Question

A leading FMCG company manufacturing potato chips as its premium snack feels the need to steer ahead of its competitors. It asks for suggestions from its employess. The employees feel that the market for potato chips as a segment has become commoditised. They suggest that innovation in finger snacks was much more & it would also help the firm overcome the volatility & severe shortage of chips- grade potatoes in India. Besides change in prices of potato often lead to change in profit margins of the firm. Keeping in mind the fact that consumers are health conscious the company executes the suggestions of its employees by introducing variant of finger snacks including multi grain, pulses & regional flavours under its ‘Kingo’ brand.

(i) Which environment awareness is being identified by the company?

(ii) Identify the dimension of business environment by quoting from above lines.

(iii) Define the dimension so identified above.

(iv) List any two values shown by the company.

Answer 1

Answer:

Case study

Explanation:

Q.1.

Ans As a means to better understanding and analyzing its complexities, the business environment has been organized under six major forces of influence:

1 Socio cultural,

2 Competitive,

3 Technological,

4 Economic,

5 Political & Regulatory,

6 Natural

These six forces are interrelated, constantly in action, and constantly changing

In the above questions,we can say that the company has opted for

Competitive Environment.

Q.2.

Ans

There are five dimensions of the business environment that influence many firms. These dimensions include

1 The economic environment,

2 The social environment,

3 The political environment,

4 The legal environment, and the technological environment.

Q.3.

Ans

In the above case study,the social environment of a business is being discussed.

Q.4.

Ans The two values shown by company are

1 Understanding the customers needs

The company knows that these days people are preferring less oil in food, therefore they are opting for oil free finger snacks.

2 Value the employee opinion

The company discusses the matter with employees and seeks their opinion.It shows that the company gives value to its employees.