Advertisements
Advertisements
Question
Explain, with examples, the various dimensions of business environment.
Solution
The various dimensions of the business environment explain below:
a. Economic environment- economic environment refers to all the changes in the economic policies by the government of India. The Reserve Bank of India plays an extremely important role in this. 8 consists of various economic variables such as interest rate, stock market, money supply, the functioning of banks etc. For example, an increase in the income of the consumer means an increase in the demand for the goods and services of the Enterprises.
b. Social environment- social environment refers to all the social force in such as customs, traditions, social values, and social trends. For example, the youth of India is bending towards the Western Lifestyle which has led to an increase in the demand for Fast Food.
c. Technological environment- it consists of all the technological changes and improvements. It provides new opportunities to the Enterprises but is also a threat for the Enterprises which are using obsolete Technologies. For example, with technological innovations, it is now easier to book a railway ticket through online medium.
d. Legal environment- it refers to the legislation and rules passed by the government of the country set up the Companies Act. It is essential for an enterprise to have thorough knowledge about the legal environment to avoid any legal trouble. For example, an export-import company in India has to comply with the rules under the EXIM policy and the foreign trade act 1992.
e. Political environment- political environment refers to all the political conditions such as law and order, and peace and stability. For example, the Government of India had introduced the new economic policy in 1991 which led to many business opportunities for the companies.
APPEARS IN
RELATED QUESTIONS
With change in the consumption habits of people. Neelesh, who was running, a sweets shop shifted to chocolate business. On the eve of Diwali he offered chocolates in attractive packages at reasonable prices. He anticipated huge demand and created a website chocolove.com for taking orders online. He got lot of orders online and earned huge profit by selling chocolates.
Identify and explain the dimensions of business environment discussed in the above case.
National Digital Library of India (NDL India) is a pilot project initiated by the HRD ministry. It works towards developing a framework of virtual repository of learning resources with a single-window search facility. It provides support to all academic levels including researchers, life-long learners and differently-abled learners free of cost. State the dimensions of business environment highlighted above.
How would you characterize business environment? Explain with examples, the difference between general and specific environment.
How would you argue that the success of a business enterprise is significantly influenced by its environment?
The trend of health and fitness has created a demand for products like gyms, bottled mineral water, and food supplements, etc., these are the example of ________.
Subsidy to cotton textile businesses is the ________.
Advertisement of alcoholic beverages is prohibited. This is an example of ________.
With the introduction of Photostat Machines in the market, the carbon paper industry was adversely affected. Which component of environment was responsible for it?
“The nature of the relationship of our country with foreign countries”, is a major element of which of the following components of the Business Environment?
As part of regulations to be followed by advertisers, the advertisement for a new brand of baby food for infants provides important information for potential buyers that it is “Not recommended for infants under the age of four months”. Which dimension of the business environment is highlighted in the above statement?
Mohammad Kanjiwal, a beekeeper since April 2021 is now part of the growing tribe of at least 50 urban dwellers across Maharashtra raising bees and harvesting honey in their balconies, rooftops and back gardens. As he had been focussed on eating right the thought of domesticating honey bees to promote healthy consumption habits and seeing honey being cultivated right before his eyes was mesmerising for him. Identify the factor constituting the general environment being discussed above.
Read the following text and answer the following question on the basis of the same:
The name and taste of Coca-Cola is known to almost each and every individual in India as well as throughout the world. This carbonated soft drink holds the most market share in the soft drink market and got itself a special seat in each and every gathering. The Coca-Cola Company has on occasion introduced other cola drinks under the Coke name. The most common of these are Diet Coke, along with others including Caffeine-free Coca-Cola, Diet Coke Caffeine-free, Coca-Cola Zero Sugar, Coca-Cola Cherry, Coca-Cola Vanilla and the list goes on. It has capitalized on each and every opportunity to market itself effectively and place itself in the middle of every gathering. The main reason for such an outstanding placement of product goes to the way they have established the connection between every occasion and the need for Coke to be present there, product design, and creative advertising.
Which business environment did Coca-Cola majorly tap into?
Identify the dimensions of the business environment illustrated by the picture given above in which Sapna who has joined the workforce recently is working on an accounting software.
Which of the following items is a component of economic environment?
With a revolution taking place in the manufacturing of mobile phones with super class cameras, the business of cameras in the consumer market has taken a hit. Studies show that mobile phone photography has devastated the camera industry.
The dimension of business environment highlighted in the above case is:
‘Pace.’ is a reputed Chartered Accountant firm which renders services to big MNC’s. The Chartered Accountants of the firm are required to travel to Delhi and NCR for which they use company’s cars. The firm decided to convert its Petrol cars to Electric cars in order to improve the quality of life of people. Identify the dimensions of business environment.
Explain any two components of the Technological Environment.
Organisation and development of financial market has created a surge in primary and secondary capital market.
Which dimension of Macro environment is referred to in this statement?
