Sattian - C(NCERT Case Stuii1s) -- _ _ _____ - - ~

l ,ltt'h n.,.,ny "'\'l.n\ptmk~ h.\\ t' rtmm".i for ,i~nifi, ,mt im l'.:-tnwnt in or~.1n,~t.,i
n't.1ilh\~ in lndu. &,, l't\ll t,\(hu·~ h,Wt' l't'(ltnl'tt,i thdr tlecbinn:,,. in thb n'g.m.t. Cu,tomt'r
in."°'-"llk' '~ n~H\\':. l\,,pk h.n t' Jt'Ydnprxi ., t,\:-t\' tt'r hl'th.·r qu.,lih rroducb- t'\1:'n thm.1~h tne)
m.n h.n t' h' l'·"' 1"1..'n' lht' ,,:::1'n,\ti1..m lt'Yt'l~ h." t' inrrt\l~,t 11w ~o, t.·nmwnt h.,~ also bht·rubsed
1~ t'-"-'n\,mll..' l'\"h"'h.'~ m th,~ n'~.nd :m.d l't'tmttn.,i t'Yt'n l"l'nt pt.'~'.nt fnrt'ihn dirt'C't im t'~tnwnt
m. ~(,mt' ~'\.'i\''~ \,t T\'t,,Hh\~-
< 1) ld.t'nht\· rh.n\~'-'::: m t,u:::mt•~~ t'm'h\,nnwnt mhkr difh.'n'J,t lw,his - l'C'lmc,mic: :,,.Ocinl..
h--x-hn1..'l'-'P(',1l l'1.."lttk,1l ,md h.--~.,l th,,t h,n l' f.1ciHt,1kd tlw ctlmp.mk., ' tfodsions to
pl.:m Sl~nifi"•,,nt im t.'~tnwn~ in \"t~,".mt~t.'ti n•t,1ilin~ st1fil't, .
' .,
(M \\th,1t h,1$ 1't't.'n tht' nnp.1ct N tht'~l' l'h.mgl'S with 1l'~.ud to globc,liSittinn nnd
pri, \\t1$.'l.t\\,n ~

ltnfiM~M
(,J) Tlw "'h.'\i'l~c.'~ in h1~int•~~ l'H\ n"'nmc.'nt nnl1t't lhtfc.'tc.'nt hc.'.hi:- .u't'.
(i) Economic ch.mgt': Cnstomt:'r inoorne is risil\~ .
(ii) Sl,~i.ll ~h.mg..:-: PtX)ple h~Y~ \.it'Yelopn.i ,, t,1.ste foT better qunHty pmduct!'- c"' en
th\')~~h they Ul.lY h,1\'e to r~w lll(Yfe.
(iii) P0Htk.1l dungt': •·The go\'emment hus ah~l"' Hberalisui its c.'C0nt1m1t.' rl1lk,c:-::-
(ii1) lt'g.11 ch.mge: •·centpet\."ent foreign dirt.~t investment in some sectot'$ ot r~tnling
has b~n now pem,itted ...
(l,) The 1111Pacts l)t
r
tllt'St' ch.mgc.'S with rc.'h.,rd fl, '~h,b.1Hs.1tk,n .md 1,rh .1ti:::.1til,n an'
, " " r
(i) lncre.1sing competition: As a result of changes in the mles of industri.11 licensing
and entry of foreign finns, competition for lndinn fim,s hns increaSt"-1 c'$pt"-.· ·ull) m
serYice industries like, telecommunicatio ns, nirlines, b.i.nking. insur,1tk't' c'tc. which
were earlier in the public sector.
(ii) More drm.mding customers: Customers todny hnve bt"-'Offit' mol.'t' llt.'m,mding
because they are well-informed.
(iii) R,1pidly ch,mging technologic.11 environmt•nt: lnct\'nsed l'l.'mpt'titil1n fot.'\.'\'~ the:'
firms to develop ne,,v wnys to survivt' nnd grow in the n1.1rlt't. Nt"W h.'('hn\,\...)~\t.'$
make it possible to improve machines, procl'~s, prl)dud~ ,md $l'l.'\' t.c."\'$. l'ht' r,1pidly
changing teclmologic,11 t.:'1wironmcnt (Tl',1lt'~ tOllf,h ch,1lll't\~t•~ bt."fo1\' sm,,lll'r firm~.
(iv) Nect>ssity for ch.rngl': Ln a rcgul,,tt•d t-'lwironnwnt l,f pt\' t,),)t t'\\l tlw firm~ '-''-'uld
htwe relatively st,1bll) policit•s ,1nd pr.1etit'1.'s. r\ft.,•r lqq l. Hw l\\,\t'lt't ttm.'\.'S h,n t'
becomP turbulent as a rt•sult of which tlw t'nl,'tl'll'lSl'S h,Wt.' t(, l',.\ntinuonslv m,,'-Ht\
their operntions.
( 11 ) Need Jo,· dl'vl'lopin~ hum,111 n•iwur,--,·: lndi,m l'Hll'rprist\s h,Wl' ~ttfft\t"t't..i fot l"m~
with inndcquatf•ly trnitwd pl'rHomwl. Tlw t\l'\'V m,wkt.'t nmdili,ms 1\'qt1h\' pt'\lph.'
with highl'I' cornpckncl' nnd grl'all'r cnmmitnwnt. I ll'n~'-' lht• lWt'd for d"'"t'lopin~
humnn rrsourct'S.
 62 I ABO \ Adi\ I\ t - Ou,hl ,._ Sn diF, (XII )

SectiDA - D {CBSE Board's_PlilVious Year:s _1~1se Studies)_____ __

1

_~ ~~a
The cfn1rt pn::-,ed rm order that ,1H schools must have water purifier for the school
children n::-:
Society in general is more concen1ed about quality of life.
lnno\'ati\'e techniques are bPing developed to manufacture water purifier at
competiti\•e rate~.
incomes are rising and children at hom e are also drinking purified water. The
Government is also showing positive a tti tude towards the water purifier business.
Identify the different dimensions of business en vironment by quoting from the above details.
(4 Marks) [CBS£, Df.LHT 201 JJ

'SohmioN: I
(i) Soci.oh, ~- general is more concerned about the quality of life: This statement
reflects the social dimension of the business environment.
(ii) inno, auve techniques are being developed to manufacture . , ater P- ;4=;,u. ., at
corr:::"'e :--:--e rates: This statement reflects the technological dimension of the business
em.ironment.
(iii, incomes are rising and children are drinking purified water at home. T h e
gc"Te!"!":::'e:-t is also showing a positive attitude towards the water purifier business:
This statement reflects the economic dimension of the business env ironment.
(i-v) The go\!ernment is also showing a positive attitude towards the . , ·ater p .... ::re-
business: This statement reflects the political dimension of the business en\.ironment.

