Business Environment

1. Which environment describes characteristics of the society in which the organization exists?

2. Which element / dimension of business environment involve improvement and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business?

3. Which environment prohibits the advertisement of alcoholic beverages?

4. Banking sector reforms have led to easier credit terms and better services. This is an example of a key component of the “Business Environment “name this component?

5. ‘Demand for reservation in jobs for minorities refers to an example of key component of general environment of business. Name this component.

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.

7. Which process aims at giving greater role to the private sector role to the public sector?

8. State the characteristics of business environment.

9. State the economic reforms since 1991 or new Economics policy.

10. State the factors of Micro Environment.

11. State the factors of Macro Environment.

12. State the difference between general and specific environment with example.

13. Explain any five positive effects of liberalization and globalization on business and industry.

14. Explain any five negative effects of liberalization and globalization on business and industry in India.

15. Write the impact of changes in government policy on business and industries.

16. State the component of business Environment.

17. State the importance of business environment.

Answers

1. Social Environment

2. Technological Environment

3. Legal Environment

4. Economic Environment

5. Social Environment

6. Liberalization

7. Privatization

8. 1. Totality of external forces. 2. Specific and general forces

3. Inter-relatedness.4. Dynamics

5. Complexity. 6. Relatively

  9. a. Liberalization

      b. Privatization

      c. Globalization

10. a. Customers

     b. Suppliers

      c. Competitors
     d. Public

     e. Marketing intermediaries.

11. a.  Economical Environment

     b. Political Environment

     c. Social Environment

     d. Legal Regulatory Environment

     e. Technological Environment

 12   Examples of Specific Environment of Business.

Basis of difference	Specific Environment	General Environment
Examples	Investors, Customers, Competitors and suppliers	Social, Political, Legal and Technological conditions
Direct or Indirect.	It effects individual enterprises directly	It has indirect impact on all business enterprise.

   

13. The positive effects of liberalization and globalization on business and industry are

1. All round competition

2. Export became matter of survival.

3. World class technology.

4. Buyer’s market increase in production capacity.

14. The negative effects of liberalization and globalization on business and industry in India are

a) Destabilization of protected environment.

b) Threat from MNC’s

c)  Corporate vulnerability

d) Past failure fails to guide

e) Acquisitions and mergers

15.  Impact of changes in govt. policy on business is:

  a. Increasing competition

  b. More demanding

  c. Rapidly changing technology environment

  d. Necessity for change

  e. Need for developing human resources.

  f. market orientation

  g. Loss of budgetary support to the public sector.

16. Components of Business Environment

a. Internal Environment

b. External Environment

c. Micro Environment

d. Macro Environment

17. Importance of business Environment is:

a. First mover advantage

b. Warning signal

c. Taping useful resources

d. Coping with rapid changes

e. Assisting in planning and policy

f. Improving in performance.