3. (b) 4. (c) 5. (a) 6. (c) 7.

(a)
Ill. Match the following
1. (b) 2. (c)
JV. Assertion-Reason Ques·t·ions
1. (a) Both the statements (A) nd )
a (R) are correct and (R) is the right explanation of (A
2. (b) Boti1 tl1e statements (A) d f (A)
(d) B th t t an (R) are correct but (R) is not the right explanation °
3. o s a ements (A) and (R) .
are mcorrect
4. (a) Both the statements (A) d . A)
an (R) are correct and (R) is the right explanation of (

LATEST CBSE QUESTIONS

QUESTION 1: ..
Tmku is a eight year Old b
'f f h f
· f: /
oy. As his mother's birthday was drawing closer he wante to
d
buy a gt t or
. er rom. his pocket money. So he decided to empty out his . piggy
· bank · He
calcul~ted his total savmgs as ~ 2500. When he shared his plan with his father he agreed to
take him to a nearby mall to buy a gift. Tinku selected a beautiful handbag for his mother
worth ~ 2500 at a store. When Tinku handed over the !l\Oney from his piggy bank to the
sh~pkeeper, he r~fused to accept a five hundred rupees note saying that it is no longer a
vahd currency. T~u "':as very surprised. ::rhen his father explained to him that what the
shopkeeper was saymg is true as that particular type of five hundred rupees notes have been
discontinued by the government. ) (CBSE Delhi 2020)
In context of the above case:
(a) Identify the concept being) discussed in the above paragraph because of which a
currency note becomes invalid,;
(b) State any three features 0f _the/concept as identified in part (a) of the question.
4,
ANSWER:
/ -- ~--
The concept of Demon_etisation is being discussed in the above paragraph because of which
a currency note becomes in'valid. When a currency note of a particular denomination ceases
to be a legal tender it js termed as demonetisation.
The three features "of demonetisation are stated below:
(a) Expensive process: Demonetisation has huge cost as it involves removal of old currency
units from circulation in the economy and printing of new currency units. This cost
has to be borne by the government.
(b) Effect on consumption: The introduction of demonetisation immediately affects the
trade and consumption if an economy if it is heavily dependent on cash for monetary
transactions.
(c) Multiple Purpose: Demonetisation ma~ be initiated by the govemmen~ to a~hieve
multi facet purposes like to curb circulaho~ o~ black money, to check fundmg of illegal
activities such as terrorism and drug trafficking.

Business Environment ► 67
 QUESTION 2:
The Gove rnme nt is consi derin g a pione er propo sal to launch
a single debit-cum-erect·
increase the ease and usage for the consumers. The card which
will be called the ,,~ca:d •
Mobi lity Card" will have uniqu e advan tages for makin g paym
ents in metro, bUSes atir>!.
and maki ng transa ctions durin g visits abroad. After heari ng
to launc h a "Meg a Mobility Card" on similar lines, so that
this news , Mega Bank~ar~~
they could be the first to eci -
the oppo rtunit y, arisin g due to the increasing trend of di~iti
perfo rman ce, they laid down a plan to hire more peopl e 111
sati?n. In or~er to improv;:r.-
their mark eting department ~
prepa red guide lines to train their sales force to mark et the
new card facility being laun ~
by the bank. By quoti ng the lines, identify and expla in any
two point s of importan~ ;
unde rstan ding Business Envir onme nt discussed above .
(CBSE Sample Paper ll)Jg
ANSWER:
Follo wing are the point s of impo rtance of under stand ing
Business Environment discus~
(Any two).
(a) It helps to identify opportunities and get first move
r advantage: "After hearing th:!
news, Mega Bank decided to launc h a "Mega Mobility Card"
on simila r lines, so~\
they could be the first to exploit the opportunity, arising due
to the increasing trena
of digitisation".
The dynam ic busin ess envir onme nt provi des nume rous
busin ess to evolv e as per the chang ing needs . There fore,
oppor tuniti es for J
early identification
the forthc omin g oppo rtunit ies helps an enter prise to be
the first to exploit them
instea d of losing them to the comp etitor s.
(b) It helps in improving performance: "Impr ove their perfo
rmance---"-
Sometimes the changes in the external envir onme nt may pose
as a threat and hinder
firm's performance. An awareness about the busin ess envir onme
nt helps the manage -
to identify such threat s on time and take necessary decisions
and action.
(c) It helps in assisting in planning and policy formulation
: "They laid down a pl .
to hire more peopl e in their mark eting depar tmen t and prepa
red guidelines to tr.un
their sales force"
(d) It helps the firm in identifying threat and early
warning signal: "Improve existinf
card facility--------" -
QUESTION 3:
India 's craft heritage is surviving because of its custo ms and
tradit ions. Craft products n1.idt
by craftsmen of Rajasthan, Gujarat, Assam, etc. are not only
used in the count ry but are a!Sl;
exported to USA, Germany, UK, France and other count ries
of the world. The volurne ~~
exports of ~ese products gives India an advantage in balan
ce of paym ents and the rnu1.
needed foreign exchange. The Prime Minister desires that the
handicraft indus try shoulJ_be
expanded by linking it with technology. Focus should be
on changing the manufacturW:
process, ensun·n~ durabil'ty 1 ~d ad_optin · g innov
· ations. Quoting the lines from the abllv~)
paragraph, explam any four dunens1ons of the business envir
onment. (CBSE, OD 2019
ANSWER:
The four dimensions of the business environment described
follows: in the above paragraph are aS