CASB.ET2: The court passed an order to ban polythene bags as:

(i) These bags are creating many environmental problems, which affect the life of
people in general. I
(ii) Society, in general, is more concerned about the quality of life. The government
decided to give subsidy to jute industry to promote this business. Innovative techniques
are being developed to manufacture jute bags at low rates. Incomes are rising and
people can afford to buy these bags.
Identify the different dimensions of business environment by quoting the lines from the
1
above case. (-1 l\l.11k~) tLb~r;, OD 2J_J,

Solu,ioN: The following are the different dimensions of business environment that can be
identified from the given particulars:

(iJ Economic environment: "Incomes are rising and people can afford to buy these
bags."
(ii) Social environment: "Society, in general, is more concerned about the quality of life."
(iii) Technological environment: "Innovative techniques are being developed to
manufacture jute bags at low rates."
(iv) Legal environment: "The court passed an order to ban polythene bags."
 ]

f 8u\iNI \\ [ NViRONMI.NT /

(v) Political environment: "The government decided to give

promote this business."
63

subsidy to jute industry to

· As per the directions issued by the Supreme Court, the government passed an
ord~r t? ban te..sale of tob~cco products w1thmffie area of 200 meters of all educational
mstitutiorl~J:~ts consumption is injurious to health. People are becoming more consciou5
about heilil{ and fitness. This indicates the government's attitude towards this business.
Identify the business environment under three different dimensions by quoting from above
paragraph. (4 Marks) (CBS£, IJLLHI CO\1P1T. 2 13

lfMMl.fri The various dimensions of business environment being referred to them the above
case are as follows:

(i) Legal Environment: "As per the directions issued by the .,. pn:· e Court. (The
government passed an order to ban the sale of tobacco product5 with.in the area of 200
meters of --11 educational institutions)."
(ii) Social Environment: "Its consumption is injurious to health and people are becorr'iirig
more conscious about health and fitness."
(iii) Political Environment: "This indicates the government's attitude toward fuis burns."

A recent rate cut in the interest on loans announced by the Banks ,encouraged
Amit, a science student of Progressive School to take a loan from State B~ of India .:o
experiment and develop cars to be powered by fuel produced from garbage. !:_le ~veloped
such a car and exhibited it in the Science Fair organised by Directorate of Educatioa He was
awarded first prize for his invention.
Identify and explain the dimensions of business environment discussed in the abO\-e case.
(4 MarksJ [CBSE, DELHI 2 16

Jifl@\n:M The dimensions of business environment in the given case are:

(i) Economic Environment: "A recent rate cut in the interest on loans announced by :...11.e
Banks."
Economic Environment: It refers to the nature of economy (capitalist sociali5t or
mixed), economic policies of the government, markets for material, labour, capita ere.
business firms and institutions and level of income of the people.
(ii) Technological Environment: 'He developed such a car and exhibited it in the Science
Fair organised by Directorate of Education'.
Technological Environment: It includes forces relating to scientific improvements and
innovations which provide new ways of producing goods and services, new methods
and techniques of operating a business.

With change in the consumption habits of people, Neelesh, who was running a
sweet shop shifted to chocolate busine§ On the eve of Diwali he offered chocolates in
attractive packages at reasonable prices. He anticipated huge demand and created a ·website
chocolove.com for taking orders online. He got lot of orders online and earned huge profit by
selling chocolates.
Identify and explain the dimensions of business environment discussed in the above case.
(4 .Marks) [CBSE, OD 20161
 SoluTioN:
(i) ,:,.o~ i.il l n , ironnwn t: \\ tth d\CH\}~'' in tlw con~tt•H t'IIPI\ h,1liit: 1 111 1'•·npl1•, N1•_.1 1 ,111 1
wh\., ,v,b n1nnin~ n ~W,'<'l sh,,p ~hith'd. .
"' c I\('l ,, Init' I,11:11n,•:·N ," '

5':x-i.ll Ein irpnnwn t incha,lc~ ~,,ci.\l 11,t\,'S tikt': cuSIIHH nnd l1.id1111u1~ v, 1h11 •n, ~111 I.ti
tn'nrb and ~(>('il't , '~ t"''-l"t'('t,1t k,n f 11,m bu~itw:--~ ,
itp
(u) Tc:-chno logh.•11 l I' \ :. ,-,nu' nt : " l h' nntidp,1 h•d httgc- dt•m,md ,11HI c 1e •, 1t1 •d , , w1•lii1
cl1,,.cctlm1c... nm1 for t.,k.in~ <'n.kr~ ,,ntitw."
'
Tt:'\.--· .hnnk,~k al en, m.,nnwn t (,fbusitw ss tth lud,•14 hHu'S n•lnling to ~cit•fllil k i111p1ov1·1 111 .1, 18
and inn<'Yati \.,n~ "h1d1 pr\,, h.il' tll'\\ ",n s t,t pn,dudn g goPdH nnd 1w 1'Vict•~ ,11,d 111 .w
methcxi s and tt."Chniqut."S ot ''F't.'r,,hn8 ., husi1wss .

Unden-t .mding of t.'n,•ironmt."nt hy business m,1tltlgl•rs c.•1111hlt>~ llw111 not only to

identify and evaluate , but .,lso to re,1ct tt., the forct'S e,tern,11 lo their f irtns.' In light of tlu•
stateme nt. explain ,my tour p0ints of importa nce of bu~ine~s environ nwnt.
(4 M,trks) /CHS/.', l'OU/'IG N 20l <,J

Solu,ioN : The need for underst anding the importa nce of busines s environ nH'nl by
tltt•
manage rs is necessan " due to follO\'\in g reasons:
(i ) Identify the opportu nities and getting the first mover advanta ge: By being awnrc of
the changes in business environ ment, enterpri ses can identify opportu nity and slralcgizt>
ways to capitaliz e on them. Environ ment scannin g also helps in detectin g possible

---
threats in future.
(ii) Basis for plannin g and policy formula tion: Identific ation of threats and
sen~es as basis for deciding the future course of action.
(iii) Tapping useful resource s: The resource s are required to carry on a successf
opportu nity

ul business
enterpri se . These have to be procure d from the busines s environ ment.
(iv) Helps in coping with rapid changes : Turbule nt markets , less brand loyalty,
division s
and sub-div isions (fragme ntation) of markets , more demand ing custome rs, rapid
changes in technolo gy and intense global competi tion combine d with complex business
environ ment calls for a flexible plannin g to cope with the changes .
compan y
CAsEla 7: Accent Electron ics Ltd. was operatin g its busines s in Malaysi a. The
started exporti ng its product s to India when the Prime Ministe r announ ced relaxati on in
import duties on electron ic items(T he compan y appoint ed retailers in India who had direct
online links with the supplier s tolr~Ien ish stocks when needed.
Identify and explain the dimensi ons of busines s environ ment discusse d in the above case.
(4 Marks) JCHSE, FOREIG N 201'1/

Solu1ioN:

(i) Politica l Environ ment: "The Prime Ministe r announ ced relaxati on in import
duties."

