Case​ ​Studies​ ​-​ ​(Chapter-​ ​3)​ ​Environment​ ​,​ ​BST​ ​Class​ ​12

Case​ ​Studies​ ​-​ ​(Chapter-​ ​3)​ ​Environment​ ​,​ ​BST​ ​Class​ ​12

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Case​ ​Studies​ ​-​ ​(Chapter-​ ​3)​ ​Environment

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

Identify​ ​and​ ​quote​ ​the​ ​lines​ ​from​ ​above​ ​para​ ​which​ ​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.”
1. It​ ​helps​ ​in​ ​assisting​ ​in​ ​planning​ ​and​ ​policy​ ​formulation.
2. It​ ​helps​ ​the​ ​firm​ ​to​ ​identify​ ​opportunities​ ​and​ ​get​ ​the​ ​first​ ​mover​ ​advantage.
● “His​ ​business​ ​starts​ ​flourishing​ ​in​ ​India.”
1. It​ ​helps​ ​in​ ​improving​ ​performance.
● “Now​ ​more​ ​Indian​ ​companies​ ​entered​ ​into​ ​the​ ​market​ ​with​ ​different​ ​subjects​ ​also.”
1. It​ ​helps​ ​the​ ​firm​ ​to​ ​identify​ ​threats​ ​and​ ​early​ ​warning​ ​signals.

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

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

Two​ ​other​ ​dimensions​ ​of​ ​business​ ​environment:

1. Legal​ ​Environment:
 2. Technological​ ​environment:

Q.​ ​3.​ ​The​ ​court​ ​passed​ ​an​ ​order​ ​that​ ​all​ ​schools​ ​must​ ​have​ ​water​ ​purifier​ ​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​ ​purifier​ ​at
competitive​ ​rates.
3. Incomes​ ​are​ ​rising​ ​and​ ​children​ ​at​ ​home​ ​are​ ​also​ ​drinking​ ​purified​ ​water.

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

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

Ans.

1. Legal​ ​environment:
2. Social​ ​environment:
3. Technological​ ​environment:
4. Economic​ ​environment:
5. Political​ ​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​ ​by​ ​quoting​ ​the​ ​lines​ ​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​ ​which​ ​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​ ​the​ ​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​ ​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​ ​context​ ​of​ ​the​ ​above​ ​case:

1. Define​ ​the​ ​term​ ​‘Business​ ​Environment’.

2. Explain​ t​ he​ ​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.

“Trough​ ​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​ ​the​ ​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​ ​or​ ​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​ ​component​ ​of​ ​New
Economic​ ​Policy​ ​of​ ​1991​ ​that​ ​are​ ​being​ ​referred​ ​to​ ​by​ ​quoting​ ​lines​ ​from​ ​the​ ​paragraph.

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

● Liberalization:​ ​The​ ​economic​ ​reforms​ ​signaled​ ​the​ ​end​ ​of​ ​the​ ​licence-permit-quota​ ​raj
and​ ​were​ ​aimed​ ​at​ ​liberalizing​ ​the​ ​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​ ​has​ ​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​ ​is​ ​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,​ ​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​ ​customer.​ ​ ​Another​ ​catalyst​ ​strengthening
the​ ​e-business​ ​segment​ ​is​ ​the​ ​country’s​ ​favourable​ ​demography.​ ​ ​It​ ​has​ ​more​ ​than​ ​50%​ ​of
its​ ​population​ ​below​ ​the​ ​age​ ​of​ ​25​ ​and​ ​more​ ​than​ ​65%​ ​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​ ​in​ ​a​ ​large​ ​section​ ​of​ ​the​ ​population​ ​has​ ​aptly​ ​addressed
the​ ​problem​ ​of​ ​compute​ ​illiteracy.​ ​Not​ ​with​ ​standing​ ​the​ ​fact​ ​that​ ​consumers​ ​also​ ​prefer
e-business​ ​due​ ​to​ ​multiple​ ​factors​ ​like​ ​convenience,​ ​time​ ​etc.
Identify​ ​and​ ​explain​ ​the​ ​various​ ​dimensions​ ​of​ ​business​ ​environment​ ​being​ ​referred​ ​to​ ​in​ ​the
above​ ​case.