68 ► Case Studies Mentor Jn Business Studies-XII

 (a) Social enviro nment : Social Enviro nment include s the social forces
like, beliefs, custom s
ss, etc. The
and traditi~ns, values , social trends, society 's expect ations from busine
a busine ss
demog raphic factors also have a great influen ce on the social enviro nment of
people , level of
like, size, growth rate, compo sition of population, life expect ancy of
literacy and so on.
ns."
Quote: "India 's craft heritag e is surviv ing becaus e of its custom s and traditio
(b) Economic enviro nment: The econom ic enviro nment comprises
of all those econom ic
ss enterp rise
forces which are likely to exert an, influence the functioning of an busine
y, level
like, the econom ic system wheth er it is capitalist, sociali st or mixed econom
of incom e of
of economic develo pment , availab ility of econom ic resources, the level
nt positio n,
people, econom ic policies, rate of inflation, exchan ge rate balanc e of payme
ent, change s in
gross national produc t, per capita income, rate of savings and investm
etc.
disposable incom e of people , stock marke t indices and the value of rupee
in balanc e
Quote: "The volum e of export s of these p roduct s gives India an advant age
of payme nts and the much needed foreign exchange." ./
(c) Technological enviro nment : Techno logical Enviro nment includ
es forces relatin g to
ing goods
scientific improv ements and innova tions which provid e new ways of produc
and services and new metho ds and techniq ues of operat ing a busine ss.
durabi lity
Quote: "Focus should be on changi ng the manuf acturin gy r~ ess, ensuri ng
and adopti ng innova tions." \

(d) Political enviro nment : The variou s aspects relatin g to4he functio ning
of the govern ment
in the countr y where the business operat es also have an import ant bearin g on it
l stabili ty
smooth working. The main constit uents of political enviro nment are genera
, ideolo gy
and peace in the country, organi sation and philos ophy of political parties
s pursue d
of the govern ment, the image of the countr y and its leaders, foreign policie
s types of
by the govern ment in power, attitud e of the govern ment toward s variou
business organi sations etc. _ /
expan ded
Quote: " The Prime Minist/r desires that the handic raft indust ry should be
by linking it with technology."
/
QUESTION 4: (
al fertilizers
Mahinder Agro Ltd. started a new ventur e for distrib ution of harmfu l and chemic
such vegeta bles.
free vegetables. They condu cted a survey to find out consum er preference for
l chemic als
They found that most of the consum ers were concer ned about the harmfu
were search ing
being used in growin g the vegeta bles. They found that 90% of the househ olds
expert s to lay down the
for its alternatives. The compa ny contac ted a group of agricu lture
the farmer s in
procedure for growin g the vegeta bles by the farmers. They decide d to train
tive metho ds.
new technology to grow chemical free vegeta bles according to new Tech. innova
s would be
The experts also sugges ted soil manag ement techniq ues throug h which farmer
able to create an abund ant and lasting harves t.
in the above
Identify and explain the two dimen sions of busine ss enviro nment highlig hted
para. (CBSE, Delhi 2019)

ANSWER:
paragr aph are as
The two dimensions of busine ss enviro nment highlig hted in the given
follows:

