier effect refers to the idea that an increase in government
spending can lead to a multiple increase in economic activity. This is because the money
that the government spends will be re-spent by consumers and businesses, creating a
ripple effect throughout the economy.
 • Income Effect: The income effect refers to the idea that a change in income can affect
people's spending behavior. When people have more income, they are generally more
likely to spend more money.
Pigou Effect
The Pigou effect is an economic concept that describes how expectations about future prices
can affect current spending behavior.
• Positive Pigou Effect: The positive Pigou effect refers to the idea that people are more
likely to spend money when they expect prices to rise in the future. This is because they
want to buy goods and services before they become more expensive.
• Negative Pigou Effect: The negative Pigou effect refers to the idea that people are more
likely to save money when they expect prices to fall in the future. This is because they
want to take advantage of lower prices in the future.

Four Stages of the Business Cycle/ Characteristics of a Traditional Business Cycle and
Monetary Policy Responses

The four stages of the business cycle are expansion, peak, contraction, and trough.
• Expansion: The expansion phase is characterized by economic growth, rising
employment, and increasing investment.
 • Peak: The peak phase is characterized by full employment, high levels of production,
and inflation.
• Depression: The depression phase is characterized by economic decline, falling
employment, and decreasing investment.
• Trough: The trough phase is characterized by high unemployment, low levels of
production, and deflation.

Internal and External Causes of Business Cycles

There are both internal and external causes of business cycles.
• Internal Causes: Internal causes of business cycles include changes in investment
spending, consumer spending, and government spending.
• External Causes: External causes of business cycles include events such as wars, natural
disasters, and changes in foreign economies.

Tips for Managing a Downturn in the Business Cycle

There are a number of things that businesses can do to manage a downturn in the business
cycle.
• Cut costs: Businesses can cut costs by reducing expenses, laying off employees, or
negotiating better deals with suppliers.
• Invest in innovation: Businesses can invest in innovation to develop new products and
services that can help them to gain market share.
• Expand into new markets: Businesses can expand into new markets to grow their
customer base and revenue.
• Build strong relationships with customers: Businesses can build strong relationships
with customers by providing excellent customer service and offering loyalty programs.
By taking these steps, businesses can increase their chances of surviving a downturn in the
business cycle and emerging stronger on the other side.

13.
• How would u define business analysis?
• What is a moat and what are some examples of a moat a company can build?
• What is a cost moat? Give examples of companies who have managed this?
• Outline the business model canvas and briefly explain the elements in terms of the
value chain concept. Take a suitable example to map
What is Business Analysis?
Business analysis is the process of identifying business needs and developing solutions to meet
those needs. It involves understanding the current business environment, analyzing problems
and opportunities, and recommending solutions that are aligned with the organization's goals
and objectives.
Business analysts play a critical role in helping organizations make informed decisions and
improve their performance. They use a variety of tools and techniques to gather information,
analyse data, and develop solutions.

What is a Moat?
A moat is a competitive advantage that makes it difficult for new entrants to enter a market or
for existing competitors to take market share away from the company with the moat. It is a
barrier to entry that protects a company's profitability and market position.
There are many different types of moats, but some of the most common include:
• Network effects: These occur when a product or service becomes more valuable as
more people use it. For example, social media platforms like Facebook and Twitter
have strong network effects, as they are more valuable to users the more people are on
them.
• Switching costs: These are the costs that a customer incurs when switching from one
product or service to another. For example, it can be very costly for a customer to switch
from one cloud computing provider to another, as they may have to retrain their
employees and migrate their data.
• Brand reputation: A strong brand reputation can give a company a significant
competitive advantage. Customers are more likely to trust and buy from companies
with a strong reputation.
• Intellectual property: Intellectual property, such as patents, copyrights, and trademarks,
can give a company a legal advantage over its competitors.
What is a Cost Moat?
A cost moat is a competitive advantage that allows a company to produce goods or services at
a lower cost than its competitors. This can be achieved through a number of factors, such as:
• Economies of scale: These occur when a company can produce goods or services at a
lower cost per unit as the volume of production increases.
• Access to cheaper raw materials: A company may have a cost advantage if it has access
to cheaper raw materials than its competitors.
Examples of Companies with Cost Moats
Here are some examples of companies with strong cost moats:
• Walmart: Walmart has a cost moat due to its economies of scale and its efficient supply
chain.
• Amazon: Amazon has a cost moat due to its access to data and its ability to use
technology to automate processes.

