Q1.

What new opportunities you find interesting during the Covid 19 for a new
business venture, explain with examples

The impact of COVID-19, particularly on the business world, couldn’t have been predicted but
has been an incredible learning experience—especially for aspiring entrepreneurs. Social
distancing and remote work have forced traditional in-person businesses like restaurants, brick-
and-mortar retail and event services to get creative with solutions and stay viable while also
opening a world of opportunities for business owners to meet consumers’ new and evolving
needs.
Here are ideal businesses to consider pursuing, whether you’re making your entrepreneurial
debut or adapting the products and services you already offer to a changing marketplace.
Handmade products
E-commerce has always occupied an important space in the marketplace and the pandemic
showed us both the resilience of businesses selling online and the demand of community
members looking to support local and small businesses. Online stores are the best avenue for
aspiring retailers of homemade products like hand-knitted gloves, infused olive oil and more.
Crafters and artisans have a unique opportunity to build a following on social media like
Instagram and TikTok and turn their passion and skills into a thriving business on sites like Etsy.
Hobbies like woodworking, jewelry design or knitting can translate well into an online
storefront, as can basic digital designers who create templates for Cricut users.

Virtual workout classes and personal training

The pandemic showed many how important it is to maintain their physical health and immune
systems. In 2020, consumers were left to find creative solutions to get their exercise, and virtual
workout classes and digital personal training sessions entered the market with a splash.
Entrepreneurs with a passion for fitness and a background in physical education, kinesiology,
and nutrition or exercise science can translate their skills into virtual classes and one-on-one
sessions with the work (out)-from-home crowd. An overwhelming majority of consumers have
been accessing prerecorded fitness videos (73%) and live streamed classes (85%) during the
pandemic so there’s plenty of demand for this content. Offer a variety of skill levels to reach
every audience—from the fitness buffs to those just beginning their fitness journeys

Home beauty kits

When hair and nail salons were shut down, people adapted by creating their own beauty routines
in quarantine. Though lockdowns are lifted, consumers may still be more apt to try out new
beauty products as they pamper themselves in the comfort of their own homes.
2. What are the five factors of production? Why these resources are said to be
used effectively? And what benefits do they provide to the business enterprise?

Understanding the Factors of Production

The factors of production are what's needed for a company to earn an economic profit. The four
factors of production are:
Land
The land is any natural resource that's needed or used in the production of a good or service.
Land can also include any resource that comes from the land such as oil, gas, and other
commodities such as copper and silver. Typically, land includes any natural resource that's used
as raw materials in the production process.
Labor
Labor consists of the people that are responsible for the production of a good, including factory
workers, managers, salespeople, and the engineers that designed the machinery used in
production.
Capital
Capital refers to capital goods such as manufacturing plants, machinery, tools, or any equipment
used in the production process. Capital might refer to a fleet of trucks or forklifts as well as
heavy machinery.
Entrepreneurship
Entrepreneurship is the fourth factor and includes the visionaries and innovators behind the
entire production process. The entrepreneurs combine all the other factors of production to
conceptualize, create, and produce the product or service

The Importance of the Factors of Production

If businesses can improve the efficiency of the factors of production, it stands to reason that they
can create more goods at a higher quality and perhaps a lower price. Any increase in production
leads to economic growth. Improved economic growth raises the standard of living by lowering
costs and raising wages.
Capital goods include technological advances from iPhones, to cloud computing, to electric cars.
For example, in the last several years, the technology of fracking or horizontal drilling has led to
improved extraction of oil making the U.S. one of the world's largest oil producers. The
innovation couldn't be done without the labor behind the process, from conceptualization to the
finished product.
However, as technology helps to increase the efficiency of the factors of production, it can also
replace labor to reduce costs. For example, artificial intelligence and robotic machines are used
in manufacturing boosting productivity, reducing costly errors from human beings, and
ultimately reducing labor costs.

Q3 Why is formal training of workers so important to most employers? Why

don’t employers simply let people learn about their jobs as they perform it?

Answer: Formal training of workers is important because it’s an investment in the future of your
company. When you provide your employees with formal training, you don’t just help them to
gain new skills. You also boost their existing skills, improve their confidence, and build their
overall efficiency. Formal employee training makes your company more successful by
accomplishing several objectives at once.

