b. External environment of the firm: this relates to the potential economic, social,
technological (and so on) factors, as well as competitors that influence the firm‟s
decisions. In the case of Infosys, a large portion of its expenses is in Indian rupees and a
depreciation of this currency is favourable to its bottom line impact. For Rolls-Royce, a
substantial amount of its income of 38% of the UK turnover was in US dollar and
therefore, tried to minimize the impact.