Mr. Vikram Singh Churuwala is working as the General Manager of Jaipur Hotels
Limited (JHL). Keeping a watch over the Business Environment is included in his
routine. For the last few days Mr. Churuwala has been observing that the Government
is taking a special interest in the Tourism industry. The receipt of foreign exchange and
employment promotion are its two reasons. On the basis of this news he decided to set
up hotels at several tourist places. The JHL established 50 hotels before other companies
considered this issue. Very soon, this brand JHL became well known in the market.
Behind the fame of this company another reason was that this company was giving its
employees not only the responsibility but also the authorities for completion of work.
Consequently, the employees felt good. The environment being to their liking now they
had started meeting their immediate manager with the latest ideas. Their suggestions
were being taken respectfully by the company.
Identify and explain the two importance of business environment described here by quoting
the relevant lines .
Answers
Answer:
"The receipt of foreign exchange and employment pramotion"
" This company was giving it's employees not only the responsibility but also the authorities for the completion of work"
Answer:
The business environment here being referred to is Political Environment.
Quoting lines- “For the last few days Mr. Churuwala has been observing that the Government is taking a special interest in the Tourism industry. The receipt of foreign exchange and employment promotion are its two reasons.”
Explanation:
Business Environment - Economic, social, legal, technological, and political circumstances are aspects of or the agents producing the business environment and should be properly taken into account while making decisions and boosting the success of the trading concern. In contrast to the particular environment, these factors represent the prevailing environment, which frequently has an impact on numerous organisations at once. The management of every firm can, however, benefit from being aware of these factors rather than being objective in them.
Political Environment - It denotes that the government's measures, which may have an impact on any company's regular operations both domestically and internationally, were taken.Business and industrial success is dependent on how the government views them, how stable the government is, and how peaceful the nation is.
Example – Central Government introducing subsidies for Small Business.
Importance of political business environment:
• It helps business to grab opportunities, prepare for threats.
• Its helps business to adapt to changes and formulate its policies accordingly.
• It helps business to make efficient and effective utilisation of resources.
Hence , we can conclude that Mr. Vikram took the advantage of the Political Environment in favour of the business.
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