Class 12 Business Studies - Chapter Business Environment NCERT Solutions | How would you characterize the business
How would you characterize the business environment? Explain with examples, the difference between general and specific environment.
Business environment means all the external and internal forces that affect the performance of the organization directly or indirectly. Business environment ha the following features:
1. Totality of external forces: Business environment is aggregative in nature because it is the sum total of all the things external to business enterprise. One single factor does not make a business environment.
2. Specific and general forces: Business environment consists of both specific and general forces. General forces refers to social, political, economical, legal and technological conditions, which affects every organization indirectly. On the other hand specific forces are investors, customers, competitors and suppliers that affect individual organization directly.
3. Inter-relatedness: Every element of business environment are inter-related. For example an increase in the income of consumers (economic environment) will help in improving their living standard (social environment).
4. Dynamic Nature: Business environment is dynamic in nature because it keeps on changing in terms of technologies, consumer taste and preference, change in government policy or trend and traditions that is why it is important to monitor the environment continuously.
5. Uncertainty: Business environment is uncertain because it is difficult to predict future events such as technological changes, change in government policies etc, especially when the changes are taking place at a fast pace.
6. Complexity: Business environment is complex because it consists of numerous, inter-related factors affecting business enterprises at the same time. It is easier to understand the components in parts, but difficult to understand in totality.
7. Relativity: Business environment is a relative concept as it differs from country to country and region to region. For example government policy, regulations, consumers’ preference etc all differs from one region to another.
General environment and specific environment
General environment means that the forces that affect all the business enterprises indirectly. It does not only affect any particular organization but affects the performance of all the organizations. General environment consists of general forces that are economic, social, political, legal and technological conditions. For example change in any political condition affects all the organizations.
And on the other hand a specific environment means that the forces that affect an organization directly. Unlike the general environment it does not affect the performance of all organizations, it affects the performance of any particular organization. Specific environments consist of specific forces that are investors, customers, competitors and suppliers. For example, change in the taste and preference of the consumer will directly affect the demand of that product of that particular organization/company.
More Questions From Class 12 Business Studies - Chapter Business Environment
- Q:-
The government of India announced Demonetization of ₹ 500 and ₹ 1,000 currency notes with effect from the midnight of November 8, 2016. As a result, the existing ₹ 500 and ₹ 1,000 currency notes ceased to be legal tender from that date. New currency notes of the denomination of ₹ 500 and ₹ 2,000 were issued by Reserve Bank of India after the announcement.
This step resulted in a substantial increase in the awareness about and use of Point of Sale machines, e-wallets, digital cash and other modes of cashless transactions. Also, increased transparency in monetary transactions and disclosure led to a rise in government revenue in the form of tax collection.
a. Enumerate the dimensions of the business environment highlighted above.
b. State the features of Demonetization. - Q:-
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.
- Q:-
Why it is important for business enterprises to understand their environment? Explain.
- Q:-
How would you argue that the success of a business enterprise is significantly influenced by its environment?
- Q:-
Briefly discuss the impact of Government policy changes on business and industry.
- Q:-
What are the essential features of:
a. Liberalisation,
b. Privatization and
c. Globalisation? - Q:-
What economic changes were initiated by the Government under the Industrial Policy, 1991? What impact have these changes made on business and industry?
- Q:-
How does understanding of business environment help in improving performance of a business?
- Q:-
Give an example to show that a business firm operates within numerous inter related factors constituting the business environment.(Hint: example highlighting the inter relatedness of dimensions of business environment).
- Q:-
State the impact of demonetization on interest rates, private wealth and real estate.
Popular Questions of Class 12 Business Studies
- Q:-
How does planning provide direction?
- Q:-
What is meant by staffing?
- Q:-
Identify the network of social relationships which arises spontaneously due to interaction at work.
- Q:-
What is informal communication?
- Q:-
State the meaning of controlling.
- Q:-
What is meant by capital structure?v
- Q:-
What is meant by management?
- Q:-
What is a Treasury Bill?
- Q:-
State any two advantages of branding to marketers of goods and services?
- Q:-
What makes principles of management flexible?
Recently Viewed Questions of Class 12 Business Studies
- Q:-
(Further information related to the above question 6) The management of company Bhasin Limited now realised its folly. In order to rectify the situation it appointed a management consultant -Mukti Consultants - to recommend a restructure plan to bring the company back on the rails. Mukti Consultants undertook a study of the production process at the plant of the company Bhasin Limited and recommended the following changes —
• The company should introduce scientific management with regard to production.
• Production Planning including routing, scheduling, dispatching and feedback should be implemented.
• In order to separate planning from operational management ’Functional foremanship’ should be introduced.
• ‘Work study’ should be undertaken to optimise the use of resources.
• ‘Standardisation’ of all activities should be implemented to increase efficiency and accountability.
• To motivate the workers ‘Differential Piece Rate System’ should be implemented.
(The above changes should be introduced apart from the steps recommended as an answer to Part c - case problem 6 above.) It was expected that the changes will bring about a radical transformation in the working of the company and it will regain its pristine glory.
a. Do you think that introduction of scientific management as recommended by M consultants will result in intended outcome?
b. What precautions should the company undertake to implement the changes?
c. Give your answer with regard to each technique separately as enunciated in points 1 through 6 in the case problem. - Q:-
Explain the term ‘Trading on Equity’.
- Q:-
State the two important sources of recruitment.
- Q:-
Name the component of product mix that helps the consumer to exercise the right to information.
- Q:-
Give any two standards that can be used by a company to evaluate the performance of its Finance & Accounting department.
- Q:-
Name the concept of financial management which increases the return to equity shareholders due to the presence of fixed financial charges.
- Q:-
What are the responsibilities of a consumer?
- Q:-
Name the document prepared in the process of online trading of securities that is legally enforceable and helps to settle disputes/claims between the investor and the broker.
- Q:-
What is the common name for Beneficiary Owner Account, which is to be opened by the investors for trading in securities?
- Q:-
What is marketing concept? How does it help in the effective marketing of goods and services.
- All Chapters Of Class 12 Business Studies
- All Subjects Of Class 12