Ith changes in the consumption habits of people, gnanapala sweets, which was running a traditional-sweet shop, shifted to the chocolate and ice-cream business. during major festival seasons, gnanapala sweets offered chocolates and ice-cream in attractive packages at reasonable prices. gnanapala sweets anticipated a huge demand for its new products due to the recent increase in per-capita income thereby spending power of potential customer. the firm created a website for taking orders online while promoting those products in social-medias. gnanapala sweets received a lot of orders online and earned huge profits.
a. identify and explain three (03) dimensions of business environment discussed in the above case.
b. how do you advice gnanapala sweets to assess the influence of environment on the firm? briefly explain.
Answers
Answer:
Dimensions of Business Environment:
(a) Social Environment: The social environment of business include the social forces like customs, habits and traditions, values, social trends, society's expectations from business, etc. traditions define social practices that have lasted for decades or even centuries. For example, the celebration of Diwali, Id, Christmas, and Guru Parv in India provides significant financial opportunities for greetings card companies, sweets or confectionery manufacturers, tailoring outlets and many other related businesses.
(b)Technological Environment: Technological environment includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business. For example, recent technological, advances in computers and electronics have modified the ways in which companies advertise their products.
Manufacturers have flexible manufacturing systems. Airline companies have Internet and World Wide Web pages where customers can look for flight times, destinations and fares and book their tickets online.
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