14. BUSINESS MODEL ENVIRONMENT ANALYSIS

1.WHAT ARE THE 4 THEMES OF A BUSINESS MODEL ENVIRONMENT

ANALYSIS?
2. Which theme generally aligns to the Porter’s force model?
3. Identify some key factors key factors you would consider for any two themes.
4. Using a suitable example for example the e-commerce/aviation or banking industry,
map out the key points of concerns and potential advantages one can infer by
analysis the two themes you have chosen above.
Business Model Canvas for Amazon:
The 4 Themes of a Business Model Environment Analysis
The four themes of a business model environment analysis are:
1. Market Forces: This theme analyzes the competitive landscape, customer needs, and
market trends that can impact a company's business model.
2. Key Trends: This theme identifies and assesses emerging trends that could have a
significant impact on the industry, such as technological advancements, changing
consumer preferences, or regulatory changes.
3. Industry Forces: This theme analyzes the structure of the industry, the bargaining
power of suppliers and customers, and the threat of new entrants or substitutes. (PF5)
4. Macroeconomic Trends: This theme analyzes the overall economic environment, such
as interest rates, inflation, and economic growth, which can affect a company's costs,
revenues, and overall profitability.

Alignment of Themes with Porter's Five Forces Model

Out of the four themes of a business model environment analysis, the Industry Forces theme
aligns most closely with Porter's Five Forces model.
The five forces are:
1. Threat of new entrants: This force analyzes the barriers to entry in the industry and the
ease with which new competitors can enter the market.
2. Bargaining power of suppliers: This force analyzes the power of suppliers to influence
prices, terms, and conditions of supply.
3. Bargaining power of buyers: This force analyzes the power of buyers to influence
prices, terms, and conditions of purchase.
4. Threat of substitutes: This force analyzes the availability of substitute products or
services that could threaten the industry's profitability.
5. Competitive rivalry: This force analyzes the intensity of competition among existing
players in the industry.

15. It is often useful to extend the impact of porter’s 5 force model from the supplier
and buyers bargaining power. Give a suitable example and state why this is important.
• What are the proposed additions to the Porter’s 5 force model?
• Take any 2 and expand as to how this can disrupt the industry dynamics.
• Take a suitable industry and draw out a Porter’s 5 forces. Explain how changes in
any two element of PESTLE which you choose can change the force elements.
Sure, here is a detailed response to your questions:
1. Extending the Impact of Porter's 5 Forces Model
Porter's 5 Forces model is a widely used framework for analyzing the competitive landscape
of an industry. However, the traditional model focuses primarily on the bargaining power of
suppliers and buyers, neglecting other important external factors that can influence industry
dynamics.
Expanding the scope of Porter's 5 Forces model to include additional factors such as the threat
of new entrants, the threat of substitutes, and competitive rivalry can provide a more
comprehensive understanding of the industry and its potential for disruption.
Example: The Rise of Fintech in the Financial Services Industry
The rise of fintech companies has significantly disrupted the traditional financial services
industry, challenging the dominance of established banks and financial institutions. Fintech
companies have leveraged technological advancements to offer innovative financial services,
such as mobile payments, peer-to-peer lending, and automated investment platforms.
These innovations have eroded the barriers to entry for new entrants, empowered customers
with more choices and control over their finances, and intensified competitive rivalry among
existing players.

2. Proposed Additions to Porter's 5 Forces Model

In addition to the traditional five forces, several additional factors can be considered to enhance
the analysis of industry dynamics:
• Complementary products and services: The availability of complementary products or
services can significantly impact the competitive landscape. For instance, the growth
of smartphones has fuelled the demand for mobile apps and accessories.
• Government regulation: Government policies, regulations, and taxation can influence
the entry barriers, cost structures, and competitive dynamics within an industry.
• Technological advancements: Rapid technological advancements can disrupt existing
business models and create new opportunities for innovation and disruption.
• Sustainability and environmental factors: Consumer preferences for sustainable and
environmentally friendly products and services can influence the competitive landscape
and drive innovation.
• Global competition: The increasing interconnectedness of the global economy
intensifies competitive pressures and introduces new competitors from emerging
markets.
3. Expanding on Two Proposed Additions
Government Regulation:
• Stringent regulations: Strict regulatory requirements can increase the cost of
compliance and act as a barrier to entry for new entrants. For example, the
 pharmaceutical industry faces stringent regulatory hurdles for drug development and
approval.
• Deregulation: Relaxation of regulations can open up new opportunities for innovation
and disrupt existing market structures. For instance, the deregulation of the
telecommunications industry led to the entry of new mobile carriers and transformed
the industry.
Sustainability and Environmental Factors:
• Environmental concerns: Growing environmental concerns can drive demand for eco-
friendly products and services, creating opportunities for companies that prioritize
sustainability. For example, the automotive industry is shifting towards electric vehicles
to reduce carbon emissions.
• Resource scarcity: Scarcity of natural resources can increase costs and intensify
competition for access to resources. For instance, the semiconductor industry faces
supply chain disruptions due to the scarcity of certain raw materials.

