Case Studies - Environment | Business Studies (BST) Class 12 - Commerce PDF Download

Q. 1. Mr. Ajay after completing his MBA from the USA comes to India to start a new business under the banner Ecom Creations Ltd.  He launched a new product in e-learning for senior Secondary School students in the Commerce stream, which already has an established market in the UK and USA but not in India.  His business starts flourishing in India.  Now more Indian companies entered the market with other subjects also.

Identify and quote the lines from the above para that highlight the significance of understanding business environment.                                                             (4 marks)

Ans.

“Comes to India to start a new business … launches a new product in e-learning for Senior secondary school students in Commerce stream.”

• It helps in assisting in planning and policy formulation.
• It helps the firm to identify opportunities and get the first mover advantage.

“His business starts flourishing in India.”

• It helps in improving performance.

“Now more Indian companies entered into the market with different subjects also.”

• It helps the firm to identify threats and early warning signals.

Q. 2. Just after the declaration of the Lok Sabha Elections 2014 results, the Bombay Stock Exchange’s price index (Sensex) rose by 1000 points in a day. Identify the environmental factor that led to this rise giving reason.  Also, explain any two other dimensions of the business environment.                                                                                     (5 marks)

Ans. The rise in the stock market index (Sensex) is the economic environment.  But Political environment (declaration of Lok Sabha Elections 2014 results)) led to this rise.

Two other dimensions of the business environment:

1. Legal Environment
2. Technological environment

Q. 3. The court passed an order that all schools must have water purifiers for the school children as

1. Society in general is more concerned about quality of life.
2. Innovative techniques are being developed to manufacture water purifiers at competitive rates.
3. Incomes are rising and children at home are also drinking purified water.

The government is also showing a positive attitude towards the water purifier business.

Identify the different dimensions of business environment by quoting from the above details.                                                                                                      (5 marks)

Ans. To identify the different dimensions of the business environment, let's analyze the details given in the question:

• Social Environment
  "Society in general is more concerned about quality of life."
  This reflects societal values and concerns, emphasizing the importance of health and well-being.
• Technological Environment
  "Innovative techniques are being developed to manufacture water purifiers at competitive rates."
  This highlights advancements in technology and innovation, enabling businesses to produce better products efficiently.
• Economic Environment:
  "Incomes are rising, and children at home are also drinking purified water."
  This indicates improved purchasing power and changing consumer preferences due to economic growth.
• Political Environment:
  "The government is also showing positive attitude towards the water purifier business."
  This reflects the influence of government policies and support for specific industries.

Each dimension influences the decision of schools to adopt water purifiers, showcasing the interconnected nature of the business environment.

Q. 4. ‘It is common now to see CD-ROM’s, computerized information kiosks, and Internet/Word Wide Web multimedia pages highlighting the virtues of products.’ Name the dimension of the business environment highlighted by this stateme.                       (1 mark)

Ans. Technological environment

Q. 5. Which component of business environment requires that advertisements of baby food must necessarily inform the potential buyers that mother’s milk is the best?    (1 mark)

Ans. Legal environment.

Q. 6. It is the process by which government control over the industry is being loosened.  Give the term to which this statement is trying to indicate.                                                (1 mark)

Ans. Liberalization

Q. 7. Due to entry of foreign firms, competition for Indian firms has increased, especially in service industries.  Name such service industries.                                                           (1 mark)

Ans. Telecommunications, airlines, banking, insurance, etc.

Q. 8. The Court passed an order to ban polythene bags as

1. The bags are creating many environmental problems which affect 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.

Innovative techniques are being developed to manufacture jute bags at low rates.

Incomes are rising and people can afford to buy these bags.

Identify the different dimensions of Business Environment from the above particulars.                                                                                              (5 marks)

Ans.

1. Legal environment
2. Social environment
3. Political environment
4. Technological environment
5. Economic environment

Q. 9. The government of India is seriously thinking of allowing the oil-marketing public sector undertaking to fix their own prices for petrol and diesel.  Which economic reform is the reason for this change in the government’s policy?

Ans. Privatisation as a reform is the reason for this change in the government policy.

