Class 12 Business Studies - Chapter Business Environment NCERT Solutions | How would you characterize the business
How would you characterize the business environment? Explain with examples, the difference between general and specific environment.
Business environment means all the external and internal forces that affect the performance of the organization directly or indirectly. Business environment ha the following features:
1. Totality of external forces: Business environment is aggregative in nature because it is the sum total of all the things external to business enterprise. One single factor does not make a business environment.
2. Specific and general forces: Business environment consists of both specific and general forces. General forces refers to social, political, economical, legal and technological conditions, which affects every organization indirectly. On the other hand specific forces are investors, customers, competitors and suppliers that affect individual organization directly.
3. Inter-relatedness: Every element of business environment are inter-related. For example an increase in the income of consumers (economic environment) will help in improving their living standard (social environment).
4. Dynamic Nature: Business environment is dynamic in nature because it keeps on changing in terms of technologies, consumer taste and preference, change in government policy or trend and traditions that is why it is important to monitor the environment continuously.
5. Uncertainty: Business environment is uncertain because it is difficult to predict future events such as technological changes, change in government policies etc, especially when the changes are taking place at a fast pace.
6. Complexity: Business environment is complex because it consists of numerous, inter-related factors affecting business enterprises at the same time. It is easier to understand the components in parts, but difficult to understand in totality.
7. Relativity: Business environment is a relative concept as it differs from country to country and region to region. For example government policy, regulations, consumers’ preference etc all differs from one region to another.
General environment and specific environment
General environment means that the forces that affect all the business enterprises indirectly. It does not only affect any particular organization but affects the performance of all the organizations. General environment consists of general forces that are economic, social, political, legal and technological conditions. For example change in any political condition affects all the organizations.
And on the other hand a specific environment means that the forces that affect an organization directly. Unlike the general environment it does not affect the performance of all organizations, it affects the performance of any particular organization. Specific environments consist of specific forces that are investors, customers, competitors and suppliers. For example, change in the taste and preference of the consumer will directly affect the demand of that product of that particular organization/company.
More Questions From Class 12 Business Studies - Chapter Business Environment
- Q:-
The government of India announced Demonetization of ₹ 500 and ₹ 1,000 currency notes with effect from the midnight of November 8, 2016. As a result, the existing ₹ 500 and ₹ 1,000 currency notes ceased to be legal tender from that date. New currency notes of the denomination of ₹ 500 and ₹ 2,000 were issued by Reserve Bank of India after the announcement.
This step resulted in a substantial increase in the awareness about and use of Point of Sale machines, e-wallets, digital cash and other modes of cashless transactions. Also, increased transparency in monetary transactions and disclosure led to a rise in government revenue in the form of tax collection.
a. Enumerate the dimensions of the business environment highlighted above.
b. State the features of Demonetization. - Q:-
Why it is important for business enterprises to understand their environment? Explain.
- Q:-
National Digital Library of India (NDL India) is a pilot project initiated by the HRD ministry. It works towards developing a framework of virtual repository of learning resources with a single-window search facility. It provides support to all academic levels including researchers, life-long learners and differently-abled learners free of cost. State the dimensions of business environment highlighted above.
- Q:-
How would you argue that the success of a business enterprise is significantly influenced by its environment?
- Q:-
Briefly discuss the impact of Government policy changes on business and industry.
- Q:-
What economic changes were initiated by the Government under the Industrial Policy, 1991? What impact have these changes made on business and industry?
- Q:-
What are the essential features of:
a. Liberalisation,
b. Privatization and
c. Globalisation? - Q:-
How does understanding of business environment help in improving performance of a business?
- Q:-
Give an example to show that a business firm operates within numerous inter related factors constituting the business environment.(Hint: example highlighting the inter relatedness of dimensions of business environment).
- Q:-
State the impact of demonetization on interest rates, private wealth and real estate.
Popular Questions of Class 12 Business Studies
- Q:-
How does planning provide direction?
- Q:-
What is meant by staffing?
- Q:-
Identify the network of social relationships which arises spontaneously due to interaction at work.
- Q:-
What is informal communication?
- Q:-
State the meaning of controlling.
- Q:-
What is meant by capital structure?v
- Q:-
What is meant by management?
- Q:-
What is a Treasury Bill?
- Q:-
State any two advantages of branding to marketers of goods and services?
- Q:-
What makes principles of management flexible?
Recently Viewed Questions of Class 12 Business Studies
- Q:-
Explain the importance of organizing in business management.
- Q:-
How does effective communication contribute to the success of directing?
- Q:-
Explain any four points regarding significance of principles of management.
- Q:-
Explain the qualities of a good leader? Do the qualities alone ensure leadership success?
- Q:-
Name any two important characteristics of management.
- Q:-
Under which consumer right does a business firm set up consumer grievance cell?
- Q:-
State the meaning of controlling.
- Q:-
Neha runs a factory wherein she manufactures shoes. The business has been doing well and she intends to expand by diversifying into leather bags as well as western formal wear thereby making her company a complete provider of corporate wear. This will enable her to market her business unit as the one stop for working women. Which type of structure would you recommend for her expanded organisation and why?
- Q:-
What does the term ‘Span of management’ refer to?
- Q:-
Mrs. Mathur sent a jacket to a laundry shop in January 2018. The jacket was purchased at a price of ₹4,500. She had previously sent the jacket for dry cleaning with Shine Dry Cleaners and the jacket was cleaned well. However, she noticed that her jacket had white discoloration marks when she collected the jacket this time. On informing the dry cleaner, Mrs. Mathur received a letter confirming that discolouration indeed appeared after the jacket was dry cleaned. She contacted the dry cleaner multiple times and requested for compensation for discoloured jacket but to no avail.
Upon Consumer court’s intervention, Shine Dry Cleaners agreed to compensate ₹2,500 to Mrs. Mathur for the discoloured jacket.
a. Which right was exercised by Mrs. Mathur at the first instance.
b. Name and explain the right which helped Mrs. Mathur to avail the compensation.
c. State which consumer responsibility has been fulfilled by Mrs. Mathur in the above case.
d. State any other two responsibilities to be assumed by the consumers.
- All Chapters Of Class 12 Business Studies
- All Subjects Of Class 12