Acent Electronics Ltd' was operating its business in Malaysia. The company started exporting its products to india when the prime minister announced relaxation in important duties on electronic items. The company appointed retailers in india who had direct online links with the suppliers to replenish stocks when needed. the suppliers to replenish stock when nedded. indetify and expaliln the dimensions of business environment discussed in the above case.

Explanation

The dimensions of business environment referred in the above case are
(i) Political environment It is the outcome of a combination of various ideologies advocated by different political parties. Every political party has a different attitude towards business community. A live example of this can be seen during elections when there is a fluctuation in the share market
(ii) Economic environment It consists of economic factors that influence the business in a country. These factors include Gross National Product (GNP), corporate profits, inflation rate, employment, Balance of Payments (BoP), interest rates, consumer income etc. Economic environment in a country has strong influence on the business in that country
(iii) Social environment It describes the characteristics of the society in which the organisation exists. Literacy rate, customs, value beliefs, lifestyle, demographic features and mobility of population are the part of the social environment. The trend of change can be predicted well in advance It is important for managers to notice the direction in which the society is moving and formulate progressive policies according to the changing social scenario