With change in the consumption habits of people. Neelesh, who was running, a sweets shop shifted to 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 lot of orders online and earned huge profit by selling chocolates.
Identify and explain the dimensions of business environment discussed in the above case.
Dimensions of business environment which are being referred to in the given case:-
1. Social environment:- Change in the consumption habits of people implies a variation in the social environment of the country.
Explanation:- The social environment includes the effect of changes in business environment due to cultural values, traditional procedures and festivities.
Example:- An increase in imports leads to a fall in the price of domestic currency and vice versa.
2. Technological environment:- ‘Created a website chocolove.com for taking orders online’ implies a change in technological environment.
Explanation:- Technological environment takes into account various changes in technology of an economy. It involves infrastructural changes and information technology revolution.
For example, smartphones and e-commerce are the foundations of most business start-ups in the modern era. Competing with different market players
would require a company to launch an app and a website.