Question

'Accent Electronics Ltd.' was operating its business in Malaysia. The company started exporting its products to India when the Prime Minister announced relaxation in import duties on electronic items. The company appointed retailers in India who had direct online links with the suppliers to replenish stocks when needed. Identify the dimensions of business environment discussed in the above case

Answer 1

Explanation:

The dimensions of business environment referred in the above case are <br> (i) Political environment It is the outcome of a combination of various ideologies advocated by different political parties. Every political party has a different attitude towards business community. A live example of this can be seen during elections when there is a fluctuation in the share market <br> (ii) Economic environment It consists of economic factors that influence the business in a country. These factors include Gross National Product (GNP), corporate profits, inflation rate, employment, Balance of Payments (BoP), interest rates, consumer income etc. Economic environment in a country has strong influence on the business in that country <br> (iii) Social environment It describes the characteristics of the society in which the organisation exists. Literacy rate, customs, value beliefs, lifestyle, demographic features and mobility of population are the part of the social environment. The trend of change can be predicted well in advance It is important for managers to notice the direction in which the society is moving and formulate progressive policies according to the changing social scenario

Answer 2

Concept Introduction:-

Employees, consumer demands and expectations and other internal and external aspects make up the business environment.

Explanation:-

A question has been provided to us

We need to find the solution to the question

The aspects of the business environment that are mentioned in the provided example are as follows.

$1$. The business's economic situation before it began exporting goods to India Explanation The impact of interest rate changes, income levels, stock market movements, etc. are all considered to be part of the economic environment. Example: A rise in exports causes the price of domestic currency to decline, and vice versa.

$2$ The legal context - "The prime minister approved a reduction in import taxes for electronic goods" Explanation The term "legal environment" refers to all the legal regulations and guidelines put in place by the government to oversee an enterprise's operations. Management needs to be aware of how to deal with various changes in the legal environment in order to adapt to the dynamic business environment.

Final Answer:-

The correct answer is the business's economic situation before it began exporting goods to India.

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