‘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 on-line links with the suppliers to replenish stocks when needed.
Identify and explain the dimensions of business environment discussed in the above case.
Following are the dimensions of business environment that are being referred in the given case.
1. Economic environment- “Company started exporting its products to India” Explanation- Economic environment includes the effect of changes in the interest rates, levels of income, stock market fluctuations etc. Example- An increase in imports leads to a fall in the price of domestic currency and vice- versa
2. Legal environment – “Prime minister allowed relaxation in import duties on electronic items” Explanation- Legal environment refers to all the legal rules and procedures set up by the government to monitor the business activities of an enterprise. To cope with the dynamic business environment, management must know the ways to deal with different fluctuations in legal environment.