Case Studies - (Chapter- 3) Business Environment , BST Class 12

Case Studies - (Chapter- 3) Environment

Q. 1. Mr. Ajay after completing MBA from USA comes to India to start a new business under
the banner Ecom Creations Ltd. He launches a new product in a e-learning for senior
Secondary School students in Commerce stream, which already has n established market in
UK and USA but not in India. His business starts flourishing in India. Now more Indian
companies entered into the market with other subjects also.
Identify and quote the lines from above para which highlight the significance of
understanding business environment. (4 marks)
Ans.
● “Comes to India to start a new business … launches a new product in e-learning for
Senior secondary school students in Commerce stream.”
1. It helps in assisting in planning and policy formulation.
2. It helps the firm to identify opportunities and get the first mover advantage.
● “His business starts flourishing in India.”
1. It helps in improving performance.
● “Now more Indian companies entered into the market with different subjects also.”
1. It helps the firm to identify threats and early warning signals.
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Q. 2. Just after declaration of Lok Sabha Elections 2014 results, the Bombay stock
exchange’s price index (Sensex) rose by 1000 points in a day. Identify the environmental
factor which led to this rise giving reason. Also explain any two other dimensions of
business environment. (5 marks)
Ans. Rise in stock market index (Sensex) is economic environment. But Political
environment (declaration of Lok Sabha Elections 2014 results)) led to this rise.
Two other dimensions of business environment:
1. Legal Environment:
2. Technological environment:

Q. 3. The court passed an order that all schools must have water purifier for the school
children as
1. Society in general is more concerned about quality of life.
2. Innovative techniques are being developed to manufacture water purifier at
competitive rates.
3. Incomes are rising and children at home are also drinking purified water.
The government is also showing positive attitude towards the water purifier business.
Identify the different dimensions of business environment by quoting from the above details.
(5 marks)
Ans.
1. Legal environment:
2. Social environment:
3. Technological environment:
4. Economic environment:
5. Political environment:

Q. 4. ‘It is common now to see CD-ROM’s, computerized information kiosks, and
Internet/Word Wide Web multimedia pages highlighting the virtues of products.’ Name the
dimension of the business environment highlighted by this stateme. (1 mark)
Ans. Technological environment

Q. 5. Which component of business environment requires that advertisements of baby food
must necessarily inform the potential buyers that mother’s milk is the best? (1 mark)
Ans. Legal environment.
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Q. 6. It is the process by which government control over the industry is being loosened.
Give the term to which this statement is trying to indicate. (1
mark)
Ans. Liberalization

Q. 7. Due to entry of foreign firms, competition for Indian firms has increased, especially in
service industries. Name such service industries. (1
mark)
Ans. Telecommunications, airlines, banking, insurance, etc.

Q. 8. The Court passed an order to ban polythene bags as
1. The bags are creating many environmental problems which affect the life of people in
general.
2. Society in general is more concerned about quality of life.
The Government decided to give subsidy to jute industry to promote this business.
Innovative techniques are being developed to manufacture jute bags at low rates.
Incomes are rising and people can afford to buy these bags.
Identify the different dimensions of Business Environment by quoting the lines from the
above particulars. (5 marks)
Ans.
1. Legal environment:
2. Social environment:
3. Political environment:
4. Technological environment:
5. Economic environment:
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Q. 9. The government of India is seriously thinking of allowing the oil-marketing public sector
undertaking to fix their own prices for petrol and diesel. Which economic reform is the
reason for this change in the government’s policy?
Ans. Privatisation as a reform is the reason for this change in the government policy.

Q. 10. Kapil Sharma is working as the Country Head of a company which owns a chain of
malls under the name of ‘Virtuoso’ in the various parts of India. Through an analysis report
of the business environment, it has been brought to his notice that in the coming years,
shopping at a mall will not be a necessity for the buyers as purchases can be made online
from anywhere and at any time with ease and at the consumer’s convenience. Hence, malls
will have to provide much more than shopping to be able to attract customers. So, he
recommends that ‘Virtuoso’ malls should to be restructured into recreation centres, offering
more spaces to socialize, host events and concerts, and provide ample Food and
Beverages options.
Consequently the share of entertainment segment and Beverages segment in the overall
mall space is increased by 20%. As a result, the company gains enormously by getting the
first mover advantage.
In context of the above case:
1. Define the term ‘Business Environment’.
2. Explain the terms ‘Threats’ and ‘Opportunities’ by quoting lines from the paragraph.
Ans.
1. The term ‘Business Environment’ means the sum total of all individuals, institutions
and other forces that are outside the control of a business enterprise but that may
affect its performance.
2. The term ‘threats’ refers to the external environment, trends and changes that will
hinder a firm’s performance.
“Trough an analysis report of the business environment, it has been brought to his notice
that in the coming years, shopping at a mall will not be a necessity for the buyers as
purchases can be made online from anywhere and at any time with ease and at the
consumer’s convenience.Hence, malls will have to provide much more than shopping to be
able to attract customers.”
The term ‘opportunities’ refers to the positive external or changes that will help a firm to
improve its performance.
“As a result, the company gains enormously by getting the first mover advantage.”