Politica l environ ment include s political conditio ns such as general stability and peace
in the country and specific attitude s that elected governm ent represen tatives hold
towards busines s.
 Bu,iNl" LNViRONMc Nr / 65
I
(ii) Technologkal Envirnnnwnl · "Tlw company ,1ppoint(•d retailers in India who had
direct onlinl' links with lht' suppl11•rs to r<'pl<•nish stockt., whNl needed."
Technolo~kal t'nvirornrwnt of h11~11wss incl11clc•s forces n•l,1ting to srimtific improvements
and innov.llions which provide nl'w ways of producing goods and services and new
ml'thods and lt'chnil)lll'S of opernling a business.

Bf'ni, after complt'ling her MBA, took up a job with a multinational company
n,mll'd ?"'~,p_rtio'. The company was payinij good salary and perks to its employees. The wages
were w1thm the paying capacity of the company that provided the employees a rer,sonable
standard of living. The company also had a good work-culture an<l the behaviour of
superiors was very good towards theit subordinates. Beni was very happy in this organisation,
but due to long working hours she did not have time to cook her mecih 3he had to depend
upon outside food, which was deteriorating hl'r hPalth. She obs< rved that this problem was
faced by man)' of her colleagues, not only in her company but also in rnary other companies.
This was because of increase in the number of working women and non-availability of
hygienic home-cooked food. She identified this as a great opportunity and decided to give up
her job to supply packaged home-cooked food to office goers at a reasonable price. At the
end of the day she was also distributing the leftover food in the nearby night-shelters.
(a) State the di~nsio~ of business environmentJ;,eing disc.!:!ssed above.
(l, > State the principle of management being fo~lowed by 'Fortio'.
(c) Identify any two values being communicated by the company to the society in the
above case. (5 Marks) [CBSE, OD 2015]

l!®t·NM
(a) Social environment includes social forces like customs and traditions, values, social
trends etc. 'This was because of increase in the r:iumber of working women and non-
availability of hygienic home-cooked food'.
(b) Remuneration of employees states that the overall pay and compensation should be
fair to both employees and the organisation. 'The company was paying good salary
and perks to its employees. The wages were wi'thin the paying capacity, standard of
living'.
(c) Values being communicated by the company to the society are:

(i) Good work culture.

(ii) Good behaviour in human interac;tion.
(iii) Concern for the employees.
(iv) Respect for law.

. ,
Metlapp Networks and Technologies Ltd is a leader in technology innovation in
the United States, creating produ~ts and solutions for connecting the world. It has a large
resea~e~elopment team which invented the first smart watch, named as. W-7. The
watch besides showing the time, also monitors few health p~rameters like heart beat, blood
pressure etc.
----•11111111r---- --r-- -- - - ~ - - - -.-- ---
£,GI AIIIJ'., JJ,JII'~ fy, u,i-.iN,..,. Swtli,., <XflJ
While ill f
se ..1r c; h f f J th;-it in Jnd1:l, the r<• <,rrrr prr>c;,., ,
W,1 9 lln I o nrnrkL'ls n h,oad 1h,· u 11np;rny uunc , . ti., 'Jh
t. ~• wny ' • f ,.0 ,,1om1c gr<,w 11. c romp;,n,
de-, •dcd l 1
Wit , th,--. airn of rt ct:1·lernth1g Hw par:c o d rNn<wal of quantitati ve /.,
Wdl o _ lake ndvantagc of 6implified ,·xporf prm1•d11rc ;ir,
a s lt1rif f "'!-it t 1t
, . . •
t1on1, m India .
11 fict t, ) it:s f' ' . f , the InrJi;m marh•t In a short <.,p~r CJ{
1 0 11 <.:f' in J;imna1-;;ir with a vi,•w to <.: rip""
ltn1P, the compony cme,g,·d :, i, .1 mark,•t Je:,d,•r. Su<'""' 't~ of the c<,r~pa~y aHra,tf·d man'/
tbr'llhPr plnyl'rs to ,•ntcr thP markd . ( ompctit,on r<.':mJted in '"'Juctwn m pnr<:<,, th,.:rc:b'I
l"1'Pfil'•ng t h 1• Cllslon'H'rt,.

(a) In the abnvc p:1ragr.1ph, two mr,jor concc:ptH rdat,·d to WJV<:rnmc..~ t p(JJiry have b(.;cn
discussed . ld<•ntHy and cxpl.1in the~• cono:ptt;.
('1) ;\J~o, explain briefly ;iny thrc,: impr1cts of thcs<: conceptc, on Indian bu'>ine$S and
indm,try. (5 MtJtk&J !CHS/,, /.JJ ~I ,/1/ 2fJ77J

SolurioN:
(a) lwo ma1or c.oncepb rc•J;)f<•<l to govc:rnmcn t policy are:
(i) Liberalisat ion: LiberaJisat ion(means removal of unnecessar y controls and
rcstnchons on business.
(ii) Globalisati on: Globalisatio n means integrating the various economies of the
world leading towards the emergence of a cohesive global economy.
(b) Impact of thes(• roncc:pts on Indian business and industry: (Any three)
(i) Increasing competition .
(ii) More demanding customers.
(iii) Rapidly changing technologic al environmen t.
(iv) Necessity for change.
(v.) Need for developing human resources.
(vi) Market orientation.
(vii Loss of budgetary support to the publi~ sec~or. ,

• 'Konark Ltd.' is an electronics goods manufactu ring enterprise situated in

puri, Madhya Pradesh. It is earning a very low revenue in comparison to a competing
:.electronic goods manufactur ing enterprise, 'Nova Ltd.' situated in Mumbai. Both Konark's
and Nova's operations are affected directly by the investors, customers, competitor s and
suppliers, which are unique to their respective locations. In addition to this, individual firms
of this field are affected indirectly by the factors like the money supply in the economy,
compositio n of the families, the technologic al changes, etc.
(a) Identify and state the feature of the concept discussed in the above paragraph.
(IJ) Also, state any four points of importance of this concept.
(5 Marks) [CBSE, DELHI 2018]

Solu,ioN:

(a) Sp(>cific and General Forces: Business environmen t includes both specific and general
forces.
 BusiNEss ENviRONMI NT / 67
L
Specific_~orc~s: These affect the firms of ,rn industry directly e.g., customers, suppliers,
competitive firms etc.
General Forces: The~c forC'l'S c1ifl'C'l ,111 the fit m5 of ,111 industry equally and indirectly
e.g., social, political Mld l'corwmic fon:Ps.
(b) The need for undcrst,mding tlw importt1nt e of business environment by the managers
is necessary due to following reasons:
(i) Identify the opportunities and getting the first mover advantage: By being
aware of the changes in business environment, enterprises can identify opportunity
and strategize ways to capitaliZl' on them. Environment scanning also helps in
detecting possible threats in future.
(ii) Basis for planning and policy for formulation: Identification of threats and
opportunity serves as basis for deciding the future course of action.
(iii) Tapping use full resources: The resources are required to carry on a successful
business enterprise. These have to be procured from the business environment.
(iv) Helps in coping with rapid changes: Turbulent markets, less brand loyalty,
divisions and sub-divisions (fragmentation) of markets, more demanding customers,
rapid changes in technology and intense global competition combined with complex
business environment calls for a flexible planning to cope with the changf s.
 f,8 I Alll)'i, ll11II'!. I y, lh1\iN1 \'• ~111cli1,. (XII)

Section .. -E(Test Your~~no"'u_UI! va,u .1,Ul!_IIJ'.I ~q~d,r./Aepll ./H S/EvaluaU~_n Questions) .

