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    | OBJECTIVE TYPE QUESTIONS |. Previous Year's CBSE Board Questions 1 is considered a major element of the political environment, (4) The extent and nature of government intervention in business () Planned outlay in public and private sectors (c) Expectations from the work force - (@) Administrative order issued by government authorities (CBSE Sample Paper 209 nal Multiple Choice Questions 1. Which of the following is not a component of specific forces of business environment (@) Technological conditions (b) Customers (©) Employees (@) Investors 2. Since more number of People have become more beauty and health conscious, our economy wellness clinics, The related feature of business environment being described in the above lines is — (2) Totality of external forces (b) Dynamic nature (0) Interrelatedness @ Relativity 3. Twinkle Stars’ is a well-known resort for organising parties, especially for children, However, in past 6 months ite Popularity has reduced considera better ambience and facilities kee opened withi i (@) Totality of external forces (©) Interrelatedness a . The Economic Survey, suggests that the Psychologica tax compliance. It is in favour of using religious norm: (@) Legal dimension and Social dimension (©) Social dimension and Economic dimension (©) Technological dimension and Political dimension (@ Political dimension and Economic dimension 5. As a result of major government initiatives, more and More People are go: » : order to keep in line with the trend, ‘Clapaway’ a carpet cleaning company ne green’. In that they only use natural cleaners that come fre ra atable resources and v, stvertised service vehicles are hybrid vehicles that use both gre oe Clectricity. Tdentigy at al their i e importance of business environment and jj one of the ieee niece highlighted in the above case. "S understanding by (@) It helps in assisting in planning and policy formulation, (#) It helps in coping with rapid changes, (©) Iehelps in improving pesformance. oh (@) It enables the firm to identify Opportunities and getting the first Mover vantage, a n ization, 39% of adults are overweight, ¢ ding to the World Health Organization, =. - a0 yeasts Prevalence of obesity has tripled around the world. With oe the last : i i er hale consumers drinking at least one sugary drink on a given day, regulations towarge of ds the 72. > Case Studies Mentor in Business Studies-Xi LE» » ei ae nae to become increasingly onerous. In the U.K,, for example, 4 = Sted in 2018 on beverages containing more than 5% sugar. Identify the related dimensions of business environment. (s) Legal dimension and Social (bh) Social di dis and Technolo; dimension and Legal dimension al dimension and Technologic India’s population is expected to grow under 05 per cent during 2031-41 due to decline in fertility rate and increase in life expectancy. These changes in India’s demography will also have implications such as the proportion of elementary school-going children will witness significant declines, lack of hospital beds and increase in retirement age. The vlated feature of bus related ature of business environment being described in the above lines is (a) Totality of external forces (b) Dynamic nature (0) Interrelatedness (d) Relativity tnd eeetlnaes to be a lower-middle-income country along with 46 others, while Sri Lanka ia as ie the upper-middle-income group for the fiscal year (FY) 2020, according, to the World Bank's classification of countries by income levels, released on July 1, 2019. Identify the related dimensions of business environment. (a) Social dimension (b) Technological dimension (¢) Economic dimension (ai Polilieal dimension 9. According to a report by the India Staffing Federation (ISF), India has emerged as the fitth largest market worldwide in flexi-staffing in 2018 and the country would have 6.1 million flexi-workforce by 2021. It showed that Haryana, Gujarat, Kamataka, Madhya Pradesh and Telangana are the states with high growth potential for flexi-staffing but Andhra Pradesh tops the list of states with favourable business environment. Identify the feature of business environment being discussed above. (a) Relativity (b) Dynamic nature (c) Uncertainty (4) Interrelatedness 1. Fill in the blanks ension sion cal dimension {¢) Technological 4) Politic : ‘al dimension Ree eee cesses forces exert a direct and immediate influence on the working of a business firm. 2. The demand for two-wheelers is likely to be more in urban areas than in rural areas. The feature of business environment being described in above line is 3.The Prime Minister has announced an economic relief package of 221 lakh crore for program titled Atmanirbhar Bharat Abhiyan. This statement is related to .. dimension of business environment. 4. The restaurant industry alone is expected to contract by 25% to 40% as customers remain skeptical about eating out due to safety concerns owing to coronavirus pandemic. The above statement is concerned with .. . type of business environment. 3. The retail health business is growing because there is a large demand considering the increase in awareness about its importance due to Covid-19. The above statement is related - vccsusvess feature of business environment. 6. The Supreme Court has developed a software called SCl-Interact to make all its 17 benches paperless, With the help of this software, judges will be able to access files, annexures to petitions and make soft notes on computers itself, without it being accessible to others. Business Environment ® 73 vee dimension of busin, The above statement is concerned with. eee company Uber have started leverg bo Siggy de sharing company Ue rr ea 2. The foucbaelivery platform Swiggy and ride ste ote anc ct, respectively hwowheeler Heels to offer ser vin te rs, etc. Wi the uments, lunchboxes, etc. it “| uments, It iness er wit small items such as office docu “feature of business environmes trans The above statement is related 10... f your answer). IV. State whether true or false. (Give reason in supporto y Schein eae c ent of specific forces s 1. Twehnological conditions are not a componel a ; i sople leading to a fall in de 2. Inctease in lay rates reduces the disposable income of people ae mang for products, This is an example of legal business environment. . ities falling with the Micro, Smal : : extended certain benefits to entities falling wit » Smal 4. The Government has extended certain benefits nlivise them. The above statemay as and Medium Enterprises bracket to strengthen and inet nension of business environment. securilies is related to technological dimension of is concerned with social di 4. The concept of Dematerialisation of business environment. 