Ans.​ ​The​ ​various​ ​dimensions​ ​of​ ​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​ ​a​ ​multinational​ ​company​ ​named
‘Fortio’.​ ​ ​The​ ​company​ ​was​ ​paying​ ​good​ ​salary​ ​and​ ​perks​ ​to​ ​its​ ​employees.​ ​ ​The​ ​wages
were​ ​within​ ​the​ ​paying​ ​capacity​ ​of​ ​the​ ​company​ ​that​ ​provided​ ​the​ ​employees​ ​a​ ​reasonable
standard​ ​of​ ​living.​ ​ ​The​ ​company​ ​also​ ​had​ ​a​ ​good​ ​work-culture​ ​and​ ​the​ ​behaviours​ ​of
superiors​ ​was​ ​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​ ​found,​ ​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​ ​increase​ ​in​ ​the​ ​number​ ​of
working​ ​women​ ​and​ ​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
office​ ​goers​ ​at​ ​a​ ​reasonable​ ​price.​ ​ ​At​ ​the​ ​end​ ​of​ ​the​ ​day​ ​she​ ​also​ ​distributing​ ​the​ ​left-over
food​ ​in​ ​the​ ​nearby​ ​night-shelters.

1. State​ ​the​ ​dimension​ ​of​ ​business​ ​environment​ ​being​ ​discussed​ ​above.

2. State​ t​ he​ ​principle​ ​of​ ​management​ ​being​ ​followed​ ​by​ ​‘Fortio’.
3. Identify​ a​ ny​ ​two​ ​values​ ​being​ ​communicated​ ​by​ ​the​ ​company​ ​to​ ​the​ ​society​ ​in​ ​the
above​ ​case.​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​(4​ ​marks)

Ans.

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

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

1. 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​ ​salary​ ​and​ ​perks​ ​to​ ​its​ ​employees.The​ ​wages​ ​were​ ​within
the​ ​paying​ ​capacity…standard​ ​of​ ​living.’

1. 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
business​ ​environment​ ​while​ ​determining​ ​plans.​ ​ ​He​ ​accepts​ ​changes​ ​readily​ ​and​ ​gives
useful​ ​suggestions​ ​to​ ​his​ ​superior,​ ​which​ ​results​ ​in​ ​reduction​ ​of​ ​costs.​ ​ ​As​ ​a​ ​result,
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​ a​ nd​ ​state​ ​any​ ​two​ ​principles​ ​of​ ​management​ ​followed​ ​by​ ​Zyco​ ​Ltd.
3. Give​ ​any​ t​ wo​ ​benefits​ ​which​ ​Zyco​ ​Ltd.​ ​get​ ​by​ ​taking​ ​into​ ​account​ ​the​ ​changes​ ​taking
place​ ​in​ ​business​ ​environment,​ ​quoting​ ​the​ ​lines​ ​from​ ​the​ ​above​ ​para.
4. State​ ​any​ ​one​ ​value​ ​which​ ​Nakul​ ​wants​ ​to​ ​communicate​ ​to​ ​the​ ​society. (6
marks)

Ans.

1. Management​ ​is​ ​a​ ​dynamic​ ​function.

2.
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.

1. Spirit​ ​de​ ​corps

This​ ​principle​ ​suggests​ ​that​ ​management​ ​should​ ​promote​ ​a​ ​team​ ​spirit​ ​of​ ​unity​ ​and​ ​harmony
among​ ​the​ ​employees.

1. 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.’
 1. It​ ​helps​ ​in​ ​improving​ ​performance.

‘He​ ​accepts​ ​changes​ ​readily​ ​and​ ​gives​ ​useful​ ​suggestions​ ​to​ ​his​ ​superior,​ ​which​ ​results​ ​in
reduction​ ​of​ ​costs.As​ ​a​ ​result,​ ​company’s​ ​profits​ ​increase.’

1. Value:
● Team​ ​work
● 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​ ​feature​ ​of​ ​business​ ​environment​ ​being​ ​discussed​ ​above.

