Question

Naman and Govind after finishing their graduation under vocational stream decided to start their own travel agency which will book Rail
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tickets and Air Tickets on commission basis. They also thought of providing tickets within ten minutes through the use of internet. They discussed the idea with their professor Mr. Mehta who liked the idea and suggested them to first analyse the business environment which consists of investors, competitors and other forces like social, political etc. that may affect their business directly or indirectly. He further told them about the technological improvements and shifts in consumer preferences that were taking place and hence they should be aware of the environmental trends and changes which may hinder their business performance. He emphasized on making plans keeping in mind the threat posed by the companies, so that they can deal with the situation effectively. This alignment of business operations with the business environment will result in better performance.
(i) Identify and state the component of business environment highlighted in the above para.
(ii) State any two features of business environment as discussed by Professor Mehta with Naman and Govind.

Answer 1

Answer:

Components of Business Environment – Economic Environment, Technological Environment, Social Environment, Demographic Environment and a Few Others. The general environment of an organisation is made up of vital components such as economic, technological, social, demographic, political and legal and global forces.

The two features of business environment as discussed by Professor Mehta with Naman and Govind are as follows: Dynamic nature: It is dynamic in nature and keeps on changing due to technological upgradations, shifts in consumer preferences or increase in competition in the market