8. There h. laptop working and studying, from home, TI environment 6. The ‘ment is giving priority to strengthening of infrastructure facilities in order to fromote sell teiance. The above statement is relates to technological dimension of business environment, been an overall inerease in demand for consumer electronics like headphones, mobile accessories, keyboards, data cables, memory sticks ete. with people is is an example of social dimension of business 7 Many: online companie have long-term plans laid out for venturing out into new businesses to expand their revenue streams in the future like Domino's Pizza partnering ITC to deliver essential goods. The above statement can be relat with ‘complexity’ as 4 feature of business environment, changes Board of India has sent a warning letter to a company for inadequate disclosures’ made by the company four years ago relating to a jury verdict St it, The above statement is concerned with legal dimension of busin environment. yim Payments Bank Limited (PPBL) has launched ‘Cash at Home’ fa, and ditferently-abled citizens in the national capital to make the banking convenient and accessible for its customers. The above initiat dimension of business environment, cility for senior experience more can be related with social V. Match the following by choosing the correct option. 1 Column A Column B j () Suppliers and Creditors (@) Opportunities (i) Social Environment and Political Environment () Specific forces (iil) Gaining the profits for being a pioneer (©) General forces | (i2) Positive external trends (d) Fitstmover advantage (2) (a); (ii)-(b); (iii)-(C); ie)-(d) (b) (i)-O); (ii)-(0); (iti)-(d); (iv)-(a) . (©) (D(C); (ii)-(A); (iti)-(a); (iv)-(b) (d) (i)-(d); (ii)-(a); (iii)-(b); (iv) fc! 74} Case Studies Mentor in Business Studies Xi yp Column A (i) Lifestyle and values Column B (ii) Payments though e-wallets oars (i) Rise in inflation (b) Political Environment (c) Legal Environment (iv) Attitude of government tow, aaa ards business (d) Technological Enviroment (v) Statutory warning on advertisement (ad 0); (AW: CDC; Goya; (). (© (0s (DAA; Gidea), God-Wy, rr (e) Social Environment Ab) (i)-(b); (ii)-(e); (iii) (dy; (rop-le); (Aa) (d) (i)-(d); (ii)-(a); (iii)-(by; (infec); (a4) Answer 1. Previous Year's CBS! Board Questions 1. (a) The extent and nature of govern 4 i ment intervention sine: sid element of the political environment. on in business is consid Il. Additional Multiple Choice Questions 1. (@) Technological conditions is a component of general forces that affect the b environment of an enterprise. 2. (c) Interrelatedness, as the different clements or parts of business environment 27 interrelated 3. (b) Dynamic nature as business environment is dynamic in that it keeps on changing 4. (b) 5.) 6. (a) 7. (c) 8. (c) 9. (a) I. Fill in the blanks 1. Specific 2. Relativity 3. Political/Economic 4. Social /economic 3,Inter-relatedness 6. Technological/Iegal_7. Dynamic IV. True or false 1. True (it is general force) 2. False (Economic) 3, False (Political /Economic) 4, True 5. True 6. False (Political /Economic) 7. False (Dynamic) 8. True 9. True V. Match the following 1.(b) 2 Business Environment > 75, | LATEST CBSE QUESTIONS QUESTION 1: a single debit-cum-credit The Government is considering a pioneer proposal to launch a h caiil be called the onal increase the ease and usage for the consumers. The card whic ea aio en Mobility Card” will have unique advantages for making, Fe eee eo nk gating and making transactions during visits abroad. After hearing, this 1 itd be te free see tpaaunch a “Mega Mobility Card” on similar lines, so that they See the opportunity, arising duc to the increasing, trend of digitisation. Tea io is Ove the Performance, they laid down a plan to hire more people in their mar! metas Tet and py bared guidelines to train their sales force to market the new card facil oe by the bank. By quoting the lines, identify and explain any two points of France of understanding Business Environment discussed above. (CBSE Sample Paper 2019) ANSWER: Following are the points of importance of understanding Business Environment discussed, (Any two). (a) It helps to identify opportunities and get first mover advantage: “After hearing this Tews, Mega Bank decided to launch a “Mega Mobility Card” on similar lines, so that they could be the first to exploit the opportunity, arising due to the increasing trend of digitisation”. 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. (6) It helps in improving performance: “Improve their performance. 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. (©) It helps in assisting in planning and policy formulation: “They laid down a plan to hire more people in their marketing department and Prepared guidelines to train their sales force” (@) It helps the firm in identifying threat and early warning Signal: “Improve existing card facility-—~ QUESTION 2: India’s craft heritage is surviving because of its customs and traditions. Craft products made by craftsmen of Rajasthan, Gujarat, Assam, etc. are not only used in the country but are also exported to USA, Germany, UK, France and other countries of the world. The volume of exports of these products gives India an advantage in balance of Payments and the much needed foreign exchange. The Prime Minister desires that the handicraft industry eheuldlee expanded by linking it with technology. Focus should be on changing the manufacturing process, ensuring durability and adopting innovations. Quoting one Hes from the above paragraph, explain any four dimensions of the business environment. SE, OD 2019) "76 © Case Studies Mentor in Business Studies-XIl ANSWER: she four dimensions of the business « lov (a) Social environment: Socia nvironment described in the above paragraph are as sieraditinea | Environment includes the social forces like, beliefs, customs and tadiions, ‘walues, social trends, society's expectations from business, etc. The demographic factors also have a great influence on the social environment of a business like, size, growth rate, composition of ion, Ii a le, level of images position of population, life expectancy of people, Quote: “India’s craft heritage