Business Environment ► 69
 0

(a) Social environment: Social Environment includes the soci~, ,v,~~ =c, De[·
customs and traditions, values, social trends, society's expectatwns from business lefs,1
1
t
~
For example, the business environment of a firm ~hich operates m a cosmop; i
city will be different from a firm which ope~ates a rural area. Th~ demogra %J
factors also have a great influence on the social envlfonment of a business like, fhi
growth rate, composition of population, life expectancy of people, level of liter~'
and so on. C)
(b) Technological environment: Technological Environment includes forces relatin
scientific improvements and innovations which provide new ways of producing ggm
and services and new methods and techniques of operating a business. OOds

QUES,.ION 5: is an electronics goods manufacturing enterprise situated in Shivpuri, Madh

'Konark Ltd.'
Pradesh. It is eaming a very low revenue in comparison to a competing electronic g )'l
manufacturing enterprise, 'Nova Ltd.' situated in Mumbai. Both Konark's and N ~ s
opera~ons are
affected directly by the investors, customers, competitors and suppliers, ;~as
are umque t_o their respective locations. In addition to this, individual firms of this field:
affected mdrrectly by the factors like the money supply in the economy, compositio f '
families, the technological changes, etc. n the °
(a} Identify and state the feature of the concept discussed in the above paragraph.
(b} Also, state any four points of importance of this concept. (CBSE, Delhi 20lS)

ANSWER:
The concept of Business Environment is being discussed above.
and G
Specificcustom::era1F .
specific such as isinvestors,
forces feature
Its related orc~s: Busmess en_vironm~nt consists of boll
enterprises directly and immediately . th'c?mdpetitors and supJ:>hers which affect
. m eir ay-to-day workmg d 1 f individual
as socia, political, legal and technological d ·t· an genera orces such
·1 and th us may affect an individ con
enterpnses i 10ns which
. . hav ·
e rmpact on all business
. ua1 fi rm on1y mdirectly.
The four points which highlight the im ort
understanding by managers are described befow_ance of business environment and its
(a) It enables the firm to identif o . . .
advantage: The dynamic busines~ p~ortumhes and getting the first mover
1
prov·d
·
for ab usmess to evolve as per the environment
ch . es numerous opportunities
?f.the Jorthco?'ing opportunities help:'!:~tee~s. Therefore, early identificatio!l
(b) mstea of losmg them to the competitors erpnse to be the first to exploit theJ!l
It helps the firm to identify th .
An ·
a external environment
in the may and early
reatspose as a thr ·
wamin g signals: Sometimes the changes
.
on tim about the b usmess
wareness
threats environment eath Iand hind er a fi rm's performance,
(c) It he! . e ~nd take necessary decisions and e p: the managers to identify sudi
ps m tapping useful reso ac on. 11
to get
that thethe resources
• th . urces: As the
at 11 needs so that it ise estgns policies that alloW .
enterpr· d .
(d) It b • desires.
environment can convert those resources into outpu~
e1ps 1n improvmg performance•
through continuous
which help to . momtonng It helps in impro
. . of the •environment . perfonnance of an enterprise
d vmg
improve both their present and fi t an adopting suitable business practices
u ure perfonnance.

70 ► Case Studies Mentor 11\

. Business Studies-XII
QUESTION 6:
!1 11
It is heartening. ~~~'t e it~ l'~nl'n tnti~m of cmnplinnce requirements of the Companies Act,
th
2013 has progicssc,d suh~t(~nlH~lly wit h NlPTY 500 companic•s . Data shows a sign ificant
increase in wonwn ~ parhnp,nlt on in the top mnnngt'm<•nt of Jndian Compan ies from 5%
few years ago to 13 ,~) now. Evrn compnniPs wh ich are not in NrFTY 500 have undertaken
Jri\'t"S to increase wo~1wn 's partidpnli on Across d iffr•rent areas of work. The governmen t had
also announced . th nt it wm.i ld 8 t1 PP 0 rt such com pani Ps. Identi fy and exp lain the dimensions
of t,usi1wss rnvm.mment disrnssed above w hich bro ugh t about the change.
(CBS£, Sample Paper, 2018)

\"\«;\\ FR:
Tor dimensions of Business environment discussed above which brought about the above
change are:
(a) Legal Environme.n ~: Le~al Environment includes various legislations passed by the
Government adm1:°~strahve orders issued by government authorities, court judgments
as well as the dec1s1ons rendered by various commissions and agencies at every level
of the governm ent-centre, state or local , -'
(b) Political Environment: Political Environment incl;des political conditions such as
general stability and peace in the country and specific attitudes that elected governme nt
representatives hold towards business. I )) v

