An PAL is expanding its operations but outside

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organization’s environment comprise of both macro and micro environmental
forces which shape its future course of action. A thorough knowledge of these
environmental forces helps an organization to analyze its strengths and
weaknesses in the present environment context and strategize accordingly. PAL
is deeply impacted by both macro and micro environment forces and it is
imperative for it to understand and then formulate their goals and strategy
based on the same. Macro Environment forces impacting Patanjali Ayurved are as



present political environment is conducive to the growth of Patanjali Ayurved
in the country. Baba Ramdev is friendly to the present government. He is a big
supporter 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 stable
government augurs well for the  like
Patanjali who want to move on a fast growth track by investing heavily in the
factors of production and marketing.

b)      Taxation
Policy: Governments taxation policies impact on the cost of the input products
and hence impacting on the final price of the products. PAL input costs
increases or decreases based on the taxation policies of the government

c)      Government
support  : Central Government is
promoting Ayurved and Yoga. Government of India has a separate “Ayush –
Ministry” to promote Yoga, Ayurved and other traditional and complementary

d)     Challenges
faced from State Government: PAL is expanding its operations but outside its
home state, Uttarakhand, because of the lack of cooperation from the present
state government



Economic: The following
economic factors are impacting Patanjali Ayurved Ltd and other organizations in
its segment:

Inflation rate: Moderate inflation rate, an important factor in the mind of
customer to look out for value for money products.

Tax Rates and Interest Rates: Higher tax rates and interest rates impact upon
the cost of capital adversely and hence the manufacturing cost increases,
making the products costly in the market.

GST: Implementation of Goods and Services Tax will also help organizations like

Since Patanjali Ayurved procures its raw materials locally and thrust on
exports is minimal, the factors like currency exchange rates etc have no
significant impact.



a. Health
consciousness: People are becoming more health conscious and there is an
increasing trend to spend on health and awareness programs and products.

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


4.     Technological:

Research & Development: Government has created a favorable environment for R&D
in India. Patanjali through Patanjali Yogpeeth Trust at Haridwar is involved in
R&D of ayurvedic and herbal products. Baba Ramdev has claimed that their
R&D has created ayurvedic products which can cure deadly diseases like

Automation: Automation in drug production helps in mass production of ayurvedic
drugs without losing their effectiveness and efficacy.

Better means of communication, resulting in fast information disbursal and penetration.


5.     Environmental

The science of ayurved is free of any hazardous chemicals. It has a direct
advantage over allopathic medicines as it has no side effects.

India is a rich source of certain herbs which may not be available anywhere
else in the world.

The residues produced in ayurvedic product manufacturing is far less harmful compared
to that of an allopathic manufacturing.

Ayurvedic products are more environment friendly compared to other chemical
based products.



6.     Legal:


Ayurved is a
vast field. There are government acts applicable to Ayurved: The medicine
central council act-1970, the drugs and cosmetics act 1940 and rules made
thereunder, the drugs and magic remedies act 1954 and the rules made there under.

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