Business Studies Class XII

TEST: Chapter 3

Business Environment

MM: 28                                                                                                                             Time: 50 min

1.   What do you mean by environmental scanning? (1)

2.   “The understanding of business environment helps the managers to identify threats. What is meant by ‘threats’ here?(1)

3.   Govt. of India allowed oil marketing public sector undertaking to fix their own price for petrol and diesel. Which economic reform is the reason of this change in Govt. policy? (1)

4.   In America, a few large scale retail stores have been established wherein there is a large electronic touch screen displaying the products available for sale. The customers just need to register themselves, and select the products, give the quantity required, in the electronic trolley. The order will be placed therein. The packed products will be available at the counter after a specified time period. And then the payment will be made electronically. Which dimension of business environment is mainly highlighted? (1)

5. Justdial.com was the first company that identified the needs of customers and firms and customized their services in accordance with them and today this service is a huge success.

a) Identify and explain the importance of business environment given in the above mentioned case.

b) Also explain two more points of importance of business environment (3)

6.        Lina Ltd. is a company manufacturing designer sock .While making its plan, the company takes into consideration the business environment. It constantly adapts itself to changes in the environment 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 financial plans, then sales targets have to be revised and accordingly cash budgets also need to be modifies since they are based on sales figures. Which two features of business environment are highlighted in the above lines? Explain and quote the lines also? (3)

7.        Explain Market Orientation and more demanding customer as impact of government policy changes .(3)

8. The court issued the order that for vehicle to be smokeless was most essential and that any one violating this order have to pay a heavy fine. Abiding by this order was necessary for the health of people. Making this strict order of the court as the base, ‘Ishaan Motors Limited’ resolved to manufacture such vehicle by using modern technology as should not produce any smoke at all. The government also announced to provide help in several ways to set up such industrial units.

(a) Identify the three Dimensions of Business Environment described in the paragraph above by quoting the relevant lines.

(b) Write about any one of the values for society granted by the court.(4)

9. Explain, in brief, any five ways in which Indian Managers are responding to changes in business environment.(5)

10.  Neena, after completing her MBA, took up a job with a multinational company named 'HUL'. The company was paying good salaries to the employees that helped the employees to have a good standard of living. Neena was very happy in this organization but due to long working hours she did not have time to cook her meal. She had to depend upon outside food, which was deteriorating her health. She observed that this problem was faced by many of her colleagues, not only in her company but also in many other companies.  This was because of increase in the number of working women and non-availability of hygienic home cooked food. She identified this as a great opportunity & decided to give up her job to supply packed home cooked food to office goers at a reasonable price, after her father told her about the Start Up India project taken up by the PM Mr.Narinder Modi. She got her company registered under the Companies Act 2013 with the name CURRY2U Pvt. Ltd .She took orders online and provided home delivery. At the end of the day she was also distributing the leftover food in the nearby night shelters.