is surviving because of its customs and traditions.” (b) aaa ee The economic environment comprises of all those economic forces which are likely to exert an, influence the functioning of an business enterprise like, the economic system whether it is capitalist, socialist or mixed economy, level of economic development, availability of economic resources, the level of income of people, economic policies, rate of inflation, exchange rate balance of payment position, gro national product, per capita income, rate of savings and investment, changes in disposable income of people, stock market indices and the value of rupee etc. Quote: “The volume of exports of these products gives India an advantage in balance of payments and the much needed foreign exchange.” (©) 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. Quote: “Focus should be on changing the manufacturing process, ensuring durability and adopting innovations.” (d) Political environment: The various aspects relating to the functioning of the government in the country where the business operates also have an important bearing on it smooth working. The main constituents of political environment are general stability and peace in the country, organisation and philosophy of political parties, ideology of the government, the image of the country and its leaders, foreign policies pursued by the government in power, attitude of the government towards various types of business organisations etc. Quote: ” The Prime Minister desires that the handicraft industry should be expanded by linking it with technology.” QUESTION 3: Mahinder Agro Ltd. started a new venture for distribution of harmful and chemical fertilizers free vegetables. They conducted a survey to find out consumer preference for such vegetables. They found that most of the consumers were concerned about the harmful chemicals being used in growing the vegetables. They found that 90% of the households were searching, for its alternatives. The company contacted a group of agriculture experts to lay down the procedure for growing the vegetables by the farmers. They decided to train the farmers in new technology to grow chemical free vegetables according to new Tech. innovative methods. The experts also suggested soil management techniques through which farmers would be able to create an abundant and lasting harvest. Identify and explain the two dimensions of business environment highlighted in the above Para. (CBSE, Delhi 2019) ene WeR: ' ighlighted in the given parap, The two dimensions of business environment highlig) sph ae i social forces th (@) Social environment: Social Environment inal we eee {is be customs and traditions, values, social trends, ae hich operates in peas ' For example, the business environment of a firm iatanaies ine aaa oe city will be different from a firm which operates in at of aban factors also have a great influence on the social —— ae os : growth rate, composition of population, life expectancy of people, oF Tig See i t includes forces rela i i i ment latin, (®) Technological environment: Technological Environ : Scientific improvements and innovations which provide new we of Producing 809 and services and new methods and techniques of operating a business. QUESTION 4; ‘Konark Ltd.’ is an electronics goods manufacturing enterprise situated in Shivpuri, Mad Pradesh. It is earning a very low revenue in comparison to a competing electronic Srfacturing enterprise, ‘Nova Ltd.’ situated Mumbai. Both Konark’s and Operations are affected direc Nova tly by the investors, customers, competitors and suppliers, w) que to their respective locations. In addition to this, individual firms of this field a affected indi rectly by the factors like the money supply in the economy, composition off families, the technological changes, etc. (@) Identify and State the feature of the 78> Case Studies Mentor in Business Studies-Xi Vie jy ates 1 Improving. hy contin formance: yh cor no monitoring of th which help 10 Wnprove both thy no It 7 : ; eee in improving performance of an enterprise cir present eect! and adopting suitable business practices ‘ent and future performance. ypstiOn 5: ' jeartening, Hhal the iinplement 2 progremved substantially, in women’: participation, 4 yo to 18% now. Aven e¢ ation of compli with NIFTY 50 nthe top am ae nce requirements of the Companies Act, 00 companies. Data shows a significant mpanies wa een of Indian Companies from 5% we anticipation Which are not in NIFTY 500 have undertaken oae MRU NWO aoe atross different areas of work. The government had nine — diene above meena Identify and explain the dimensions Move which brought about the change. (CBSE, Sample Paper, 2018) ats answen mensions of Business environment je i la (y Legal Environmen " discussed above which brought about the above : Legal Envi | afennvnelriliiali ae Environment includes various legislations passed by the Gove i 5 a 4 ‘ative eet ued by government authorities, court judgments ay We ‘ons rendered by various commissions and agencies at every level of the government—centre, state or local (i) Political Environment: Political Environment includes political conditions such as general stability and peace in the country and specific attitudes that elected government representatives hold towards business. QUESTION 6: Naman and Govind after finishing, their graduation under vocational stream decided to start livir own travel agency which will book Rail Tickets and Air Tickets on commission basis. they also thought of providing tickets within ten minutes through the use of internet. They discussed the idea with their Professor Mr. Mehta who liked the idea and suggested them Wofirst analyse the business environment which consists of investors, competitors and other {ores like social, political etc. that may affect their business directly or indirectly. He further lod them about the technological improvements and shifts in consumer preferences that wore faking place and hence they should be aware of the environmental trends and changes which may hinder their business performance. He emphasised on making plans keeping in niind the threat posed by the competitors, so that they can deal with the situation effectively. Its alignment of business operations with the business environment will result in better (CBSE, Sample Paper, 2017) performance, (@) Identify and state the component of business environment highlighted in the above Para. State any two features of business environment as discussed by Professor Mehta with Naman and Govind. ( Also state two points of importance of business environment as stated by Professor Mechta in the above situation. AisWer: (a) Technological Environment is the component of business environment highlighted Business Environment > 79. : i includes forces relating to sq ra eahcariltai hare acaaa Revision fa ways of producing soos improvements and innovations w1 ich pi of operating a business, a services and new methods and techniques of op | ' discussed by Professor Mehta with N, (b) The two features of business environment as ‘am, ind are as follows: 7 ear ol 7 ind keeps on changing due to technolo, (i) Dynamic nature: It is dynamic in nature a1 , incompetition in th ic upgradations, shifts in consumer preferences or increase i iP sae le Mark, (ii) Inter-relatedness: All the elements of business environment oe 7 y ete Therefore, any change is one element may necessitate corresp. 