Question

Q.​ ​12.​ ​Over​ ​the​ ​years,​ ​e-business​ ​in​ ​our​ ​country​ ​has​ ​witnessed​ ​tremendous​ ​growth​ ​due​ ​to several​ ​reasons.​ ​​ ​There​ ​is​ ​significant​ ​improvement​ ​in​ ​the​ ​Information​ ​Technology infrastructure​ ​over​ ​the​ ​last​ ​decade​ ​as​ ​the​ ​Government​ ​has​ ​taken​ ​important​ ​steps​ ​in high-speed​ ​Internet​ ​connectivity.​ ​​ ​As​ ​a​ ​result,​ ​the​ ​broadband​ ​networks​ ​have​ ​not​ ​only become​ ​better​ ​but​ ​also​ ​more​ ​affordable.​ ​​ ​Additionally,​ ​Government​ ​is​ ​trying​ ​to​ ​make​ ​rural India​ ​connected​ ​through​ ​broadband​ ​–​ ​a​ ​great​ ​possibility​ ​for​ ​e- business​ ​to​ ​expand​ ​the​ ​retail market​ ​by​ ​reaching​ ​out​ ​to​ ​the​ ​most​ ​remote​ ​rural​ ​customer.​ ​​ ​Another​ ​catalyst​ ​strengthening the​ ​e-business​ ​segment​ ​is​ ​the​ ​country’s​ ​favourable​ ​demography.​ ​​ ​It​ ​has​ ​more​ ​than​ ​50%​ ​of its​ ​population​ ​below​ ​the​ ​age​ ​of​ ​25​ ​and​ ​more​ ​than​ ​65%​ ​below​ ​the​ ​age​ ​of​ ​35.​ ​​ ​It​ ​is​ ​expected that,​ ​in​ ​the​ ​year​ ​2020,​ ​the​ ​average​ ​age​ ​of​ ​an​ ​Indian​ ​will​ ​be​ ​29​ ​years,​ ​compared​ ​to​ ​37​ ​for China​ ​and​ ​48​ ​for​ ​Japan,​ ​this​ ​promises​ ​for​ ​phenomenal​ ​increase​ ​in​ ​e-business.​ ​​ ​Moreover, the​ ​penetration​ ​of​ ​the​ ​smart phone​ ​in​ ​a​ ​large​ ​section​ ​of​ ​the​ ​population​ ​has​ ​aptly​ ​addressed the​ ​problem​ ​of​ ​compute​ ​illiteracy.​ ​Not​ ​with​ ​standing​ ​the​ ​fact​ ​that​ ​consumers​ ​also​ ​prefer e-business​ ​due​ ​to​ ​multiple​ ​factors​ ​like​ ​convenience,​ ​time​ ​etc. Identify​ ​and​ ​explain​ ​the​ ​various​ ​dimensions​ ​of​ ​business​ ​environment​ ​being​ ​referred​ ​to​ ​in​ ​the above​ ​case.

Answer 1

Answer:

Business Environment

Explanation:

Dimensions or the factors constituting the business environment include :-

1)Political - The politics plays a major role in the success of a business.The policies and guidelines of the ruling political parties plays a major role in the future of a business.

2)Social - This Business Dimension refers to the social environment of a business.The literacy rate and demand of a product.The business must promote the need of the product that they are offering.

3)Technological - Since the past few years there has been a drastic change in the literacy rate of India.People are becoming more educated and techno savvy.They are now more open to buy and sale products online with the help of ecommerce website and other social media websites and apps are helping us with the rise in business.Technology is the easiest way to promote and market a product.

4)Legal - The legal factors involve the procedures that help to legalize a business.

5) Economic factors - These dimensions involve the sources of capital of a company.Whether a company will take a bank loan or adopt other sources of finances for its business.

These are the dimensions of the Business Environment which are considered important for taking decisions and for improving the operations of a firm.