Q. 10. Kapil Sharma is working as the Country Head of a company that owns a chain of malls under the name of ‘Virtuoso’ in the various parts of India.  Through an analysis report of the business environment, it has been brought to his notice that in the coming years, shopping at a mall will not be a necessity for buyers as purchases can be made online from anywhere and at any time with ease and at the consumer’s convenience.  Hence, malls will have to provide much more than shopping to be able to attract customers.  So, he recommends that ‘Virtuoso’ malls should to be restructured into recreation centres, offering more spaces to socialize, host events and concerts, and provide ample Food and Beverages options.

Consequently, the share of the entertainment segment and Beverages segment in the overall mall space is increased by 20%.  As a result, the company gains enormously by getting the first mover advantage.

In the context of the above case:

1. Define the term ‘Business Environment’.
2. Explain the terms ‘Threats’ and ‘Opportunities’ by quoting lines from the paragraph.

Ans.

1. The term ‘Business Environment’ means the sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but that may affect its performance.
2. The term ‘threats’ refers to the external environment, trends and changes that will hinder a firm’s performance.
   “Through an analysis report of the business environment, it has been brought to his notice that in the coming years, shopping at a mall will not be a necessity for buyers as purchases can be made online from anywhere and at any time with ease and at the consumer’s convenience. Hence, malls will have to provide much more than shopping to be able to attract customers.”
   The term ‘opportunities’ refers to the positive external changes that will help a firm to improve its performance.
   “As a result, the company gains enormously by getting the first mover advantage.”

Q. 11. “Zero Defect Zero Effect” (ZED) is a slogan coined by the Prime Minister of India, Narendra Modi with reference to the Make in India initiative launched by the government.  The slogan reflects the efficiency of production processes, i.e. the products have no defects and the process through which the product is made has zero adverse environmental and ecological effects.  The Zed model aims to make India the manufacturing hub of the world and prevent the products developed in India from being rejected by the global market.  Moreover, before the initiative was launched, the limits of foreign direct investment in various sectors had been relaxed.  The application for licences was made available online and the validity of licences was increased to three years.  Various other norms and procedures were also relaxed by the government.

In the light of the above paragraph, identify and explain the major components of the New Economic Policy of 1991 that are being referred to by quoting lines from the paragraph.

Ans. The major components of the New Economic Policy of 1991 that are being referred to are as follows:

• Liberalization: The economic reforms signalled the end of the licence-permit-quota raj and were aimed at liberalizing Indian business and industry from all unnecessary controls and restrictions.

“Moreover, before the initiative was launched, the limits of foreign direct investment in various sectors had been relaxed. The application for licences was made available online and the validity of licences was increased to three years. Various other norms and procedures were also relaxed by the government.”

• Globalization: Globalization means the integration of the various economies of the world leading towards the emergence of a cohesive global economy.

“The ZED model aims to make India the manufacturing hub of the world and prevent the products developed in India from being rejected by the global market.”

Q. 12. Over the years, e-business in our country has witnessed tremendous growth due to several reasons.  There has been a significant improvement in the Information Technology infrastructure over the last decade as the Government has taken important steps in high-speed Internet connectivity.  As a result, the broadband networks have not only become better but also more affordable.  Additionally, the Government is trying to make rural India connected through broadband – a great possibility for e-business to expand the retail market by reaching out to the most remote rural customers.  Another catalyst strengthening the e-business segment is the country’s favourable demography.  It has more than 50% of its population is below the age of 25 and more than 65% is below the age of 35.  It is expected that, in the year 2020, the average age of an Indian will be 29 years, compared to 37 for China and 48 for Japan, this promises for phenomenal increase in e-business.  Moreover, the penetration of the smartphone by a large section of the population has aptly addressed the problem of computing illiteracy. Not withstanding the fact that consumers also prefer e-business due to multiple factors like convenience, time etc.

Identify and explain the various dimensions of the business environment being referred to in the above case.

Ans. The various dimensions of the business environment being referred to in the above case are as follows:

1. Political Environment
2. Technological Environment
3. Social Environment

Q. 13. Beni, after completing her MBA, took up a job at a multinational company named ‘Fortio’.  The company was paying good salaries and perks to its employees.  The wages were within the paying capacity of the company which provided the employees a reasonable standard of living.  The company also had a good work culture and the behaviours of superiors were very good towards their subordinates.  Beni was very happy in this organization, but due to long working hours, she did not have time to cook her meals.  She had to depend on outside funds, which was deteriorating her health.

