D.C.M Group of Schools

XII Business Studies

Ch:- 3 (Business environment)

Q1. Mr. Shekhar is working in a toy manufacturing company. He is working as General Manage – Finance in Accounts Payable department of the company. One of the vendors approaches him to release a disputed payment for which he promised to give 5% commission to Mr. Shekhar. Mr. Shekhar refused to do this and also warned vendor not do it again in future. What value is displayed by Mr. Shekhar?                                                                                         (1)                                                                                                                                                        

Q2. ABC Ltd. is a multinational company operating in most of the countries of the world. They have subsidiary in India. They decided to distribute Diwali gifts to the employees of Indian subsidiary as that is part of Indian culture at the time of Diwali festival. Which value is reflected by ABC Ltd?                                                                                                                       (1)                                                                                                                   

Q3 “The understanding of business environment helps the managers to identify threats. What is meant by ‘threats’ here?                                                                                                                        (1)

  Q4. In America, a few large scale retail stores have been established wherein there is a large electronic touch screen displaying the products available for sale. The customers just need to register themselves, and select the products, give the quantity required, in the electronic trolley. The order will be placed therein. The packed products will be available at the counter after a specified time period. And then the payment will be made electronically. Which dimension of business environment is mainly highlighted?                                                                         (1)

  Q5. Just dial.com was the first company that identified the needs of customers and firms and customized their services in accordance with them and today this service is a huge success.

a) Identify and explain the importance of business environment given in the above mentioned case.

b) Also explain two more points of importance of business environment                                (3)

Q6. Lina Ltd. is a company manufacturing designer sock .While making its plan, the company takes into consideration the business environment. It constantly adapts itself to changes in the environment by making changes in its plan. However, it becomes difficult for the managers of the company to accurately foresee future trends in the environment. Competition in the market upsets its financial plans, then sales targets have to be revised and accordingly cash budgets also need to be modifies since they are based on sales figures. Which two features of business environment are highlighted in the above lines? Explain and quote the lines also?   (3)      

Q7. Mrs Sadhna kidwadi is the Divisional manager of the export divisional of ‘Swad Tea Limited’. For some time since past a restriction has been imposed on export of tea. It is evident that the company’s export business depends on the government’s policy . recently there has been a change of govt in the center . As soon as the new govt took over , it removed the restriction imposed on the export of tea. With the coming of this news the division under Mrs Kidwai heaved a sigh of relief.

(a). The change of govt is having its impact on the dimension of business environment. Identify them.

(b) Identify one of the characteristics of ‘Business Environment’ Described.                         (3)                                                  

Q8. The data collected by the different govt. departments showed that the speed of the economic growth of the country was slow. The govt was worried over such a situation . On his investigation it was revealed that the people were disillusioned with industry in order to attract the attention of the people towards industry, the govt finished the compulsion of obtaining license for several types of industry. The restriction imposed on transporting goods from one place to another were removed. The producers were given freedom to fix prices of goods and services. Similarly the govt. simplified the policy of import and export also. Within a few day the positive results of such a approach became evident. Identify the concept of business environment described here and explain its meaning.                                                                       (1+2)

Q9.The Govt. Has been watching for sometimes that the performance of industry in the public sector is not coming up to the   level of standardization. Several efforts have been put in but because of no improvement in it the govt. Decided to increase the role of private sector in some of the industries of public sector. This would bring about improvement in the level of performance. The Reason for the govt.  To make this decision was that the different deptt, of an industrial unit in the public sector do not work with co-ordination with one another. The situation in the private sector opposite to it. 

(a)  Which concept of business environment has been described in the above case? Identify it.

(b)Identify the concept of Management which shows the failure of public Sector.                            (2+1)

Q10. From the last few years companies in India are looking at organized retailing as a good opportunity. In accordance with this view several companies have planned to enter this environment.  The Govt. Too is fully supporting this approach.  The main reason for the attraction of company to this approach is increase in the income of people.  Besides, there has taken place a big change in the buying Attitude of the people for the last few years. Now people want better quality products, even if they have to pay more money for them.  The organized retailing is competent to fulfill this desire of the people.

