Question

‘Express Tours Ltd.’ is a travel agency which books air tickets on commission basis. It takes

two days for Express Tours to get the tickets from airport reservation counter and deliver

the same to customers. During the last one year, there has been drastic decrease in its

business as most of the customers have shifted to another travel agency, ‘Shiva Tours and

Travels’, which provides tickets within half-an-hour through internet.

(a) Name and explain the dimension of business environment that is being overlooked by

‘Express Tours Ltd.’

(b) Also explain how understanding of business environment helps managers.​

Answer 1

Answer:

Explanation:

' is a travel agency which books air tickets on commission basis. It takes two days for Express Tours to get the tickets from airport reservation counter and deliver. Travels', which provides tickets within half-an-hour through internet.

Answer 2

(a) Name and explain the dimension of business environment that is being overlooked by  ‘Express Tours Ltd.’

Dimension

Technological Environment is  the dimension of business environment which is being overlooked here as half of the tickets are being sold through internet.

Explanation

Technological Environment means the:

1. Scientific improvements that provides new ways for producing the goods.
2. Techniques to operate the business.

(b) Also explain how understanding of business environment helps managers.​

Because:

1. It helps to evaluate the  advantage of first mover.
2. It helps to identify the early warning signals.
3. It helps in assisting in formulating the planning policy.
4. It helps identifying the resources which are useful.
5. It helps to understand the changes occurring in the environment.
6. It helps to developing the performances.