4. Porter's 5 Forces Analysis with Example Industry

PESTLE analysis is a framework used to assess the external environment of an industry,
considering political, economic, social, technological, legal, and environmental factors.
Changes in any of these factors can influence the dynamics of Porter's 5 forces.

Industry Example: The E-Commerce Industry

In conclusion, extending the scope of Porter's 5 Forces model beyond the traditional supplier-
buyer relationship and considering additional external factors such as PESTLE analysis
provides a more comprehensive and dynamic understanding of industry forces and the potential
for disruption.

16. WHAT IS THE LPG POLICY?

• What was the main objective of the model?
• List any 5 key features of the policy.
• Has the model been successful for India? What are the positive and negative
outcomes for India?
• How has it impacted the PESTLE environment elements? Take 3 and discuss.

LPG Policy: Liberalization, Privatization, and Globalization

The LPG policy, also known as the Liberalization, Privatization, and Globalization model, is a
set of economic reforms introduced in India in 1991 to transform the country from a closed,
socialist economy to a more open, market-oriented economy. The main objective of the model
was to boost economic growth, reduce poverty, and create employment opportunities.
Key Features of the LPG Policy:
1. Liberalization: Removing government controls on industries, trade, and investment.
2. Privatization: Selling off government-owned enterprises to the private sector.
3. Globalization: Integrating India's economy with the global market through increased
trade and investment.
Success of the LPG Model:
The LPG model has been largely credited with India's rapid economic growth since 1991. The
country has achieved significant improvements in various economic indicators, including:
• Increased GDP growth rate: India's GDP growth rate averaged over 7% per year from
1992 to 2011, making it one of the fastest-growing economies in the world.
• Reduced poverty: India's poverty rate has declined significantly, from 51% in 1991 to
21% in 2020.
• Increased employment opportunities: India's workforce has grown rapidly, with
millions of new jobs created in the private sector.

Positive and Negative Outcomes of the LPG Model:

Positive Outcomes:
• Economic growth and development: The LPG model has contributed significantly to
India's economic growth and development.
• Reduced poverty: The model has also helped reduce poverty and improve living
standards for millions of Indians.
• Increased foreign investment: India has attracted significant foreign investment since
the introduction of the LPG model.
Negative Outcomes:
• Increased inequality: The LPG model has been criticized for widening the gap between
rich and poor.
• Environmental degradation: Rapid economic growth has led to environmental
concerns, such as pollution and deforestation.
• Displacement of labor: Privatization and globalization have led to job losses in some
sectors of the economy.
Impact on PESTLE Environment Elements:
Political Factors:
• The LPG model has led to a more open and competitive political system.
• The role of private sector in policymaking has increased.
• India's international relations have expanded significantly.
Social Factors:
• The rising middle class has contributed to increased consumerism.
• Education and healthcare have become more accessible.
• Social media has played a significant role in social change.
Technological Factors:
• India has adopted new technologies rapidly, including information technology and
telecommunications.
• Technological advancements have improved productivity and efficiency in various
sectors.
• India has become a major exporter of software and IT services.

17. WHAT IS GLOBALIZATION?

• What are the 4 identifiable phases?

• What are the key drivers for globalization?

• Who are the key winners and losers?

• Globalization is seen to have 4 distinct pillars. What are they? In the context of post –
covid world what are the challenges these faces?

Globalization is a multifaceted concept that encompasses the increasing interconnectedness

and interdependence of people, cultures, and economies across the world. It is a complex
process driven by various factors, including technological advancements, economic
liberalization, and political cooperation.
 Four Identifiable Phases of Globalization:

1. Pre-modern globalization (1500-1800): This era was marked by the expansion of trade and
exploration, driven by European colonialism and the rise of maritime empires.

2. Modern globalization (1800-1945): This period witnessed the Industrial Revolution, the
development of transportation and communication technologies, and the expansion of global
trade and investment.

3. Contemporary globalization (1945-present): Post-World War II, globalization accelerated

due to advances in technology, economic liberalization, and the growth of multinational
corporations.

4. Hyper-globalization (late 20th to early 21st century): This phase is characterized by the rapid
integration of economies, the rise of global supply chains, and the interconnectedness of
financial markets.

Key Drivers of Globalization:

1. Technological Advancements: Technological innovations have been instrumental in

facilitating globalization, particularly in transportation, communication, and information
technology.