Q. 11. “Zero Defect Zero Effect” (ZED) is a slogan coined by the Prime Minister of India,
Narendra Modi with reference to the Make in India initiative launched by the government.
The slogan reflects the efficiency of production processes, i.e. the products have no defects
and the process through which the product is made has zero adverse environmental and
ecological effects. The Zed model aims to make India the manufacturing hub of the world
and prevent the products developed in India from being rejected by the global market.
Moreover, before the initiative was launched, the limits of foreign direct investment in
various sectors had been relaxed. The application for licences was made available online
and the validity of licences was increased to three years. Various other norms and
procedures were also relaxed by the government.
In the light of the above paragraph, identify and explain the major component of New
Economic Policy of 1991 that are being referred to by quoting lines from the paragraph.
Ans. The major components of New Economic Policy of 1991 that are being referred to are
as follows:
● Liberalization: The economic reforms signaled the end of the licence-permit-quota raj
and were aimed at liberalizing the Indian business and industry from all unnecessary
controls and restrictions.
“Moreover, before the initiative was launched, the limits of foreign direct investment in
various sectors has been relaxed.The application for licences was made available online
and the validity of licences was increased to three years. Various other norms and
procedures were also relaxed by the government.”
● Globalization: Globalization means the integration of the various economies of the
world leading towards the emergence of a cohesive global economy.
“The ZED model aims to make India the manufacturing hub of the world and prevent the
products developed in India from being rejected by the global market.”
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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 smartphone 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.
Ans. The various dimensions of business environment being referred to in the above case
are as follows:
1. Political Environment:
2. Technological Environment:
3. Social Environment:

Q. 13. Beni, after completing her MBA, took up a job a multinational company named
‘Fortio’. The company was paying good salary and perks to its employees. The wages
were within the paying capacity of the company that provided the employees a reasonable
standard of living. The company also had a good work-culture and the behaviours of
superiors was very good towards their subordinates. Beni was very happy in this
organization, but due to long working hours she did not have time to cook her meals. She
had to depend on outside found, which was deteriorating her health.
She observed that this problem was faced by many of her colleagues, not only in her
company but also in many other companies. This was because of increase in the number of
working women and non-availability of hygienic home-cooked food. She identified this as a
great opportunity and decided to give up her job to supply packaged home-cooked food to
office goers at a reasonable price. At the end of the day she also distributing the left-over
food in the nearby night-shelters.
1. State the dimension of business environment being discussed above.
2. State the principle of management being followed by ‘Fortio’.
 (4 marks)
Ans.
1. Social environment which includes social forces like customs and traditions, values
trends etc.
‘this was because of increase in the number of working women and non-availability of
hygienic home-cooked food.’
1. Remuneration of employees, which states that the overall pay and compensation
should be fair to both employees and the organization.
‘The company was paying good salary and perks to its employees.The wages were within
the paying capacity…standard of living.’
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Q. 14. Nakul, a manager of Zyco Ltd. always takes into account the changes taking place in
business environment while determining plans. He accepts changes readily and gives
useful suggestions to his superior, which results in reduction of costs. As a result,
company’s profits increase. Nakul enjoys cordial relations with his co-workers and makes
plans in consultation with his team to achieve organizational goals.
1. Which characteristic of management is highlighted in the above lines?
2. Identify and state any two principles of management followed by Zyco Ltd.
3. Give any two benefits which Zyco Ltd. get by taking into account the changes taking
place in business environment, quoting the lines from the above para.
(6marks)
Ans.
1. Management is a dynamic function.
2.
1. Initiative
This principle indicates that the subordinates should be encouraged to give suggestions and
make and execute plans within the prescribed limits of authority.
1. Spirit de corps
This principle suggests that management should promote a team spirit of unity and harmony
among the employees.
1. Benefits of business environment:
1. It helps in assisting in planning and policy formulation.
‘… takes into account the changes taking place in business environment while determining
plans.’
1. It helps in improving performance.
‘He accepts changes readily and gives useful suggestions to his superior, which results in
reduction of costs.As a result, company’s profits increase.’

