Question

Mitsu Electronics Ltd.' was operating its business of electronic items in India. The Prime Minister announced relaxation in export duties on electronic items and the company started exporting its products to neighbouring countries. The company developed a better and cheaper video conferencing system to solve the problem, if any, and to replenish the stocks wherever and whenever needed. The demand for its electronic items started increasing day-by-day as there is an increase in the level of education and consumerism globally.

Quoting the lines from the above para, identify and explain any three dimensions of Business Environment.

Answer 1

1. Social Environment: "The demand for its electronic items started increasing day-by-day as there is an increase in the level of education and consumerism globally." This dimension encompasses cultural elements, societal trends, and behaviours that affect how businesses operate. A change in social views is indicated by increased levels of education and consumption, which increases demand for Mitsu Electronics Ltd.'s electronic products.
2. Technological Environment: "The company developed a better and cheaper video conferencing system to solve the problem, if any, and to replenish the stocks wherever and whenever needed." This dimension includes technological developments and innovations that have an impact on how firms run. In order to increase productivity and satisfy consumer requests, Mitsu Electronics Ltd. created an upgraded video-conferencing system.
3. Economic Environment: "The Prime Minister announced relaxation in export duties on electronic items." The economic conditions, policies, and trends that have an impact on a firm are referred to as this dimension. By lowering costs and promoting exports, the easing of export tariffs is an economic strategy that benefits Mitsu Electronics Ltd.