"1 h,• d,·, rn1on rnrulP by Btitnin lo f'Xit E11rop,•an Union ,·am<' as" shock to stork
n,utk1•t 11 wtth tlw f'1l'lit11•B n 111 t, 11111 .,1< y 111 ,,rkr•t htiPfly goin~ into trlilspin ."
ll1Pnttty tlw chnw11fH 1:rn <')I h11 Bit11•-,s 1•nviro1HlH'll t highlighkd by ttw st atement. (l Mark)

'SoluTION: ! l'olit11 nl 1•11vi11m11H•nt.

Govl'1 nmf•nt ol lndin h,1:, p1•1 milted to allow oil marketing public sector
undertaking 8 t1) f ,x llwir own pl'i1'l' for 1w1 rnl ,mcl di,•~el. Which C'conomic reform is the
rl'nson of this chnngf' in govcinnwnt' ~ policy? (J Mark)

I Tlw r(•ni;on for this d,;rngl'

in th<.• Governmen t's poJicy is 'J ,ibernl isc1 Li on'.
'SolurioN:
. TI,c Gcncrnl M:mag<.•r of Pasand Beverages Pvt. Ltd. said, f we expect strong1I
growth in foture :ls there is huS-EcQpportunity in packaged beverage x_narket be~g fuelled by
n rise in disposable incomc ....,rhc changing lifestyle has led to increase 1n per capita
consumptio n in Jndia and this presents industry player~ ~it~ the opportunity to ~ap the I
huge untapped potential that this segment offers. J.,iango 1u1ce 1s ~mongst ~he favounte and \
most widely accepted by consumers across India. The beverages industry 1s expected to see
35% to 40% growth in foreseeable future."
Quoting the Jines from above passage, identify the few dimensions of business environment.
(3 Marks)

Solu1ioN: I

(i) Economic Environmen t: "We expect strong growth in future as there is hu t

opportunity in packaged beverage market being fuelled by a rise in disposable income.''
(ii) Socia] Environmen t: "The changing lifestyle has led to increase in per capita
consumptio n in India is and this presents industry players with the opportunity to tap
the huge untapped potential that this segment offers."
-

CAsElET 4 : Ten of the country's biggest banks along with the Reserve Bank of India have just
launched a Unified Payments Interface (UPI) a mega app that will sit on your smart phone
and dramaticaJJy reduce the cost and time taken for making simple payments. This application
can be used to make payment for any transaction below f 1 lakh, even something as low as
, so/
~c bi~gest impact of this app will be on third-party payments. The UPI app does away
w1th. third part~ involvemen t. This can be useful not just in making regular payments but
also m transactions between friend s.
Quoting the Jines from above passage, identify the few dimensions of business environment.
(3 Marks)

SolurioN:

(i) Economic Environmen t·· "This appli ca t'ion can b e used to make payment for ariY
t .
ransaction below t 1 lakh, even something as low as ~ SO."
 BusiNEss ENviRONMfNT / 69

(ii) Technological Envi ronmt•nl: "The Rese

rve Bank of Jndia have just launched a Unified
Payments Interface (UPI) a mega app that will sit on your sma rt phone• and dramatically
· Jc paymcn ts. "
reduce the cost and time taken for mak ings1mp
---
g, marr ied couple Kia and Kabir
. . . Ki & Ka, an Indian drama fil~ folJows [a youn
g an interview of Kia (for her highly
contradicting th e gend~r roles. In the movie, durm
s role in the house and the interviewer is
successful career), mentions abou t her husb and'
view of Kabir also in which he explains that
impressed by this. The interviewer takes an inter
Kabir (boy) and Kabir takes up the role of
it does not matt~r if Kia (girl) takes up the role of
Kabir is calJed for man y more interviews
Kia. People are impressed by this interview and
and speeches on Gender Equality.
and explain the dim ensi on of busi ness
Quoting the lines from abov e pass age, iden tify (3 Mar ks)
environment.
r contradicting the
J!@MJI Social Environcalle
ment: "A young, married couple Kia and kabi
d for man y more interviews and speeches on Gen
der Equality."
gender roles." or "Kabir is
s of the society in which the organisation
Social Env iron men t describes the characteristic
operations depends on factors such as literacy
exists. The dem and of the firm's prod uct and its
values, com posi tion of wor king pop ulat ion,
rate, peop le's attit udes , cust oms , beliefs and
environment.
consumers' awareness etc constitute the social
its new range of wal:. mou nted
Sym phon y has appl ied for global patents for
company, it took almost 20 y~ars to crack
water cooler nam ed "Cloud". According to the
cooler that wou ld need to draw fresh air for
the technicalities of havi ng a wall-mounted air
circulation as well as water.
launch will bring strategic advantages for
The com pany officials believe that this prod uct
functions almost a" a 1.5 tonne AC. However,
the company to be the pioneers as this appliance
. This will also help the com pany stay
it consumes muc h less pow er at arou nd 250 watt
n, thus strengthening the bran d value of
much ahea d of competition in terms of innovatio
Symphony.
On the basis of the given information abou
t Symphony answer the following questions:

(a) Identify the feature of business envi

ronment discussed in the above case.

(b) Identify the dime nsio n of business envi

ronment discussed in the above case.

(c) Identify the significance of business

environment discussed in the above case.
(3 Marks)

lifl@M}I
(a) The feature of business envi ronm ent
highlighted in the above case is dynamic nature.
l
(b) The dim ensi on of business envi ronm
ent highlighted in the above case is technologica
envi ronm ent.
(c) The significance of business envi ronm
ent discussed in the above case is identify the
ntage.
oppo rtun ities and getting the first mov er adva
1$®41 .. .
(i) Social Emimnnu mt: l.°1\'t.'r h,1lf .1 do..:en yc1ung s~.wtu_ps t~1,1l 1.)th.'r~ ~l'~-\ tC~'~ i-.~i~-~mg
fron~ t-'t."I'::'1.."'n,11styling to .-1ffordabh:' couturt' and t.1st tashton .u-1.' ~.rnung ::.1gnilt1. ,mt
t'' c>~.1.:1~ ,1.nd w,11lt:>t ~h.m~.

(ii) T~nologi c.11 Emironm ent: "Th~y l1.1Yc also dcvelopt'd nwbilc app~ to rr..:1.'ive
onlL.1.t' or1..iers.
b) The fc>Jture c,i 1:iusint>ss enYironment highlight ed in the above case is Unc1.'1°t.1inty'.