Q. 15. It is interesting to know that the menu items of the multinational food chains are
customized to suit the general palates of the local people in the region. When McDonald’s
started its business in India in the year 1996, the company went through a complete
localization strategy. McDonald’s changed its product menu to accommodate the vegetable
burger given the large vegetarian population. It also altered its store design and even
reduced the product price by close to fifteen per cent. Also, the “McAloo Tikki burger” is not
available anywhere but in the Indian outlets of McDonalds.
Identify the relevant feature of business environment being discussed above.
Ans. Relativity is the relevant feature of business environment which is being discussed
above.

Q. 16. Eco-friendly products are gaining power as the consumers’ awareness about
environmental issues has increased over the years and they are conscious about choosing
products that do not have adverse effects on the environment. They are now more
conscious about the carbon emission and climate change effects, and want themselves to
be ‘seen’ as a green advocate among their peers. In such a scenario, it has become a
challenge for the companies as they have to not only meet the needs of the consumers but
also ensure that their products are safe and environment friendly. At a result, there is
growing need for better and advanced technologies to works as a catalyst in this regard.
1. Identify the relevant feature of business environment being discussed above.
2. Describe briefly any three points which highlight the importance of business
environment and its understanding by managers.
Ans.
1. Inter-relatedness is the relevant feature of business environment which is being
discussed above.
2. The three points which highlighted the importance of business environment and its
understanding by managers are described below:
1. It enables the firm to identify opportunities and getting the first mover advantage: The
dynamic business environment provides numerous opportunities for a business to
evolve as per the changing needs. Therefore, early identification of the forthcoming
opportunities helps an enterprise to be the first to exploit them instead of losing them
to the competitors.
2. It helps the firm to identify threats and early warning signals: sometimes the changes
in the external environment may pose as a threat and hinder a firm’s performance.
An awareness about the business environment helps the managers to identify such
threats on time and take necessary decisions and action.
3. It helps in tapping useful resources as the enterprise designs policies that allow it to
get the resources that it needs so that it can convert those resources into outputs that
the environment desires.
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Q. 17. Ultra Paint Co. which is manufacturing paints has been enjoying a prominent market
position as it manufactured best quality paints, made timely payment of taxes to
government. It assembled various inputs like finance, machines, raw materials, etc. from its
environment. But since last year it has been dumping its untreated poisonous waste on the
river bank which has created many health problems for the people. As a result, the court
passed an order to seal the manufacturing unit of the company.
1. State the importance of business environment highlighted quoting the line from the
above case.
2. Identify any two dimensions of business environment mentioned in the above case by
quoting lines from it.
(5 marks)
Ans. (a) Business environment helps in tapping useful resources.
‘It assembled various inputs like finance, machines, raw materials, etc. from its
environment.’
(b) (i) Social environment
‘…it has been dumping its untreated poisonous waste on the river bank which has created
many health problems for the people.’
(ii) Legal environment
‘…the court passed an order to seal the manufacturing unit of the company.’

Q. 18. Philips, a company manufacturing light bulbs incurred heavy expenditure on scientific
Research and Development and discovered a technology that made it possible to produce
an energy efficient light bulb that lasts at least twenty times as long as a standard bulb. It
resulted in growth and profitability of the company.
1. Identify and state the dimension of business environment mentioned above.
2. State the importance of business environment mentioned above by quoting the lines.
(4 marks)
Ans.
1. Technological environment
It includes forces relating to scientific improvements and innovations which provide
new ways of producing goods and services, and new methods and techniques of
operating a business.
2. Business environment helps a firm to improve its performance.
‘It resulted in growth and profitability of the company.’

