PROJECT TITLE: Business Environment and Its Impact on Parle

INDEX:

1. Introduction to Business Environment

2. Dimensions of Business Environment
3. Introduction to Parle
4. Products of Parle
5. Financial position of Parle
6. Financial Condition of Parle
7. Main faces of Parle
8. Impact of Business Environment on Parle
9. Government Policies Affecting Parle
10. Impact of Globalisation on Indian Business
11. Government Initiatives for Business Growth (Make in India /
Startup India)
12. Corporate Social Responsibility (CSR) & Business Ethics
13. Role of Technology in Shaping Business Environment
14. SWOT Analysis of Parle
15. Conclusion

INTRODUCTION TO BUSINESS ENVIRONMENT:

The business environment refers to the sum total of all external and internal factors that influence
a business's functioning, such as customers, suppliers, government policies, economic
conditions, and social trends. Understanding the business environment helps businesses make
informed strategic decisions, improve adaptability, and stay competitive in a dynamic market.

DIMENSIONS OF BUSINESS ENVIRONMENT:

1. Economic Environment: Includes factors like inflation rate, interest rate, economic
growth, and exchange rates. These significantly impact the production costs, pricing,
consumer purchasing power, and overall demand for a company’s products.
2. Social Environment: Comprises the cultural values, traditions, demographics, consumer
lifestyles, education levels, and social attitudes that influence product design, marketing,
and customer engagement strategies.
3. Political Environment: Refers to the influence of government policies, political stability,
trade regulations, tax laws, and industrial policies on business operations and expansion
decisions.
4. Technological Environment: Involves technological innovations, R&D activities,
automation, and digitization which can improve operational efficiency, product quality,
and customer satisfaction.
5. Legal Environment: Encompasses various laws and regulations regarding product safety,
labor, competition, environmental standards, and consumer rights that ensure responsible
and compliant business operations.
INTRODUCTION TO PARLE:

Parle is one of India’s most iconic food companies, known especially for its flagship product
Parle-G. Founded in 1929, Parle Products Pvt. Ltd. has made a significant impact on the Indian
food and biscuit industry. It offers a wide range of products including biscuits, snacks, and
confectionery. Parle has built a reputation for affordability, taste, and trust over generations. It
operates a strong distribution network across India and also exports to numerous countries. With
a deep understanding of Indian consumers, Parle continues to innovate and diversify its offerings
while

Products of Parle

Parle offers a wide range of products in biscuits, confectionery, and snacks. Some of its most
popular products are:

1. Parle-G – A glucose biscuit known for its affordable price and high energy.

2. KrackJack – India’s first sweet and salty biscuit.

3. Monaco – Light and crispy salty crackers, often eaten with toppings.

4. Hide & Seek – Chocolate-chip biscuits loved by children and youth.

5. Melody – Chocolate-coated caramel toffee with a rich taste.

6. Mango Bite – Hard candy with tangy-sweet mango flavour.

7. Kismi – Chewy toffee with caramel and cardamom flavour.

Financial Position of Parle :

Privately owned company, so detailed financials are not always publicly available Estimated
Revenue: Over ₹12,000 crores (approx. USD 1.5 billion+) as of recent estimates.

Parle-G is one of the largest selling biscuit brands in the world, contributing a major share to
revenue.The company has diversified products: biscuits, snacks, confectionery, beverages.

It maintains a strong rural and urban distribution network with affordable pricing, helping in
sustained sales even during economic slowdowns (like during COVID-19). Parle has a low-cost
business model, allowing it to remain competitive against giants like Britannia and ITC. In recent
years, Parle has seen growth in market share, especially in the FMCG (Fast-Moving Consumer
Goods) sector.

Parle's Financial Condition

FY 2023–24 Highlights
Revenue: ₹15,086 crore — a modest yet steady 2% year-on-year increase .

Net Profit: ₹1,607 crore — an impressive 115% surge compared to the previous year .

Total Expenses: ₹12,979 crore — slightly down year-on-year .

Advertising & Promotion: ₹442.8 crore — a modest increase of ~3.2% .

Tax Expense: ₹499.4 crore .

The business demonstrates robust profitability, with net margins doubling and costs being well-
managed.

High return on operations, supported by effective cost control, keeping marketing spends
strategic rather than excessive.The positive shift in other income also contributed to overall
income growth .