8 changes ; the other elements as well. A (©) The two points of importance of business environment as stated by Professor Meh, in the above situation are described below: (i) It enables the firm to identify opportunities and getting the first mover advantage: th dynamic business environment provides numerous opportunities for a business 4 evolve as per the changing needs. Therefore, early identification of the forthcomy opportunities helps an enterprise to be the first to exploit them instead of losing them to the competitors. (ii) 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 P 6 threats on time and take necessary decisions and action. QUESTION 7: 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, Tdentify and explain the dimensions of business environment discussed in the above case. (CBSE, OD 2016) ANSWER: ‘The various dimensions of business environment being referred toin theabove: (@) Social environment: Social Environment includes the soci traditions, values, social trends, society’s expectations fro (#) Technological environment: Technological Environment includes forces scientific improvements and innovations which provide new ways of p; and services and new methods and techniques of operating QUESTION 8: A recent rate cut in the interest on Joans announced by the banks encouraged Ami, 4 student of Progressive School, to take a loan from State Bank of Indig’ ee develop cars to be powered by fuel produced from garbage. He Pn ee exhibited it in the Science Fair organised by the Directorate of Education. 1. Was ayer the first prize for his invention. case are as follows: ial forces like customs and m business, ete, relating to roducing goods a business, 8 Identify and explain the dimensions of business environment discussed in the above case (CBSE, : *» Delhi 2016) ansWeR sk Me aus imensons of busines jullows® 01 ¢ Environment: i) Economic ents We comprises Sore i ( ina business enterprise i of factors that can affect management practices includes inte 1 income of people, stock cludes interest rates, inflation rates, changes in disposable logical € "7 market indices and the value of rupee etc. nological Environments Wine - Treacy CHENG {Ht includes forees relating. to scientific improvements and erie Provide new ways of producing. a d new methods and techniques of operating a bu pe ducing goods and services an 5 a business ‘Wwironment being referred to in the above case are as ( saccent * operating its business in Malaysia. Th y started ting, its products to India wi i ss jalaysia. The company start egporting i pee e Ey when the Prime Minister announced relaxation in import duties on electronic tems. The company appointed retailers in India who had direct online jinks with the suppliers to replenish stocks when needed. and explain the dimensions of business environment discussed in the above case. (CBSE, Foreign 2016) Adentit} ANSWER: The various dimensions of business environment being referred to in the above case are as follows (9 Political Environment: Political Environment includes political conditions such as general stability and peace in the country and specific attitudes that elected government representatives hold towards busin (i 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. QUESTION 10: After completing his MBA from the USA, Mr. Ajay came to India to start a new business under the banner Ecom Creations Ltd. He launched a new product in e-learning for senior secondary school students in the commerce stream which already had an established market inthe UK and the USA but not in India. His business started flourishing in India. As a result, more Indian companies entered into the market with other subjects also. Identify and quote the lines from the above paragraph which highlight the significance of understanding business environment. (CBSE, Sample Paper 2015) ANSWER: environment helps in assisting in planning and policy (0) Th anding, of business eee ‘ind analysis can be the basis for deciding the future formulation as its understanding course of action or decision making- Tt enables the firm to identify opportunities instead of losing them to its ety ‘Ajay came to India to start a new busi : oan rom USA, Mr. Ajay ¢2 ae aeeey es ae thet aes ee Pana Ltd. He launched a new ET in e-learning for senior secondary school students in the commerce stream which already had an cstablished market in UK and the USA but not in India. and getting the first mover advantage Business Environment ® 81 is tinuou: i (6) It helps in improving performance of an enterprise ae cor i i 7 Monitoring the environment and adopting suitable business practice: Prove their present and future performance. : “His business started flourishing in India. i i i : (c) It helps the firm to identify threats and early warning signals that is likely to hing a firm’s performance and take timely actions. : : “AS a result, more Indian companies entered into the market with other subjects.” QUESTION 11: As per the directions issued by the Supreme Court, the government passed an order to bar the sale of tobacco products within the area of 200 meters of all educational institutionsas (@) Its consumption is injurious to health, (b) 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. (CBSE, Delhi 2013) ANSWER: The various dim as follows: QUESTION 12: The court passed an order to ban polythene bags as: (@) These bags create many environmental Problems which affect the life of people, (®) Society at large is more concerned about the quality of life. The