Business Environment

Unit 1

 The environment of any organization is the

aggregate of all conditions events and
influences that surround and affect it. It refers
to all the external forces that have a bearing
on the functioning of a business.
A business is all about reaping profits from the
opportunities available in the environment.
Opportunity can manifest themselves in the
form of short supply, excess demand, latent
need or new, better and economical sources of
supply or manufacturing.

Essentials of business environment

Complex & dynamic
Multi- facet
Far- reaching impact

For profit maximization a business

answers the following

What to produce
How much to produce
Where to produce
How to produce: technology, work
manually or mechanize to save
labour cost.
When to produce: there are seasonal
fluctuations in demand, forecast
accordingly.

Environmental Scanning
The process by which organizations
monitor their environment to identify
opportunities and threats affecting
their businesses is known as
environmental scanning.

Factors to be considered in
environmental scanning
Events: important and specific occurrences
that are taking place in a certain sector.
Trends: the general tendencies or courses
of action along which these events take
place.
Issues: The current concerns that arise in
response to events and trends.
Expectations: the demand made by the
interested groups in the light of their
concern for issues.

Types of environment
Internal
Macro (General)
Micro ( relevant or competitive)

Internal environment
Culture and value system: It is a
system of shared values and beliefs
that shape the companys behavioral
norms. It affects the working,
attitude of the people and choice of
business. Eg: bureaucratic culture
Mission and objectives: they guide
the
priorities,
direction
of
development, business philosophy.

 Management
structure
and
nature:
the
hierarchical
relationships, the structure of top
management.
Human
resource:
type
of
recruitment
and
selection,
compensation,
appraisal
and
training.

Macro environment
Macro environment consists of factors external to the industry that
may have a significant impact on the firms strategies
Political environment: Philosophy and stability Indian
scenario.
Regulatory and legal environment: It dictates the dos and
donts of the business. Laws of import and export and licensing.
Eg: Escorts
Demographic environment: it decides the marketing mix of the
organization. R&D is undertaken to reduce cost and launch
technologically advanced products according to the requirements
of the consumers.
Socio culture: The variables like beliefs value systems attitudes
of people have a major impact on the buying behavior of
consumers. Companies like Mc donalds and KFC had to change
their portfolio while entering the Indian market.

 Technological
environment:
it
may
dramatically affect an organizations products,
services, markets, suppliers, distributors,
competitors, customers, financial composition
etc.
Global environment: eg: recession at a global
level may affect the software industry in India.
Economic environment: it talks of economic
policies, fiscal policy, foreign trade policy, GDP,
inflation and other economic factors directly
affecting a business.

Micro Environment

Porters Five Forces to analyse structure and

competition

Industry competitors

Prices
Features
Customer services
Longer warranties
Promotional offers
Introduction of new product

Threat of new entrants

There are barriers to entry that are a challenge to a new player
and a protective shield for the established player include:
Economies of scale: existing large firms enjoy lower cost
per unit.
Cost disadvantage independent of scale: patents,
access to RM, location, low borrowing cost, subsidies
Learning and experience curve: skilled man power
Capital requirement: Offender must have 3 times the
power than that of a defender. Thus an offender requires
capital to establish a new business and also to compete with
the existing ones. The cost of capital is higher for a new firm
as lenders hesitate to provide capital to a new entrant.

 Switching
cost:
the
cost
(physical,
psychological and financial) incurred in
switching from one supplier from one supplier
to another resists a customer from going to a
new vendor.
Access to distribution: A new supplier is not
trusted much in the industry. Middlemen prefer
established products.
Product differentiation: differences in the
characteristics of the a product make it unique
in the eyes of the consumer.

Threat of substitutes
It refers to market attempts of
companies in other industries to win
customers over their own substitute
products. Eg: eye glasses competes
with makers of contact lenses, road
transportation and railways. etc
Substitute competition depends on 3
factors:
Convenience
Availability of attractively priced

 Quality, performance and other

related attributes of a substitute
Buyer can switch to the substitute
easily
The above factors increase
competition in the market

Bargaining power of
suppliers
Significant affect on the profitability
and competitiveness of a firm by
altering prices and offering steady
supply of the desired quality.
They not only supply Raw material,
utilities but also the
funds and
support services.

