Home
Class 12
BUSINESS STUDIES
Companies producing alcohol and alcoholi...

Companies producing alcohol and alcoholic beverages have to comply with a number of restrictions and provisions, even when it adversely affects its sales as well as revenue.
Explain the main characteristics of business environment.

Text Solution

Verified by Experts

The characteristics of business environment are as follows
(i) Totality of external forces Business environment is aggregative in nature because it is the sum total of all things external to business enterprise, comprising of social, political, economic, legal and technological factors
(ii)Specific and general forces Business environment includes both specific and general forces
(iii) Inter relatedness Different elements of business environment are closely interrelated, eg increased awareness for healthcare have increased the demand of many healthcare products like sugar free, diet coke cholesterol free oil, etc
(iv) Dynamic nature Business environment is dynamic in nature as it keeps on changing whether in terms of upgradation of technologies shifts in consumer preference, change in government policy or changes in trends and traditions
(v) Uncertainty Business environment is largely uncertain because it is very difficult to predict future events such as technological changes, change in government policies, etc
(vi) Complexity Business environment is complex, as it consists of numerous, inter-related factors affecting business enterprises at the same time.
Promotional Banner

Topper's Solved these Questions

  • BUSINESS ENVIRONMENT

    ARIHANT PUBLICATION|Exercise SELF ASSESSMENT (MULTIPLE CHOICE )|5 Videos

  • BUSINESS ENVIRONMENT

    ARIHANT PUBLICATION|Exercise SELF ASSESSMENT (VERY SHORT ANSWER )|5 Videos

  • BUSINESS ENVIRONMENT

    ARIHANT PUBLICATION|Exercise CHAPTER PRACTICE (LONG ANSWER )|14 Videos

  • CONSUMER PROTECTION

    ARIHANT PUBLICATION|Exercise CBSE Examinations Archive Long Answer Type Questions|7 Videos

Similar Questions

Explore conceptually related problems

Companies producing alcohol and alcoholic beverages have to comply with a number of restrictions and provisions, even when it adversely affects its sales as well as revenue. Why do you think it is necessary for them to follow such provisions?

The soft-drinks giants, Pepsico and Coca-Cola, suffered a decline in sales of colas in India in the beginning of the year 2006 after an environmental group, Centre for Science and Environment (CSE) claimed to have found pesticides in their drinks upto 50 times the permissible health limits. These companies issued a number of press statements and conducted many publicity campaigns in India claiming that their beverages were perfectly safe. The Union Health Ministry's expert committee also observes that Coke and Pepsi were safe. CSE, in turn, criticised the expert committees findings and said that 11 of Coke and Pepsi drinks contained average pesticide levels that were 24 times higher than the limits agreed by the Indian government. Despite health ministry's clean chit to colas, several States continue to ban or restrict Coke and Pepsi. However, the pesticide controversy adversely affected the sales of both Coke and Pepsi as consumers started watching their diet more closely. Organic food products suddenly became popular as the healthier option. By definition, organic means fruits, vegetables, foodgrains and processed products that have been produced with no pesticide or inorganic fertilisers. Meanwhile the soft drinks giants have been continuously advertising and trying to convince the consumers about the safety of their products. which component of business environment is reflected in the above case?

The soft-drinks giants, Pepsico and Coca-Cola, suffered a decline in sales of colas in India in the beginning of the year 2006 after an environmental group, Centre for Science and Environment (CSE) claimed to have found pesticides in their drinks upto 50 times the permissible health limits. These companies issued a number of press statements and conducted many publicity campaigns in India claiming that their beverages were perfectly safe. The Union Health Ministry's expert committee also observes that Coke and Pepsi were safe. CSE, in turn, criticised the expert committees findings and said that 11 of Coke and Pepsi drinks contained average pesticide levels that were 24 times higher than the limits agreed by the Indian government. Despite health ministry's clean chit to colas, several States continue to ban or restrict Coke and Pepsi. However, the pesticide controversy adversely affected the sales of both Coke and Pepsi as consumers started watching their diet more closely. Organic food products suddenly became popular as the healthier option. By definition, organic means fruits, vegetables, foodgrains and processed products that have been produced with no pesticide or inorganic fertilisers. Meanwhile the soft drinks giants have been continuously advertising and trying to convince the consumers about the safety of their products. State one feature of business environment reflected in this case

The soft-drinks giants, Pepsico and Coca-Cola, suffered a decline in sales of colas in India in the beginning of the year 2006 after an environmental group, Centre for Science and Environment (CSE) claimed to have found pesticides in their drinks upto 50 times the permissible health limits. These companies issued a number of press statements and conducted many publicity campaigns in India claiming that their beverages were perfectly safe. The Union Health Ministry's expert committee also observes that Coke and Pepsi were safe. CSE, in turn, criticised the expert committees findings and said that 11 of Coke and Pepsi drinks contained average pesticide levels that were 24 times higher than the limits agreed by the Indian government. Despite health ministry's clean chit to colas, several States continue to ban or restrict Coke and Pepsi. However, the pesticide controversy adversely affected the sales of both Coke and Pepsi as consumers started watching their diet more closely. Organic food products suddenly became popular as the healthier option. By definition, organic means fruits, vegetables, foodgrains and processed products that have been produced with no pesticide or inorganic fertilisers. Meanwhile the soft drinks giants have been continuously advertising and trying to convince the consumers about the safety of their products. What are the major elements of this component?

