Question

Study the following case/situation and express your opinion.

Just after the declaration of the Lok Sabha 2014 result, the Bombay Stock Exchange Sensex rose by 1000 points in a day.

1. Identify the environmental factor which led to this rise giving a reason.
2. Explain any two other dimensions of the environment.

Answer 1

1. The rise in the stock market index (Sensex) is the economic environment. But it has done due to the political environment (Lok Sabha Election Results)
2. Two other dimensions of the environment are:
   1. Legal environment: Businesses must follow labour, environmental, and trade laws in this dimension. Laws affect corporate operations and maintain fairness.
   2. Technological environment: Technological advances and innovations alter how firms produce, deliver, and compete. Technology updates help organisations react to market changes and increase productivity.