Sunanda Papers decided to set up its industrial unit in backward village of Madhya Pradesh, due to its strategic location i.e. easy availability of wood to make paper. Moreover, due to unemployment, cheap labour is available in abundance. The village has no electricity so it decided to tap renewable solar energy in place of using diesel generators to meet its power requirements. The government offered industrial land at cheaper rate for the development of backward area and also provided subsidy for installing solar panels. (a) Identify the dimension business environment discussed in above case by quoting the lines. (b) Also identify and explain from the given case the two benefits reaped by Sunanda papers by understanding the business environment.
Answers
Answer:
Sunanda Papers decided to set up its industrial unit in backward village of Madhya Pradesh, due to its strategic location i.e. easy availability of wood to make paper. Moreover, due to unemployment, cheap labour is available in abundance. The village has no electricity so it decided to tap renewable solar energy in place of using diesel generators to meet its power requirements. The government offered industrial land at cheaper rate for the development of backward area and also provided subsidy for installing solar panels. (a) Identify the dimension business environment discussed in above case by quoting the lines. (b) Also identify and explain from the given case the two benefits reaped by Sunanda papers by understanding the business environment.
The answers are as follows-
(a) The economic dimension of the business environment has been discussed in the case.
- This dimension includes all the economic factors that are external to the business but affect the business' performance and growth.
- It included elements like the rate of inflation, supply and demand in the market, changes in interest rate, etc.
(b) The two benefits reaped are tapping useful resources and identifying opportunities and getting the first-mover advantage.
- Since the village had wood easily available, the resources as raw materials were easily acquired.
- Solar energy was used to power machinery and subsidies were also received for it.
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