Mamta Rice Food Ltd.' is as well known 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 out the reasons for downfall of sales. the team conducted the survey and gave following four reasons for the downfall of company's sale. (i) On account of increase in export duty made by the government, the foreign demand has gone down. (ii) Due to availability of other eatable substitute the taste of people is diverted from rice. (iii) The competitor's importance new technology machine and are producing better quality rice. (iv) 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.

After completing their graduation , salman and Ram decided to set up a flour mill to earn income. Their main job is to purchase wheat from the market and have ground it into flour . Their flour is available in the packets of 5 kg , 10 kg and 20 kg . they sell these under the brand name ' Desh ka Atta and earn a reasonable profit of 10% on cost . they worked very hard to flourish the business on a regular basis , and hence in no time their brand became very popular in the market . the main reasons for the success of thier business are superior quality and low price . Their business was running very well . But one day , the flour mill caught fire , and as a result they had to suffer a heavy loss . however , Salman and Ram did not lose their heart , and worked even harder . Gradually , their business was back to normal . Now , they are fully satisfeid with their business. Quoting the lines from the above para , explain any four characteristics of business.

Lira Ltd. Is a company manufacturing designer socks. While making its plan, the company takes into consideration the business environment. It constantly adapts itself to changes in envirnoment 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 finacial plans, then sales targets have to be revised and, accordingly cash budgets also need to be modified since they are based on sales figures. States the limitations of planning highlighted in the above lines.

Recently, many companies have planned for major investment in retail business. Increasing incomes, rise in living standards, government policy of liberalisation and its favourable attitude towards modernisation has favoured their decision. Identify the various dimensions of business environment and explain their effect on businesses.

A company X Ltd manufacturing cosmetics, which has enjoyed a pre-eminent position in business, has grown in size. Its business was very good till 1991. But after that, new liberalised environment has seen entry of many MNC's in the sector. With the result, the market share of X Ltd has declined. The company had followed a very centralised business model with directors and divisional heads making even minor decisions., this business model had served the company very well as consumers has no choice But now, the company is under pressure to reform and decentralise. (i) What do you understand by decentralisation? Can an organisation, in general, be fully centralised or fully decentralised? (ii) Explain any four advantages of decentralisation.

ARIHANT PUBLICATION-BUSINESS ENVIRONMENT-CASE STUDIES
  1. The soft-drinks giants, Pepsico and Coca-Cola, suffered a decline in s...

    Text Solution

    |

  2. The soft-drinks giants, Pepsico and Coca-Cola, suffered a decline in s...

    Text Solution

    |

  3. Dravya is the owner and manager of a textile industry, which is her fa...

    Text Solution

    |

  4. Dravya is the owner and manager of a textile industry, which is her fa...

    Text Solution

    |

  5. Companies producing alcohol and alcoholic beverages have to comply wit...

    Text Solution

    |

  6. Companies producing alcohol and alcoholic beverages have to comply wit...

    Text Solution

    |

  7. Indian Railway Catering and tourism Corporation LTD. (A Government ...

    Text Solution

    |

  8. Indian Railway Catering and tourism Corporation LTD. (A Government ...

    Text Solution

    |

  9. Crisis of June 1991 Major elements of the crisis situation which le...

    Text Solution

    |

  10. Crisis of June 1991 Major elements of the crisis situation which le...

    Text Solution

    |

  11. Early Crisis Met: Reform Measures Some of the early major steps tak...

    Text Solution

    |

  12. Early Crisis Met: Reform Measures Some of the early major steps tak...

    Text Solution

    |

  13. A Truly Globalised Economy A truly global economy implies a boundar...

    Text Solution

    |

  14. A Truly Globalised Economy A truly global economy implies a boundar...

    Text Solution

    |

  15. Mr. Ajay after completeing MBA from USA comes to india to start a new ...

    Text Solution

    |

  16. "zero Deffect Zero effect (ZED) is a slogan coined by the prime minist...

    Text Solution

    |

  17. Acent Electronics Ltd' was operating its business in Malaysia. The co...

    Text Solution

    |

  18. A recent rate cut in the interest on loans announced by the banks enco...

    Text Solution

    |

  19. With change in the consumption habits of people, Neelesh, who was runn...

    Text Solution

    |

  20. Narendrachal Networks and Technologies Ltd.is a leader in technology i...

    Text Solution

    |