Q. 19. Disco Ltd. manufactures fashionable and designer clothes. Recently it finds that the
demand for its products has been declining. After market research it was discovered that
fashion and tastes of the consumers is changing at a fast pace. Customers’ demand is
increasing. New competitors have entered the market with new designs. It is very difficult
for the company to predict future happenings. Also, it is difficult to know the extent of the
relative impact of the social, economic, political, technological or legal factors on decrease in
demand of its products in the market.
A meeting was held in which managers from different functional levels heading Production,
Marketing, Finance, etc., for example, Chief Operating Officer, Chief Finance Officer, Vice
President (Marketing) were present to discuss how to deal with the situation. After a long
discussion, it was decided that they would study and analyze the market first to identify
customer tastes and fashion and then manufacture garments accordingly. It was also
decided to increase expenditure on advertising, after-sales services, etc.
1. Identify any two features of business environment by quoting the lines from the above
case.
2. At which level of management the meeting of managers of Disco Ltd. was held?
3. Identify any two impact of government policy changes on business, quoting lines from
the above case.
4. State the importance of understanding of environment by business managers in the
light of the above para. (6
Marks)
Ans.
1. Features of business environment:
1. Dynamic nature: ‘fashion and taste of the consumers is changing at a fast pace.’
2. Uncertainty: ‘It is very difficult for the company to predict future happening.’
3. Complexity: ‘It is difficult to know the extent of the relative impact of the social,
economic, political, technological or legal factors on decrease in demand of its
products in the market.
1. Top level management
2. Impact of government policy changes on business:
1. Increasing competition: ‘New competitors have entered the market with new designs.’
2. More demanding customers: ‘Customers’ demand is increasing.’
3. Market orientation: ‘it was decided that they would study and analyze the market first
to identify customer tastes and fashion and then manufacture garments accordingly.
It was also decided to increase expenditure on advertising, after-sales services, etc.’
1. Business environment helps the manager in coping with rapid changes.
Q. 20. The organic food market in India is grow at 25-30 per cent which reflects a clear shift
in consumer tastes and preferences. The current growth in the organic food market is
driven by multiplicity of factors like rising health consciousness, changing lifestyles, increase
in disposable income and growing availability of organic food products in shopping malls,
retail outlets and online.
In context of the above case:
1. Identify and explain the features of business environment being referred to here.
2. By quoting phrases from the paragraph identify the various components of general
forces which have led to a growth in the organic food market.
Ans.
1. The features of business environment being referred to in the above case are as
follows:
● Dynamic nature: It is dynamic in nature and keeps on changing due to technological
up gradations, shifts in consumer preferences or increase in competition in the
market.
● Inter-relatedness: All the elements of business environment are closely interrelated.
Therefore, any change is one element may necessitate corresponding changes in the
other elements as well.
2. The various components of general forces which have led to a growth in the organic
food market are as follows:
1. Social: “rising health consciousness, changing lifestyles”
2. Economic: “increase in disposable income”
3. Technological: “growing availability of organic food products in shopping malls, retail
outlets and on line.”
Q. 21. Anurag, aspires to work with a socially and environmentally committed company as
he does not want to work just for monetary benefits but also the brand value of the company
he works for in the society matters a lot to him. Therefore, he has joined Cerebra Integrated
Technologies a Bengaluru-based Infotech company. The company has built India’s largest
e-waste recycling plant. The company strives to be one of the leading players in this
business which has huge potential not only in terms of generating huge revenues and profits
but also wants to contribute to the environment issues that have become crucial worldwide.
The company sees big business in the mountains of e-waste in Bengaluru which produces
2,00,000 tonnes of e-waste a year. The company plans to make its millions by extracting
metals such as gold and platinum from the e-waste piling up in the city. As a mobile phone,
for example, is made up of a combination of rare earth and precious metals: it contains 250
mg of silver, 24 mg of gold and nine mg of palladium while a laptop has 1,000 mg of silver,
220 mg of gold and 500 grams of copper.
To start the business, the company has obtained a licence from KSPCB (Karnataka State
Pollution Control Board).
In context of the above case:
1. Identify the various dimensions of business environment being referred to by quoting
lines form the paragraph.
Ans.
1. The various dimensions of business environment being referred to the in the above
case are as follows:
● Technological environment: Technological environment includes forces relating to
scientific improvements and innovations which provide new ways of producing goods
and services and new methods and techniques of operating a business.
● Legal environment: Legal environment includes various legislations passed by the
Government administrative orders issued by government authorities, court judgments
as well as the decisions rendered by various commissions and agencies at every
level of the government – centre, state or local.
● Social Environment: Social environment includes the social forces like customs and
traditions, values, social trends, society’s expectations from business, etc.