Ans.​ ​Relativity​ ​is​ ​the​ ​relevant​ ​feature​ ​of​ ​business​ ​environment​ ​which​ ​is​ ​being​ ​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​ ​environment​ ​friendly.​ ​ ​At​ ​a​ ​result,​ ​there​ ​is
growing​ ​need​ ​for​ ​better​ ​and​ ​advanced​ ​technologies​ ​to​ ​works​ ​as​ ​a​ ​catalyst​ ​in​ ​this​ ​regard.

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

Ans.

1. Inter-relatedness​ ​is​ ​the​ ​relevant​ ​feature​ ​of​ ​business​ ​environment​ ​which​ ​is​ ​being
discussed​ ​above.
 2. The​ ​three​ ​points​ ​which​ ​highlighted​ ​the​ ​importance​ ​of​ ​business​ ​environment​ ​and​ ​its
understanding​ ​by​ ​managers​ ​are​ ​described​ ​below:
1. It​ ​enables​ ​the​ ​firm​ ​to​ ​identify​ ​opportunities​ ​and​ ​getting​ ​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​ ​the​ ​competitors.
2. It​ ​helps​ ​the​ ​firm​ ​to​ ​identify​ ​threats​ ​and​ ​early​ ​warning​ ​signals:​ ​sometimes​ ​the​ ​changes
in​ ​the​ ​external​ ​environment​ ​may​ ​pose​ ​as​ ​a​ ​threat​ ​and​ ​hinder​ ​a​ ​firm’s​ ​performance.
An​ ​awareness​ ​about​ ​the​ ​business​ ​environment​ ​helps​ ​the​ ​managers​ ​to​ ​identify​ ​such
threats​ ​on​ ​time​ ​and​ ​take​ ​necessary​ ​decisions​ ​and​ ​action.
3. It​ ​helps​ ​in​ ​tapping​ ​useful​ ​resources​ ​as​ ​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​ ​is​ ​manufacturing​ ​paints​ ​has​ ​been​ ​enjoying​ ​a​ ​prominent​ ​market
position​ ​as​ ​it​ ​manufactured​ ​best​ ​quality​ ​paints,​ ​made​ ​timely​ ​payment​ ​of​ ​taxes​ ​to
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​ ​business​ ​environment​ ​highlighted​ ​quoting​ ​the​ ​line​ ​from​ ​the
above​ ​case.
2. Identify​ ​any​ ​two​ ​dimensions​ ​of​ ​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.​ ​ ​ ​ ​(a)​ ​Business​ ​environment​ ​helps​ ​in​ ​tapping​ ​useful​ ​resources.

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

(b)​ ​(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.’

1. Value​ ​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​ ​growth​ ​and​ ​profitability​ ​of​ ​the​ ​company.

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

(4​ ​marks)

Ans.

1. Technological​ ​environment
It​ ​includes​ ​forces​ ​relating​ ​to​ ​scientific​ ​improvements​ ​and​ ​innovations​ ​which​ ​provide
new​ ​ways​ ​of​ ​producing​ ​goods​ ​and​ ​services,​ ​and​ ​new​ ​methods​ ​and​ ​techniques​ ​of
operating​ ​a​ ​business.
2. 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​ ​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​ ​impact​ ​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​ ​decrease​ ​in​ ​demand​ ​of​ ​its
products​ ​in​ ​the​ ​market.
1. Top​ ​level​ ​management
2. 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.’
1. Business​ ​environment​ ​helps​ ​the​ ​manager​ ​in​ ​coping​ ​with​ ​rapid​ ​changes.

Q.​ ​20.​ ​The​ ​organic​ ​food​ ​market​ ​in​ ​India​ ​is​ ​grow​ ​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​ ​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​ ​context​ ​of​ ​the​ ​above​ ​case:

1. Identify​ ​and​ ​explain​ ​the​ ​features​ ​of​ ​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​ ​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
up​ ​gradations,​ ​shifts​ ​in​ ​consumer​ ​preferences​ ​or​ ​increase​ ​in​ ​competition​ ​in​ ​the
market.
● Inter-relatedness:​ ​All​ ​the​ ​elements​ ​of​ ​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​ ​on​ ​line.”