She observed that this problem was faced by many of her colleagues, not only in her company but also in many other companies.  This was because of the increase in the number of working women and the non-availability of hygienic home-cooked food.  She identified this as a great opportunity and decided to give up her job to supply packaged home-cooked food to officegoers at a reasonable price.  At the end of the day, she also distributed the left-over food in the nearby night shelters.

1. State the dimension of the business environment being discussed above.
2. State the principle of management being followed by ‘Fortio’.
3. Identify any two values being communicated by the company to society in the above case.                                                                                                  (4 marks)

Ans.

• Social environment which includes social forces like customs and traditions, values trends, etc.

‘this was because of an increase in the number of working women and non-availability of hygienic home-cooked food.’

• Remuneration of employees, which states that the overall pay and compensation should be fair to both employees and the organization.

‘The company was paying good salaries and perks to its employees. The wages were within the paying capacity…standard of living.’

• Values being communicated by the company to the society are: (Any two)

1. Good work culture
2. Good behavior inhuman interaction
3. Concern for the employees
4. Respect for law

Q. 14. Nakul, a manager of Zyco Ltd. always takes into account the changes taking place in the business environment while determining plans.  He accepts changes readily and gives useful suggestions to his superior, which results in a reduction of costs.  As a result, the company’s profits increase.  Nakul enjoys cordial relations with his co-workers and makes plans in consultation with his team to achieve organizational goals.

1. Which characteristic of management is highlighted in the above lines?
2. Identify and state any two principles of management followed by Zyco Ltd.
3. Give any two benefits that Zyco Ltd. get by taking into account the changes taking place in the business environment, quoting the lines from the above para.
4. State any one value that Nakul wants to communicate to society.      (6 marks)

Ans.

1. Management is a dynamic function.
2. Two principles of management followed by Zyco Ltd are: 
   1. Initiative: This principle indicates that the subordinates should be encouraged to give suggestions and make and execute plans within the prescribed limits of authority.
   2. Spirit de corps: This principle suggests that management should promote a team spirit of unity and harmony among the employees.
3. Benefits of business environment:
   1. It helps in assisting in planning and policy formulation.
   ‘… takes into account the changes taking place in business environment while determining plans.’
   2. It helps in improving performance.
   ‘He accepts changes readily and gives useful suggestions to his superior, which results in a reduction of costs. As a result, the company’s profits increase.’
4. Values:
   • Teamwork
   • Adaptability

Q. 15. It is interesting to know that the menu items of the multinational food chains are customized to suit the general palates of the local people in the region.  When McDonald’s started its business in India in the year 1996, the company went through a complete localization strategy.  McDonald’s changed its product menu to accommodate the vegetable burger given the large vegetarian population.  It also altered its store design and even reduced the product price by close to fifteen per cent.  Also, the “McAloo Tikki burger” is not available anywhere but in the Indian outlets of McDonalds.

Identify the relevant features of the business environment being discussed above.

Ans. Relativity is a relevant feature of the business environment which is discussed above.

Q. 16. Eco-friendly products are gaining power as the consumers’ awareness about environmental issues has increased over the years and they are conscious about choosing products that do not have adverse effects on the environment.  They are now more conscious about the carbon emission and climate change effects and want themselves to be ‘seen’ as a green advocate among their peers.  In such a scenario, it has become a challenge for the companies as they have to not only meet the needs of the consumers but also ensure that their products are safe and environmentally friendly.  At a result, there is a growing need for better and advanced technologies to works as a catalyst in this regard.

1. Identify the relevant feature of the business environment being discussed above.
2. Describe briefly any three points that highlight the importance of the business environment and its understanding by managers.

Ans.

1. Inter-relatedness is the relevant feature of the business environment which is being discussed above.
2. The three points that highlighted the importance of the business environment and its understanding by managers are described below:
   1. It enables the firm to identify opportunities and get the first mover advantage: The dynamic business environment provides numerous opportunities for a business to evolve as per the changing needs.  Therefore, early identification of the forthcoming opportunities helps an enterprise to be the first to exploit them instead of losing them to competitors.
   2. It helps the firm to identify threats and early warning signals: Sometimes the changes in the external environment may pose a threat and hinder a firm’s performance.  An awareness of the business environment helps managers to identify such threats on time and take necessary decisions and actions.
   3. It helps in tapping useful resources: the enterprise designs policies that allow it to get the resources that it needs so that it can convert those resources into outputs that the environment desires.