. . ,\~.. . . _,;I/
f(,--~
ADDITIO NAL QUESTIONS
QUESTION 1: . . <,~
Farhan is a well known corporate traine~ Itt.,every leadership development program that he
conducts Parhan urges the managers to be alive to the changes in the business situations and
foster an ability to envision upcoming opportunities as well as potential risks.
In context of the above caseJ
(a) Why is it important;,for the managers to foster an ability to envision upcoming
opportunities? ...... "-,)
(b) How does prior knowledge
..,. of potential risks helps the business managers?

ANSWER: \)
(a) The dynamic business environme nt 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.
(b) 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.

QUESTION 2:
There is a difference between operating environment in India and other countries. Like India
0
~ers many advantages to the outsourcing firms in terms of lowered costs and access to a
Wide talent-base.
Identify the feature of business environme nt being discussed above.
Business Environment ► 71
!". ~- ~-~
6 ~~:,\"' ac-:----..~.~ ~e ~,,--_-i'L
!.:::--~.:---,- a-:-d e:x::2:-:-- ~-:--;
- ~
t-.,,-;-:, c.::::e::=£..:~ ci ::r-...s e.:.~ e::-.= ::r-e:: r =.=:r-~ _ _,..:.r:i? =-...i ::.._ :::e:
5
,_,,,. ._ .,-,. A , .,,...,,,_,_~,,,r,G.. (ft"<--:- = c:.--7.::.....-r-t- !':"..:::
• • c:;. L "'''"-' l,.,,.~r;,, , . ,,l),.;:,:. , ~ -,. · ~- ~ ~ • '---~ t:f:!-·~
-
r-~---==: :::i r - t? ;._,, - t? ;;:;-• :"'Ii: ., ' x.' ~ ~

T«hno lr,,.~c al £n~iro nmenf : T~:.u =-•~•:; : "' E::::~=-.,_r-.-:r:-r I::..---,=-= _:

fa)
<,c_~~:-=~ irr1-;:,r0ver-::er:::.~ cr.d I:-~- ~L.s "'-=---=c:r r--c""' -.=-? ~ --- ....-=-: =:, ci. - =-=--~ ~i~t-
.__, =
a-:-K'.i ~_;1"",, -~ and nen r-r-~v...s a!"'.d ~ ~. --- ::ES e:: c~ ~ = 2. I:-::::::::,--=-t:'.S::;..
~~-=---=
(!;J Eumm nk Env iron men t~ Emi= a:=-e: t m ,.
·-.,.-., oft-;..~ :.=__.;:_j_ m ~~
m.m21 ~":rnen t practi a:s in a busine ss e--~ ~ ird: ;,,--= fS i, · P""'""ci: ra-::cs.
i= =' - :.=.~ r:;;5,
chan~ ~ in dispos able inrom e of people, stock n:.ar: ~ ~ and
6e ~-:x c l ~
etc,,

Srnart Citi~ Mi~io n is an urban :renew al and retrofi tting progra m by

the Go~em n~rt (i.
Jndia with the mi~frm to dev~lo p 100 cities across the countr y makin g
them citizen ~"'y
and su~tainab)e. The t:'nion Minist ry of l:'rban Devel opmen t is respml51JJle
for implem dlt:'~
the mi"io n in coJJaboration with the state govern ments of the respec
tn-e cities. Gties "~
be ~JE!Cted ba~ on the Smart Cities challenge, where cities will compe
te in a count ry"~
a,mJX-,tWc,n to obtain the benefi ts from this missio n. It is a five-ye ar progra
m, where allot
the Jndian &tat.es and Union territo ries are partici pating , except \-\,,est Benga
l, by nomin.atir.g
at J~a~t one city for the Smart Cities challen ge. Each city will create
a corpor ate comf'clllY•
heade d by a full-tim e CEO, to implem ent the Smart Cities Missio n. With
the Goven undlt
annou ncing an outlay of around USD 8 billion for creatin g 100 smart cities
many intematiOIW
a,mpa nk-s may expre~s intcr~ t to collab orate with Indian compa nies
and the Govenunt?J\1
to build infra~t ructure , transp ortatio n, renew able energy and other Green
field projec ts in the
countr y.
Identif y and explai n the variou s dimen sions of busine ss enviro nment being
referre d to
the in the above caffC.

