Identify the dimension of business environment in the following cases –a) Replacing old machinery with new one to meet the requirements of pollution control regulations.b) Importing machinery from Japan to install automatic production system c) Demand for home loans decreased due to increase in interest rates d) HCL has opened various institutions to provide education to lesser privileged children.e) Various foreign companies are planning to establish business in India because the government has allowed 100% foreign direct investment (FDI) in retail trade.
Answers
Answer:
a) Legal Environment
b) Technological Environment
c)Economic Environment
d) Demographic Environment
e) International Environment
Explanation:
a) Legal Environment:
The laws enacted by the government and the judgments made by the numerous commissions and agencies at all levels of the government make up the legal environment. Every business must act in accordance with local laws if it wants to do business there.
b) Technological Environment:
The main driving forces behind advances in science, new products on the market that increase the quality of goods and services, and strategies for running businesses more effectively are referred to as technological aspects in the business environment.
c) Economic Environment:
if the economy is experiencing a boom. a place where industry is booming and everyone is making a solid living, increasing the consumer's spending power. This indicates that the producer can command a high price for his product on the market. In contrast, the customer's purchasing and investment power decreases during an economic downturn.
d) Demographic Environment:
Marketers refer to the features of a population that might be exploited to affect the success of a business or commercial endeavour as the "demographic environment." Age, sex, income, education, and occupation are the demographic parameters that affect businesses the most.
e) International Environment:
The setting in which multinational corporations conduct their operations is referred to as an international business environment. Therefore, it is essential that those in managerial positions work on the elements that make up the global business environment.