What are the specific forces that influence a business firm directly?

Specific forces include investors, competitors, and customers.

Business environment is described as dynamic because it ___ with changes in technology and consumer preferences.

Keeps changing

True or False: The complexity of the business environment means it is easy to understand it as a whole.

False. The complexity makes it difficult to understand the business environment in totality.

Fill in the blank: The business environment includes both ___ and ___ forces.

Specific and general

Riddle: I change with technology and trends, sometimes unpredictable, what am I?

The business environment

What does the relativity of business environment imply?

It implies that the impact of business environment factors differs from country to country, region to region, and firm to firm.

What advantage does understanding the business environment provide to organizations?

It helps organizations identify opportunities for first mover advantage, allowing them to benefit before competitors.

Fill in the blank: Continuous study of the business environment assists firms in coping with ___ changes.

Rapid

True or False: The identification of threats in the business environment is unimportant for an organization's operations.

False. Correct knowledge of the business environment is crucial for identifying threats that may adversely affect operations.

What role does the business environment play in resource management for a business?

It helps businesses tap into useful resources such as capital, labor, machines, and raw materials, ensuring their availability at economical prices.

Riddle: I help you plan and formulate policies, and my changes can affect your strategies. What am I?

The business environment.

How did Bajaj Auto respond to the threats posed by new competitors in the auto industry?

Bajaj Auto made considerable improvements in its two-wheelers to respond to the competition from Honda and other companies.

Fill in the blank: The New Economic Policy announced in July 1991 aimed to take India out of economic ___ and speed up development.

Difficulty

What is one way that continuous monitoring of the business environment can impact organizational performance?

It allows organizations to improve their performance by adapting to changes and challenges in the business landscape.

What were the key objectives of the New Industrial Policy introduced in 1991?

The main objectives were to promote Liberalization, Privatization, and Globalization.

Fill in the blank: The role of the public sector was limited to ___ industries under the NEP, 1991.

Four

True or False: Under the NEP, 1991, all industries remained under strict government licensing.

False; Only six industries were kept under the licensing scheme.

Which body was established to promote foreign investment in India according to the NEP, 1991?

The Foreign Investment Promotion Board (FIPB).

Riddle: I allow foreign companies to invest without limits, and I help revive sick public sector units; what am I?

The New Industrial Policy (NEP, 1991).

What was a significant change in foreign investment policy under the NEP, 1991?

100% direct foreign investment was allowed in many sectors.

Fill in the blank: Disinvestment was carried out in many ___ sector enterprises.

Public

Short answer: What does Liberalization mean in the context of the NEP, 1991?

It means freeing Indian Industry from unnecessary government controls and restrictions, including abolishing licensing requirements and simplifying procedures.

What are the primary components of the business environment that affect organizations?

The primary components of the business environment include the economic environment, social environment, and technological environment.

Fill in the blanks: Globalization leads to the integration of various economies and the emergence of a ___ global economy.

Cohesive