Question

Qno. 25. Identify the dimensions of business environment in the following
cases:
1. Hand-woven carpets are banned in some European countries as they
think there can be involvement of child labour in the manufacturing of
these carpets. Products produced through the involvement of child
labour are banned in these countries.
2. With the winning of a new party in a particular country an automobile
company has decided to take back its plan of opening 15 plants in that
country.
3. A chocolate making company has decided to make more sweetened
chocolates for people living in a particular country,
4. Advertising of a particular brand is taken back as it is expected to hurt
the sentiments of a particular section of society. The company takes this
decision on a conscientious level.
04 marks​

Answer 1

Case 1:

A Legal Environment

A legal environment is one where the laws pas‎sed by the authority are obeyed and followed. All organizations are to follow whatever rules/laws have been framed.

As mentioned in the case, hand-woven carpets are banned in some countries due to the involvement of child labour, making it an illegal activity.

Case 2:

A Political Environment

A political environment is one where the society's or the business's actions are dependent on the stability or ins‎tability of political parties. If political conditions are stable, businesses are able to perform better due to increased confidence. If they aren't stable, it impacts the business's confidence in performance.

As mentioned in the case, due to a new party winning, the business's action of opening 15 plants in the country was halted.

Case 3:

A Social Environment

A social environment is one where society's needs and concerns are given more importance. Every organization has an obligation to ensure that its actions do not harm social confidence. Various factors like social values, moral ethics, customs and traditions and so on are taken into consideration. Upcoming trends also impact the performance of businesses as they need to keep up with the new demands.

As mentioned in the case, the company decided to make sweeter chocolates for a particular country to satisfy their demands.

Case 4:

A Social Environment

As mentioned above [case 3], social factors like values, moral ethics, customs and traditions are taken into consideration. This involves sentiments as well, as it is still harming the community.

Answer 2

Answer:

The answer is business environment

Explanation:

concept of business environment

The time period ‘enterprise surroundings’ means the totality of all individuals, institutions and different forces which are outdoor the control of a commercial enterprise organization but have a main effect on its performance.

Totality of outside forces. business surroundings is the sum general of all individuals, businesses, institutions and forces that exist outdoor the commercial enterprise organisation and impact it.

specific and general forces. unique forces are clients, competition and suppliers and that they have an immediate effect at the corporation.

trendy forces are political, social, criminal, technological and economic dimensions that have an indirect effect at the business enterprise.

Inter-relatedness. distinct elements of business surroundings are inter-associated and understructure. E.g„ increase in disposable earnings can also boom the demand of luxurious merchandise.

Dynamic nature. patron tastes and possibilities, depth of opposition inside the market, etc. preserve on changing giving it a dynamic nature.

#SPJ2