 Bargaining power of the suppliers

increases when:
Less no. of suppliers
Suppliers can forward integrate
Inputs of supplies are crucial to the
buyer
High switching cost from one supplier
to another

Bargaining power of buyers

Buyers bargaining power increases
when:
There are very few buyers, they can
dictate their terms
The volume of purchase by each
buyer is large
Large no. of suppliers with
undifferentiated and similar products
Switching cost is low
The buyers can backward integrate

Internal 1: Assignment
Select an already existing company or a new
firm of your own. Assume that you have to take
this company to another location i.e. another
country. Study the business environment of this
firm and analyse how this new business can be
established at a new location using porters five
forces model and factors of internal, external
(macro) environment.
Word limit: 2500 words, font size 12 times
newroman, use Havard referencing style
Date of submission: 19th march 2015

Unit 2
Economic Environment

Choice of Environment
Businesses want to choose a
favorable environment to operate in.
It may want to shift its geographical
base to move into a more favorable
environment and away from the
unfavorable one. This may involve
transferring the operations from one
location to another, so as to derive
locational advantages such as:

 Availability of skilled labor

Cost of labor
Favorable tax or regulatory
environment
Proximity of suppliers or consumers
Quality of infrastructure such as
transport

Elements of Economic environment

Economic System:
1. Capitalism: Here all factors of production are
in individual hands and they are free to use
them and earn profit. Besides free and
unfettered use of property, everybody is free
to take up a line of economic activity he likes
and is free to enter into any contract with
other fellow citizens for profit.
It is an economic system featured by private
ownership and its use for private profit. Eg:
US, UK Japan, South Korea.

 Here production is owned by private

enterprises but the government
directly controls and regulates the
working of economy through its fiscal
and monetary policy.

Socialist Economy
Under this economic system
industries and land should be
publicly or collectively owned and
they should be used for the common
good rather than the private profit.
Here the state decides how much to
supply, what to supply and at what
prices.

Mixed Economy
A mixed economy is the combination of
two extremes of capitalism and socialism.
Here both private and public sector work
in national interest.
Here industries like oil, public transport,
defense, energy etc are owned by the
government and private sector operates
in the rest of the sectors. Prices are fixed
by the government as well as the market
forces.

Measuring Economic
Development
GNP
Welfare: Sustained and secular improvement in
material well being which may be considered to
be reflected in an increasing flow of goods and
services.
Social indicators: These include health, food,
nutrition,
education
literacy
and
skills,
employment, working conditions, consumption
of basic necessities, transportation, housing,
clothing, recreation, entertainment and social
security.

Economic Policies
Fiscal Policy: A statement of
government source of income and its
expenditure. The govts expenditure
directly or indirectly begets business
for many and its taxes reduce the
profits and income of many. Fiscal
policy influences the decisive forces
of economies like demand, supply,
disposable income of people and
savings rate.

 Monetary policy: it determines the

supply of money or currency in the
economy. Through the supply of
money, monetary policy regulates
the interest rates and inflation, thus
influences every business of the
economy.

 Industrial Policy: It defines the

scope and role of different sectors
like private, public, joint and
cooperative or large, medium, small.
This policy can influence the level of
industrial activity, location of units,
product portfolio, total production
level, capacity utilization, capacity
expansion,
financial
policies,
diversification in different areas i.e.

 Foreign Trade Policy: It affects the business

of both importers and exporters. The import
duties reducing steadily and the country
signing increasing number of free trade area
agreements, means tariff on most of goods
will reduce to 0% among the signatories.
A reduction in tariff begets new opportunities
in terms of exports, it also proves to be a
threat because cheap imports can be
detrimental to the Indian industry.

Foreign investment and technology

Policy
It influences the foreign investment and
technology inflow into the country. An open
policy on FDI changes the whole equation
of business as it improves infrastructure,
level of technology, product portfolio,
exports, development and training.
It provides companies to learn and
implement international best practices.
Consumers gain the advantage of the best
products of international standards.

Inflation
An overall increase in price is called
inflation. It is actually means a
continuous rise in prices of a host of
commodities , accompanied by a
decrease in the purchasing power of
the currency.