Q. 17. Ultra Paint Co. which manufactures paints has been enjoying a prominent market position as it manufactures best quality paints, and made timely payments of taxes to the government. It assembled various inputs like finance, machines, raw materials, etc. from its environment.  But since last year it has been dumping its untreated poisonous waste on the river bank which has created many health problems for the people.  As a result, the court passed an order to seal the manufacturing unit of the company.

1. State the importance of the business environment highlighted by quoting the line from the above case.
2. Identify any two dimensions of the business environment mentioned in the above case by quoting lines from it.
3. State any two values which have been overlooked by the company.

(5 marks)

Ans.  

1. The business environment helps in tapping useful resources.

‘It assembled various inputs like finance, machines, raw materials, etc. from its environment.’

2. (i) Social environment

‘…it has been dumping its untreated poisonous waste on the river bank which has created many health problems for the people.’

(ii) Legal environment

‘…the court passed an order to seal the manufacturing unit of the company.’

3. Values overlooked: 

• Environment protection
• Concern for human life
• Respect for law and order
• Social responsibility

Q. 18. Philips, a company manufacturing light bulbs incurred heavy expenditure on scientific Research and Development and discovered a technology that made it possible to produce an energy-efficient light bulb that lasts at least twenty times as long as a standard bulb.  It resulted in the growth and profitability of the company.

1. Identify and state the dimension of the business environment mentioned above.
2. State the importance of the business environment mentioned above by quoting the lines.
3. State any one value that the company wants to communicate to society.

(4 marks)

Ans.

1. Technological environment                                                                                                                                                            
   It includes forces relating to scientific improvements and innovations that provide new ways of producing goods and services, and new methods and techniques of operating a business.
2. The business environment helps a firm to improve its performance.                                                                                                         
   ‘It resulted in growth and profitability of the company.’
3. Value: conservation of energy

Q. 19. Disco Ltd. manufactures fashionable and designer clothes.  Recently it finds that the demand for its products has been declining.  After market research it was discovered that fashion and tastes of the consumers is changing at a fast pace.  Customers’ demand is increasing.  New competitors have entered the market with new designs.  It is very difficult for the company to predict future happenings. Also, it is difficult to know the extent of the relative impact of the social, economic, political, technological or legal factors on decrease in demand of its products in the market.

A meeting was held in which managers from different functional levels heading Production, Marketing, Finance, etc., for example, Chief Operating Officer, Chief Finance Officer, Vice President (Marketing) were present to discuss how to deal with the situation.  After a long discussion, it was decided that they would study and analyze the market first to identify customer tastes and fashion and then manufacture garments accordingly.  It was also decided to increase expenditure on advertising, after-sales services, etc.

1. Identify any two features of the business environment by quoting the lines from the above case.
2. At which level of management the meeting of managers of Disco Ltd. was held?
3. Identify any two impacts of government policy changes on business, quoting lines from the above case.
4. State the importance of understanding of environment by business managers in the light of the above para.                                                                                    (6 Marks)

Ans.

1. Features of business environment:
   1. Dynamic nature: ‘fashion and taste of the consumers is changing at a fast pace.’
   2. Uncertainty: ‘It is very difficult for the company to predict future happening.’
   3. Complexity: ‘It is difficult to know the extent of the relative impact of the social, economic, political, technological or legal factors on the decrease in demand for its products in the market.
2. Top-level management
3. Impact of government policy changes on business:
   1. Increasing competition: ‘New competitors have entered the market with new designs.’
   2. More demanding customers: ‘Customers’ demand is increasing.’
   3. Market orientation: ‘it was decided that they would study and analyze the market first to identify customer tastes and fashion and then manufacture garments accordingly.  It was also decided to increase expenditure on advertising, after-sales services, etc.’
4. The business environment helps the manager cope with rapid changes.

Q. 20. The organic food market in India is growing at 25-30 per cent which reflects a clear shift in consumer tastes and preferences.  The current growth in the organic food market is driven by a multiplicity of factors like rising health consciousness, changing lifestyles, increase in disposable income and growing availability of organic food products in shopping malls, retail outlets and online.