Q. 22. After competing his education, Arun joins his father in their family business of
manufacturing cookware. As a businessman, his father is rigid in his approach and has
fixed ideas about various issues. He tends to maintain a distance from the factory workers.
However, Arun is more receptive to the needs of the workers and doesn’t seem to believe in
any class-differences. He believes that the prosperity of their business greatly depends
upon the prosperity of their workers and vice versa. At the same time, he has a good
understanding of the business environment. Therefore, he introduces a new range of green
pans that provide a healthy cooking surface, as they are manufactured with all ceramic or
silicon coating and are considered safer than the traditional petroleum based nonstick
surfaces which may contain toxic substances. Although, the new cookware range is highly
prices, he expects a ready market for it as both the purchasing power of people and their
preference for better quality products has increased over the years.
In context of the above case:
1. Identify the nature of management which is being reflected in the different styles of
management in practice adopted by Arun and his father.
2. Name and explain the related principle of scientific management.
3. State the related dimensions of business environment.
Ans.
1. The different styles of management in practice adopted by Arun and his father reflect
that management is an art.
2. ‘Harmony, Not Discord’ is the related principle of scientific management.
3. The related dimensions of the business environment are:
● Economic Environment:
● Social Environment:
● Technological Environment:
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Q. 23. Continuous and comprehensive evaluation is a process of assessment, mandated by
the right to Education Act, of India. This approach to assessment has been introduced by
state governments in India, as well as by the Central Board of Secondary Education in India.
With the introduction of (CCE) system in education there is greater focus on project based
learning. As a result, besides time and effort the students are willing to invest money to
enhance the visual appeal of their project files so as to score higher marks. In order to cash
on the opportunity Rishabh has started a small business unit to manufacture different kinds
of decorative materials for the project files. He has employed a team of four creative
designers for developing the innovative material with the help of latest technology.
However, he has a prejudice against women and therefore pays less salary to them as
compared to the male staff for equal work.
In the context of the above case:
1. Name any two functions of management that Rishabh will have to perform in order to
manage his business successfully.
2. Name and explain the principle of management which is being violated by Rishabh.
3. Identify the related dimensions of the business environment.
Ans.
1. The two functions of management that Rishabh will have to perform in order to
manage his business successfully are Planning and Orgnising.
2. The principle of management which is being violated by Rishabh is Equity.
3. The related dimensions of the business environment are:
1. Legal Environment
2. Political Environment
3. Economic Environment
4. Social Environment
5. Technological Environment

Q. 24. Government of India is seriously thinking to allow oil marketing public sector,
undertaking to fix their own price for petrol and diesel.
1. Name the economic reform related to this decision of government.
2. Name other two reforms recommended in new economic policy.
Ans.
1. Liberalization
2. Other two reforms: Privatization and Globalization.

Q. 25. Recently many companies have planned for significant investment in organizes
retailing in India. Various factors which have encouraged companies to take these
decisions are customer income is increasing, rise in standard of living of people. People are
ready to pay high price for quality goods, government policy of liberalization regarding MNC
entry and FDI, etc.
1. Explain briefly changes in business environment under different heads that have
facilitated the companies’ decision to plan significant investment in retailing.
2. What has been the impact of these changes with regards to globalization and
privatization?
Ans.
1. Explain recent changes in various environment heads, i.e., economic, social, political,
legal and technological.
2. Explain the topic, impact of change in government policy/economic policy.

Q. 26. Two big banner movies were scheduled to be released on the same date. On the
last movement release of one of the movies has to be postponed due to opposition of a
group of people due to some unethical contents related to their religion was shown in the
that movie. The other movie released on time and made huge profit as there was no
competition and movie which was postponed suffered loss.
1. Which feature of business environment is highlighted here.
2. Identify the dimension of business environment, which delayed the release of movie.
Ans.
1. Feature highlighted in ………’relativity’.
2. The dimension is ……..’social environment’.

