Class 12 Business studies project on Business Environment and study based on Reliance Industries.

1. *Study conducted on Reliance Industries

2. Proforma of
the Project file
Title of Project
Name of the student:
Class: Section:
Roll No:
Name of the teacher:
Name of school:
Session:
Acknowledgement
I would like to express my gratitude to my business
studies teacher ________ for her unrelenting support
and valuable guidance at every step of the project till
its successful completion. I am obliged towards her for
her motivation through out the conduct of the project
work. I would also like to express my gratitude to the
principal of our school for providing me with all the
resources required for smooth conduct of my project.
_________,
Class XII

3. This is to certify that _______ of ______ school has
completed his project work of Business studies under my
guidance. He has taken proper care and shown utmost
sincerity in completion of this project. To the best of my
knowledge, it is an original piece of work. I certify that the
project is up to my expectations and as per the guideline
issued by CBSE.
Place: ______ _________________
Date: _______ (Name & Sign of the guide)
Internal Examiner External Examiner

4. Introduction
of Business
Environment
An Environment is everything that is around us,
which includes both living and nonliving things
such as soil, water, animals and plants, which
adapt themselves to their surroundings. It is
nature's gift that helps in nourishing life on Earth.
The word 'business environment' indicates the
aggregate total of all people, organizations and
other forces that are outside the power of
industry but that may affect its production.
Business environment is the sum totals of all
factors external to the business firm and that
greatly influence their functioning. It covers
factors and forces like customers,
competitors, suppliers,
government, and the
social, cultural, political,
technological and legal
conditions.

5. About Reliance Industries
Reliance Industries Limited is an Indian multinational
conglomerate company, headquartered in Mumbai. It
has diverse businesses including energy,
petrochemicals, natural gas, retail,
telecommunications, mass media, and textiles.
Reliance is one of the most profitable companies in
India, the largest publicly traded company in India
by market capitalisation, and the largest company in
India as measured by revenue. It is also the tenth
largest employer in India with over 236,000
employees. RIL has a market capitalisation of
US$219 billion as of August 07, 2022.The company is
ranked 104th on the Fortune Global 500 list of the
world's biggest corporations as of 2022. Reliance
continues to be India's largest exporter, accounting
for 8% of India's total merchandise exports and
access to markets in over 100 countries. Reliance is
responsible for almost 5% of the government of
India's total revenues from customs and excise duty.
It is
also the highest income tax payer

6. History of
reliance industries
The company was co-founded by Dhirubhai Ambani and
Champaklal Damani in 1960's as Reliance Commercial
Corporation. In 1965, the partnership ended and
Dhirubhai continued the polyester business of the firm.
In 1966, Reliance Textiles Engineers Pvt. Ltd. was
incorporated in Maharashtra. It established a synthetic
fabrics mill in the same year at Naroda in Gujarat. On 8
May 1973, it became Reliance Industries Limited. In
1975, the company expanded its business into textiles,
with "Vimal" becoming its major brand in later years.
The company held its Initial public offering (IPO) in
1977. The issue was over-subscribed by seven times. In
1979, a textiles company Sidhpur Mills was
amalgamated with the company. In 1980, the company
expanded its polyester yarn business by setting up a
Polyester Filament Yarn Plant in Patalganga, Raigad,
Maharashtra with financial and technical collaboration
with E. I. du Pont de Nemours & Co., U.S.

7. Elements of
business environment
1) Economic Environment
The economic environment of the business is
one of the external factors that can influence
strategy and decision-making. Economic
factors include GDP, exchange rates, taxation,
interest rates, fiscal policy, monetary policy
and
inflation.
2) Political Environment
The Political environment includes political
conditions such as general stability and peace
in the country and the attitude of elected
government towards business. A stable
political system can make business-friendly
decisions that promote local businesses and

8. 3) Social Environment
The social environment of business includes
social forces like customs and traditions,
values, social trends, society's expectations
from business, etc. Traditions define social
practices that have lasted for decades or even
centuries.

9. 4) Technological Environment
Technological Environment means the
development in the field of technology
which affects business by new inventions of
productions and other improvements in
techniques to perform the business work.
Those technological factors which impact the
business operation are called technological
environment. For example, with recent
improvements in technology and
computerization, marketing and selling of
products is now possible online leading to
increase in sales and output of many firms.
5) Legal Environment
The legal environment includes the laws
passed by the government as well as the
decisions rendered by the various
commissions and agencies at every level of
the government. It's important that every
business must function according to the law

11. How did the business environment
affected the Reliance Industries
1) Economic Environment
Shares of Reliance Industries Ltd (RIL) fell
over 8 per cent today after the government
imposed taxes on export of petrol, diesel
and jet fuel (ATF) shipped overseas by
Indian firms. The government levied a tax of
Rs 6 per liter on exports of petrol and
aviation turbine fuel and Rs 13 per liter on
exports of diesel. The step is aimed at
meeting the demand of the domestic
market.
The taxes on exports come after oil refiners,
particularly from the private sector, attracted
huge gains from exporting fuel to markets
such as Europe and the US amid a surge in
international oil prices.