Mr. Peter, the pwductio n manager of Plastic Ltd. is successfully running his
department. He has created such an ein-ironment that no one becomes a hurdle in ,mybodv 's
work but all pf them are ready to help each other. J\1r. Peter has been observin g a change m
market for last iew days. In the past, they used to produce goods accordin g to their will and
with a little bit of effort could sell them. But now they have to produce goods as desired by
the custome.r5. \A/hen Mr. Peter in,·estigated to know the reasons for this change, he came to
know that on account ofposith,e policies of the governm ent, running the business had become
easf.Due to this, several new competitors had entered the business. Consequ ently, competit ion
has increased and now the control of the market had slipped out of the hands of product.'rs
into the hands of customers.

On the basis of the giv~n info~ati on about Mr. Peter, the producti on manager of Plastic
ltd., answer the followmg questions:

(a) Iden~, the _dimensio~s of business environm ent discussed in the above case
by
quoting the lines from 1t.

(b) fa.plain the dimensio n of business environm ent discussed in the above case.
(4 Marks)
11ti®HM
(a) Political Environm ent: "When Mr. Peter investiga ted to k11ow thn
change, he came to know that on account of ·t· _. ... reasons for this
. g the busmess
runrun · h ad become easy.,, posi ive po 1
1c1es of the governmc 11t,
 B usiNES'> ENviRONMFNT / 71
(1,) Pol~tical Enviro nment : The kind of government that exists and
the policies formulated
by it are the political factors affecting a business enterprise. The
ideology of the
?overrunent in existence, the governments attitude to industries, lobbyi
ng efforts of
interes t group s etc., are the examp les of the factors in the political
environment.
· • There are various E-retailers such as Myntr, Pepper Fry, Flip Ca rt etc.,
who generate
maximum revenue from online orders . Companies have also developed
mobile apps to receive
online orders. E-retailing refers to retailing over the internet. It reflect
s a B2C (Business to
Customer) business model that executes a transaction between busine
ssman and the final
consumer. E-commerce is the master domain defining the E-retailing
opera tion.
On the basis of the given information about E-retailers such as
Myntr s and Peppe r Fry,
answer the following questions:
(a I Identify and explain the dimension of business enviro
runent discussed in the above
case by quoting the lines from it.
(b) Explain the dimen sion of business envirorunent discus
sed in the above case.
(4 Marks)

li:i@M?M
(a) Techn ologic al Enviro nment : "Companies have also developed mobile apps to receive
online orders. E-Retailing refers to retailing over the internet."
(b) Technological envirorunent of business includes forces
relating to scientific improvements
and innovations which provid e new ways of produ cing goods and
services and new
metho ds and techniques of operating a business.

CASEITT 10: After a 17-year roller-coaster ride, the Goods and Services Tax (GST)
was launch ed
in Parlia ment at the stroke of midni ght on 1 July, 2017, in respon
se of the Constitution
Amen dment Bill for Goods and Services Tax (GST) appro ved by The
President of IndiJ post
its passag e in the Parliament last year, much like the dignified functio
n which marke d India 's
Independence. Addre ssing a packed Central Hall of Parlia men~ rime
Minister specifi ed the
· toric nature of the tax reform by labeling it as 'Good and Simple Tax'.
The gover nment has launch ed a goods and services tax (GST) app
to facilitate a,.SDJ.o oth
ansition to the new indirect tax regime for taxpay er] From helpin
g taxpayers in the
migration to GST, provid ing toll free numb ers and videos and readin
g material on GST to
puttin g up draft laws and rules, the app called the CBEC GST app
aims to help taxpayers
and addre ss their concerns about the new indirect tax regime.
Some key takeaw ays of likely impact of the GST on various areas affecti
ng Indian house holds
are:
(i) The gover nment has tried to keep food produ cts in the
range of 0-5% GST while
comm on use toiletries have been kept aroun d the average rate of
18°/ JThis will
_;PSUre the house hold budge t is not negatively impacted
(ii) \Toe life style bills are likely to go up post GST. For instan
ce, be it air travel or train
travel by pren;lium classes citizens have to pay higher rate of GST
compa red to
econo my classes.
On the basis of the given inform ation about GST, Identify the
dimen sions of business
enviro nment highli ghted in the case by quotin g relevant lines.
(4 Marks)
Solut\oN: ·c•d to kN· •p foo d pro du cts jnrag th<.:
I lrl
E · r. · 1· "T he nr,o vcr nm ,·n · .
l 1ns
. , • h bee n k<•pt aro un d the avc ('
.)
cono1n1c ,. .nv ,ro nn wn
(1
.
~01o c..,.:, '"'T wl, ill' com mo n w~c lrn 1cln cs flVC'
ran ge o f O-~ .
h ·d a go od s and ser vic es tax
rat e of 18~
0
• "ThC' <YOvcrnmcnl has 1 aun c c
.'·
~ • 1 . d',rect t-=-x
... reg 1·m e for tax pay <·r s"
·
('.•') Tl' chn ohw,. ic:l l lm vir on nw n n
·r t lhe new in
1 h d in Par Jia me nt
{GST) ,,pp to t,1cilitale a sm oot h trans1 ton o wa s aun c e n Am en dm <m t
'rviccs Tax (CST)
#

~ "Tl G 00d , d SC . , f the Co nst itu tio

mm ent · lC' s an '
(ii, ) Lq ;al En v1n
, 2017, m res po ns ~ Pre sjd cnt
of Ind ia ."
,,t th'-' stro ke of mi dni ght on 1 July p . t b ·t
and Ser vic es Tax (GS T) app rov ed by ms anc c, e1
Bill for Go ods
" . , • , r1k I
to O up po st CST.h'gor of CS T
: Th e hfe st ylc bills arc ~ f ~ 1
he r rat e
ent
(fr, ) Soc ial Fn ,·ir onm um cla sse s CJ tiz ens hav e to pa y
air tra vel or tra in tra vel by pre mi
com par ed to eco nom y cla sse s."
en t to wh ich the foJ Jow ing are rel ate d :
Id-e~tify the typ~ or-d im e~s ion of e;; iro nm

(a) Banks red uci ng int ere st

rat es on ho usi ng loa ns.
(b) An inc rea sin g num ber
of wo rki ng wo me n.
(c) Bo oki ng of air tickets thr
ou gh int ern et. )
are pro hib ite d to be adv ert ise d on 'Do or Da rsh an' . (4 Ma rks
(d) Alc hoh ol bev era ges