Identify the different dimensions of business environment describe in the paragraph given above by quoting the relevant line                                                                                                                (3)

Q11. A German company manufacturing luggage bags launched a new range of bags with imprints of Indian Lords.  The company had expected that it will get more demand from Indians living in European Countries.  However, the Indian Community was shocked and angry with the firm.  As a result the company had to withdraw the entire stock from the market and apologies for this action.

(i) Which aspect of environment is highlighted in the above case?

(ii) Why is it necessary for the business enterprise to analyze this environment?         (1.5+1.5)

Q12. Often it is observed that some political parties of country are in favor of giving a lot of freedom to business while some are opposed to this view. When General Elections are approaching in a country the impact or this approach of the political parties can be seen on the share market. For Example, General Elections are to take place in a country, and the general view of the people is that the political party having a positive approach to business will come into power.  As the consequence of this news   the rates of shares in the share market will rising  

In the paragraph given above of one particular feature and two dimensions of business environment have been described.  Identify.                                                                                     (2+2)

Q13. Mr. Raju Sahu, the managing director of shivam motor ltd. Pays more attention to the deptt. Of research & development than other departments of his company.  This was the reason that the company made such engines which consumed half of the quantity of diesel consumed by ordinary engines.  The company launched its product with new engine, a three wheeler, in the market. The people bought it briskly.  The company earned a huge profit from the sale of this product. The new engine has its control not only on the consumption of less diesel but on the emission of smoke also,

(i) Identify and explain the Dimensions of Business environment described in the paragraph given above.

(ii)State the importance of Business Environment for business by quoting the relevant lines.

(iii) State the two values given by the company to the society.                                                  (4)

Q14. The Court issued the order that for Vehicles to be smokeless was most essential and that any one violating this order shall have to pay heavy fine.  Abiding by this order was necessary for the health of people. Making this strict order of the court as the base, Gian Motors Ltd. Resolved to manufacture such vehicles by using as should not produced any smoke at all.  The govt. also announced to provide help in several ways to set up such industrial unit.

(a) Identify the three dimensions of Business Environment described in the paragraph above by quoting the relevant lines.

(b)  Write about any one of the values for society granted by the court.                                 (3+1).

Q15. Identify the Dimension of Business Environment relating to the statements given below:

(i) The increasing interest of the urban people in health and fitness,

(ii) With the increase in the income of the people the increase in their demand of certain commodities.

(iii) Discrimination in the remunerations of men and women doing the similar type of work.

(iv) Opposition of certain political parties to the foreign direct investment in organized retailing.

(v) The Adverse impact on the cotton cloth industry with the coming up of the clothes made of synthetic thread in the market.

(vi) Ban imposed by the government on the sale of a product in vogue on account of the failure of its samples.                                                                                                                                          (6)

Q16. Neena, after completing her MBA, took up a job with a multinational company named 'HUL'. The company was paying good salaries to the employees that helped the employees to have a good standard of living. Neena was very happy in this organization but due to long working hours she did not have time to cook her meal. She had to depend upon outside food, 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 & decided to give up her job to supply packed home cooked food to office goers at a reasonable price, after her father told her about the Start Up India project taken up by the PM Mr. Narinder Modi. She got her company registered under the Companies Act 2013 with the name CURRY2U Pvt. Ltd .She took orders online and provided home delivery. At the end of the day she was also distributing the leftover food in the nearby night shelters.

(a)Name the four dimensions of business environment being discussed above and also quote the lines from the above para.

(b) Identify any two values being communicated by the company to the society.                               (6)

Q17. Kolkata Rice Foods Limited is a well known rice producing company.  The sales have been falling down right from the beginning of the year.  The Managing Director Mr. Dhiru Bhai Aggarwal is worried about the situation. With a view to find out the solution of this problem, he made a team of four persons. In this team one Manager, one Deputy Manager, one supervisor and one senior worker were included. After the survey, he told the following four reasons for the falling down of the company’s sales.

(i) On account of increase in Export Duty made by the Government, the foreign demand has gone down.

(ii) On account of the availability of several eatable substitutes the attention of people has been diverted from rice.

(iii) Some other rice producing companies have set up imported Machines with which they are producing better quality.

(iv) The export has been affected on account of bitterness created in the relations with one of the chief rice importing countries.

When this report reached the Managing Director, he arrived at the conclusion that all these changes had taken place so fast that they had not been able to guess or to cope with them in time.

