An PAL is expanding its operations but outside

Anorganization’s environment comprise of both macro and micro environmentalforces which shape its future course of action. A thorough knowledge of theseenvironmental forces helps an organization to analyze its strengths andweaknesses in the present environment context and strategize accordingly. PALis deeply impacted by both macro and micro environment forces and it isimperative for it to understand and then formulate their goals and strategybased on the same. Macro Environment forces impacting Patanjali Ayurved are asfollows: 1.

    Political: Thepresent political environment is conducive to the growth of Patanjali Ayurvedin the country. Baba Ramdev is friendly to the present government. He is a bigsupporter of Shri Narendra Modi, Hon’ble PM of India.

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 a)      Stability:The present central government has majority in the parliament. A stablegovernment augurs well for the  likePatanjali who want to move on a fast growth track by investing heavily in thefactors of production and marketing.b)      TaxationPolicy: Governments taxation policies impact on the cost of the input productsand hence impacting on the final price of the products.

PAL input costsincreases or decreases based on the taxation policies of the governmentc)      Governmentsupport  : Central Government ispromoting Ayurved and Yoga. Government of India has a separate “Ayush –Ministry” to promote Yoga, Ayurved and other traditional and complementarymedicines.d)     Challengesfaced from State Government: PAL is expanding its operations but outside itshome state, Uttarakhand, because of the lack of cooperation from the presentstate government  2.    Economic: The followingeconomic factors are impacting Patanjali Ayurved Ltd and other organizations inits segment:a.Inflation rate: Moderate inflation rate, an important factor in the mind ofcustomer to look out for value for money products.b.Tax Rates and Interest Rates: Higher tax rates and interest rates impact uponthe cost of capital adversely and hence the manufacturing cost increases,making the products costly in the market.c.

GST: Implementation of Goods and Services Tax will also help organizations likePAL.d.Since Patanjali Ayurved procures its raw materials locally and thrust onexports is minimal, the factors like currency exchange rates etc have nosignificant impact. 3.    Social:a. Healthconsciousness: People are becoming more health conscious and there is anincreasing trend to spend on health and awareness programs and products.

b. Rise in lifestyle diseases: Lifestyle diseases like heart attacks, cancer, BP, Diabetes areon rise in the Indian society. The main cause for this is chemicals in the foodwe eat and the products we use apart from the lifestyle of an individual.People are more inclined towards natural products. 4.

     Technological:a.Research & Development: Government has created a favorable environment for R&Din India. Patanjali through Patanjali Yogpeeth Trust at Haridwar is involved inR&D of ayurvedic and herbal products. Baba Ramdev has claimed that theirR&D has created ayurvedic products which can cure deadly diseases likecancer.b.Automation: Automation in drug production helps in mass production of ayurvedicdrugs without losing their effectiveness and efficacy.c.Better means of communication, resulting in fast information disbursal and penetration.

 5.     Environmentala.The science of ayurved is free of any hazardous chemicals. It has a directadvantage over allopathic medicines as it has no side effects.b.India is a rich source of certain herbs which may not be available anywhereelse in the world.c.

The residues produced in ayurvedic product manufacturing is far less harmful comparedto that of an allopathic manufacturing.d.Ayurvedic products are more environment friendly compared to other chemicalbased products.  6.     Legal: Ayurved is avast field.

There are government acts applicable to Ayurved: The medicinecentral council act-1970, the drugs and cosmetics act 1940 and rules madethereunder, the drugs and magic remedies act 1954 and the rules made there under.

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