A Study of Business Environment in India with special reference to Aviation

Industry

Business Objectives

• Profit and Growth• Focus and goal oriented• Employee satisfaction• Quality products and services

Business Environment

• Composed of two word “Business” and “Environment”.• Business: selling goods and service to consumers for earning

profits.• Environment: the area in which something exist.• Business Environment is a set of condition (Social, Legal,

Economical, Political) that are uncontrollable in nature and affects the functioning of organization.

Components

Non-Economic Environment

• Political Environment• Socio Cultural Environment• Technological Environment• Natural Environment• Demographic Environment• International Environment

History of Civil Aviation in India

Market Size

• Expanding aviation sector in India handles about a staggering 2.5 billion passengers across the world in a year.

• About 5.33 million passengers were carried by domestic airlines during January 2012.

• Huge foreign direct investment (FDI) worth US$ 429.70 million from April 2000 to December 2011.

• 10 per cent increase in the number of international passengers last year, a further increase up to a 10-12 per cent range over the next 12 months is expected.

SWOT Analysis

Case Study

• The Kingfisher Airlines financial crisis refers to a series of events that led to severe disruptions within Kingfisher Airlines.

• By early 2012, the airline accumulated losses of over 7,000 crore (US$1.32 billion) with half of its fleet grounded and several members of its staff going on strike.

What went wrong?

• Delayed salary• Fuel dues• Aircraft lease rental dues• AAI reports• Income tax• Bank arrears

Kingfisher’s Crisis

• Fleet grounding• Frozen bank accounts• Arrest warrant against Mr. Vijay Mallya (Chairman)

Thanks!!!

Done by:Abhinav Gupta

MBA General