(a) Identify the Dimensions of Business Environment discussed in the above case.

(b) Which point of importance of Business Environment has the Managing Director admitted his inability to make a guess of?

(c) Which value is this case providing to the employees?                                                    (4+1+1)

Q18. The Court passed an order that all the schools must have water purifier for the school children as: (I) society in general is more concerned about the quality of life. (ii) Innovative techniques are being developed to manufacture purifier at competitive rates; and (iii) Incomes are rising and children at whom are also drinking purified water. The govt. is also showing positive attitude towards the water purified business. Identify the different dimensions of business environment by quoting from the above details.                                                         (6)                                                                                                                                                                            

Q19. The court passed an order to ban polythene bags as: (a) these bags are creating many environmental problems which affect the life of people in general, (b)  Society in general is more concerned about quality of life. The Govt., 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 o business environment by quoting the lines from the above  particulars.                                                                                                                                  (6)

Q20. As per the direction issued by supreme court, the Govt. Passed an order to ban the sale of tobacco products with in the area of 200 meters of all educational institutions as : (a) its consumption is injurious to health, (b)  People are more conscious about health and fitness.  It is indicating the government‘s attitude towards this business.

Identify & explain the business environment dimension by quoting the lines from the above para.                                                                                                                                                                 ( 4).

Q21. The government encouraged foreign companies to invest in some sectors of retailing.  The argument is (a)  customers can purchase the products of these companies as their incomes are rising (b) It will increase innovations which will provide new ways of producing goods.  This will ultimately improve the quality of life.

Identify and explain the business environment under four dimension quoting the lines from the above para.                                                                                                                                               (6)

Q22. Narmada paper Mill has been producing high quality paper in its plan for quite sometime and enjoying a fair share of market. The firm has been obeying various laws and paying taxes to government in time.  The firm has been assembling its inputs like finance, raw materials, machinery etc. from the environment. A change in top material position started disregarding certain issues. The waste chemicals from the plant were now dumped on the river side, thus causing health hazards to the public.  On the petition of pollution board of the state, a court has ordered the sealing of the plant of the firm.

(i) State the importance of business environment quoting from the above case.

(ii)  Mention the dimensions of business environment mentioned in the above case quoting lines from it.

(iii)State the values which have been overlooked by the firm.                                    (2+2+2)

                                                                        

Q23.A bulb manufacturing company has spent substantial amount on research and development and discovered a technology that made it possible to produce energy efficient bulbs as compared to bulbs produced earlier. The product of the company is in great demand and it is earning sufficient profits for growth.

(i) Identify and state the dimensions of business environment mentioned in the above case.

(ii) State the importance of business environment mentioned above by quoting the lines.

(iii) State any one value which the company wants to communicate to the society.     (3+2+1)   

                                                       

Q24. Lately many companies have planned for significance investment in organized retailing in India. Several factors have prompted their decisions in this regard.

Customer income is rising. People have developed a taste for better quality products even though they may have to pay more. The aspiration levels have increased. The govt. has also liberalized its economic policies in this regard and permitted even cent percent foreign direct investment in some sectors of Retailing.

(a) Identify changes in business environment under different heads- economic, social, technological, political and legal that have facilitated the company’s decision to plan significant investment in organized retailing.

(b) What has been the impact of these changes with regard to globalization and privatization?                                     
                                                                                                                                                                (3+3)

Q25. Mr. Vikram singh is working as General manager of ‘Jaipur hotels limited’(JHL). Keeping a watch over the business environment is included in his routine. For the last few days Mr. Singh has been observing that govt. is taking a special interest in tourism industry. The receipt of foreign Exchange and employment Promotion are its 2 reasons. On the basis of this news he decided to set up hotels at several tourist places. The -JHL establish 50hotels before other companies considered this issue. Very soon, this Brand-JHL became well known in the market. Behind the fame of this company another reason was that this company was giving its employees not only the responsibility but also authorities of completion of work. Consequently, the employees felt good. The environment being to their liking now they had started meeting their immediate managers with the latest ideas. Their suggestions were being taken respectfully by the company.

(a)Identify & explain the importance of business environment described here by quoting the relevant lines.                                                                                                                                                 (4)