ANSWER:
The variou s dimenHions of busine ss enviro nment being referre d to the in
as follows:
the above case are

72 ► CIN Studln Mentor In Buslneu Studies-XII

 h as
ironmen t incl udes politica l conditions suc
(a) Politica l E~~iron ment: P~litica l Env u des that elected gov ernm ent
general sta~ihty and peace m the cou ntry and specific attit
representatives hold tow ards business.
ting to
(b) Technological Environment: Techno
logical Environmen t includes forces rela
ds
ntific imp
_ rov eme nts and inno vati ons which provide new ways of pro ducing goo
scie
ti.qu es of operatin g a business.
and services and new method s and teclu affect
(c) Economic Environ_men~: Eco nomic
Environ men t compris es of factors that can
s,
rpri se includes interest rates, infla tion rate
management practices m a business ente valu e of rup ee
stock market indices and the
changes in disposable income of peo ple,
etc.

_QUESTION S: e
cati on syst em is und er pres sure to ada pt to a rapi dly changing wor ld. To keep pac
India's edu is ado ptin g
ut by digitization, our education syst em
with a global par adig m shift bro ugh t abo of
urce s and met hod olog ies to imp rov e accessibility, qualify', and scale. Nea rly 89%
digital reso and 63%
ia like videos to enhance their edu cati on
Gen Z students prio ritize usin g digital med
beli eve in incl udin g mor e tech nolo gy focused interactive sessions to bett er
of their teac hers hea vily on
s, but the goverll!Ilfn t is also inve stin g
prepare students. Not only organization chin g
the edu cati on syst em be it with reva mpi ng the National Educati on Policy, laun
bettering
Skills Indi a initiativ e, etc.
I, ', \~
rred to
ons of bus ind s :,env iron men t bein g refe
Identify and explain the vari ous dimensi
the in the abo ve case.
&- - '"' 1/
ANSWER : \I',;
are
iron men t being referred to the in the abo ve case
The various dim ens ions of bus ines s env I.

:,; ent me
. onm . Iu d es po1·1hca . ns sueh as
. 1 cond'1tio
as fo(all)oPwsl~ . 1 E . ronment : P ol'ti'
1 ca I Envrr
o 1hca nVI ent
and specific attit ude s that elected gov ernm
general stability and pea ce in the cou ntry
representatives hol d tow ards business. ting to
logical Environment includes forces rela
(b) Technological Envfronment: Techno ds
ntific imp rov eme nts and inno vati ons which pro vide new way s of pro duc ing goo
scie
niques of operating a business.
and services and new met hod s and tech s and
(c) Social Environment: S~cial Env iron
men t includes the social forces like cus tom
aph ic profile, society's expectations from
traditions, values, ·social trends, dem ogr
busm . ess, etc. .;
~

QUESTION 6:
Ind ian e-pa yme nts and e-co mm erce bran d bas ed out of Delhi NCR, India.
Paytm is an y One97 Communications.
Launched in Aug ust 2010,it is a con sum er bra nd of pare nt com pan 00
e is an acro nym for "Pa yme nt Thr oug h Mobile". The com pan y emp loys ove r 13,0
The nam a. It also
3 million offline merchants across Indi
employees as of Jan uary 2017 and has Pay tm
the Pay tm pay men t gate way and the Pay tm Wallet. Starting from March 2017,
operates eted eac h
laun ch of Paytm Canada. Pay tm has targ
expanded its services to Can ada with the er bec aus e
every pers on irre spec tive of age, inco me, gen der or stat us as its target cus tom
~nd are
er of India. Some of its major com peti tors
1
! Wants to penetrate in every noo k and com mul tipl e
oney , Airt el Mon ey, Mo bikw ik and Free charge. It acts as a por tal to sho p for
JioM eco nom y
The gov ernm ent is pro pag atin g cashless
products from apparel to electronic items. k of Ind ia
Y em and this has help ed pay tm in its
5 st endeavour. In the yea r 2015 Reserve Ban