Types of Inflation
Hyperinflation: an extremely high rate of
inflation.
Suppressed inflation: it is a situation
where deliberate policies are pursued to
prevent price rise in the present, but is a
temporary suppression of inflation. These
forces usually accumulate and are bound
to burst in future.
Deflation: it means fall in prices, the
opposite of inflation.

 Disinflation: It refers to the slowing

rate of inflation
Reflation: inflation designated to
restore prices to a previous level
Administered
Pricing: Inflation
caused by revision of prices by the
government.

 Demand Pull Inflation: It arises

when aggregate demand outpaces
aggregate supply in an economy. It is
described as too much money
chasing too few goods.
Cost Pull Inflation: This is because
of rise in costs. It arises because of
large increase in the cost of
important goods or services when no
suitable alternative is available.

How is inflation measured

GDP Deflator: It is the broadest measure of
price level. It is the index of the average price
level for the goods and services produced in
the economy. It includes the price of all
finished goods.
Consumer Price Indices: It refers to the
index of the goods and services contained in
the consumption basket of the relevant group
of consumers. It excludes the prices of capital
goods and includes the price of services as
well as of imported goods.

 Whole Price Index: It measures the

change in price of a selection of
goods at wholesale (i.e. typically
prior to sales taxes). It includes the
prices of raw materials and semifinished goods, as well as of
imported tangible goods, if they are
transacted at wholesale level. It
excludes prices of services.

General causes of inflation

in India
Fluctuation in agricultural output: as
the output declines the prices rise sharply.
Since the agricultural products have high
weightage in the index of wholesale price,
rise in their prices gets automatically
reflected in the general price level.
Hoarding of Essential goods
Low growth of Industrial Sector: Less
production and rising gap between demand
and supply.

 Increment in the administered

prices
Restrictions on imports: To protect
the domestic industry. Industrial
sector became a sellers market
resulting in the rise in prices.
Growth of population.

Impact of Inflation on different

groups
Loan agreements : Inflation leaves an
impact on the loan agreements, gains and
losses of the debtors and creditors. If inflation
turns out to be higher than expected, the
debtor wins and creditor loses because the
debtor repays the loan with less valuable
rupee.
On the other hand if inflation turns out to be
lower than expected, the creditor win and the
debtors lose because the repayment is worth
more than the two parties anticipated.

 Producers and traders: Producers

traders and speculators gain during
inflation as price rises faster than the
cost and therefore the profits rise.
The
money
value
of
their
investments
also
rises
during
inflation.

 Fixed income group: Inflation has

an adverse impact on the wage
earners and salaried people as it
erodes their real income.
Moreover in trying to push up the
wages to sustain their real income,
wage earners bring about a cost
push inflation and in the process
worsen their position.

 Investors: Investing in debentures

and fixed interest bearing securities,
bonds, etc, lose during inflation. But
investors investing in equities benefit
because more dividend is yielded on
account of high profits made by
companies during inflation.

 Negative impact on exports:

inflation
results
in
higher
manufacturing cost in the home
country, but if inflation is lower in the
importing country then the selling
price will not increase by that
magnitude. This reduces profits and
increases competition for the export
market
from
other
exporting
countries that have low inflation rate.

 Reduction in investments and

savings: Inflation causes uncertainty
in the economy, which discourages
investment and savings in the
country.

Effect on distribution of
income
All prices do not change at the same rate hence
inflation is asymmetric in its impact, it affects
different sections of the society differently as follows:
Producers vs Consumers: In an inflationary situation
, the prices of goods rise at a much faster rate than
the cost of production. Thus profit increases in an
inflationary period which benefits producers.
Consumer on the other hand have to bear the brunt
as the purchasing power declines due to increasing
prices. They are required to curtail their consumption
of not so essential or luxury items.

 Debtors vs creditors: debtors are those who have

procured loan or are in debt. These can be households,
firms, financial institutions or government. The
payment obligation of interest and principal in debt
contracts are usually specified in nominal terms without
taking into account the expected level of inflation that
might prevail in future when contract matures.
Hence they gain in real terms as the purchasing power
of the amount borrowed declines compared to the
period when the contract was made. Whereas as
creditor looses on account of inflation because they
receive lesser amount in real terms from the debtor.