Q. 27. After winning the election, Prime Minister Mr. Narender Modi launched a Campaign of
‘Swachh Brarat’ and invited various celebrities to be a part of this Abhiyaan. This spread
awareness among the people in society and in general, people started becoming more
careful and aware about the cleanliness around their area. To continue its impact, a new
service tax for Swachh Bharat was also started. The government is planning to import new
and better technology to adopt new methods of treating the garbage and waste.
State the various dimension of business environment mentioned in the above para quoting
the lines from the above para.
Ans.
1. “After wining election ….. campaign of Swachh Bharat.”
Political Environment
1. “People in society ….. around their area.”
2. Social Environment
3. “A new service tax ….. started.”
Economic Environment
1. “Import new technology …. Garbage.”
Technological Environment

Q. 28. Even after opening up of Indian Economy, foreign companies found it extremely
difficult to cut through the bureaucratic and red tapism in government offices. This
discourages them from investing in India.
Identify the dimension of environment mention in above para.
Ans. Political Environment.

Q. 29. Just after the declaration of Lok Sabha Elections in 2014, the Bombay Stock
Exchange Index rose by 1000 points.
Identify the dimension of business environment.
Ans. Political Environment.

Q. 30. ‘Mamta Rice Food Ltd’ is a well know rice producing company. The sales have been
falling down from the beginning of the year. The managing director MR. Bhuvan is worried
about this situation. With a view to find out the solution of this problem he made a team to
find but the reasons for downfall of sales. The team conducted the survey and gave
following four reasons for the downfall of company’s sale.
1. On account of increase in export duty made by the government, the foreign demand
has gone down.
2. Due to availability of other eatable substitute the taste of people is diverted from rice.
3. The competitor’s imported new technology machine and are producing better quality
rice.
4. Due to strain with neighbouring country’s government and our country’s government
export is effected.
Identify the dimension of Business Environment discussed in the above case.
Ans.
1. Economic Environment
2. Social Environment
3. Technological Environment
4. Political Environment.
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Q. 31. With changes in the consumption habits of people, Neelesh, who was running a
sweet shop, shifted to the chocolate business. On the eve of Diwali, he offered chocolates
in attractive packages at reasonable prices. He anticipated huge demand and created a
website chocolove.com for taking orders online. He got a lot of orders online and earned
huge profits by selling the chocolate.
Identify and explain the dimensions of business environment discussed in the above case.
Ans. The various dimensions of business environment being referred to in the above cased
are as follows:
1. Social environment:
2. Technological environment:
Q. 32. A recent rate cut in the interest on loans announced by the banks encouraged Amit, a
science student of Progressive School, to take a loan from State Bank of India to experiment
and develop cars to be powered by fuel produced form garbage. He developed such a car
and exhibited it in the Science Fair organized by the Directorate of Education. He was
awarded the first prize for his invention.
Identify and explain the dimensions of business environment discussed in the above case.
Ans. The various dimensions of business environment being referred to in the above case
are as follows:
1. Economic Environment:
2. Technological Environment:

Q. 33. ‘Accent electronics Ltd.’ was operating its business in Malaysia. The company
started exporting its products to India when the Prime Minister announced relaxation in
import duties on electronic items. The company appointed retailers in India who had direct
online links with the suppliers to replenish stocks when needed.
Identify and explain the dimensions of business environment discussed in the above case.
Ans. The various dimensions of business environment being referred to in the above case
are as follows:
1. Political Environment:
2. Technological Environment:
Q. 34. As per the directions issued by the Supreme Court, the government passed an order
to ban the sale of tobacco products within the area of 200 meters of all educational
institutions as:
1. Its consumptions injurious to health.
2. People are becoming more conscious about health and fitness. This indicates the
government’s attitude towards this business.
Identify the business environment under three different dimensions by quoting from above
paragraph.
Ans. The various dimensions of business environment being referred to the in the above
case are as follows:
1. Legal Environment: ”As per the directions issued by the Supreme Court.’
2. Political Environment: “The government passed an order to ban the sale of tobacco
products within the area of 200 meters of all educational institutions.”
3. Social Environment: “Its consumption is injurious to health and people are becoming
more conscious about health and fitness.”