Business Environment ► 73
 . on
_ ank . India . J:kmo netiz. ation of currency n. •l f(l ~•
pro,
grar..ted it a licen_~ to start br t _ray-men! ~
1, 11.:
5 m anv and led to a s ubsta ntial inc:r e~~ . , 1,t1Y l
romr ., 1l:I tL ' . tht' f (.)
has aL;;o "·o:-ked hearu y in the ta\·ou r ot e "tl t::l
f)
actiYe u.....;;.ers.
l.
1L-tenti1
be. ,.
In context of the atxwe case: p,l.lL• ;-1 O\!rap
(.2) Ident ifr and e,r lain any three dime nsion s of t,usin
ess en~ir onme nt mg referted to
rar . }\Nsw ER:
the in the alxwe case by quoti ng lines from the rarag
ihe cot:1P
(r) Outli ne the conce rt of 'demo netisa tion'. ,001P et1to

ANSWE 0 •
. . 'fhe C<
. dim . of busin ess en,ir onme nt bemg referr ed to the m the above
(a) The vano us ens1o ns techn olo~
case a.re as follows: ment s and e-commerce
. al reLnvu• ent -"Pav tm is an India n e-pav ., ouESTIO
(i) Technolog1c onm ., _
J(apil Sh,
brand based out of Delhi KCR, India."
gatin g cashl ess econo my system unde r th
{ii) Politi cal Envir onme nt "The gm·er nmen t is propa
busin ess
and this has helpe d paytm in its endea vour. "
of India grant ed it a license a rnall w
(iil) Legal Envir onme nt "In the year 2015 Reser ve Bank and at a
to start first paym ent bank in India." prov ide
(b) Demonetisation is the act of scrap ping a curre ncy
unit of its statu s as legal ~en~er. 'Vutu OSI
As a result of which the natio nal curre ncy chang es.
The proce ss of demo netisa tion socialisE
d out of circul ation and
necessitates that the curre nt form or forms of mone y is pulle Con:
retired and it is replac ed with new notes or coins. the ove
getti ng
QUESTION 7:
Make in India is an initiative launc hed by the Gove rnme
nt of India to encou rage natio nal and In C
India . It focus es on job creation
multinational comp anies to manu factu re their produ cts in (a) .
econo my. Unde r the initiative,
and skill enhan ceme nt and is in twent y five secto rs of the (b)
The initia tive aims at high quality
brochures on these sectors and a web porta l were releas ed.
stand ards and minim ising the impac t on the envir onme
nt. It also seeks to attrac t foreign ANSW
capital investment in India. (a)
In context of the above case:
being referr ed to by quoting
Identify the variou s dimen sions of busin ess envir onme nt
lines from the parag raph. (b)

ANSWER:
ed to in the above case are as
The variou s dimensions of busin ess envir onme nt being referr
f0 11ows:
1 ch d b the Government
(i) Political Environment: "Mak e in India is an initia tive Y
n .e
of India to encou rage nation al and multi natio nal comau parue s to manu factu re their
produ cts in India. "
on th tw ty fi ectors
(ii) Technological Environment: "Und er the initiative, broch ures e en ve s
and a web porta l were releas ed."
·t 1 • . d" "
(iii) Economic Environment: "It also seeks to attract forei·gn cap1 a mves tmen t m In 1a.
Que
QUESTION 8: It is
e
India's retail sector has been undergoing structural changes for the 1ast two decades On on to S\!
, has · d 11
hand, the ' ma11 cu1ture . the metro s an
gradually become a way of life, especi·a 11y m _.;ni-
..... - bus· 1

74 ► Case Studies Mentor in Business Studies-XII

 re is cacce1era ted gr th . b . also prefer
metros. On the oth er han d, the the t ow me - usm1ess. .as customers .
ser vic es via In crnet teleph one an d te ev1s1on. However, operating
to buy pro d ucts and . , .
. f th e segments 1s ma rke d b the :
in either o Y piesence of strong competitors ·
.
Identify the com po nen ts of spe
cific f discussed in the above
orces at1 d genera l forces being
paragraph.

ANSWER :
ces discussed m • th tomers and
The components of specific for e above paragraph are the cus
competitors.
. .
s of gen era l forces dis d • th par agr aph 1s the social and
The com pon ent cusse m e above
technological con dit ion s.