SolurioN:
(b) Social En vir on me nt
(a) Economic En vir onm ent
ent (d) Leg al En vir on me nt
(c) Technological En vir onm
ma tol og y cen tre s
Ski nca re firm Ka ya Ltd . had acq uir ed a 75% sta ke in tw o der
CASEIET 12: tes the reb y
and Sh arj ah to exp and its P.! q,ence in the Un ite d Ar ab Em ira
bas ed in Du bai n the com pan y's
fita bil ity and ove rse as tur no ver Jfh is acq uis itio n has str eng the in
inc rea sin g its pro
E reg ion and add ed a new set of cus tom ers to its exi sti ng bas e
net wo rk of clinics in the UA do the sam e.
Ind ian com pan y in thi s spa ce to
the reg ion by bec om ing the first the fol low ing
of the giv en inf orm ati on abo ut Sk inc are firm Ka ya Ltd ans we r
On the basis
question: cus sed in
ma in ben efi ts of un der sta nd ing bus ine ss env iro nm ent dis
Ide nti fy and explain the (4 Ma rks )
rel eva nt line s.
the abo ve case by quo tin g the
g bus ine ss env ior nm cnt arc :
J$1@Hfi The ma in benefits of und ers tan din
: With
to ide nti ff op po rl~ nit ies and get tin g firs t mo ve r adv ant age
(i) En abl es the fi~ the pos itiv e
ys1 s of t!1e bus me ss env iro nm ent , an ent erp ris e can ide nti fy
a careful ~al hel 8 it in tak ing
uni ties for bus me s~. Ear ly ide nti fic atio n of the op po rtu nit ies p
opp ~rt pet itio n.
the first-hand adv ant age m com
the UAE
acq uis itio n wil l str eng the n the com pan y's net wo rk of cli nic s in
Li~es: "This b bec om ing
~dd a new set_ of c~s tom ers to its exi stin g bas e in the re g ion y
regi~n and ce to do the sam e. 11
the first Ind ian com pan y m thi s spa h nge s
pri ses tha t mo nit or an d ad ap t o c a
t
iI~ pro vin g rer for ma nce : En ter
(ii) hHe lps ~n no t onl im .
app eru ng m the env iro nm ent run . y pro ve its pre sen t per for ma nce bu t also
con tin ue to suc cee d in the lon g
 BusiNfc ;c; ENviRONMFNT / 73
I ines· "Skin care firm Kaya Ltd. had acqui red a 75% stake
in two derm atolo gy c~ntr es
e based in Duba i and Shatj ah to expa nd its prese nce in
the Unite d Arab Emir ates
e there by incre asing its profi tabili ty and overs eas turno ver."

In a majo r step to check black mone y, Prim e Mini ster

Shri Nare ndra Mod i on
g Nove mber , 2016 anno unced demo netisa tion of~ 500 and~
1000 curre ncy notes with effec t
from midn ight, maki ng these notes inval id in a majo r assau
lt on black mone y, fake curre ncy
and corru ption . In his televi sed addre ss to the natio n, Modi
said peop le holdi ng notes oft 5 oo
and~ 1000 can depo sit the same in their Bank and Post Offic
e Acco unts from Nove mber lO
till Dece mber 30. This big-b ang anno uncem ent is likely to have
the follo wing impa ct:
• Secto rs such as real estate , wher e the highe st comp onen
t of black mone y exists , will
be adver sely impa cted.
• Redu ced expen ditur e on high profi le wedd ings and partie
s.
• With a lot more mone y pump ed into the syste m, intere
st rates are likely to fall,
resul ting in impr oved marg ins.
• The use of e-wal let, credi t card and debit card will incre
ase.
On the basis of the abov e infor matio n, ident ify the
diffe rent dime nsion s of busin ess
envir onme nt.
(5 Mark s)

l!®M?M
(i) In a majo r step to check black mone y, Prim e Mini ster
Shri Nare ndra Mod i on
8 Nove mber , 2016 anno unce d demo netis ation of t 500
and t 1000 curre ncy notes
with effect from midn ight, maki ng these notes inval id
in a majo r assau lt on black
mone y, fake curre ncy and corru ption : Lega l Envi ronm ent.
(ii) Secto rs such as real estate , wher e the highe
st comp onen t of black mone y exists , will be
adver sely impa cted: Econ omic Envi ronm ent
(iiiJ Redu ced expe nditu re on high profi le wedd
ings and partie s: Socia l Envi ronm ent.
(iv) With a lot more mone y pump ed into the syste
m, intere st rates are likely to fall resul ting
in impr oved marg ins: Econ omic Envi ronm ent.
(v) The use of e-wal let, credi t card and debit card
will incre ase: Tech nolog ical Envi ronm ent.
CMElET 14: In a majo r step to check black mone y, Prim
e Mini ster Shri Nare ndra Mod i on 8
Nove mber , 2016 anno unce d that t 500 and t 1000 curre ncy
notes with effec t from midn ight,
will be inval id in a majo r assau lt on black mone y, fake curre
ncy and corru ption . In his telev ised
addre ss to the natio n, Modi said peop le holdi ng notes
of t 500 and t 1000 can depo sit the
same in their Bank and Post Office Acco unts from Nove
mber 10 till Dece mber 30. This big-
bang anno unce ment is likely to have the impa ct on secto
rs such as real estat e, wher e the
highe st comp onen t of black mone y exists .
On the basis of the abov e infor matio n answ er the follo wing
quest ions:
(aJ Ident ify and state the impo rtant corce pt ~ffec
ting busin ess envir onme nt.
(bJ State the featu res of the conce pt ident ified
in part (a).
(c) State the aim of the conce pt ident ified in part
(a) . (6 Mark s)
--1:Efid·#I .. .
( 11) D<•monl•li s alion: Tlw .wl lo n•,rn1· i l or put an official stop on its stat
n nffrc•ncy un . . . th rocess th t. lls as
,\ lq;al ll•ndl'r b I nown ,ls dt•m111w l1s,1. . IJ<'monc•t1sat1on 1s e P a inv 0 1
1, on . d 'th Vesa.
I J , ,rrc•ncy is rC'p lace w 1 new currenc" 'h
I
ch,1ngl' ol 1\,lliol\,11 LIii l"l'IH y, w wrr· () ( l l r' JI d by the withdr 1 J• ~Ile
. • . • ., ., wd o owe awa of
lll'Clll,1tum ol :, •,pt•,d 1c 1•111n•11<y 11 111 1h s 101 1 ' Olci
b ;1 nk1,n!l •s tll ' coin s.
(h) l lw m,1111 lt•,1t111t•s ol dt•mo1lt'lis,1 l ion ,111• : •
• . . • • l .. lion measure. Cash h0Jd1ngs arising f
(i) Dt' lllllllt'I l!-icll 1()11 It. ,l lax ,1< 1Jl1ll1 IS I ,l h d f ron:i
•
dt•c l.1rcd incoml' wns rPadily <1<'pos, i1cc , I · banks and cxc ange or new not
in es.
• I
(ii} I >Pt1H)tll'lis,1tion is mll•rpn'I<'<- ,, ~ n s J11 ·fl rn th<' part of the governmen t indic .
c ating
1h.,1 lnx Pv,,sion will no longN be• tolN,1lcd or accepted.
(iii) Dt·mo1wl i~ntion h•d to t.1x admmistrnt ion ch,mnclisin g savings into the forn-ta]
I in.inci.11 syslt'J1\ .
(fr,) Dcmrnwti~n tion ll•d Lo a cash-li lc econom y, i.e., ch ann:ling m ore savings through
thl' forrnal financial ~ystem and improvin g tax com p lian ce.
(c) The ain1 of demonetisa tion was to cu r b corruption, counterfeit ing the use of high
denominati on notes for il1egal activities; and esp ecially the accumulati on of 'blact,
money' generated by incom e that has not been declared to the tax authorities.