 Fixed income earning class vs

profiteers: Inflation reduces the
purchasing power of fixed earning
class such as wage and salary
earners, pensioners and disturbs all
household budgets, since their
income does not rise in the same
proportion as inflation. On the other
hand the income group that depends
on profit earnings benefits the most

 Holders of fixed interest security

vs shareholders: holders of fixed
income security receive fixed income
on their investment which is not
linked to inflation hence they loose in
an inflationary scenario. Since the
profit rises during inflation it
increases the share prices thereby
the return on the equity holders.

Unit - 3

Technological Environment
Technology denotes the utilization of
materials and processes necessary to
transform inputs into outputs. People
create technology and technology affects
people in turn. Especially through the
goods it produces and the working
conditions it creates.
It can be described as a set of specialized
knowledge applied to achieving a practical
purposes.

Appropriate technology

Effectiveness
Affordability
Cultural Acceptability
Local Sustainability
Efficiency
Measurability (its impact and
performance need proper evaluation)

Technology Transfer
It is the application of technology to
a new use or user. It is the process by
which technology developed for one
purpose is employed either in a
different application or by a new
user. The activity principally involves
the increased utilization of the
existing science / technology based
in new areas of applications by
means of further research and

Reasons for Technology

Transfer
Profit from selling technology: Many
companies sell their technology for profit. Eg:
after second world war, Kodak had to quit the
Japanese
market
because
of
certain
restrictions, it had to sell technology to Konica
and Fuji to earn profit.
Location
and
Logistic
Advantage:
Technology is transferred as production may be
cheaper abroad and the output does not have
to be transported over long distances to reach
the end consumer.

 Competitive
Edge:
To
gain
competitive edge in the foreign
markets through the supply of
technically superior products.
To obtain Grants and subsidies:
Many
underdeveloped
and
developing countries give various
incentives to MNCs to invite them
and
their
relative
advanced
technology into their country. Eg:

 Limitations of home country: Many

companies find that the scope for
expansion in their home countries is
limited. In order to expand they have to
transcend their national boundaries, as
well as be ready for the technology
transfer.
To exploit superior capital markets, access
to skilled labor and other Inputs in the
foreign countries.

Methods of Technology
Transfer
Foreign Direct Investment: Through the FDI
route organizations transfer the technology to
target nations through its own subsidiary, that
is, by investing themselves. Eg: Hyundai
established its own subsidiary and thus
brought its technology to India.
Licensing:
Organizations transfer the
technology and provide licenses to the user for
use of technology. Under this only license
holder can use the technology, against the
royalty or payment of other fee.

 Franchising: It is similar to licensing, where

organizations establish their own franchise and
transfer it to the franchisee. The franchisee
operates on behalf of the organization. Here
company has a direct control, but under licensing
system the control of the company is only upto
the limit of providing technology. As the
franchisee operates on behalf of the franchiser,
the franchisee carries the name and trademark of
the franchiser. Eg: McDonalds creates its
franchises and transfers the technology to the
franchisee.

 Management
Contracts
or
Turnkey Arrangement: This is a
point to point technology transfer,
where organisations simply establish
a project for a host, train its
personnel to operate it and transfer
the control to the host. Eg: steel
plants like Bokaro, Bhilai etc.

 Contract
Manufacturing:
Under
this
organizations transfer the technology to the user
and get the product manufactured from the user
for
themselves.
Many
multinational
pharmaceutical
companies
transfer
their
technology to the companies of nations like India,
and get their drug manufactured due to low
manufacturing cost in the country. Likewise many
Indian companies like HLL, Merico, Bajaj
Electricals, Colgate etc transfer their technology
to other manufacturers and get the products
made from them.

 Joint
Venture:
Under
this
organizations
transfer
their
technology to their joint venture
partners. They provide technology to
the host nation through a partner in
the host nation. This arrangement is
beneficial to both . Eg: Maruti Suzuki,
Kawasaki Bajaj and Hero Honda etc.