Main Faces (Key People) of Parle Company:

1.Schauna Chauhan- CEO, Parle Agro (related sister company)

2.Megha Malik -Director, Parle Products

3.Praveen Kulkarni- Executive Director, Parle Products

4.Arup Chauhan- Member of the founding Chauhan family its legacy.

IMPACT OF BUSINESS ENVIRONMENT ON PARLE:

The five key dimensions of the business environment have played a vital role in shaping Parle's
business strategies and operations. Here is an in-depth analysis of how each dimension affects
Parle:

 Economic Environment: Parle caters to a vast demographic, including price-sensitive

consumers in rural India. Economic factors such as inflation, GDP growth, and income
levels influence Parle's pricing strategy and product offerings. During times of economic
slowdown, Parle experiences higher demand for affordable snacks, while in periods of
economic growth, it diversifies into premium segments.
 Social Environment: Changing lifestyle trends and increased health awareness among
consumers have compelled Parle to innovate healthier product options such as
Nutricrunch and sugar-free biscuits. Additionally, rising urbanization and dual-income
households have increased demand for on-the-go snacks, prompting Parle to introduce
new packaging formats and product varieties.
 Political Environment: Government initiatives like "Make in India" and subsidies for the
food processing industry provide incentives for Parle to expand its manufacturing
 capabilities. On the other hand, changes in trade policies and tax regimes such as the
introduction of GST require Parle to adapt its supply chain and pricing strategies.
 Technological Environment: Parle has adopted modern technology in areas such as
manufacturing automation, inventory management, and logistics. This has resulted in
increased operational efficiency and reduced wastage. Investments in R&D and digital
marketing also help the brand stay relevant to younger audiences and compete in the
digital age.
 Legal Environment: Parle operates in a highly regulated industry, which requires
compliance with food safety laws set by the FSSAI. Labour laws, environmental
regulations, and advertising standards also impact its operations. By adhering to these
legal frameworks, Parle maintains consumer trust and avoids legal penalties.

In conclusion, these five dimensions collectively influence Parle’s market presence, operational
strategies, and long-term growth.

GOVERNMENT POLICIES AFFECTING PARLE:

Parle, being one of the biggest Indian food and confectionery brands, is
deeply influenced by various government regulations and initiatives. These
affect its production, marketing, pricing, distribution, and quality standards.

1.Food Safety and Standards Authority of India (FSSAI) Regulations- FSSAI

ensures food quality standards that Parle must comply with. Failure can
result in bans or legal action.

2. Goods and Services Tax (GST)-GST implementation has streamlined

taxation but required system upgrades.18% GST on biscuits once affected
their pricing strategy).

3.Agricultural subsidies affect wheat and sugar prices, directly impacting

Parle’s input cost.

4.Make in India Initiative-The “Make in India” initiative has encouraged Parle

to invest in domestic production.

5.Import–Export Policies- policies influence Parle’s international market

operations. Parle exports to over 100 countries. Changes in export duties,
customs rules, or trade barriers (e.g., international taxes, labeling laws
abroad) can affect profits and expansion.

Impact of Globalisation on Indian Business

Globalisation means connecting the Indian economy with the rest of the
world through trade, investment, and technology.
Positive effects: More foreign companies, better technology, more jobs, and
better quality products.

Negative effects: Tough competition for Indian companies, risk of

dependence on foreign products.

Government Initiatives for Business Growth (Make in India / Startup

India)

The government has launched schemes to support businesses.

1.Make in India: Encourages companies to manufacture products in India and

boost exports.

2.Startup India: Helps new businesses with funding, tax benefits, and less
paperwork.

Impact: More local manufacturing, more startups, and job creation.

Corporate Social Responsibility (CSR) & Business Ethics

CSR means companies spending money on social causes like education,

health, and environment. Business ethics means following fair and honest
practices.

Example: TATA funds schools, ITC works for the environment.

Benefit: Improves company image, builds trust with customers.

Role of Technology in Shaping Business Environment

Technology has made business faster and more efficient.Examples: Online

shopping (Amazon, Flipkart), digital payments (UPI, QR codes), and AI-based
customer service.

Impact: Wider customer reach, better marketing, and improved customer

experience.

Challenges & Opportunities in Rural Markets

Rural markets mean selling goods and services in villages and small towns.
They have huge potential because more than half of India’s population lives
there.

Opportunities: Large customer base, less competition in some products,

growing demand for mobile phones, packaged food, and FMCG goods.
Challenges: Poor transport, low income levels, less product awareness, and
seasonal demand.