QUESTION 9.
Co t H ead of a company which owns a chain of malls
Kapil Sharma is
der the nam e
wo rki ng as ' the
of 'Vi rtu . th un :Y lysis report ?f the
~:~ b:e n ~ var iou s p~ ts of _India. 1:1rough ari_ anayea rs, sho pp mg at
:in es s environment, it . rou gh t to his notice that m the
commg
. m anywhere
for the b uyers as pureh ases can be made orume fro ·
a ma ll will no. t b e a .necessity • ce. Hence malls will have to
at any tim e wi th eas e and at th e consumer ,s conver,uen
and . ble to attract customers. So he ' recommends that
ch mo re tha n sho pp ing t o b e a
ProVIde mu uld to be restr uctu re d mt · o recreat10 · g more spaces to
· n centres, off' erm
'Virtuo so' ma lls sho ages options.
. .
st eve nts an d con cer ts, and provide ample Food and Bever
soCiahse, ho ment in
of ent ert ain me nt ~eg me nt a~d Food and Beverages seg
Consequently the s~a~e 20%. As a result, the compan
y gains enormously by
1s mc rea sed by
the overall ma ll spa ce
age. -:!/
..., .-.,,.\,,
getting the first mo ver advant .A,
\
:
In context of the abo ve case
Environment'.
(a) Define the ter m 'Business s from the paragraph.
in the ter ms 'Th rea ts; ·and 'Opportunities' by quoting line
(b) Expla /\
.
ANSWER: titutions
En vir onm ent ' me ans the sum total of all individuals, ins
(a) The ter m 'Business ma y
out sid e the con tro l of a business enterprise bu t tha t
ces tha t
and other for are
affect its per for ma nce . changes that will
'Th rea ts' ref ers to the ext ernal environment, trends and
(b) The term
hinder a firm's performance. ug ht to his
aly sis rep ort of the bus ine ss environment, it has been bro
"Through an rui. be a necessity for the
tha t in the com ing yea rs, sho pp ing at a mall will no t e with ease
notice from anywhere and at any tim
rch ase s can be ma de onl ine ch more
buyers as pu He nce , malls will have to provide mu
er' s con ven ien ce.
and at the con sum
attract customers ."
than sho pp ing to be able to ext ern al trends or changes that will
help
' ref ers to the pos itiv e
The term 'op po rtu nit ies
nce.
a firm to im pro ve its performa advantage."
, the com pan y gai ns eno rm ously by getting the first mover
"As a result

QUESTION 1O: ins ar~ customis~d

t the me nu item s of !he multin~tional food cha
It is interesting to kn ow tha nald s started its
l pal ate s of the local peo ple m the reg10n . When McDo n strategy.
to suit the genera com pan y we nt through a complete localisatio
yea r 1996, the
business in India in the
Business Environment ► 75
 t-.k P,m ,,\d 'H drnn gl'd it s pmd uct m('llU
Lo acco mm oda te th e veg etab le bur ger give
\'t'~t't,u·i,m pl)p ula tion . 11 nlso nll l'l'l'd il,-; n the lar
i-. torc cl<•s ign and c~c n rcdu cc_d th e pro
d,):--t' t\, fift,,,,n pl't' t'l'n t. A l so , the " M c/\ duc t price ~I!
loo Tikki bur ger" JH not ava il able any
tlw lndi ,m ou tld8 of McDonn ld s. wh ere but .Y
hlt'n tify tlw t\.'kvn nt fl•n tu re of bu Hincs s in
env iron m ent bein g dii;cw;i;cd above.
i\ ~~W fR.
Rl'l .1ti\'ity is th e rl' k va nt fl,a tu re of b
usin ess env iron men t wh ich ls b eing dii;c
ussc d above.
QL k::STION 11 :
In tht' Yl'nr 2016 , the Stat e Gov ern m ent
of Kcra la had mad e it man dato ry for ang
hos tds and can teen s in edu ca tion al ins anwadis
titu ti ons to secu re the Foo d Safe ty and
Aut hor ity of Ind ia (FSSAI) licence to ensu Standards
re food safe ty. As th e edu cati ona l in stitu
~t't cate gori sed as food busines s ope ra tors tion s also
in the event of the ann ual turn ove r of the
they nm exce ed in g ~ 12 lakh p er ann um. hostels,
In con text of the abo ve case:
Iden tify and exp lain the vari ous dim ensi
ons of bus ines s env ironmen t bein g refe
here . rred to
ANSWER:
The vari ou s dim ens ions of bus ines s env
iron men t bein g refe rred to in the abo ve
foll ows : case are as
(i) Political Env ironment: Political env iron
men t incl ude s poli tica l
con diti ons suc h as general
stab ility and pea ce in the cou ntry and
specific atti tude s that elec ted gov ernment
repr esen tativ es hold tow ards bus ines s.
(ii) Legal Environment: Legal env iron men
t incl ude s vari ous legi slat ions pas sed
gov ernm ent adm inis trat ive orde rs issu ed by the
by gov ernm ent auth orit ies, cou rt judgmen
as wel l as the deci sion s rend ered by vari ts
ous com mis sion s and age ncie s at eve ry leve
of the gov ern men t-C entr e, State or Local. l