Political and Government

Environment
The business environment of a country is
determined due to the economic system,
which is further determined by the political
beliefs in a country which govern its fate.
The government influences business and
decides the following:
What to produce
Where to produce
When to produce

How much to produce

The manufacturing process
Whom to sell
How to distribute
What should be the price

Regulatory role of government in

business
Reservation: the government limits the sphere of
investment by reserving the industry for small
scale, public and co-operative sector. Eg:
telecommunication, aviation etc.
Licensing: Earlier every new venture required a
license from the government, to keep a tight
control on the production in the private sector.
Today only few industries require licenses from
entities like food & drug Administration etc.
Expansion: MRTP Act laid restrictions on
increasing production capacity or launching new
variants, advertisement budgets etc.

 FDI: Companies like IBM and Coca Cola had to

leave India earlier. Today MNCs are operating
in India in sectors like insurance, banking,
retail, food and media (star tv).
Import and export policy: Government can
use various tools to impose restrictions like
quotas, tariffs, cumbersome import procedure,
import licenses, to keep the industry from the
import that is deemed harmful. Indian toy
industry was badly affected when it was open
for foreign players.

 Taxes: Government usually imposes

high rates of taxes on the industry it
does not want to encourage. Eg: very
high excise was imposed on products
like airconditioners, automobiles etc.
whereas no tax on production by
small scale industries and subsidy on
fertilizers, tractors and other farm
products.

 Supply of money: Demand

depends on the purchasing power of
the consumer and which in turn
depends on the supply of money
decided by the government (RBI). It
can do so by regulating through
increase and decrease in CRR and
SLR.

 Infrastructural development
Planning role

Socio Cultural environment

Society and culture primarily govern
the lifestyle of an individual. An
individuals eating habits, shopping
behavior, dressing priorities, all are
influenced by the society. In India
under societal pressure people spend
a lot of money on marriages,
celebrations and festivals. Hence
culture itself is a big opportunity for
business that runs into billions of

Impact of Socio Cultural

Environment on business
FAMILY
SOCIAL CLASS
CULTURE

Family
Role of family member in household
decision making:
Influencer: The individual in the
family whose opinion is sought
regarding what should be the criteria
for making a purchase
Decider: The person with financial
authority, who decides how the
family money will be spent and on
which brands and products.

 Buyer: The person who acts as a

purchasing agent by bringing the
products home, visiting the store,
and so on.
User: Finally who consumes or uses
the product.

FAMILY LIFE CYCLE

Young Singles: Who live alone or with
the family, have low individual income,
no financial burden, are less price
sensitive, usually spend on the gift items,
movies, mobile phones etc.
Newly Married Couples: these families
tend to spend more on cars, clothing,
vacation and other leisure activities. They
are more susceptible to advertising.

 Full nest I: At this stage the first

child arrives and the roles in the
family change. Purchases shift from
leisure to baby products and toys.
Full nest II: At this stage the
youngest child has reached school,
and the family spending is children
centric. Money is invested in various
financial instruments for the future of
their children and themselves.

 Full nest III: At this stage parents

enter their 40s. Family income
increases,
simultaneously
expenditure
also
increases,
as
children are more demanding. A
major share of their income goes for
their education and belongings like
motorbikes,
computers,
clothing,
fashion, mobiles, etc.

 Empty nest I: At this stage the

responsibilities are less, as the
children
have
left
home
and
established their own setup. Here the
spending is normally on health
products and other necessary items.

Social Class
Occupation: What a person does for a living is
a telling indicator of the social class. The
occupation
decides
income,
personal
associations, availability and use of leisure time
Income:
Income
is
the
most
critical
determinant of social class as it directly
influences the buying power and market
potential. Consumption pattern is determined
by the level of income. Eg: the difference
between the consumption pattern of tier 1 and
tier 2 cities.

 Associations: The consumption of

the people is directly related to the
social network of people they
interact with. People spend their
leisure time with others, they imbibe
new tastes, lifestyles, dressing sense
etc, from those with whom they are
associated.

Social Class & Market Place

Behaviour
Outlet choice: Lower class prefers buying
from the nearby small stores as they offer
them credit. Middle class usually shops
from retail outlets in the market and upper
class from big departmental stores.
Use of Coupons: Coupons attract much
of the middle class, they also have craving
for the branded goods, they do not miss
the discounts opportunities where they
can buy these goods.