Q. 35. Make in India is an initiative launched by the Government of India to encourage
national and multinational companies to manufacture their products in India. It focuses on
job creation and skill enhancement and is in twenty five sectors of the economy. Under the
initiative, brochures on these sectors and a web portal were released. The initiative aims at
high quality standards and minimizing the impact on the environment. It also seeks to
attract foreign capital investment in India.
In context of the above case:
1. Identify the various dimensions of business environment being referred to by quoting
lines from the paragraph.
Ans.
1. The various dimensions of business environment being referred to in the above case
are as follows:
1. Political Environment:
2. Technological Environment:
3. Economic Environment:

Q. 36. India’s retail sector has been undergoing structural changes for the last two decades.
On one hand, the ‘mall culture’ has gradually become a way of life, especially in the metros
and mini-metros. On the other hand, there is accelerated growth in e-business as
customers also prefer to buy products and services via the Interest, telephone and
television. However, operating in either of the segments is marked by the presence of
strong competitors.
Identify the components of specific forces and general forces being discussed in the above
paragraph.
Ans. The components of specific forces discussed in the above paragraph are the
customers and competitors.
The components of general forces discussed in the above paragraph is the social and
technological conditions.
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Q. 37. To mark the celebrations of International Family Day on 16 th may 2016, Kurkure
flagged off India’s first family food train – Kurkure Family Express at New Delhi. The train
took forty families ona fun culinary experience of a lifetime through an eight-day journey
across fourteen states in India. A whole lot of fun activities were hosted on the train by the
travel and food anchors Rocky and mayor.
The families were selected through an online campaign, ‘Chatpata family photos’. The
contest attracted approximately 1,000 entries, of which 40 entries that gelled with the
brand’s image were selected.
The core idea of the campaign was to bring families from across India together over a
journey like this. As in today’s time, everyone is busy with their life the family members may
feel disconnected with each other.
Identify and explain the various dimensions of business environment being referred to the in
the above case by quoting lines from the paragraph.
Ans. The various dimensions of business environment being referred to in the above case
are as follows:
1. Technological environment:
2. Social environment:

Q. 38. In the year 2016,the State Government of Kerala had made it mandatory for
anganwadis hostels and canteens in educational institutions to secure the Food Safety and
standards Authority of India (FSSAI) licence to ensure food safety. As the educational
institutions also get categorized as food business operators in the event of the annual
turnover of the hostels, they run exceeding Rs. 12 lakh per annum.
In context of the above case:
1. Identify and explain the various dimensions of business environment being referred to
here.
Ans.
1. The various dimensions of business environment being referred to in the above case
are as follows:
1. Political Environment:
2. Legal environment:

Q. 39. Postage stamps have been unveiled to commemorate 140 years of existence of the
country’s first stock exchange the Bombay Stock Exchange (BSE). The setting up of BSE is
considered to be the greatest revolution that took place in the financial markets in India as it
acts as a key driver for economic growth of a country. This is due to the fact that there
exists a strong correlation between economic growth and capital accumulation.
In the context of the above case:
1. Identify the dimension of business environment of India being referred here.
2. State any three factors which broadly affected the dimension of business
environment of India as identified in part (a) of the question.
Ans.
1. Economic environment is the dimension of business environment of India being
referred here.
2. The three factors which broadly affect the economic environment of India are stated
below;
1. Stage of economic development of the country.
2. The economic structure in the form of mixed economy which recognizes the role of
both public and private sectors.
3. Economic planning, including five year plans, annual budgets, and so on
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Q. 40. In May 2016, the government had launched a web-based application which will
provide as opportunity to all the industries dealing in hazardous waste to apply online and
get online permissions for import and export of certain categories of waste, which is for
reuse, recycling or recovery while it will also help authorities in web-based processing,
generation and grant of various types of permissions to the entrepreneurs and industries. It
is also aimed at implementing the concept of paperless and green office and provide
information regarding number authorizations or consent order granted by the State Pollution
control Boards (SPCBs).
Identify the various dimensions of business environment being referred in the above case.
Ans.
1. The various dimensions of business environment being referred to the in the above
case are as follows:
1. Political Environment:
2. Technological Environment:
3. Legal Environment:
4. Social Environment:
5. Economic Environment:

Q. 41. Bharat is running an ice cream parlour in a local market. Keeping in mind the
changing perceptions about health among the people, one of his employee Abhiraj suggests
to him that they should introduce a range a flavoured yogurt. Bharat accepts his suggestion
as a result both the image and the profitability of his business increases.
In the context of the above case:
1. Identify the feature of management which is being highlighted.
2. State the related dimension of the business environment.
3. Name and explain the related principle of general management.
Ans.
1. The feature of management which is being highlighted is Dynamic.
2. The related dimension of the business environment is Social.
3. The related principle of general management is Initiative.
Initiative means taking the first step with self-motivation. The workers should be
encouraged to develop and carry out their plans for improvement. Suggestion system
should be adopted in the organization.