In the context of the above case:

1. Identify and explain the features of the business environment being referred to here.
2. By quoting phrases from the paragraph identify the various components of general forces which have led to a growth in the organic food market.

Ans.

1. The features of the business environment being referred to in the above case are as follows:

• Dynamic nature: It is dynamic in nature and keeps on changing due to technological upgrades, shifts in consumer preferences or increases in competition in the market.
• Inter-relatedness: All the elements of the business environment are closely interrelated.  Therefore, any change is one element may necessitate corresponding changes in the other elements as well.

   2. The various components of general forces which have led to a growth in the organic food market are as follows:

1. Social: “Rising health consciousness, changing lifestyles”
2. Economic: “increase in disposable income”
3. Technological: “growing availability of organic food products in shopping malls, retail outlets and online.”

Q. 21. Anurag, aspires to work with a socially and environmentally committed company as he does not want to work just for monetary benefits but also the brand value of the company he works for in the society matters a lot to him.  Therefore, he has joined Cerebra Integrated Technologies a Bengaluru-based Infotech company.  The company has built India’s largest e-waste recycling plant.  The company strives to be one of the leading players in this business which has huge potential not only in terms of generating huge revenues and profits but also wants to contribute to the environment issues that have become crucial worldwide.  The company sees big business in the mountains of e-waste in Bengaluru which produces 2,00,000 tonnes of e-waste a year.  The company plans to make its millions by extracting metals such as gold and platinum from the e-waste piling up in the city.  As a mobile phone, for example, is made up of a combination of rare earth and precious metals: it contains 250 mg of silver, 24 mg of gold and nine mg of palladium while a laptop has 1,000 mg of silver, 220 mg of gold and 500 grams of copper.

To start the business, the company has obtained a licence from KSPCB (Karnataka State Pollution Control Board).

In context of the above case:

1. Identify the various dimensions of business environment being referred to by quoting lines form the paragraph.
2. List any two values which the company wants to convey to the society.

Ans.

1. The various dimensions of the business environment being referred to in the above case are as follows:

• Technological environment: The technological environment includes forces relating to scientific improvements and innovations that provide new ways of producing goods and services and new methods and techniques of operating a business.
• Legal environment: Legal environment includes various legislations passed by the Government administrative orders issued by government authorities, court judgments as well as the decisions rendered by various commissions and agencies at every level of the government – centre, state or local.
• Social Environment: Social environment includes social forces like customs and traditions, values, social trends, society’s expectations from business, etc.

2. The two values which Cerebra Integrated Technologies wants to convey through this initiative are:

1. Sustainable development
2. Concern for the environment.

Q. 22. After competing his education, Arun joins his father in their family business of manufacturing cookware.  As a businessman, his father is rigid in his approach and has fixed ideas about various issues.  He tends to maintain a distance from the factory workers.

However, Arun is more receptive to the needs of the workers and doesn’t seem to believe in any class differences.  He believes that the prosperity of their business greatly depends upon the prosperity of their workers and vice versa.  At the same time, he has a good understanding of the business environment.  Therefore, he introduces a new range of green pans that provide a healthy cooking surface, as they are manufactured with all-ceramic or silicon coating and are considered safer than the traditional petroleum-based nonstick surfaces which may contain toxic substances.  Although the new cookware range is highly priced, he expects a ready market for it as both the purchasing power of people and their preference for better quality products has increased over the years.

In context of the above case:

1. Identify the nature of management which is being reflected in the different styles of management in practice adopted by Arun and his father.
2. Name and explain the related principle of scientific management.
3. State the related dimensions of the business environment.

Ans.

1. The different styles of management in practice adopted by Arun and his father reflect that management is an art.
2. ‘Harmony, Not Discord’ is the related principle of scientific management.
3. The related dimensions of the business environment are:

• Economic Environment
• Social Environment
• Technological Environment

Q. 23. Continuous and comprehensive evaluation is a process of assessment, mandated by the right to Education Act, of India.  This approach to assessment has been introduced by state governments in India, as well as by the Central Board of Secondary Education in India.  With the introduction of (CCE) system in education there is greater focus on project based learning.  As a result, besides time and effort the students are willing to invest money to enhance the visual appeal of their project files so as to score higher marks.  In order to cash on the opportunity Rishabh has started a small business unit to manufacture different kinds of decorative materials for the project files.  He has employed a team of four creative designers for developing the innovative material with the help of latest technology.  However, he has a prejudice against women and therefore pays less salary to them as compared to the male staff for equal work.