government decided to give a subsidy to the jute industry j this business. As a result— ¥ in order to promote @ Innovative techniques are being developed to ™anufacture jute b; (ii) Incomes are tising and people can afford to buy these bags, i i imensions of business enviro; ae, ee oe “ronment by quoting lines from the . : (CBSE, op 2013) ANSWER: The various dimensions of business environment being referred to in the aj follows: (@) Legal Environment: “The court passed an order to ban Polythene ba, i i rs i tal prob] ‘i (b) Social Environment: “The bags create many environmental p; MS Which life of people and society at large is more concerned about the uality oF, attect the (©) Political Environment: “The government decided to Bive a subsidy to the jure a in order to promote this business.” ry "ABS at low rates, Dove case are as (yy Yecluological environmen “Innovative tur jute bays at low rate.” movalive techniques ane wing, Henelagen te mianubnetite () Leonomic Enviroment: Incomes are rising nd people can afford jw buy thease bay” sing and people can afin tw biy these bay Question 13: qhe court passed an order that all schools must have water purifiers for she vhesd children a (a) Society in general is more concerned about the quality of tite, — {b) Innovative techniques are being developed ta manufacture vater purth rates fi (¢) Incom re drink (a) The Government is also shoving a posi purification, ° 19 ad CUT ett are rising, and children j i, purified water af their hanes as wel. Wdenlify the different dimensions of business environment by quoting fut the terre details. HS, Delhi UND ANSWER: The various dimensions of business environment being referred to the in the atvrre case ate as follows: “The court passed an order that all schools taust have water purifiers (a) Legal Environment for the school childres (b) Social Environment: “Society in general is mose concerned about (6 Political Environment: “The governinent is alvo shoving, a ponitive attitude business of water purifiers.” (d) Technological environment: “Innovative techniques are being, dev water purifiers at competitive rate.” (ce) Economic Environment: “Incomes are rising and children are drir their homes as well.” luped to tn Joped th mas 4 purified water at QUESTION 14: ' ls afer the declaration of the results of the (ke Sabha Blections, 24% the Yor Stk Exchange's price index (Sensex) rose by 2400 points in @ day. Identify the environs tal factor which Jed to this rise. ee eee ANSWER: Political environment has Jed to the rise in the sensex. (ADDITIONAL QUESTIONS: QUESTION 1: F ‘than is a well known corpo iMucts Farhan urges the managers a ‘ster an ability to envision upcoming opp’ mn every leadership development program that he rate trainer. In every anges in the business situations and ¢ alive 1 Oe tunities as well a> potential risks. MM context of the above case # foster an ability to envision upcoming {) Why is it important for opportunities? "How does prior knowled the managers (0 ve of potential risks helps the business managers? , buvner: Emewormert & B83 A i ‘ous opportunities for a ai dynamic business environment provides numerous opp. Using, ly identification of the fortheg.™ ing needs. Therefore, early ide i hc to = mite el 5 - enterprise to be the first to exploit them instead of losing the opportuni psa ee it ose as a threat and hin, (®) Sometimes the changes in the external environment may eee Nira firm’s performance. An awareness about the ee ironment helps to identify such threats on time and take necessary deci der fe Manager, QUESTION 2: _ There is a difference between operating environment in India and other countries. Like Indig offers many advantages to the outsourcing firms in terms of lowered costs and access toa wide talent-base. Identify the feature of business environment being discussed above. ANSWER: QUESTION 3; Bitcoin is a cryptocurrency and worldwide payment system. Itis the first decentralized digital imency, as the system works without 4 Sfhttal bank or single administrator The network i i without an intermediary ese transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchsin, Bitcoin was ‘invented by an “moto and released as open. publ. Software in 2009, The money can only be tracked when i 5 Public way of Managing trarisactions has created the possibility of ghey banking sector across the world, Identify »nd alain any two dimensions of business environment bei in the above case. ANSWER: (@) Technological Environment: Technological Environme, scientific improvements and innovations whict Pipride new ways og pres and services and new methods and techniques of operating » Business, “SRS Boods (#) Economic Environment: Economie Environment comprises of factors th, change nent practices in a business enterprise Ince interest rate changes in disposable income of people, sek market indices ant ie | etc. QUESTION 4: Fmart Cities Mission is an urban renewal and retrofitting program by the ¢ India with the mission to develop 100 cities cross the country making them and sustainable. The Union Ministry of Urban Development is responsible fog im the mission in collaboration with the state Bovernments of the respective citien ities tim be selected based on the Smart Cities challenge, where cities will compete in a coun, = will competition to obtain the benefits from this mission, Ite a five-year program, where at can. affect Nflation rates, ‘alue of rupee 84 P Case Studies Mentorin Business Studies cian states and Union territories are participating, except West Bengal, by nominating irs one city’ for the Smart Cities challenge, Rech city will create a corporate company, rial by 2 fulltime CEO, to implement the Smart Cites Mine Wine he Government ring an outlay of around USD 8 billion for ereating 100 enact cities many international |vctest (0 collaborate with Indian companies and the Government transportation, tenewable energy and other Greenfield projects in the Je ain ; oral infrastructu ent ientity and explain the various dimensions of business environment being referred to she in the above case, ANSWER: the various dimensions of business environment being referred to the in the above case are js follows: (# Political Environment: Political Environment includes political conditions such as general stability and peace in the country and specific attitudes that elected government representatives hold towards business, (b) 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. {¢) Economic