Study the following case/situation and express your opinion.
1) 1) The court passes an order to ban polythene bags as the bags are creating many
environmental problems which affects the life of people in general.
2) Society in general is more concerned about quality of life. The government decided
to give subsidy to jute industry to promote this business.
i) Identify the different dimensions of business environment.
ii) Comment on it.
1. The different dimensions of business environment are:
(a) Legal environment
(b) Natural environment
(c) Social environment
(d) Political environment
(e) Economic environment.
2. The different dimensions of business environment are:
(a) Legal Environment: Court passes the order to ban polythene bags.
(b) Natural Environment: The Court order will solve environmental problems which affect the life of people in general.
(c) Social Environment: Society is concerned about the quality of life and a better standard of living.
(d) Political Environment: The government framed a policy to give subsidies to the jute industry.
(e) Economic Environment: Subsidy to the Jute industry will promote the business of the Jute industry and this will help in economic development.
2) Just after declaration of Lok Sabha 2014 result, the Bombay Stock Exchange Sensex rose
by 1000 points in a day.
i) Identify the environmental factor which led to this rise giving reason.
ii) Explain any two other dimensions of the environment.
1. The rise in the stock market index (Sensex) is the economic environment. But it has done due to the political environment (Lok Sabha Election Results)
2. Two other dimensions of the environment are:
(1) Legal environment and
(2) Technological environment
3) Anchor company manufacturing light tubes increased expenditure on Scientific Research
and Development and discovered a technology that made it possible to produce an energy
efficient light tubes that lasts at least twenty times as long as a standard tubes. It resulted
in growth and profitability of the company.
i) Identify the dimension of business environment.
ii) State importance of business environment.
1. Technological Environment: Scientific research for innovation in product increased its production and it resulted in the growth and profitability of the company. The internal environment of the company led to growth and profitability.
2. The business environment helps in determining opportunities and threats, identify firms’ strengths and weaknesses, continuous learning, image building, meeting competition and give direction for growth.
4) Make in India is an initiative launched by the government of India. It focuses on job
creation and skill development and it is in twenty five sectors of the economy. Under the
initiative, brochures on these sectors and web portal were released. The initiative aims at high quality standards and minimizing the impact on environment. It also seeks to attract
foreign capital investment in India.
i) Identify dimension of business environment.
ii) Comment on it.
1. The various dimensions of the business environment referred to in the above case are:
(a) Political environment
(b) Technological environment
(c) Economic environment
2. Make in India is the policy of the government as per its ideology. As it is focusing on job creation and skill development in 25 sectors of economy, it conveys two values through this initiative. High-quality standards and concern for environment. It also aims to attract foreign capital investment in India
5) Government of India is seriously thinking to allow oil marketing under public sector, by
fixing their own price for petroleum products.
i) Name the economic reform related to this decision.
ii) Name other two reforms recommended in new economic policy.
1. Privatization is the economic reform related to this decision.
2. The other two reforms recommended in the new Economic policy are Liberalization and Globalization.