In the context of the above case:

1. Name any two functions of management that Rishabh will have to perform in order to manage his business successfully.
2. Name and explain the principle of management which is being violated by Rishabh.
3. Identify the related dimensions of the business environment.

Ans.

1. The two functions of management that Rishabh will have to perform in order to manage his business successfully are Planning and Organising.
2. The principle of management which is being violated by Rishabh is Equity.
3. The related dimensions of the business environment are:
   1. Legal Environment
   2. Political Environment
   3. Economic Environment
   4. Social Environment
   5. Technological Environment

Q. 24. The Government of India is seriously thinking of allowing oil marketing public sector, undertaking to fix their own price for petrol and diesel.

1. Name the economic reform related to this decision of government.
2. Name other two reforms recommended in the new economic policy.

Ans.

1. Liberalization
2. Other two reforms: Privatisation and Globalization.

Q. 25. Recently many companies have planned for significant investment in organised retailing in India.  Various factors that have encouraged companies to make these decisions are customer income increasing, a rise in the standard of living of people.  People are ready to pay high prices for quality goods, government policy of liberalization regarding MNC entry and FDI, etc.

1. Explain briefly changes in the business environment under different heads that have facilitated the companies’ decision to plan significant investment in retailing.
2. What has been the impact of these changes with regard to globalization and privatization?

Ans.

1. Changes in the Business Environment Under Different Heads

• Economic Environment:

"Customer income increasing" and "rise in the standard of living of people" indicate economic growth. Rising disposable incomes and improved purchasing power have made India an attractive market for organized retail.

• Social Environment:

"People are ready to pay high prices for quality goods" reflects a shift in consumer preferences, where individuals prioritize better products and lifestyle improvements.

• Political Environment:

"Government policy of liberalization regarding MNC entry and FDI" shows political support for foreign investment, making it easier for global companies to enter the Indian retail market.

• Global Environment:

Liberalization and FDI policies have strengthened India’s integration into the global economy, encouraging multinational corporations to invest and expand their operations.

2. Impact of These Changes with Regard to Globalization and Privatization:

• Globalization:

The liberalization of FDI and the entry of MNCs have integrated India’s retail market with the global economy. Consumers now have access to international brands and products, and domestic businesses face increased competition, which drives innovation and efficiency.

• Privatization:

With a focus on reducing government control and promoting private players, privatization has allowed organized retail chains to grow rapidly. It has also encouraged private investment, fostering a competitive and customer-focused retail ecosystem.

Q. 26. Two big banner movies were scheduled to be released on the same date.  In the last movement release of one of the movies had to be postponed due to the opposition of a group of people due to some unethical content related to their religion shown in the that movie.  The other movie was released on time and made huge profit as there was no competition and the movie which was postponed suffered loss.

1. Which feature of the business environment is highlighted here?
2. Identify the dimension of the business environment, which delayed the release of the movie.

Ans.

1. Feature highlighted in ………’ relativity’.
2. The dimension is ……..’ social environment’.

Q. 27. After winning the election, Prime Minister Mr. Narender Modi launched a Campaign of ‘Swachh Bharat’ and invited various celebrities to be a part of this Abhiyaan.  This spread awareness among the people in society and in general, people started becoming more careful and aware about the cleanliness around their area.  To continue its impact, a new service tax for Swachh Bharat was also started.  The government is planning to import new and better technology to adopt new methods of treating garbage and waste.

State the various dimensions of the business environment mentioned in the above para quoting the lines from the above para.

Ans.

1. “After winning election ….. campaign of Swachh Bharat.”

• Political Environment

1. “People in society ….. around their area.”
2. Social Environment
3. “A new service tax ….. started.”

• Economic Environment

1. “Import new technology …. Garbage.”

• Technological Environment

Q. 28. Even after the opening up of the Indian Economy, foreign companies found it extremely difficult to cut through the bureaucratic and red tape in government offices.  This discourages them from investing in India.

Identify the dimension of the environment mentioned in the above para.