12. Ravi Singh, vice-president and head of Research
Share India said, "RIL has fallen amid weakness
in the benchmark indices and introduction of
taxes on export of petrol, diesel and jet fuel
(ATF) shipped overseas by Indian firms to meet
the demand of domestic market. RIL stock may again
show weakness to touch the levels of Rs 2,380 -
2,350 in the coming trading sessions."
It also announced taxes on windfall gains made by
crude oil producers. The government imposed an
additional cess of Rs 23,230 per barrel on domestic
crude production. The move is aimed to take away
windfall gains accruing to producers from high
international oil prices. RIL shares plunged 8.66 per
cent intraday to Rs 2,369.45 against the previous
close of Rs 2,594.05 on BSE. Reliance Industries is
trading lower than 5 day, 20 day, 50 day, 100 day and
200 day moving averages.
RIL share has gained 17.22 per cent in one year and
risen 3.83 per cent since the beginning of this year.
Total 5.83 lakh shares of the firm changed hands
amounting to a turnover of Rs 142.98 crore on BSE.
Market cap of the conglomerate fell to Rs 16.60 lakh
crore. The share hit a 52-week
high of Rs 2,855 on April 29,
2022 and a 52-week low of
Rs 2,016 on July 28, 2021.

13. 2) Political Environment
* Reliance Industries, the country’s largest
producer of a chemical used to make polyester
yarn, will face more competition in the segment
after a proposed cut in import duties for purified
terephthalic acid. In1 February budget speech,
Finance Minister Nirmala Sitharaman said the
government is getting rid of the duty to help
ensure the easy availability of the commodity at
competitive prices.
* The government has also proposed a change to
dividend distribution tax, a step that could slow
efforts of companies, including Reliance
Industries, to raise funds through selling units in
investment trusts. The conglomerate has been
trying to raise funds and pare debt by selling a
stake in trusts that hold its telecom towers and
optical-fiber network.

14. 3) Social Environment
CSR activities of Reliance Industries Limited
are carried out in India through Reliance
Foundation. Smt. Nita M. Ambani leads the
Reliance Foundation, which was founded in 2010
and had a comprehensive approach towards the
development of India. The Foundation addresses
some of India’s most pressing development
challenges in the fields of Rural Transformation,
Health, Education, Sports for Development,
Disaster Response, Arts, Culture & Heritage and
Urban Renewal. According to Reliance Corporate
Social Responsibility policy, sustainable
development is at the core of its business
decisions, and therefore it has aligned its
sustainability strategy with its business goals. RIL
CSR works with underserved people who often
do not have access to knowledge or information
on best practices and continue to be vulnerable.
Reliance engages directly, which creates multiple
opportunities to empower the marginalized and
deprived sections of the society ending up
making a meaningful difference in the lives of the
people. The companies social initiatives have
impacted over 5.75 crore people across India in
more than 50,600 villages and 200 urban

15. The Graph shows the mandatory CSR Budget
vs. CSR spend by RIL Ltd in the last five years

16. 4) Technological Environment
Reliance Retail is the largest retailer in India
and it has spread its outlets all across India.
The retail industry comprises Reliance New,
Reliance Mart, Reliance Digital, Reliance Home
Kitchen, Reliance Home Kitchen, Reliance
iStore, and many more. These outlets offer
various products from Groceries to Electronics to
Fashion. Reliance Retail has increased its
advertising volumes to capture the audience’s
attention since the pandemic has begun. It is yet
to unveil a proper long term marketing campaign
just like its sister company Jio’s “Jio Dhan Dhana
Dhan” campaign. However, it releases topical
and event-based advertisements during the
festivals to create its presence in the minds of the
consumers. So to expand its retail business with
full potential, Reliance Retail should come up
with a long term campaign just like its sister
company Reliance Jio has done. Maybe, the long
term campaign is in the works or it might be
halted for a moment temporarily until the Future
group deal is cleared which only the time would
tell us. With this, we have come to the end of this
case study. So let’s go through the quick
conclusion of the same.

18. 5) Legal Environment
There are strict laws that govern Reliance
Industries’ business in every field. Labor laws
which protect basic rights of every labor including
minimum wages are to be aligned with the
company’s legal framework. Environment
protection laws for the manufacturing units and
their industrial waste disposal standards govern
their overall activity. Contract laws, corporate
laws and their adherence with company’s rules is
mandatory. There is separate legal team which
looks after all kinds of laws which are to be
aligned and incorporated in their business.
Health and safety laws are strict these days since
along with the government the public is also
becoming conscious about consumables content
and quality.

19. conclusion
Business environment have a
great impact on the working of
business. It may also lead to its
failure or success. The factor
affecting may be political,
economical, social, technological
or legal. It needs to be analyzed
timely so that measures can be
taken and any type of lose or
resentment among interested
parties is prevented

20. By: Athulkrishna.P
XII.C