76 ► Case Stud ies Mentor in Business Stud

ies-XII
 (a) Legal dime nsion and Social dime nsion
(b) Social dime nsion and Tech nolog ical dime nsion
(c) Technological dime nsion and Legal dime nsion
(d) Political dime nsion and Tech nolog ical dime nsion
ne
6. India '~ popu latio n i~ expe ct~d grow unde r 0.5 per cent durin g 2031-41 due to decli
t?
in fertility ~ate ~n~ mcre ase m life expectancy. Thes
e chan ges in India 's demo grap hy will
1 ing child ren will
entar y scho ol-go
also have. ~~hc ahon s ~uch as the prop ortio n of elem
and incre ase in retire ment age. The
witness s1gruficant declm es, lack of hosp ital beds
in the abov e lines is
relate d featu re of busin ess envi ronm ent bein g desc ribed
(a) Totality of exter nal forces (b) Dyna mic natu re
(c) Inter relat edne ss (d) Rela tivity
ratio n (ISF), India has emer ged as the
7. According to a repo rt by the India Staffing Fede
and the coun try wou ld have 6.1
fifth large st mark et worldwid e in flexi-staffing in 2018
ana, Guja rat, Karn ataka , M, .1ya
million flexi -wor kforc e by 2021. It show ed that Hary
th poten tial for flexi-staffin~ but
Prad esh and Tela ngan a are the state s with high grow
le busin ess envir onme nt. Ident ify the
Andh ra Prad esh tops the list of state s with favo urab
e.,
feature of busin ess envi ronm ent bein g discu ssed abov
(b) Dyn amic natu re (c) Unce rtain ty . (d) Inter relat edne ss
(a) Rela tivity -..,..._
n~ LJ .>
111. Match the follo wing by choosing the correct optio
.. \ -J

1. Colu mn A Colu mn B I

),,., (a) Oppo rtuni ties

(i) Supp liers and Cred itors "'',~
i .....
ent (b) Specific forces
(ii) Social Envi ronm ent and Political._
,., ~..,. ronm
Envi
pio!le,Y (c) Gene ral forces
(iii) Gain ing the profi ts for bein g a .,,
(d) First mov er adva ntag e
(iv) Positive exter nal trend s / A
'
(b) (i)-(b); (ii)-(c); (iii)-( d); (iv)-(a)
(a) (i)-(a); (ii)-(b ); (iii)-( c); (iv)-( d)
( d) (i)-(d); (ii)-(a); (iii)-( b); (iv)-( c)
(c) (i)-(c); (ii)-(d ); (iii)-( a); (iv)-( b)
..... ~ ~ )
2. Colu mn B
Colu mn A
(a) Economic Envi ronm ent
(i) Lifestyle and vah; es
..,,
(b) Political Envi ronm ent
(ii) Paym ents thou gh e-wa llets
(c) Legal Envi ronm ent
(iii) Rise in infla tion
(d) Technological Envi ronm ent
(iv) Attit ude of gove rnme nt towa rds busin ess
(e) Social Envi ronm ent
(v) Statu tory warn ing on adve rtise ment
...
(v.)-(c) (b) (i)-(b); (ii)-(e); (m)-(d); (zv)-(c); (v)-(a)
(a) (i)-(a); (ii)-(b ); (iii)-( e); (iv)-( d);
(d) (i)-(d ); (ii)-(a ); (iii)-( b); (iv)-( c); (v)-(e)
(c) (i)-(e); (ii)-(d ); (iii)-( a); (iv)-( b); (v)-(c )

IV. Assertion -Reason Questions

1. Assert·ion (A)·. Different e1ements of busin ess envi
ronm . ly inter relat ed.
. ent are close .
ess envi ronm ent nece ssita tes a
Reason (R): A chan ge in any dime nsio n of busin
corre spon ding chan ge in othe r dime nsio ns as well.

Business Environment ► 65