CAsEla 1 ~: Natco is a mid-size pharma manufactur er. It is the market leader in the d omestic
Oncology segment. Natco has presence in niche therapeutic areas and sells products in
more than 40 countries. Natco prides itself in "Resisting the usual" by identifying and pursuing
products with large and sustainable revenue potential as against the competitiv e companies.
In Indian market, it offers 20 oncology medicines viz., 9 for blood cancers, 11 for solid tumors
and ] 4 medicines in other therapeutic classes.
Natco is amon g the first to launch Sofosbuvir and Ledipasvir combo drug for hepatitis C,
this has put Natco in driver's seat in hepatitis C market in India. Natco would generate
? 7247 Millions and f 8382 Million from domestic sales of these medicines during year 2017
and year 20 18 respectively . Additionall y, Natco has been aggressive ly filing for product
registration s of its hepatitis C medicines in various countries, which not only improve its
present performance but also continues to succeed in the long run.
On the basis of the given information about Natco pharma answer the following question:
Identify and explain the main benefits of understand ing business environme nt discussed in
the above case. (6 Marks)

SolurioN: The ma in benefits of understand ing business enviornme nt are:

(i) Helps in assisting in planning and policy formulation : Since environme nt is a source
of both opportunities and threats, its understand ing is the basis of planning and policy
formulation . Thus, if the firm is anticipating an increase in competition ; it will plan its
policies accordingly.
(ii) Helps in improving performance: Enterprises that monitor and adapts to changes
happening in the en vironment not only improve its present performanc e but also
continue to succeed in the long run.
(iii) Enables the firm to identify opportunit ies and getting first mover advantage: W:th
a careful analysis of the business environme nt, an enterprise can identify the positive
 Bu\iNI\, I N\iRO~MI Nl / 75

l
1PP 0:tunilil'~ h,r bu~i1W!->'-. Farly idl'ntificc1tion of the opportunities helps it in .taking
th '-" . fir~t-mlwci ndvantagl~ in competition. Environment scc1nning helps .th e firm to
rapit,lhzc l,n rarly opportunities thereby c,1pturing the market in order to increase th e
profi tnbility.
I

CAsdET 16: After the announcement of demonetisation of ? 500 and f 1000 currency notes
by the Government of India, there has been a sharp increase in the number of downloads for
mobile applications like: Paytn1, PayPal, c-wallet etc. Usage of digital currency and online
payment systems driYen by UPI, wallets and cards is on the rise as customers are increasingly
opting for e-commerce platforms. There have been very strong reactions from general public
on platforms like Facebook, Twitter, lnstagram etc. where some groups are supporting the
decision ,...,.hile many others groups are opposing it.
On the basis of the abo,·e information:
(a) Identify the any two dimensations of business enviomment by quoting the lines.
(b ) Enumerate the various impacts of demonetisation. (6 Marks)

1
Solu1ioN:
(a) The dimensions of business environment which are discussed in the given case are:
(i) Technological Environment: Usage of digital currency and online payment systems
driven by UPI, wallets and cards is on the rise as customers are increasmgly opt for
e-commerce platforms.
(ii, Social Environment: There have been very strong reactions from general public on
platforms like: Facebook, Twitter, Instagram etc. where some groups are supporting
the decision while many others groups are opposing it.
(b) The impacts of demonetisation is highlighted below:

1. Money /Interest Rates (i) Decline in cash transactions.

(ii) Bank deposits increased.
(iii) Increase in financial savings.
2. Private Wealth Declined since some high demonetised notes were not returned and
real estate prices fell.
3. Public Sector Wealth No effect.
4. Digitisation Digital transactions amongst new users (RuPay / AEPS) increased.
5. Real Estate Prices declined.
6. Tax Collection Rise in income tax collection because of increased disclosure.
 L

76 / ABD's Bull's [yr - BusiNFSS SrudiEs (XII)

Set\\on - f \Se\1-E~a\uation Case Studies: Under./Appli./JiOTSlEvaluation Questions) ~!

Cl\sElEl \: lt is interesting to know that the menu items of the multinational food chains are
customized to suit the taste of the local people in the region. KFC, fastfood major
adopted globalisation strategy in Indian markets. Company changed its pr?duct
menu to accommodate the new delicacies given the different taste of population in
the country. Company has even reduced the product price by close to 20% to suit
Indian pockets. (1 Mark)
ldentih· the teature t1f business environment discussed above.

HiNT: Relative.
CASdET 2 · The oil-marketing public sector undertakings are going to be allowed by government
of India, to fix their own prices for petrol and diesel.
Vvt11Ch econonuc retorm is the reason for this change in the government's policy?
(1 Mark)

HiNT: Liberalisation.
CASdexif. When our Prime Minister announced relaxation in import duties on electronic items
_/J to India, many foreign companies ::w were earlier not working in the Indian
market now started showing interest and set up their dealers and distributors in
various states of India.
Identify and explain the dimensions of business environment discussed in the
aboYe. (3 Marks)

HiNT: (i) Legal Environment. (ii) Economic Environment.

CASdET 4: Rames~ & Sons were in the business of making !t:dian sweets for the past two
generations. The business was doing well however there wasn't any growth in the
past few years and the demand for India sweets had more or less stagnated.
Mr. _Ramesh's grandson, Keshav, completed his MBA degree and joined his family
bus~ess. After, a few ~onths h~ felt disappointed as there was no growth and the
busmess wasn t showmg any signs of picking up.
He ~uggest~d to his father and grandfather that they should start chocolate
ma~g busmess and should gradually phase out the outdated Ind' t
busmess H ti · t d h d 1an swee s
f . · e an e1p~ e uge emand and created a website named lovechoc.com
or taking orders onlme. He earned huge profit by selling chocolates online
Idbentify and explam the dnnens1ons of business environment discussed .in the
a ove case.
.INT· ( ·) s · 1 E . (3 Marks)
H • ..1. oct.a nvrronment· .
• Envrrorunent.
(u· ") Economic
(m) Technological Environment.

CASdET ~: The Internet has affected the life of customer .

extent. Online shopping opti h s as well as business houses to a large
ons ave reduced th b
malls to purchase things of their d Th e num er of people who visit
what nline options cannot off nee Th s. us' now . on providing
. malls are focusmg
0
.
sp rts fac1'li.ties mside
0 the m 11er.R ey are focusing on provi'd•mg recreational and
tl t . 1 a 11 . .
. estaurants and bev erage Joints are opening their
ou e s m arge numbers in
mas.
 Bll\iNI \\ [ NViRONMI NJ / 77

Spaze malls, senses this bdon' olh<.'rs ,ind 1,nmchc•s fiv<' projects in Delhi and
NCR. Competitors follow SpnZl' group hnt by the' lime• th<'y arc ready with their
plan s, Spazc shopping complex MC' ,,ln•,Hiy functional, attracting a large numbers
of customers. This pushes the collrctions and profits of the company quite a lot.
On the basis of the given information , answer the following questions:
(a) Dl'fnw tlw tl'nn ' Business Envmmmc nt'.

