NATIONAL LAW UNIVERSITY, JODHPUR SUMMER SESSION (2017-18)
SYNOPSIS TOWARDS PARTIAL FULFILMENT OF EVALUATION IN THE SUBJECT OF STR ST R A TE G I C MA M A NA G E M E NT
ON A STUDY OF THE EXTERNAL ENVIRONMENT FACTORS AFFECTING INDIA CEMENT
LTD.
DATE: 18TH JULY, 2017
SUBMITTED BY:
SUBMITTED TO:
HARSH SALGIA (1271)
DR . ARCHI MATHUR
V SEMESTER B.B.A.LL.B. (HONS.)
ASSOCIATE PROFESSOR
ASST.
DEAN
MANAGEMENT
FACULTY STUDIES
OF
TOPIC – A STUDY OF THE EXTERNAL ENVIRONMENT FACTORS OF I NDIA CEMENTS INTRODUCTION
The formula for business success requires two elements - the individual and the environment.
Remove
either
value and
success
becomes impossible. Business
environment consist of all those factors that have a bearing on the business. The term' business environment implies those external forces, factors and institutions that are beyond the control of individual business organisations and their management and affect the business enterprise. It implies all external forces within which a business enterprise operates. Business environment influence the functioning of the business system.1 On the basis of the extent of intimacy with the firm, the environmental factors may be classified into different types- Internal and External. EXTERNAL ENVIRONMENT
It refers to the environment that has an indirect influence on the business. The factors are uncontrollable by the business. There are t wo types of external environment.
Micro Environment
The micro environment is also known as the task environment and operating environment because the micro environmental forces have a direct bearing on the operations of the firm. “The micro environment consists of the actors in the company’s immediate environment that affects the performance of the company. These include the suppliers, marketing intermediaries, competitors, customers and the public”. The micro environmental factors are more intimately linked with the company than the macro factors. The micro forces need not necessarily affect all the firms in a particular industry in the same way. 2 Macro Environment
Macro environment is also known as General environment and remote environment. Macro factors are generally more uncontrollable than micro environment factors. When the macro factors become uncontrollable, the success of company depends upon its
1
“Business Management”, Alex Smith, 2 nd Edition, Page 70.
2
Business Policy and Startegic Management, Vipin Gupta, page 145
adaptability to the environment. Some of the macro environment factors are economic, legal, technological etc.3 ABOUT INDIA CEMENT
The India Cements Limited is a cement company. The Company's brands include Sankar Super Power, Coromandel King and Raasi Gold. These brands are also available under sub brands, such as Shankar Shakti and Coromandel Super Power. The Company's plants are located in various locations in India, including Malkapur, Vishnupuram, Chilamkur, Yerraguntla, Vallur, Sankari, Dalavoi, Sankarnagar, Banswara and Parli. 4 The Company, based on customer requirement, also supplies its brands in High-density polyethylene (HDPE), Paper and Laminated packing. It produces both the variants viz Blended Cement, as well as Ordinary Portland Cement under different grades. The Company's subsidiaries include ICL Securities Ltd., ICL Financial Services Ltd., ICL International Ltd., Industrial Chemicals & Monomers Ltd., Trishul Concrete Products Ltd., PT. Coromandel Mineral Resources, Trinetra Cement Ltd., Coromandel Mineral Pte Ltd., Coromandel Electric Company Ltd. and India Cements Infrastructures Ltd.5 RESEARCH OBJECTIVES
To identify and classify the relevant external environmental factors affecting India Cement Ltd. by environmental scanning
To analyse the impact of the external environment on the performance of India Cement Ltd.
To identify solutions for the challenges posed by factor/s of external environment.
3
“Essentials of Management”, Harold Keentz, 7th Edition, Page 219. 4 Our Legacy, India Cements, http://www.indiacements.co.in/. 5 Reuters, Full description of India Cement. (Accessed http://in.reuters.com/finance/stocks/companyProfile?symbol=ICMN.NS)
at
RESEARCH METHODOLOGY
Subject: Strategic Management Topic: A Study of the External Environmental Factors affecting India Cement
Ltd.
The research methodology employed in the project shall be a non-empirical, descriptive and doctrinal research in which both primary and secondary sources, and published data, shall be collected, analysed and interpreted to study the concept of external environment, in theory as well as in practice. A majority of the research work shall be done from articles, papers, journals, independent case studies, market observer reports, and books available in online databases. Other authoritative sources such as treatises on the subject of strategic management and external environment in particular shall also be extensively referred to and cited wherever relevant.
TENTATIVE CHAPTERISATION
Executive Summary
Research Objectives
Research Methodology
Chapter 1 - External Environment Factors Chapter 2 – India Cement Ltd. Chapter 3 – Data tabulation Chapter 4 – Analysis Chapter 5 – Recommendation Chapter 6 – Conclusion Annexures Limitations (if any) Bibliography
BIBLIOGRAPHY
TREATISES
Competitive advantage, Michael E. Porter, The Free Press Competitive Strategy, Techniques for analyzing industries and competitors, Michael E. Porter, The Free Press, 1980
ARTICLES AND WEBLINKS
“What is strategy?”, M.E. Porter, Harvard Business Review, NovemberDecember, 1996
Porter’s Competitive Strategies, Institute for manufacturing, University of Cambridge
http://www.hindustantimes.com/business-news/rs-300-cr-pulse-candysuccess-leaves-sweet-taste-for-rajnigandha-pan-masala-makers/story NZoCVqy2xgfRelcdL2XwFN.html
https://www.cleverism.com/competitive-strategies/
http://www.ifm.eng.cam.ac.uk/research/dstools/porters-generic-competitivestrategies/
http://www.afaqs.com/news/story/47821_How-Pulse-candy-captured-themarket-The-Full-Story
