Advertisements
Advertisements
प्रश्न
Answer the following.
What is the business environment? Explain the importance of the business environment.
Advertisements
उत्तर
(A) Business Environment: A business is defined as buying and selling activity to generate income. The business consists of several interrelated and interacting elements. Business is an economic and social activity of the society. Society is an integral part of the business and its interest cannot be ignored. The business environment consists of the economic, social, legal, technological, and political situation. The business obtains money, material, machinery and manpower, and other resources from the environment.
According to B. O. Wheeler- A business environment is “the total of all things external to firms and individuals which effect their organisation and operations”.
According to the Oxford English Dictionary- “Business Environment refers to those aspects of the surroundings of a business enterprise which influence or affect its Operations and determine its effectiveness."
Basically business environment consists of all internal and external factors that influence the nature and scope of business activity.
(B) Importance of Business Environment:
(1) Flexible and Dynamic: Changing environmental factors should be appraised from time to time. So as to keep the business flexible and dynamic. The new opportunities and threats created by the environment can be appraised by the corporate planners to make the most of it. Turbulent market conditions, less brand loyalty, more demanding customers, and intense global competition are some of
the images of today's business environment. In order to cope with these significant changes, the organization must understand and examine the environment and develop a suitable course of activity.
(2) Opportunities and Threats: Study of business environment enables a business enterprise to visualize future problems that can arise as also future business prospects in advance. Deriving benefit from honorable business opportunities is possible as also it can face the problems boldly. Awareness of the environment helps an organisation to take advantage of such opportunities instead of losing them to the competition. It helps the organisation to identify various threats on time and serves as an early signal.
(3) Competition: Understanding the business environment helps to obtain qualitative information which in turn is useful in formulating business plans, policies, and strategies for the future course of action.
(4) Utilization of Resources Optimally: Optimum use of available resources for the business enterprise is possible by studying the business environment. It enables the enterprise to take full advantage of the policies implemented by the government.
(5) Strength and Weakness Identification: With the change of technology and global development it helps to analyze individual strengths and weaknesses of the business understanding the challenges, appropriate decisions are taken on a timely basis.
(6) Knowledge: Study of the environment is necessary to discover and exploit new opportunities for business expansion broad strategies and long term planning enables the development of a formidable business wait.
(7) Image Building: Environment-study makes it possible for the business to expand and to make it acceptable and agreeable to different social groups. By fulfilling its social obligations towards different groups of society, a business can create goodwill and reputation for itself.
(8) Adaptability to Socio-Economic Changes: A business organization needs to show its keen intentions towards adapting to the socio-economic changes.
APPEARS IN
संबंधित प्रश्न
What is meant by 'business environment'?
Beni, after completing her MBA, took up a job with 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 the provided the employees a reasonable standard of living. The company also had a good work-culture and the behaviour of superiors was very good towards their subordinates. Beni was very happy in this organisation, but due to long working hours, she did not have time to cook her meal. She had to depend upon outside food, 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 was also distributing the left-over food in the nearby night-shelters
a. State the dimension of the business environment being discussed above.
b. State the principle of management being followed by 'Fortio'.
c. Identify any two values being communicated by the company to the society in the
above case.
What is included in the 'political environment' of business? State.
Select the correct option and rewrite the sentence.
Globalization is concerned with __________ market.
Give one word/phrase/term.
A boundary less worlds where there would be flow of goods, services, information, capital and people across nation.
State whether the following statement is True or False.
External factors of business environment are controllable factors.
Correct the underlined word and rewrite the following sentence.
External factors of business environment are controllable.
Explain the following term/concept.
Business environment.
Explain the following term/concept.
Globalisation
Explain the following term/concept.
Social environment.
Study the following case/situation and express your opinion.
Make in India is an initiative launched by the government of India. It focuses on job creation and skill development and it is in twenty-five sectors of the economy. Under the initiative, brochures on these sectors and 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.
- Identify dimensions of the business environment.
- Comment on it.
Which of the following does not characterise the business environment?
What creates fear in the minds of investors to invest in long term projects?
"The shift of demand from soft drinks to juices is an opportunity for juice companies and threat for soft drink companies." Identify the feature of business environment:
"The increase in the demand for many ayurvedic medicines, health products and services in the past few months, is related to the need for building immunity and an increased awareness for health care due to the spread of Corona Virus." Identify the feature of business environment being described above.
Match the FEATURES of Business Environment in Column I with the appropriate EXPLANATION in Column II.
| Column I | Column II | |
| (i) | Complexity | Very difficult to predict future happenings. |
| (ii) | Specific forces | Easier to understand in parts but difficult to grasp in its totality. |
| (iii) | Uncertainty | Affect individual enterprises directly and immediately. |