(b) Explain the trrms 'Thn'ats' ,md 'Opporl11nitic•s' by quoting line'> from the Cd'>e.

(3 Marks)
HiNT: (a) Business Environment is sum total of all external forces and factors affecting
the business.
(b) Threats refers to changes in the external environment that may affect a firms
performance. The term 'opportunities' refers to the positive changes in the
external environment that help a firm to do better.
CASdET 6: Shine cosmetics has been producing various cosmetics products and has attained a
prominent position in the cosmetics market. It has come to this position by
analysing the needs of customers before other cosmetic manufacturing companies
did it and by providing new and improved products to its customers. It has
procured best of technology from Japan and keeps its processes up-to-date .
Whenever a better technique is brought about in the field, it is adopted by the
company.
It's top level Managers are quite aware and alert about external environme nt
changes and incorporate them in the working of the company in a timely manner.
In light of the above case, explain the importance of business environment.

(4 Marks)
HiNT: (a) Enables the firm to identify opportunities.
(b) Helps the firm to tap useful resources.
(c) Helps in coping with rapid changes.
(d) Assists in planning and policy formulation.
CASElET 7: Identify, what has been the cause of the following changes out of liberalisation,
privatisati on and globalisation:
(a) Delhi Vidyut Board now becomes NDPL and BSES.
(b) Easy and smooth flow of goods and services between various nations.
(c) Removal of restriction on expansion and contraction of scale of business
activities.
(d) Quick and easy movement of information and technology across the globe.

(4 Marks)
HiNT: (a) Privatisati on (b) Globalisation
(c) Liberalisat ion (d) Globalisation
CASElET 8: Mr. Ajay after completing MBA from USA comes to India to start a new business
under the banner Ecom Creations Ltd. He launches a new product in e-learning
 L
78 / AB!) \ lll,11\ I y, IJU\i!tt1Ci-. "''

. (.
di,._ (XII )
, , Gtrcam which ;ilready has
1
an
fm Senior ~ea1"clnry School !il11denf1, m omm, rec '. fl · h.
• f r 1fie.; bu~in,•&S st:irts nuns ing
estnbhshed market in UK and USA but not in _m ,a. k •t with other subjects
, ·, ,ntcr mto the mar c
in Ind io. Now JnPfP Indwn cnmpamcs c
nl!;O, h' h highlight the c;1gn if1 cJncf' cf
Jdcnt1f, 1 ml qu0IL lht lml'c, f ,om .ibow p,lr,i w J( (4 Mark r-;J
I ,c uw1101m1tnl .
umh r I, nl1mg HJ " . J h, ;i new product m e-
• I f 11 11 ,,w brn,mcss .... aunc c 5 .
HiNJ: (n) "ccun.-•s lo lnd1n lo s n, d t . Commerce stream 1t helps
lettr ning for s,,nior ::;1•ccmd,1ry school stu en s m
in." . . Hies and getting the first mover
(1) JI t'n:iblc•s Ow firm to idcnt1fy opportun
:id van tage.
(I,) "His busincs!, starts flourishing in India."

1t helps in improving performance. .

. . tered into the market with different subJects
(c) "Now more Indian companies en
also."
It helps the firm to identify threats and early warning signals: .
CAsElo 9: Identify dimension of business envir,,u.n1ent related to following situations: , .
1 t ow Most products are oe1m:
(a) Internet advertising has become very preva en n · .J

~mated through use of electronic media.

(h 'Demand to reserve jobs for minorities and women.
(c) Cigarette packets and cigarette advertisements have to carry the statuto~,,.
warning that "Smoking is injurious to health".
(d) The health-and-fitness trends have been a boom for health clubs and health
food industries.
(e) Hjgh inflation rates make it expensive for businesses to carry on their operations
at the old rates. (5 Marks)
HiNT: (a) Technological Environment. (b) Economic Environment.
(c) Legal Environment. (d) Social Environment.
(e) Hconomic Environment.
CAsF.la 10: Mr. Akhilesh is the managing director of Good Homes Pvt. Ltd. It's a company
which is in the business of constructing affordable housing projects in Delhi and
Uttar Pradesh. Mr. AkhHesh has the habit of keeping a close eye on the developments
that take place in the country which may affect the company. One day he reads in
the newspaper that the government was working at the development of backward
areas of the country and to help the people of such areas it was looking for
collaborations with private builders to construct affordable residential complexes
and roads in these areas. Mr. Akhilesh immediately takes steps to get the details of
the programme and gets first contract to build a housing complex in a backward
area of Jharkhand.
~e company frames policies and plans keeping the objectives of the project in
mmd. It uses locaJ resources and talent of the area to build the project. This helps in
the deveJopment and upliftmcnt of the area.
 B11,iN1"" f NVillONMI NI / lCJ

On the basis .
, of llw givt'l l .111 fOl'llMl1011, ,lllSWN tfip following qu,•:-;lions:
(,1) \Vh,11 llw IIHJ)orl .inu•
. 1s , 0 f 1111d(•rs l,u1di11g Bu sim•ss l·. nvironm<.'nl?
. I,\ kc·n cMc of hy Uw comp,1n y?
(l,) Wlm.::h two v,1lut•s· '11 .c· Ill'lllg (5 Marks)
. . Help~· lo il Il'n t'f
HiNT: (a) (i) 1 Y l hl' opportunity .1nd getting th,,: first mover t1dvant,1ge:
(11)Helps in tapping useful rc'smm cs.
· t s 111
(iii) Assis · PJanmng
· and policy formulc1tion.
(iv) Helps in improving pcrform,111cP
(b) Values being followed:
(i) Use of local talent.
(ii) Upliftment of the backward area.
CASEIET 11 : The market for Herbal Cosmetics in India is growing at a rfmarkable pace of 15-
20% ppr annum. This clearly indicates that today's aware and educated consumer
knows wJ,at is good for him and what is not. His tastes and preferences are
undergoing a major change. The growth in the herbal cosmetics market is due to a
many of factors like rising health consciousness, changing lifestyles, increase in
disposable income and growing availability of herbal cosmetics products in
shopping malls, retail outlets and online.
On the basis of the given information, answer the following questions:
(a) Identify and explain the features of business environment being reflected
above.
(b) By quoting lines from the paragraph identify the various components of
general forces which have led to this change. (6 Marks)
HiNT: (a) Features of Business Environment:
(i) Dynamic
(ii) Uncertain
(iii) Complex
(b) Components of general environment:
(i) Social Environment.
(ii) Economic Environment.
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