Ans. Political Environment.

Q. 29. Just after the declaration of the Lok Sabha Elections in 2014, the Bombay Stock Exchange Index rose by 1000 points.

Identify the dimensions of the business environment.

Ans. Political Environment.

Q. 30. ‘Mamta Rice Food Ltd’ is a well-known rice-producing company.  The sales have been falling down from the beginning of the year.  The managing director MR. Bhuvan is worried about this situation.  To find out the solution to this problem, he made a team to find the reasons for the downfall of sales.  The team conducted the survey and gave the following four reasons for the downfall of the company’s sales.

1. On account of the increase in export duty made by the government, the foreign demand has gone down.
2. Due to the availability of another eatable substitute the taste of people is diverted from rice.
3. The competitors imported new technology machines and are producing better quality rice.
4. Due to strain with neighbouring country’s government and our country’s government export is affected.

Identify the dimension of the Business Environment discussed in the above case.

Ans.

1. Economic Environment
2. Social Environment
3. Technological Environment
4. Political Environment.

Q. 31. With changes in the consumption habits of people, Neelesh, who was running a sweet shop, shifted to the chocolate business.  On the eve of Diwali, he offered chocolates in attractive packages at reasonable prices.  He anticipated huge demand and created a website chocolove.com for taking orders online.  He got a lot of orders online and earned huge profits by selling the chocolate.

Identify and explain the dimensions of the business environment discussed in the above case.

Ans. The various dimensions of the business environment being referred to in the above case are as follows:

1. Social environment
2. Technological environment

Q. 32. A recent rate cut in the interest on loans announced by the banks encouraged Amit, a science student of Progressive School, to take a loan from the State Bank of India to experiment and develop cars to be powered by fuel produced form garbage.  He developed such a car and exhibited it in the Science Fair organized by the Directorate of Education.  He was awarded the first prize for his invention.

Identify and explain the dimensions of the business environment discussed in the above case.

Ans. The various dimensions of the business environment being referred to in the above case are as follows:

1. Economic Environment
2. Technological Environment

Q. 33. ‘Accent Electronics Ltd.’ was operating its business in Malaysia.  The company started exporting its products to India when the Prime Minister announced a relaxation in import duties on electronic items.  The company appointed retailers in India who had direct online links with the suppliers to replenish stocks when needed.

Identify and explain the dimensions of the business environment discussed in the above case.

Ans. The various dimensions of the business environment being referred to in the above case are as follows:

1. Political Environment:
2. Technological Environment:

Q. 34. As per the directions issued by the Supreme Court, the government passed an order to ban the sale of tobacco products within the area of 200 meters of all educational institutions as:

1. Its consumption injurious to health.
2. People are becoming more conscious about health and fitness.  This indicates the government’s attitude towards this business.

Identify the business environment under three different dimensions by quoting from the above paragraph.

Ans. The various dimensions of the business environment being referred to in the above case are as follows:

1. Legal Environment: ”As per the directions issued by the Supreme Court.’
2. Political Environment:  “The government passed an order to ban the sale of tobacco products within the area of 200 meters of all educational institutions.”
3. Social Environment:  “Its consumption is injurious to health and people are becoming more conscious about health and fitness.”

Q. 35. Make in India is an initiative launched by the Government of India to encourage national and multinational companies to manufacture their products in India.  It focuses on job creation and skill enhancement and is in twenty five sectors of the economy.  Under the initiative, brochures on these sectors and a web portal were released.  The initiative aims at high quality standards and minimizing the impact on the environment.  It also seeks to attract foreign capital investment in India.

In the context of the above case:

1. Identify the various dimensions of the business environment being referred to by quoting lines from the paragraph.
2. List any two values that the Government of India wants to convey through this initiative.

Ans.

The various dimensions of the business environment being referred to in the above case are as follows:

1. Political Environment
2. Technological Environment
3. Economic Environment

The two values which the Government of India wants to convey through this initiative are:

1. High-quality standards
2. Concern for environment

Q. 36. India’s retail sector has been undergoing structural changes for the last two decades.  On one hand, the ‘mall culture’ has gradually become a way of life, especially in the metros and mini-metros.  On the other hand, there is accelerated growth in e-business as customers also prefer to buy products and services via the Interest, telephone and television.  However, operating in either of the segments is marked by the presence of strong competitors.