Environment: Economic Environment comprises of factors that can affect management practices in a business enterprise includes interest rates, inflation rates, changes in disposable income of people, stock market indices and the value of rupee ete. QUESTION 5: Indi’s education system is under pressure to adapt to a rapidly changing world. To keep pace ith a global paradigm shift brought about by digitization, our education system is adopting tigial resources and methodologies to improve accessibility, quality, and scale. Nearly 89% of Gen Z students prioritize using digital media like videos to enhance their education and 63% of their teachers believe in including more technology focused interactive sessions to better Prpare students. Not only organizations, but the government is also investing heavily on bettering the education system be it with revamping the National Education Policy, launching Skil India initiative, ete. dentify and explain the various dimensions of business environment being referred to in the above case. ANSWER; te vaious dimensions of business environment being referred to the in the above case are follows: ) Political Envi: : Political Environment includes political conditions such invironment: Political Envi icludes as Seneral stability and peace in the country and specific attitudes that elected government 6 ®presentatives hold towards business. «ov fee : ) Technological Environment: Technological Environment includes forces re ting to Scientific | [aeolian and innovations which provide new ways of producing goods Services and new methods and techniques of ae (9 Soc i t includes the social forces like customs and ial Envi : Social Environment inclu | for stoms an teaditions, values, social trends, demographic profile, society’s expectations from ‘usiness, etc, Business Environment ® 35, 7 nd based out of Delhi Ncr, Ing QUESTION 6: nts and e-commerce bran t company On? € ‘nna ian e-payments and Mf parent compo ? Seer oan Ee Ten G company’ employs over iy Tet ee ence ee austen a eed (a Wal ee S017 at as 2 lon ein Starting from March 2017, Pay employees eee gate athe Pay le, St imap ee operates the A to Canada with the launch of ‘y tus as ils larget customer becausy Some: ts major competitors an " comer of India, Some ol i it wants to penetrate in every nook and aut ia Wacts asa portal to shop for Multiple P ; Fnvecharge. It acts as d fe aise Pee ne ena pea ia a S gOrerTnit propagating cashless econom Products from apparel to electronic items, The re Inthe your 4019 Revoree Bee ina system and this has helped paytm in its endeavou ee ee af curnaney te Granted it a license to start first payment bank in li ii Denon chen has also worked heavily in the favour of the company’ and le active users, expanded its serv ee aint every person irrespective of age, income, 9 In context of the above ea: (2) Identify and explain the in the above cas three dimensions of busin cavironment being referred lo by quoting lines from the pat staph, () Outline the concept of ‘demonetisation’, ANSWER: (@) The various dimen case are as follows: ( Technological Environments “Paytm brand based out of Delhi NCR, India,” (@) Political Environment: “The government j and this has helped paytn inte endeavoy ii) Legal Enviconment: “in the Year 2015 Re, ‘0 start first payment bank in India,” () Demonetisation is the act of scrapping As a result of which the ma onal curr rene ssitates that the current form on retired and it is replaced with new. QUESTION 7; On 8 November 2016, the Government of India a %500 and 71,000 banknotes of the Mahatma G government claimed that the action would curtai fund illegal activity and terrorism, The BSE | ‘NSE Fr the ee tte ay alter the announcement The decision was hea Of the opposition part leading to debates in both hous erbanised protests against the gor ment in several places acroy exchange their bank notes had to Stand in lengthy queues, and Several ip {he inconveniences caused due ke the rush to exchange cash: Atte demand for point of sales (POS) or card swipe machines has inerea like PayTM has also seen a tise 86 > casestudies Menor Busnes tds Mam Fonment being referred to the in the above a inden -onyutents ang e-commerce Propagating ¢, Shless economy system Serve Bank of Indi, granted it a license A currency uni cy change, forms of mone Holes OF coins,” OF its status ag legal tender, Process of ak demonetis, tion Pulled out oy circulation and nounced the aNdhi Series. j the use of illicit an EX and Nivry busines environment whieh relate sf proatoty throught Jes political conditions such specific attitudes that elected nvironment includes forces relating to oe provide new ways of producing 5 ques of operating a business. Leg ; des various legislations passed by the Government administrative onde: government authorities, court judgments as well as the decisions rendered by various commissions and agenci rate or local. a every level of the government— centre, Social Environment includes the social forces like customs and. ss, ete. of factors that can affect enterprise includes interest rates, inflation and the value : Econom management practices in a busin rates, changes in disposable income of people, stock market indie of rupee ete. () The two values that the government seeks to promote through demon isation are: ( Transparency in dealings (i) Promote well being of people QUESTION a: Post demonitisation in a further push to cashless economy, the Central cabinet has recently proved the ordinance for paying wages via electronic means. Accordingly, the government proved to Amend Section 6 of the Payment Of Wages Act 1936, to allow employers of tain industries to make payment through the electronic mode and cheques. The new Srinance will be applicable to the public sector. Ident the various dimensions of business Sizonment which relate to the above mentioned case. ANsWeR: Various dimensions of business environment ™ below: vhich relate to the above mentioned case e Political environment i Legal environment VTechnology environment Business Environment. QUESTION 9: ante dia to encourage nati Make in India is an initiative launched by the Governme erat ene job cate inatl ‘a clure their products ; multinational companies to manufacture ee on eal and skill enhancement and is in twenty five sectors of ee os i Mitiatyg brochures on these sectors and a web portal were released. Tae ia ceeksite ate , standards and minimising the impact on the environment. It