business environment 1

Question 1

business environment

Answer 1

it refers to forces, factors, individuals and institutions which are outside the control of business enterprise but these may affect its performance

Question 2

environment scanning

Answer 2

it refers to complete awareness and understanding of business environment.

Question 3

features of B.E.

Answer 3

-all the external forces
-specific and general forces
-inter-relation
-uncertainty
-dynamic
-complex
-relativity

Question 4

importance of B.E.

Answer 4

-enables the firm to identify opportunities and getting first mover advantage
-helps the firm to identify the threats and early warning signal
-helpful in tapping and assembling resources
-help to adjust and adapt with the rapid changes
-assisting in planning and policymaking
-improvement in performance

Question 5

dimensions of business environment

Answer 5

-economical
-social
-political
-legal
-technological

Question 6

three major components

Answer 6

-liberalization
-privatization
-globalization

Question 7

impact of LPG

Answer 7

-increasing competition
-more demanding customers
-rapidly changing technological env
-necessity for change
-need for developing human resources
-market orientation
-loss of budgetary support to public sector
-export a matter of survival

Question 8

managerial response to change in business

Answer 8

-diversification
-joint ventures
-brand building
-latest use of technology
-improved compensation level
-customer focus