2. Economic Liberalization: The removal of trade barriers, such as tariffs and quotas, has
promoted cross-border trade and investment, fostering global economic integration.

3. Political Cooperation: International agreements, such as the World Trade Organization

(WTO), have provided a framework for regulating global trade and promoting economic
cooperation.

4. Multinational Corporations: The growth of multinational corporations has played a

significant role in expanding global production, trade, and investment.

Key Winners and Losers of Globalization:

Winners:

1. Developed Countries: Developed economies have generally benefited from globalization due
to increased access to markets, labor, and resources.

2. Multinational Corporations: Multinational companies have gained access to global markets,

production networks, and sources of capital, expanding their operations and profits.

3. Consumers: Globalization has led to a wider variety of goods and services at lower prices for
consumers worldwide.
 Losers:

1. Unskilled Workers in Developed Countries: Globalization has contributed to job displacement

in some industries in developed countries, particularly among less-skilled workers.

2. Domestic Industries in Developing Countries: Increased competition from foreign imports can
threaten the survival of domestic industries in developing countries.

3. Environment: Globalization can lead to environmental degradation due to increased resource

consumption, pollution, and waste generation.

Four Pillars of Globalization:

1. Economic Globalization: The integration of national economies through trade, investment, and
financial flows.

2. Cultural Globalization: The exchange and diffusion of cultural ideas, values, and practices
across borders.

3. Social Globalization: The interconnectedness of people and social movements across the
world, facilitated by communication technologies and international organizations.

4. Political Globalization: The increasing cooperation and interdependence of governments on

global issues, such as environmental protection, human rights, and security.

Challenges to Globalization in the Post-COVID World:

1. Supply Chain Disruptions: The COVID-19 pandemic exposed the vulnerabilities of global
supply chains, leading to shortages and disruptions in production and distribution.

2. Rising Protectionism: The pandemic has prompted some countries to adopt protectionist
measures, such as trade barriers and subsidies, to safeguard domestic industries and jobs.

3. Geopolitical Tensions: Escalating geopolitical tensions, such as the Russia-Ukraine conflict,

have disrupted global trade and investment flows and raised concerns about the stability of the
international system.

4. Technological Fragmentation: The rise of new technologies and data governance frameworks
could lead to fragmentation in the global digital economy, creating barriers to cross-border data
flows.
16. Using any one aviation/ banking/ cashless payments/ telecommunications, perform a
sectoral analysis. Briefly state 3 major challenges the industry faces in the next decade

Industry Analysis: Telecommunications

Sector Overview:
The telecommunications industry is a dynamic and rapidly evolving sector that encompasses
the transmission of information, voice, and data over a variety of networks, including wired,
wireless, and satellite-based systems. It plays a crucial role in enabling communication,
connectivity, and access to information for individuals, businesses, and governments
worldwide.
Key Challenges Facing the Telecommunications Industry in the Next Decade:
1. Infrastructure Investment and Deployment: The rapid growth of data traffic and the
increasing demand for high-speed broadband services necessitate significant
investments in expanding and upgrading telecommunications infrastructure,
particularly in rural and underserved areas.
2. Cybersecurity Threats: The telecommunications industry is a prime target for
cyberattacks due to its vast networks and sensitive data. Businesses and governments
need to implement robust cybersecurity measures to protect against data breaches,
network disruptions, and other malicious activities.
3. Regulatory Landscape and Spectrum Allocation: The telecommunications industry
is subject to complex and evolving regulations, particularly in areas related to spectrum
allocation, network neutrality, and data privacy. Businesses need to navigate these
regulations effectively while ensuring compliance and protecting their competitive
interests.
In addition to these overarching challenges, the telecommunications industry faces specific
challenges in different segments. For instance, the mobile telecommunications segment faces
the challenge of developing innovative services and pricing models to retain customers and
attract new ones. The fixed-line telecommunications segment faces the challenge of adapting
to the declining demand for traditional voice services and the need to invest in fiber-optic
networks to support broadband growth.
17. List any 4 UNSDG goals and discuss the challenges India faces in achieving these goals
and how can Indian companies contribute
Goal 1: No Poverty
• Challenges:
o High levels of income inequality
o Large informal sector
o Limited access to social protection
• Indian companies can contribute by:
o Providing employment opportunities and fair wages
o Investing in skill development and training
o Supporting microfinance and entrepreneurship
Goal 2: Zero Hunger
• Challenges:
o High levels of malnutrition
o Low agricultural productivity
o Inadequate food storage and distribution infrastructure
• Indian companies can contribute by:
o Investing in sustainable agricultural practices
o Developing new technologies to improve food production and storage
o Supporting initiatives to reduce food waste
Goal 3: Good Health and Well-being
• Challenges:
o High rates of preventable diseases
o Inadequate access to healthcare services
o Poor sanitation and hygiene practices
• Indian companies can contribute by:
o Promoting preventive healthcare and education
o Providing access to affordable and quality healthcare
o Supporting initiatives to improve sanitation and hygiene
Goal 4: Quality Education
• Challenges:
o High levels of illiteracy
o Low quality of education in many schools
o Limited access to higher education
• Indian companies can contribute by:
o Supporting initiatives to improve the quality of education
o Providing scholarships and fellowships
o Developing and implementing training programs for teachers
In addition to these specific goals, Indian companies can also contribute to the broader agenda
of sustainable development by adopting sustainable business practices, reducing their
environmental impact, and promoting social responsibility. By working together, Indian
companies can play a significant role in helping India achieve the UNSDGs.
Here are some additional examples of how Indian companies are already contributing to the
UNSDGs:
• Hindustan Unilever: The company has been working to reduce its environmental impact
by using renewable energy and reducing its water consumption. It has also been
working to improve the livelihoods of its suppliers by providing them with training and
access to finance.
• ITC: The company has been working to improve the livelihoods of farmers by
providing them with training and access to new technologies. It has also been working
to promote sustainable agriculture by using organic farming methods.
• Tata Group: The company has been working to reduce its environmental impact by
investing in renewable energy and improving its energy efficiency. It has also been
working to improve the education and healthcare of its employees.
These are just a few examples of the many ways in which Indian companies are contributing
to the UNSDGs. By working together, Indian companies can play a significant role in helping
India achieve a more sustainable and equitable future.
18.
EXPAND THE TERMS CSR AND CSV
List two key differences between them.
Outline the key items in the Companies Act and identify 4 areas/ themes where a company
can invest.
Using a suitable company, highlight the key CSR activities they have undertaken and
identify the challenges they are addressing in terms of UNSDG targets.