also ct fori capital investment in India, In context of the above case: (a) Identify the various dimensions of business environment being referred to by uotig lines from the paragraph. (®) List any two values which the Government of India wants to convey through this initiative, ANSWER: @) The various dimensions of business environment being referred to in the above exe are as follows: (© Political Environment: “Make in India is an initiative launched by the Government of India to encourage national and multinational companies to manufacture thes products in India,” (Gi) Techmotogical Environment: "Under the initiative, brochures on the twenty five sectors and a web portal were released.” (il) Economie Environment: “It also secks to attract foreign capital investment in India.” (©) The two values which the Government of India wants to convey through this initia- tive are: (i) High quality standards (i) Concern for environment QUESTION 1 India’s retail sector has been undergoing structural changes for the hand, the ‘mall culture’ has gradually become a way of life, especiall metros. On the other hand, there is accelerated growth in e-business as to buy products and services via the Internet, telephone and television, H, in either of the segments is marked by the presence of strong competitors. Identify the components of specific forces and gene! paragraph. ANSWER: The components of specific forces discussed in the above competitors. The components of general forces discussed in the above paragraph ig aie technological con Social QUESTION 11. Kapil Sharma is working as the Country Head of a company which owns a gp. under the name of ‘Virtuoso’ in the various parts of India. Through an analysig of malls re i : e business environment, it has been brought to his notice that in the coming years a ofthe ing a 88 D Case Studies Mentor in Business Studies haen. 7 tal forces being discussed in the above Paragraph are the customers and and will ot Be a NeCESSILY for the buyers so time with ease and at the uch more than shopping cae Purchases can be made online from anywhere to be able te gee enience. Hence, malls will have to fo attract customers. So, he recommends that a eS inlo recreation centres, offering more spaces t0 Provide ample Food and Beverages options. wo’ malls should to be restructure vie, host events and concerts, uently the share of ente Consed ie ee el Segment and Food and Beverages segment in rerall snall spa ed by 20% Agena : : rihe first mover advantage. 4 result, the company gains enormously by in context of the above case ; Define the term ‘Business (5) Explain the terms ‘Threats’ ” by quoting lines from the paragraph. ANSWER: (a) The term “Business Environment’ means the and other forces that are outside the affect its performance. (0) The term ‘Threats’ refers to the exte: hinder a firm’s performance. “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 case 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 trends or changes that will help a firm to improve its performance. “As a result, the company gains enormously by getting the first mover advantage.” QUESTION 12: ‘sinteresting to know that the menu items of the multinational food chains are customised suit the general palates of the local people in the region. When McDonald’s started its fusiness in India in the year 1996, the company went through a complete localisation strategy. ‘kDonald’s changed its product menu to accommodate the vegetable burger given the large ‘elerian population. It also altered its store design and even reduced the product price by “se to fifteen per cent. Also , the “McAloo Tikki burger” is not available anywhere but in * Indian outlets of McDonalds. 'dentify the relevant feature of business environment being discussed above. ANswe *eltivty is the relevant feature of business environment which is being discussed above. sum total of all individuals, institutions control of a business enterprise but that may mal environment, trends and changes that will SUESTION 13; sattiendly products are gaining p ower as the consumers” awareness about environmental es has j par tie “} they aze conscious about choosing products that do “ees vee yn ey ae coin rut coon rails td advers e env ; oie ay tN and. Ginseng effects, and want themselves to be ‘seen’ as a green advocate 2°98 their peers, In suckea scenario, it has become a challenge for the companies as they “10 not only meet the needs of the consumers but also ensure that their products are Business Environment ® 89 is growing need for better a, safe and cnvironment friendly, As a result, there is growing, ind diag, i ci in this regard. technologies to works as a catalyst in ae ; ire of business environment being, discussed above, (a) Identify the relevant : ee 7 i" (b) Describe briefly any three points which highlight the importance of bus environment and its understanding by manager: ANSWER: (a) Inter-relatedness discussed above ‘ness environmne (6) The three points which highlight the importance of business environment ang i understanding by managers are described below: / () Ml enables the firm to identify opportunities and getting the Pee advantage h dynamic business environment provides numerous opportunities a i Usiness 5 evolve as per the changing needs. Therefore, early identification of the forthcomin, opportunities helps an enterprise to be the first to exploit them instead of losing them to the competitors, (1) 1 helps the firm to identify threats and early warning signals: Sometimes the change, 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. (iii) t helps in tapping useful resources: As the enterprise designs policies that allow it tp get the resources that it needs so that it can convert those resources into outputs that the environment de: QUESTION 14: Im the year 2016, the State Government of Kerala had made it mandato: y hostels and canteens in educational institutions to secure the Food Safety and Standa , ry Authority of India (FSSAI) licence to ensure food safety. As the educational institutions also get categorised as food business ee ene 07 tne omni Conse oh Gt note they run exceeding @12 Jakh per annum, In context of the above case: (@) Identify and explain the various dimensions of business environment being referred to here. (®) List any two values which the State this initiative. ANSWER: (@) The various dimensions of business environment being referred to in the above case are as follows: i Political