Introduction to Technical Analysis

 Cultural Adaptation The social system may be a small group such as family, or a larger group such as an organization , or the entire society like a tribal society. Adaptation is essential for survival. This type of food, clothing, type of climate and weather conditions are from of adaptations.  

 Organization of Culture The 'term' organization of culture refers to the social structure and the integration of traits, complex and patterns that make up the cultural system. Stratification, i.e. differentiation based based on criteria such as    age sex caste occupation education income  etc

 Effect of Society on Business Every Business works in a society, so society's different factors like family, educational Institutions and religion affect business. Now these may different from one country to another, from one state to another or from one city to other regions. Parts of the Society are: Families Educational Institutions Religions   Professionalization A Professional is one who possess Systamatic Knowledge and skills to Perform certain responsible functions, with authority and ethics.   A Professional has enormous responsibilities since he/she cannot use knowledge, skill and authority unscrupulously.    Business Ethics  Business ethics refers to a system of moral Principles and rules of conduct applied to business.   A business should not conduct itself in a way detrimental to the Intrests of Society.   A Profession is bound by certain ethical Principles and rules of conduct , which also are a part  of Professionalization....

 Changing concept of Business  OLD BUSINESS : Profit Maximization is Priority. MODERN BUSINESS : A Social institution forming an integral part of the social system. It has a huge influence on the way People live and work. Business can not Isolate itself from the rest of the Society.     Three Significant ideas that related to Society and Business   Values : Mission of the Business as the Social institution.               Example - The nation, region where the business located also impact the value of particular business.  Viability : Which drives to live or grow to achieve in the best Possible Way. Public Viability : How People know your Organization and the function you do, are the people are well informed about it.             

Business and Society   Social systems and business environment are related to one another.  The type of Products that a firm Produces, the way the business Should be organized, marketing strategies to be employed, and the values and norms that it should follow, are all influenced by the way the business functions. The Way the Business functions, its innovations and products offered affect society and influence the social attitude, values and customs, etc.        

 Socio - Cultural Environment Business Operates in the social system and is influenced by the lements of society. Society in turns is also affected by business. Great Companies help create a Prosperous Society. The Cultural dimensions of Society form Part of the Social environment. The Cultural aspects are Important for the aspects of Business like Product Development, Promotion, Business Negotiations, Human Resource Management and Marketing of the Product. Next we will Discuss Business and Society 

 Business and Economic Policies Economic Policies not only directly affect the business environment, but they also change the aggregate demand which causes a huge impact on the business activities. Different factors which can change aggregate demand are : Policy mix : Combination of Monetary and Fiscal Policy in use at a given time. Policy Mix Consist of Decrease in Government Spending and Increase in Money Supply would Favour investment spending over Government Spending.   Stabilization Policy is DIRECTLY Proportional to Aggregate Demand . Stabilization Policy : Maintaining a healthy level of economic growth and minimal Price changes.

 Monetary Policy Monetary Policy is a tool that incorporates the actions that the reserve Bank takes to influence the level of GDP. The Reserve Bank can influence the level of output in the Short run, through open Market Operations, changes in Reserve requirements or changes in the Discount rate. Instrument of Monetary Policy I Some methods and instruments that are the reserve bank uses are general or Quantative, which control and adjust the total quantity Size, or volume of the deposit created by the commercial bank. There are three Instruments in this method: Bank Rate or Discount Rate : The rate at which Reserve bank gives loan to the commercial Bank. If Bank rate change credit rate also change             Credit Rate : The Rate at which commercial bank give credit to consumer.       2. Open Market Operations : The selling and Purchasing of the treasury  bills and government.   Securities by the central bank of ...

 Fiscal Policy A tool in the Hands of Government  To influence the level of GDP ( Gross Domestic Product)in the short Run, By using taxes and Government spending. It is also Bringing changes in taxes and spending, to affect the Demand for goods and services and Hence the output in Short Run. Monetary Policy we will Discuss in Next Post THANK YOU

 Economic Policies Economic Policies refers to the monetary and Fiscal that affect the growth rate of economy and attained the Price stability in the Economy. In the next post e will Discuss about Fiscal Policy Thank YOU

Global Economic Environment  The international economic environment can be described as  the global factors that are outside of the control of individual organizations but that can affect the way that businesses operate. External factors found in the  macroeconomic environment  can also affect organizations' decision-making and performance activities. They include cultural and social influences, legal issues, demographics, and political considerations, as well as changes in the natural environment and technology. Formula - Gross National Product + Investment that were made by residents of that nation is some other foreign Nation - Revenue that as Generated by foreign People ho Invested in that Country. Global Market Condition The Economic environment is a major determinant of Global Market Potential and opportunity.       Four Major changes are - The Capital movement and trade have become the Driving Force of the Global Economy.  Production...

 Inflation Rapid increase in General Price level. Its Cause decline in Purchasing Power & Value of Money.  Causes of Inflation Increase in Public Expenditure  Increase in Private Expenditure Increase in exports  Reduction in Taxation Repayment of Public Debt Rapid Growth of Population Types of Inflation On the Basis of  rate of Rise in Price Greepin Inflation - When Price Rises less than 3% Per Year. Walking Inflation - When Price Rises from 3 to 4 % Per Year. Running Inflation - When Price Rises by more than 5 to 9 % in a year. Galoping Inflation - When Price arises by more than 10 or more % in a year. Hyper Inflation -  When Price rises by 100% in a year.