Identify the components of specific forces and general forces being discussed in the above paragraph.

Ans. The components of specific forces discussed in the above paragraph are the customers and competitors.

The components of general forces discussed in the above paragraph is the social and technological conditions.

Q. 37. To mark the celebrations of International Family Day on 16^th may 2016, Kurkure flagged off India’s first family food train – Kurkure Family Express at New Delhi.  The train took forty families on a fun culinary experience of a lifetime through an eight-day journey across fourteen states in India.  A whole lot of fun activities were hosted on the train by the travel and food anchors Rocky and the mayor.

The families were selected through an online campaign, ‘Chatpata family photos’.  The contest attracted approximately 1,000 entries, of which 40 entries that gelled with the brand’s image were selected.

The core idea of the campaign was to bring families from across India together over a journey like this.  As in today’s time, everyone is busy with their life the family members may feel disconnected from each other.

Identify and explain the various dimensions of the business environment being referred to the in the above case by quoting lines from the paragraph.

Ans. The various dimensions of the business environment being referred to in the above case are as follows:

1. Technological environment
2. Social environment

Q. 38. In the year 2016,the State Government of Kerala had made it mandatory for anganwadis hostels and canteens in educational institutions to secure the Food Safety and standards Authority of India (FSSAI) licence to ensure food safety.  As the educational institutions also get categorized as food business operators in the event of the annual turnover of the hostels, they run exceeding Rs. 12 lakh per annum.

In context of the above case:

1. Identify and explain the various dimensions of the business environment being referred to here.
2. List any two values which the State Government of Kerala wants to convey through this initiative.

Ans.

The various dimensions of the business environment being referred to in the above case are as follows:

1. Political Environment
2. Legal environment

The two values which the State Government of Kerala wants to convey through this initiative are:

1. High-quality standards
2. Good health

Q. 39. Postage stamps have been unveiled to commemorate 140 years of existence of the country’s first stock exchange the Bombay Stock Exchange (BSE).  The setting up of BSE is considered to be the greatest revolution that took place in the financial markets in India as it acts as a key driver for economic growth of a country.  This is due to the fact that there exists a strong correlation between economic growth and capital accumulation.

In the context of the above case:

1. Identify the dimension of the business environment of India being referred here.
2. State any three factors which broadly affected the dimension of the business environment of India as identified in part (a) of the question.

Ans.

1. The economic environment is the dimension of the business environment of India being referred to here.
2. The three factors which broadly affect the economic environment of India are stated below;
3. Stage of economic development of the country.
4. The economic structure is in the form of a mixed economy which recognizes the role of both public and private sectors.
5. Economic planning, including five-year plans, annual budgets, and so on

Q. 40. In May 2016, the government had launched a web-based application that will provide as opportunity to all the industries dealing in hazardous waste to apply online and get online permissions for the import and export of certain categories of waste, which is for reuse, recycling or recovery while it will also help authorities in web-based processing, generation and grant of various types of permissions to the entrepreneurs and industries.  It is also aimed at implementing the concept of a paperless and green office and providing information regarding the number of authorizations or consent order granted by the State Pollution control Boards (SPCBs).

Identify the various dimensions of the business environment being referred in the above case.

Ans.

The various dimensions of the business environment being referred to in the above case are as follows:

1. Political Environment
2. Technological Environment
3. Legal Environment
4. Social Environment
5. Economic Environment

Q. 41. Bharat is running an ice cream parlour in a local market.  Keeping in mind the changing perceptions about health among the people, one of his employee Abhiraj suggests to him that they should introduce a range a flavoured yogurt.  Bharat accepts his suggestion as a result both the image and the profitability of his business increases.

In the context of the above case:

1. Identify the feature of management that is being highlighted.
2. State the related dimension of the business environment.
3. Name and explain the related principle of general management.

Ans.

1. The feature of management that is being highlighted is Dynamic.
2. The related dimension of the business environment is Social.
3. The related principle of general management is Initiative.

Initiative means taking the first step with self-motivation.  The workers should be encouraged to develop and carry out their plans for improvement.  A suggestion system should be adopted in the organization.

Go through this course of Business Studies (BST) Class 12  and get Chapterwise Case Studies here.