Environment: Political environment includes political as general stability and peace in the country and specific attitu government representatives hold towards business. Gi) Legal Environment: Legal environment includes various legislations the government administrative orders issued by government author judgments as well as the decisions rendered by various commissions © at every level of the government—Centre, State or Local. (® The two values which the State Government of Kerala wants to convey through this initiative are: a () High quality standards (i) Good health Mm is the relevant feature of business environment which jg bei Government of Kerala wants to convey through Conditions such ides that elected Passed by ities, court ind agencies 90 > Case Studies Mentor in Business Studies-XIl country’s ON 1 stamps have been unveiled to commemorate 0 y x exchange the Bombay Stock Exchange (SE). The He ae the greatest wv olution that took place in the financial markets in India as it acts ev driver for economic growth ofa country, This is due to the fact that there exists a strong pital accumulation creation tp content of the above case: rs of existence of the setting up of BSE is considered asa quest! t ste between economic growth and ea ness environment of India being referred here. (2) Mentify the dimension of bus state any three factors which broadly affect the dimension of business environment of India as identified in part (a) of the question. ANSWER: () Feonomic environment is the dimension of business environment of India being eterna here. ) The three factors which broadly affect the economic environment of India are stated below () Stage of economic development of the country. (i) The economic structure in the form of mixed economy which recognises the role of both public and private sector: 1S, including five year plans, annual budgets, and so on Feonomic plan QUESTION 16: organic food market in India is growing at 25-30 per cent which reflects a clear shift in the organic food market is driven srsumer tastes and preferences. The current growth py multiplicity of factors like rising health consciousness, changing lifestyles, increase in Espoble income and growing, availability of organic food products in shopping malls | outlets and online. tn context of the above case: (o) Identify and explain the features of business environment being referred to here (b) By quoting phrases from the paragraph identify the various components of general the organic food market forces which have led to a growth ANSWER: (2) The features of business environment being referred to in the above case are as follows ()) Dynamic nature: [tis dynamic in nature and keeps on changing due to technological the upgradations, shifts in consumer preferences or increase in competition i market (ii) Inter-relatedness: All the elements of business environment are closely interrelated y necessitate corresponding changes in Therefore, any change is one element the other elements as well (8) The various components of general forces which have Ted to a growth inthe organic food market are as follows: () Social: “rising, health consciousness, changing Hestyles” ncrease in disposable income” availability of organic food products in shopping malls, (1) Economie: (4) Technological: retail outlets and online Business Envionment ® OL QUESTION 17: eatilly oc ed ex doesnot won To wo et ye ronan mai cy does not want to work just for monetary benefits but also ha Wind oe Me eg ‘" he works for in the society matters a lot to him Therefore, he up fi built fe Jeg Technologies a Bengaluru-based Infotech company. The te lsdine > eee a “waste recycling plant. The company strives to be one of the oe : id pla ve s, Hs bus, which has huge potential not only in terms of generating huge reven Sand protiy | also wants to contribute to the environment issues that have become crucial worldwide » LeamPany sees big business in the mountains of e-waste in Bengaluru which Produces 29) tonnes of e-waste a year. The company plans to make its millions by extracting Metals 5, as gold and platinum from the “waste piling up in the city. As a mobile phon for an, 1s made up of a combination of rare earth and precious metals: it contains 250 mg of yi 24 mg of gold and nine mg of palladium while» laptop has 1,000 mg of silver, 229 ny Bold and 500 grams of copper. To start the business, the Pollution Control Board). company has obtained a licence from KSPCB ( Karnataka Gy In context of the above case: (@) Identify the various dimensions of business « lines from the paragraph, (0) List any two values which the ANSWER: (a) The various dimensions of bu: case are as follows: (i) 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. (i) Legal Environment: Legal environment includ the Government administrative orders is judgments as well as the decisions rendered by various commiss;, at every level of the government— centre, state or local, (ii) Social Environment: Social environment includes the social fo, traditions, values, social trends, society’s expectations from (0) The two values which the Cerebra Integrated Technologies wa; this initiative are: (@ Sustainable development (ii) Concern for environment. nvironment being referred to by quota company wants to convey to the society. siness environment being referred to the in the above rces like customs and business, etc. ints to convey through QUESTION 18: local mahee Keer ; ! : f f hiner, Keeping in mind th : t is running an ice cream parlour in a local r sin a ee about health among the people, one of his employee Abhiraj suggests to pom the should introduce a range a flavoured yogurt. Bl et accepts his suggestion as a result both the image and the profitability of his business increases. sn content of the above case: (a) Identity the feature of management which is being highlighted. state the related dimension of the business environment : @ A {Name and explain the related principle of general management. ANSWER: fay The feature of management which is being highlighted is Dynamic. {hythe related dimension of the business environment is Social {y the related principle of general management is Initiative. ould be means taking the first step with self-motivation. The workers shi Suggestion system should Inti uoraged to develop and carry out their plans for improvement, sviopted in the organization. QUESTION 19: an Union the new trade agreements

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