 Foreign Exchange   Foreign Exchange Provides a means of settling accounts in Different Currencies. The Dynamics of International Finance can have a significant impact on the nations economy as well as the fortunes of individual companies.                                            OR  Foreign Exchange is the conversion of one country's currency into another Country's Currency. KEY POINTS  Foreign exchange, also known as forex, is the conversion of one country's currency into another.   The value of any particular currency is determined by market forces related to trade, investment, tourism, and geopolitical risk.   Foreign exchange is handled globally between banks and all transactions fall under the auspice of the Bank for International Settlements (BIS).      

Balance Of Payment A Country's balance of Payment is a record of its economic transactions with the Rest of the world.                    Or The balance of payments (BOP), also known as the balance of international payments, is a statement of all transactions made between entities in one country and the rest of the world over a defined period, such as a quarter or a year. It summarizes all transactions that a country's individuals, companies, and government bodies complete with individuals, companies, and government bodies outside the country.    Key Points The balance of payments includes both the current account and capital account.  The current account includes a nation's net trade in goods and services, its net earnings on cross-border investments, and its net transfer payments. The capital account consists of a nation's transactions in financial instruments and central bank r...

 Money Supply The money supply is the total amount of money—cash, coins, and balances in bank accounts—in circulation. The money supply is commonly defined to be a group of safe assets that households and businesses can use to make payments or to hold as short-term investments. For example, U.S. currency and balances held in checking accounts and savings accounts are included in many measures of the money supply. key Points The money supply refers to the amount of cash or currency circulating in an economy.  Different measures of money supply take into account non-cash items like credit and loans as well. Monetarists believe that increasing the money supply, all else equal, leads to inflation.  

 Aggregate Demand AD( Aggregate Demand ) is the total Demand for Final goods and services in the economy at a given time and Price level.  This is the demand for Gross Domestic Product of a company. AD = C+I+G+( X-M ) Where,           C = Consumer Expenditure on Goods and Services           I =  Capital Investment           G = Government Spending           X = Exports of the Goods and Services           M = Imports of the Goods and Services           X - M = Net Export 

 Money Money is Anything that is generally accepted as a medium of exchange & at the same time can be used as a measure & a store of value. Indian Currency : Rupee

 Economic Environment A company must work within the economic framework of the country. The economic framework is the level of income in the country, the external conditions that affect the economy, and the economic Policies that affect the economy . The economic environment affects the way business operates. Two Types Of Economics Environment Macroeconomic environment Microeconomic environment Macro factors include: Employment/unemployment Income Inflation Interest rates Tax rates Currency exchange rate Saving rates Consumer confidence levels Recessions Micro factors include: The size of the available market Demand for the company’s products or services Competition Availability and quality of suppliers The reliability of the company’s distribution chain (i.e., how it gets products to customers) While companies often can’t control their economic environment, they can evaluate economic conditions before choosing to enter a particular market or industry or pursue other strategies...

Salient Features of Business Environment Dynamic: The business environment is ever-changing in nature . Because there is a number of factors that exists in a business environment. whose influence can lead to change in shape, character, Policy Plans & business strategies. Multifaceted: Small environmental changes can be viewed differently by different expert analysts and observers. Far-reaching Impact: The business environment has a widespread impact meaning that a single change can affect the survival growth profitability and performance of the enterprises. Relativity: The business Environment is very much affected by the local conditions and situations in which the business is set up. Complex: The business environment is a Plethora of different factors events and conditions arising from a number of factors. So, it is quite difficult to identify which factor is causing it to change. Uncertainty: Uncertainty is the basic characteristic of business and so does the business env...

 Levels of Business Environment The integral Parts of  Business are: Business is an economic activity A Business Firm is an Economic Unit Business Decision making is an economic Process Basic Classification of Business Environment Economic Environment Non - Economic environment

 Digital Transformation Digital Technologies enables business to fundamentally change or optimize their Process & operations, leading to a more efficient way of delivering value to customers. Basically integrating various digital technologies such as  AI, CLOUD, IoT, RPA, Mobile, Mixes Reality, etc. into all the key areas of an operating business helps to transform the way of working & the business continuity in turbulent times. Businesses become more agile to fail fast forward by adopting these technologies to transform culture by challenging the status. The word Digital is used in various context & is understand differently by different leaders & businesses. It is the key to evaluate the why we need to tranform & what is the target ? customer centricity, customer experience, reducing cost, improving margins, enhancing productivity, or awhole new business model.                           ...

 Swot Analysis  The organizational Environment has basically two components Strength Weakness Swot analysis is the analysis of the strengths and weaknesses of the organization and opportunities & threats in the environment.

Business Environment  The Business environment means the environment that affects business be it external or internal.  Mangers must have understood the impact of these factors on the business. Types Internal Environment: It is essentially all the factors that can be controlled by the organization these factors are usually things like  technological advancement  and e-commerce etc.         2. External Environment: Difficult to manage and control by the organization  But they may  be influenced by that organization These are Present Outside the Organisation For Example - the Political Scenario of a Particular Place

   Business Environment An Environment - The Air we breathe, the water we drink, the available business, social and educational infrastructure in the locality, state, and country. Here, the environment means the environment that affects business be it external or internal.  Mangers must have understood the impact of these factors on the business. Concept of business Decision for a successful Business What business I am in ? Who are my target customers ? Do I Expand ? If yes, where and by how much