Expanding the Terms CSR and CSV

Corporate Social Responsibility (CSR)
Corporate social responsibility (CSR) refers to a company's commitment to operating in an
ethical and sustainable manner, taking into account the impact of its business on society and
the environment. CSR encompasses a wide range of activities, including:
• Environmental sustainability: Reducing a company's environmental footprint through
initiatives such as energy conservation, waste reduction, and sustainable sourcing.
• Social responsibility: Supporting social causes such as education, poverty alleviation,
and healthcare.
• Employee engagement: Promoting employee volunteering and ethical business
practices.
Creating Shared Value (CSV)
Creating shared value (CSV) is a business strategy that aims to create value for both
shareholders and society at large. CSV initiatives focus on finding ways to address social or
environmental problems in a way that also generates economic value for the company. CSV
initiatives can take many forms, such as:
• Developing new products or services that address social or environmental needs.
• Partnering with NGOs or other organizations to address social or environmental issues.
• Adopting sustainable business practices that improve a company's environmental
performance and reduce costs.
 Key Differences between CSR and CSV
The following table summarizes the key differences between CSR and CSV:

Feature CSR CSV

Primarily on social and On both social and environmental

Focus
environmental impact impact and economic value creation

Often reactive, addressing Proactive, seeking to integrate social

Approach social or environmental issues or environmental considerations into
after they have arisen the core business strategy

Typically focused on Focused on quantifying both social

Measurement quantifying social or and environmental impact and
environmental impact economic value creation

Key Items in the Companies Act and Areas for CSR Investment
The Indian Companies Act, 2013, mandates that certain companies spend at least 2% of their
average net profits on CSR activities. The Act also outlines a list of eligible CSR activities,
including:
• Eradicating hunger, poverty, and malnutrition
• Providing education and skill development
• Promoting gender equality and women's empowerment
• Promoting healthcare and improving sanitation
• Protecting environment, including forests, water bodies, and biodiversity
• Supporting sports, art, and culture
CSR Activities of Tata Group
Tata Group is one of India's largest and most respected companies, with a long history of CSR
engagement. The company has a dedicated CSR arm, Tata Trusts, which manages a portfolio
of over 600 CSR initiatives. Some of Tata Group's key CSR activities include:
• Tata Sustainable Agriculture Initiative: This initiative aims to improve the livelihoods
of farmers by providing them with training, access to finance, and new technologies.
• Tata Indicare Healthcare: This social enterprise provides affordable healthcare services
to low-income communities.
• Tata Social Enterprise Academy: This academy provides training and support to social
entrepreneurs.
• Tata Cancer Care Trust: This trust provides free cancer care services to patients from
low-income backgrounds.