 Savings, spending and credit: Savings,

spending and credit card usage all seem to be
related to the social standing, upper class is
more future oriented and confident of their
financial acumen and are more willing to invest
in insurance, stocks and real estate.
Leisure: Social class is also related to the choice
of recreational activities. There is a segment that
goes to multiplexes, pubs, restaurants, foreign
tours, hill stations etc, whereas the lower
segment cannot afford these luxuries.

Elements of culture
Family: It is the family that instills the basic
beliefs, values and ideas in an individual.
Religion: when there is no law religion is the
only law, religion controls the human
behavior all over the world. Religious
practices dictate the use of some goods and
services or prohibit the consumption of
others. All over the world companies have to
change their portfolio and communication
strategy according to the local religion.

 Education:
Educational
pattern
influences the consumption pattern
in the society, as it leads to more
informed choices in the market place
Mass Media: It is a mode of
communication that reaches out to a
larger population on a regular basis.
The question is that mass media
mirror culture or does it shape
culture

 Technology : Every culture has its

own level of technology. Countries
like USA, Japan, Germany use high
level of technology. The general
population has a broad level of
technical understanding.

MRTP Act
The directive Principles of our
constitution suggests that ownership
and control of material resources
should be widely distributed and
there should be no concentration of
wealth and means of production.
With this view in mind the
monopolistic and Restrictive Trade
Practice Act 1969 was enacted.

Objectives
No concentration of economic power
to the common mans detriment
Provide control over monopolies
Control over restrictive trade
practices

 Which tend to impose unjustified

costs or restrictions on consumers,
relating to goods and services by
manipulating prices, or by conditions
of delivery or effect supply in the
market.
Obstruct flow of capital or resources
of for production

Restrictive Trade Practices

Restriction on buying and selling: Restrictions on
whom the goods may be sold or bought. Some trade
associations ask their members not to deal in the goods
of a particular manufacturer. Restricting dealers to
supply goods to a particular consumer or manufacturer.
Third party involvement.
Tie in sales or full line forcing: this means requiring
person to purchase something else compulsorily along
with the goods he wants to purchase. Eg: orange drinks
along with the cola drinks, chips along with the cold
drinks, gas stove with the gas connections, schools
making it mandatory to buy uniforms from the same
shop.

 Collective
price
fixation
and
tendering:
Cartelling, Knock out agreement
Discriminatory dealing: offering huge discounts to
some buyers, high prices for the rest of the buyers.
Restriction on output supply: An agreement to
limit or withhold the output
Restriction on manufacturing process: An
agreement not to use a particular machinery or
method
Price control arrangement: Agreement to sell
good with a view to eliminate any competitor.

Consumer Protection
The purpose of business is to create a
customer. It is the customer who through
being willing to pay for a good or services,
convert economic resources into wealth and
things into goods. Hence it is proven that only
those business survive who satisfy the
customers, thats why a lot of times people
also deceive customers for a short term profit.
This phenomenon has given birth to the term
consumer protection. Consumer protection act
1986 plays a big role in the same.

Factors responsible for consumer

protection movement
Consumer
information
gap:
Advertising through mass media
particularly through internet has
increased the information gap, as the
information has been manipulated by
the
marketers
and
business
stalwarts. This results in consumer
exploitation, the consumer lands in
utter confusion that increases his
distress.

 Performance Gap: Consumer purchases the

product with certain expectations, these
promises made in the communication are not
met. The consumer has to live the product
failure.
Budget squeeze and inflation: Inflation
impacts peoples ability to pay by absorbing a
major portion of income, directly impacting the
cost of living. Also with the increase in income
there is high pressure on producer to provide
better lifestyle products.

 Poverty of the consumers: Poor

quality merchandise and services are
provided to such customers, who are
unable to make good purchase
decisions.