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​ ​business​ ​environment​ ​being​ ​referred​ ​to​ ​the​ ​in​ ​the​ ​above
case​ ​are​ ​as​ ​follows:
● Technological​ ​environment:​ ​Technological​ ​environment​ ​includes​ ​forces​ ​relating​ ​to
scientific​ ​improvements​ ​and​ ​innovations​ ​which​ ​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​ ​the​ ​social​ ​forces​ ​like​ ​customs​ ​and
traditions,​ ​values,​ ​social​ ​trends,​ ​society’s​ ​expectations​ ​from​ ​business,​ ​etc.
1. The​ ​two​ ​values​ ​which​ ​the​ ​Cerebra​ ​Integrated​ ​Technologies​ ​wants​ ​to​ ​convey​ ​through
this​ ​initiative​ ​are:
1. Sustainable​ ​development
2. Concern​ ​for​ ​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
prices,​ ​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​ ​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​ ​Orgnising.
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.​ ​Government​ ​of​ ​India​ ​is​ ​seriously​ ​thinking​ ​to​ ​allow​ ​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​ o​ ther​ ​two​ ​reforms​ ​recommended​ ​in​ ​new​ ​economic​ ​policy.

Ans.

1. Liberalization
2. Other​ ​two​ ​reforms:​ ​Privatization​ ​and​ ​Globalization.

Q.​ ​25.​ ​Recently​ ​many​ ​companies​ ​have​ ​planned​ ​for​ ​significant​ ​investment​ ​in​ ​organizes
retailing​ ​in​ ​India.​ ​ ​Various​ ​factors​ ​which​ ​have​ ​encouraged​ ​companies​ ​to​ ​take​ ​these
decisions​ ​are​ ​customer​ ​income​ ​is​ ​increasing,​ ​rise​ ​in​ ​standard​ ​of​ ​living​ ​of​ ​people.​ ​ ​People​ ​are
ready​ ​to​ ​pay​ ​high​ ​price​ ​for​ ​quality​ ​goods,​ ​government​ ​policy​ ​of​ ​liberalization​ ​regarding​ ​MNC
entry​ ​and​ ​FDI,​ ​etc.

1. Explain​ ​briefly​ ​changes​ ​in​ ​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​ ​regards​ ​to​ ​globalization​ ​and
privatization?

Ans.

1. Explain​ ​recent​ ​changes​ ​in​ ​various​ ​environment​ ​heads,​ ​i.e.,​ ​economic,​ ​social,​ ​political,
legal​ ​and​ ​technological.
2. Explain​ ​the​ ​topic,​ ​impact​ ​of​ ​change​ ​in​ ​government​ ​policy/economic​ ​policy.

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

1. Which​ ​feature​ ​of​ ​business​ ​environment​ ​is​ ​highlighted​ ​here.

2. Identify​ t​ he​ ​dimension​ ​of​ ​business​ ​environment,​ ​which​ ​delayed​ ​the​ ​release​ ​of​ ​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​ ​Brarat’​ ​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​ ​the​ ​garbage​ ​and​ ​waste.

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

Ans.

1. “After​ ​wining​ ​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​ ​opening​ ​up​ ​of​ ​Indian​ ​Economy,​ ​foreign​ ​companies​ ​found​ ​it​ ​extremely
difficult​ ​to​ ​cut​ ​through​ ​the​ ​bureaucratic​ ​and​ ​red​ ​tapism​ ​in​ ​government​ ​offices.​ ​ ​This
discourages​ ​them​ ​from​ ​investing​ ​in​ ​India.

Identify​ ​the​ ​dimension​ ​of​ ​environment​ ​mention​ ​in​ ​above​ ​para.

Ans.​ ​Political​ ​Environment.

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

Identify​ ​the​ ​dimension​ ​of​ ​business​ ​environment.

Ans.​ ​Political​ ​Environment.

Q.​ ​30.​ ​‘Mamta​ ​Rice​ ​Food​ ​Ltd’​ ​is​ ​a​ ​well​ ​know​ ​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.​ ​ ​With​ ​a​ ​view​ ​to​ ​find​ ​out​ ​the​ ​solution​ ​of​ ​this​ ​problem​ ​he​ ​made​ ​a​ ​team​ ​to
find​ ​but​ ​the​ ​reasons​ ​for​ ​downfall​ ​of​ ​sales.​ ​ ​The​ ​team​ ​conducted​ ​the​ ​survey​ ​and​ ​gave
following​ ​four​ ​reasons​ ​for​ ​the​ ​downfall​ ​of​ ​company’s​ ​sale.