Example: Amul and Hindustan Unilever use special rural marketing strategies
to reach these areas.

SWOT Analysis of Parle-G (Parle Products Ltd.)

Strengths

1. Strong Brand Equity – Parle-G is the world’s largest selling biscuit brand and enjoys deep
trust and emotional connection with Indian consumers.

2. Extensive Distribution Network – Parle products are available in both urban and remote rural
areas, making them one of the most accessible FMCG brands.

3. Affordable Pricing – Positioned as a value-for-money product, Parle-G appeals to price-

sensitive consumers across all income groups.

4. Diversified Portfolio – Along with Parle-G, the company offers a wide range of successful
brands such as Monaco, Hide & Seek, Krackjack, Melody, Kismi, and Frooti.

5. Export Market Reach – Parle exports to over 100 countries, including the USA, UK, Middle
East, Africa, and Southeast Asia, thereby expanding its global presence.

Weaknesses

1. Overdependence on Parle-G – A large share of revenues still comes from Parle-G, creating
risk if consumer preferences shift.

2. Low Presence in Premium Segment – Parle is largely seen as a mass-market brand, with
limited offerings in premium or health-conscious product categories.

3. Weak Brand Image Among Urban Aspirants – In metros and higher income groups, Parle
products are often perceived as “basic” compared to premium competitors.

4. Limited Marketing & Advertising Innovation – Compared to Britannia or ITC, Parle invests
less in aggressive brand campaigns for newer demographics.

Opportunities :

1.Rural Market Expansion - India’s rural population is a huge untapped market.Parle can
introduce smaller, affordable packaging to increase its rural reach.
2.Health-Conscious Products – Rising demand for low sugar, high-fibre, and
multigrain biscuits.Parle can innovate and lead with healthy snack variants
like Parle Nutricrunch.

3.Export Growth - Demand for Indian snacks and biscuits is growing

globally.Parle can expand further into African, Middle Eastern, and Southeast
Asian countries.

4.Digital and E-Commerce Growth - More consumers are ordering online via
apps like BigBasket, Blinkit, Amazon, etc.Parle can grow its direct-to-
consumer (D2C) and e-commerce presence.

5.Brand Legacy - Being a nostalgic, household name gives Parle trust and
loyalty, which it can use to enter new segments (like snacks, beverages,
etc.).

Threats

1. Rising Raw Material Cost - Prices of sugar, wheat, and milk often
flutuate.This puts pressure on production cost and profit margins.

2. Intense Competition - Competing with big brands like Britannia, ITC

(Sunfeast), and many local players. Parle must constantly innovate to
maintain market share.

3. Changing Consumer Preferences -People are shifting from traditional

biscuits to organic snacks, protein bars, granola, etc.Adapting to new
preferences quickly is essential.

4. Regulatory Compliance - Constant changes in food safety norms, labelling

laws, and packaging rules.Non-compliance could damage Parle’s reputation
and legal standing.

5. Supply Chain and Distribution Issues - Challenges in logistics, especially

during situations like COVID-19, can disrupt delivery.Rural supply chains need
stronger infrastructure.

CONCLUSION:

This project highlights how the business environment significantly impacts companies like Parle.
Each dimension of the environment—economic, social, political, technological, and legal—
exerts a considerable influence on Parle's decision-making and operations. By staying alert to
these external forces and adapting its strategies accordingly, Parle has managed to retain its
market leadership and brand loyalty. Understanding these impacts allows businesses to remain
resilient, competitive, and sustainable in a constantly evolving marketplace.
Questionnaire on Business Environment:

1.Have you heard of the brand Parle?

[ ] Yes

[ ] No

2.Do you consume any products of Parle?

[ ] Yes

[ ] No

3.Do you think Parle products are affordable for most people?

[ ] Yes

[ ] No

4.Do you know what the term business environment means?

[ ] Yes

[ ] No

5.Do you believe changes in the economy affect companies like Parle?

[ ] Yes

[ ] No

6.Do you think government policies (like GST or food safety laws) impact Parle?

[ ] Yes

[ ] No

7.Do you believe social trends (like demand for healthy food) influence Parle’s business
decisions?

[ ] Yes

[ ] No

8.Has Parle introduced new or improved products in recent years?

[ ] Yes

[ ]No

9.Do you think Parle is an important brand in the Indian economy?

[ ] Yes

[ ] No

10.Should Parle launch more health-related or sugar-free products?

[ ] Yes

[ ] No