Aims and objectives of the

Act
Protection of consumer against marketing of
such goods that are considered injurious and
hazardous to life and property of the consumer
Information about the quality, quantity, standard
and price to protect against unfair trade
practices
Assurance that consumers interest will receive
due attention and consideration at the
appropriate level
Opportunity to have required information and
being educated and about the product

Consumer rights

Right
Right
Right
Right
Right
Right
Right

to
to
to
to
to
to
to

safety
be informed
choose
be heard
redress
healthy environment
consumer education

Grounds for appeal to Redressal

Forums
False Representation:
Of standard, quality, grade, composition,
style or model of goods or services.
Present any rebuilt, second hand, renovated
or reconditioned or old goods as new.
Represent that the goods have sponsorship,
approval,
performance
characteristics,
accessories, uses or benefits that these
goods and services do not have.

 To give warranty or guarantee which is not

based upon adequate testing of goods.
Making misleading public representations
like promises to repair, replace or maintain
the goods until they achieve a specified
result.
Materially mislead the public about the
prices of the products and services.
Giving
false
and
misleading
facts
disparaging the goods of another person.

 False offer or bargain price: It includes

publication of an advertisement claiming the
goods and services to be offered at a bargain
price, that comes across as the price would be
better than the price at which the goods are
ordinarily sold.
False offers of gifts, prizes: Offering of gifts and
prizes with an intention of not providing them as
offered or creating an impression that something is
offered free of charge, when it is partly or fully
covered in the amount charged in the transaction
as a whole.

 Product safety and standards: it is regarding

the sale and supply of goods knowing that they do
not comply with the standards prescribed by the
competent authority relating to the performance,
composition, contents, design, finishing or
packaging, that are necessary to reduce risk.
Hoarding or destruction of goods: Any refusal
to sell goods with an intention to make it available
later at high price, or with an intention to raise
the prices of other commodities is prohibited.

Who can file a complaint

By customer himself to whom such goods
have been sold or services have been
rendered.
Any
voluntary
consumer
association
registered under companies act 1956 or
under any law and for the being under
force
One or more consumer where the
consumers have the same interest
Central or state government.

Intellectual Property Rights

A patent is a grant of property rights by the
government to an inventor. Patents are
exclusive property rights that can be
licensed, sold, transferred or used as
collateral, much like other valuable assets.
Patentusually refers to the right granted to
anyone who invents any new, useful, and
non-obvious process, machine, article of
manufacture, or composition of matter

What can be patented

Process: It refers to new methods of
manufacturing or new technological procedures
that can be validated as unique. Eg: a new
patent of manufacturing a drug can be patented.
Machine: The word machine in patent
application is for a specific physical item and not
merely a work of art.
Composition of matter: The law also permits
patenting composition of matter. This category is
related to compounds such as synthetic material,
medicines, cosmetics, and fertilizing agents.

Types of Patent
Utility Patents: A utility patent is granted for a
new product, process, machine or method of
manufacturing and composition of matter
Design Patents: Design patents are granted for
any new or original design of an article of
manufacture. A design patent protects only the
appearance of the article and not the article itself.
It refers to features of shape, configuration,
pattern or ornament applied to any article by any
industrial process or any other means. It covers
only artistic design not engineering design.

Rights of a Patentee
Where the patentee is for an article or
substance, he enjoys the exclusive rights for
himself his agents or the licensees to make
use, exercise, sell or distribute such articles
or substances in India.
Where the patent is for the method and
process of manufacturing an article or
substance, the patentee enjoys the exclusive
right for himself, his agents or licenses to use
or exercise the method or process in India.

IPR includes the following

Trademarks: It includes any word, name, symbol,
distinguishing device or any combination thereof
adopted and used by a manufacturer or merchant to
identify his goods as distinguishing them from those
manufactured or sold by others. A trademark can be a
symbol like Apple computer corporations unusual
apple with a bite in the side, wild mustang horse for
the
Ford
automobile.
Besides
trademarks,
organizations can also have service marks which are
unique characters or slogans that provide brand
protection and creative properties that enhance
marketability. Like Onidas neighbours envy owners
pride.

 Copyrights: Copyrights are similar to

patents in establishing ownership and
protection for creative endeavor. It
extends
protection
to
authors,
composers, artists etc.
Works in which copyrights subsists:
1. Artistic
work:
books,
paintings,
sculptures, drawings
2. Musical work