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

Identify​ ​the​ ​dimension​ ​of​ ​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​ ​business​ ​environment​ ​discussed​ ​in​ ​the​ ​above​ ​case.

Ans.​ ​The​ ​various​ ​dimensions​ ​of​ ​business​ ​environment​ ​being​ ​referred​ ​to​ ​in​ ​the​ ​above​ ​cased
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​ ​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​ ​business​ ​environment​ ​discussed​ ​in​ ​the​ ​above​ ​case.

Ans.​ ​The​ ​various​ ​dimensions​ ​of​ ​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​ ​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​ ​business​ ​environment​ ​discussed​ ​in​ ​the​ ​above​ ​case.

Ans.​ ​The​ ​various​ ​dimensions​ ​of​ ​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​ ​consumptions​ ​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​ ​above
paragraph.

Ans.​ ​The​ ​various​ ​dimensions​ ​of​ ​business​ ​environment​ ​being​ ​referred​ ​to​ ​the​ ​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​ ​context​ ​of​ ​the​ ​above​ ​case:

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

Ans.

1. The​ ​various​ ​dimensions​ ​of​ ​business​ ​environment​ ​being​ ​referred​ ​to​ ​in​ ​the​ ​above​ ​case
are​ ​as​ ​follows:
1. Political​ ​Environment:
2. Technological​ ​Environment:
3. Economic​ ​Environment:
1. 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​ ​ona​ ​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​ ​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​ ​with​ ​each​ ​other.

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

Ans.​ ​The​ ​various​ ​dimensions​ ​of​ ​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​ ​business​ ​environment​ ​being​ ​referred​ ​to
here.
2. List​ ​any​ ​two​ ​values​ ​which​ ​the​ ​State​ ​Government​ ​of​ ​Kerala​ ​wants​ ​to​ ​convey​ ​through
this​ ​initiative.

Ans.

1. The​ ​various​ ​dimensions​ ​of​ ​business​ ​environment​ ​being​ ​referred​ ​to​ ​in​ ​the​ ​above​ ​case
are​ ​as​ ​follows:
1. Political​ ​Environment:
2. Legal​ ​environment:
1. 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​ ​business​ ​environment​ ​of​ ​India​ ​being​ ​referred​ ​here.
2. State​ ​any​ ​three​ ​factors​ ​which​ ​broadly​ ​affected​ ​the​ ​dimension​ ​of​ ​business
environment​ ​of​ ​India​ ​as​ ​identified​ ​in​ ​part​ ​(a)​ ​of​ ​the​ ​question.

Ans.

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

Q.​ ​40.​ ​In​ ​May​ ​2016,​ ​the​ ​government​ ​had​ ​launched​ ​a​ ​web-based​ ​application​ ​which​ ​will
provide​ ​as​ ​opportunity​ ​to​ ​all​ ​the​ ​industries​ ​dealing​ ​in​ ​hazardous​ ​waste​ ​to​ ​apply​ ​online​ ​and
get​ ​online​ ​permissions​ ​for​ ​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​ ​paperless​ ​and​ ​green​ ​office​ ​and​ ​provide
information​ ​regarding​ ​number​ ​authorizations​ ​or​ ​consent​ ​order​ ​granted​ ​by​ ​the​ ​State​ ​Pollution
control​ ​Boards​ ​(SPCBs).

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

Ans.

1. The​ ​various​ ​dimensions​ ​of​ ​business​ ​environment​ ​being​ ​referred​ ​to​ ​the​ ​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​ ​which​ ​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​ ​which​ ​is​ ​being​ ​highlighted​ ​is​ ​Dynamic.
2. The​ r​ elated​ ​dimension​ ​of​ ​the​ ​business​ ​environment​ ​is​ ​Social.
3. The​ r​ elated​ ​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.​ ​ ​Suggestion​ ​system
should​ ​be​ ​adopted​ ​in​ ​the​ ​organization.
By​ ​sumit​ ​shukla……………………………………………………….