Training your employees increases the effectiveness of your work force. Your goal should be
to have a work force that’s continually improving, with employees who are invested in becoming
leaders on your team. Training allows employees to improve their existing skills and diversify,
learning new skills that will allow them to play additional roles to benefit your business.
Formal employee training benefits both your company and your employees. Keeping up
with new standards, practices, and technology requires continual training, but if you’re diligent,
that training can give your company the competitive edge. Well-trained employees are engaged
employees, and that also decreases your rate of attrition. What’s more, when employees feel that
the company cares enough to invest in them, it improves morale.
When your employees are enthusiastic about their training, it generates interest from
potential new-hires. Properly trained employees who enjoy their work will be a draw for others
seeking work, and well-trained employees are better able to pass skills along to new hires. The
overall result is a better-trained workforce, with more people ready to step into leadership roles
when needed.
Proper training promotes cohesion in your practices. Having everyone on the same page is
important when it comes to instituting best practices for your business. Training also keeps
employees up to date on compliance issues, which means your business is able to operate more
smoothly and more successfully.
Training employees provides a substantial return on your investment. The money you spend
training workers pays off in profits that can rise twice as fast as profits of companies that don’t
invest in training their employees. Be mindful of the kind of training you offer, always focusing
on the goals you want to accomplish and the objectives with the most quantifiable results for
your business.

Q4. Explain the importance of macro environment, and explain in detail all macro environment related
factors through examples of any company/Business of (your) choice?

Macro environment
A macro environment is the condition that exists in the economy as a whole, rather than in a
particular sector or region. In general, the macro environment includes trends in the gross
domestic product (GDP), inflation, employment, spending, and monetary and fiscal policy. The
macro-environment is closely linked to the general business cycle as opposed to the performance
of an individual business-sector

Understanding the Macro Environment

The macro-environment refers to how the macroeconomic conditions in which a company or

sector operates influences its performance. Macroeconomics deals with aggregate production,
spending, and the price level in an economy as opposed to individual industries and markets.

The amount of the macro environment's influence depends on how much of a company's
business is dependent on the health of the overall economy. Cyclical industries are heavily
influenced by the macro environment, while basic staple industries are less influenced. Industries
that are highly dependent on credit to finance purchases and business investments are strongly
influenced by changes in interest rates and global financial markets.

The macro-environment can also directly affect consumers’ ability and willingness to spend.
Luxury goods industries and big-ticket consumer goods can be highly impacted by fluctuations
in consumer spending. Consumers’ reactions to the broad macro-environment are closely
monitored by businesses and economists as a gauge for an economy’s health.
Factors of the Macro Environment
Analyzing the macro environment is an important part of strategic management. Business
analysts often conduct a PEST (political, economic, socio-cultural, and technological) analysis to
identify macro-economic factors that currently affect or in the future may affect business. Some
of the key factors composing the macro environment include the following:

Gross Domestic Product

GDP is a measure of a country’s output and production of goods and services. The Bureau of
Economic Analysis releases a quarterly report on GDP growth that provides a broad overview of
the output of goods and services across all sectors.1 An especially influential aspect of GDP is
corporate profits for the economy, which is another measure of an economy’s comprehensive
productivity.2

Inflation
Inflation is a key factor watched by economists, investors, and consumers. It affects the
purchasing power of the US dollar and is closely watched by the Federal Reserve. The target rate
for annual inflation from the Federal Reserve is 2%. Inflation higher than 2% significantly
diminishes the purchasing power of the dollar, making each unit less valuable as inflation rises.3

Employment
Employment levels are measured by the Bureau of Labor Statistics, which releases a monthly
report on business payrolls and the status of the unemployment rate. The Federal Reserve also
seeks to regulate employment levels through monetary policy stimulus and credit measures.
These policies can ease borrowing rates for businesses to help improve capital spending and
business growth, resulting in employment growth.

Consumer Spending
Consumer spending makes up 68% of the U.S. GDP in 2020 and is widely considered to be an
important indicator of macroeconomic performance. Slow growth or decline in consumer
spending suggests a decline in aggregate demand, which economists consider to be a symptom or
even a cause of macroeconomic downturns and recessions.
Monetary Policy
The Federal Reserve’s monetary policy initiatives are a key factor influencing the macro
environment. Monetary policy measures are typically centered on interest rates and access to
credit. Federal interest rate limits are one of the main levers of the Federal Reserve’s monetary
policy tools. The Federal Reserve sets a federal funds rate for which federal banks borrow from
each other, and this rate is used as a base rate for all credit rates in the broader market. The
tightening of monetary policy indicates rates are rising, making borrowing more costly and less
affordable.

Fiscal Policy
Fiscal policy refers to government policy around taxation, borrowing, and spending. High tax
rates can reduce individual and business incentives to work, invest, and save. The size of a
government’s annual deficits and total debt can influence market expectations regarding future
tax rates, inflation, and overall macroeconomic stability. Government spending drives borrowing
and taxation; it is also widely used as a policy tool to try to stimulate economic activity during
slow times and make up for sluggish, consumer spending and business investment during
recessions.