Class 12 Business Studies - Chapter Business Environment NCERT Solutions | Explain, with examples, the various dime
Explain, with examples, the various dimensions of the business environment.
Following are the dimensions of the business environment:
1. Economic Environment: The economic environment consists of the factors and forces concerned with means of production and distribution of the wealth. It comprises interest rate, rate of inflation, value of GDP, per capita income, tax rates, disposable income etc. For example a rise in the per capita and disposable income of the consumer will lead to an increase in the demand for goods and services.
2. Social Environment: The social environment consists of all the social and cultural forces within which business firms operate. It comprises customs and traditions, values, social trends etc. For example, the emerging trend of health and physical fitness provides opportunities to businesses like gyms, diet drinks, mineral water, food supplements etc.
3. Technological Environment: It refers to the changes taking place in the method of production and use of equipment to improve the quality of product.
In other words, the technological environment includes forces relating to scientific improvement and innovations, which provide new ways of producing goods and services and methods and techniques of operating a business. For example, innovation and improvement in the area of food preservation has not only provided vast opportunities to firms producing jams, jelly, pickles, ready to cook foods, etc but also increased the demand and consumption of such products in society.
4. Political Environment: The political environment consists of the forces concerning management of public affairs and their impact on business. It includes political conditions in the country and attitude of the government towards business and business policy. For example political unrest and threat to law and order adversely affect confidence of investors and reduce the level of investment in the economy.
5. Legal Environment: Business has to function within the framework of laws and regulations of the country. Non-compliance of these regulations can create legal problems for business enterprises.
A number of laws have been implemented by the government through the enactment of the companies Act, Foreign Exchange Management Act, Factories Act, competitions Act etc. For example, products like tobacco and cigarettes are required to carry a statutory warning on their packages, ‘smoking is injurious to health’.
More Questions From Class 12 Business Studies - Chapter Business Environment
- Q:-
How would you characterize the business environment? Explain with examples, the difference between general and specific 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).
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:-
A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has a functional organisational structure with separate departments for Production, Marketing, Finance, Human Resources and Research and Development. Lately to use its brand name and also to cash on to new business opportunities it is thinking to diversify into manufacture of new range of electronic toys for which a new market is emerging. Which organisation structure should be adopted in this situation? Give concrete reasons with regard to benefits the company will derive from the steps it should take.
- Q:-
What are the factors affecting determination of the price of a product or service? Explain.
- Q:-
Explain the principle of ‘Scalar Chain’ and gang plank.
- Q:-
A firm plans in advance and has a sound organisation structure with efficient supervisory staff and control system but on several occasion it finds that plans are not being adhered to. It leads to confusion and duplication of work. Advise remedy.
- Q:-
Explain different financial and non-financial incentives used to motivate employees of a company?
- Q:-
A company ‘M’ limited is manufacturing mobile phones both for domestic Indian market as well as for export. It had enjoyed a substantial market share and also had a loyal customer following. But lately it has been experiencing problems because its targets have not been met with regard to sales and customer satisfaction. Also mobile market in India has grown tremendously and new players have come with better technology and pricing. This is causing problems for the company. It is planning to revamp its controlling system and take other steps necessary to rectify the problems it is facing.
a. Identify the benefits the company will derive from a good control system.
b. How can the company relate its planning with control in this line of business to ensure that its plans are actually implemented and targets attained.
c. Give the steps in the control process that the company should follow to remove the problems it is facing. - Q:-
What are the factors that influence a company’s capital structure? Discuss in detail.
- Q:-
India’s largest domestic investor Life Insurance Corporation of India has once again come to government’s rescue by subscribing 70% of Hindustan Aeronautics’ ₹4,200-crore initial public offering.
a. Which market is being reflected in the above case?
b. State which method of floatation in the above identified market is being highlighted in the case? (Primary Market)
c. Explain any two other methods of floatation. (Private Placement, Offer through prospectus, offer for sale). - Q:-
Differentiate between Money Market and Capital Market.
- Q:-
An auto company C Ltd. is facing a problem of declining market share due to increased competition from other new and existing players in the market. Its competitors are introducing lower priced models for mass consumers who are price sensitive. C Ltd. realized that it needs to take steps immediately to improve its market standing in the future. For quality conscious consumers, C Limited plans to introduce new models with added features and new technological advancements. The company has formed a team with representatives from all the levels of management. This team will brainstorm and will determine the steps that will be adopted by the organisation for implementing the above strategy. Explain the features of Planning highlighted in the situation given below. (Hint: Planning is pervasive, Planning is futuristic and Planning is a mental exercise).
- All Chapters Of Class 12 Business Studies
- All Subjects Of Class 12