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Xaviers Institute of Business Management Studies

 

Marks:   80

 

BUSINESS ENVIRONMENT

 

Attempt all questions

 

 

1.      Discuss how the environment acts does as a stimulant to business.  Analyze why business often does little for the   preservation of physical environment despite the fact that it is significant for business activity. (10 Marks)

 

Answer: The environment has been the bank that keeps on giving for business:  it is the source of materials, and the sink for waste products. The sheer size of our oceans and continents and the absorption capacity of the atmosphere has meant that this free business support service has been central to many companies’ success. But it has also come at a cost, both to our natural world, where demand for natural resources is contributing the ‘sixth great extinction’, and to the stability of the natural support systems on which business and its customers depend. The

 

 

 

2.      Explain the relevance of ecological issues to business environment (10 Marks)

Answer: Environment literally means Surrounding in which we are living. Environment includes all those things on which we are directly or indirectly dependent for our survival, whether it is living component like animals, plants or non living component like soil, air water. Environmental Protection Act (1986) defined “Environment as the sum total of water, air and land, their interrelationship among themselves and with the human beings, other living beings and property.”

 

There are many environmental issues in India. Air pollution, water pollution, garbage, and pollution of the natural environment are all

 

 

 

3. What do you understand by Business Social Responsibility ( B S R ). How this can be used to improve the Business Environment. (10 Marks)

 

Answer: Businesses that practice corporate social responsibility aim to improve their communities, the economy or the environment.

 

Corporate social responsibility, or CSR, is a form of self-regulation that reflects a business’s accountability and commitment to contributing to the well-being of communities and society through various environmental and social measures.

 

CSR plays a crucial role in a company’s brand perception; attractiveness to customers, employees, and investors; talent retention; and overall business success.

 

A company can implement four types of CSR efforts: environmental initiatives, charity work, ethical labor practices and volunteer projects.

 

 

 

4. Explain how the business in an organization can be regulated with regard to the Organization’s Basic Objectives. (10 Marks)

Answer: Organizational objectives are the goals that a company wants to achieve within a determined period of time. Learn the definition and key concepts of organizational objectives and explore some examples. 

 

Definition of Organizational Objectives

Organizational objectives are short-term and medium-term goals that an organization seeks to accomplish. An organization's objectives will play a large part in developing organizational policies and determining the allocation of organizational resources. Achievement of objectives helps an organization reach its overall strategic goals.

Key Concepts

 

 

5. Describe in detail the different role played by the Government towards enriching the business Environment. (10 Marks)

Answer:

The government's role in business includes protecting the consumer or customer. When a vendor fails to honor the guarantee, the purchaser has recourse in the law. Likewise, when a product causes harm to an individual, the courts may hold the vendor or manufacturer responsible.

 

 

Though the government’s role has increased over time, the business community still enjoys considerable freedom. The government exercises its authority several ways.

 

Permission to Form and Operate

 

 

 

7. In the Business Environment context, explain how the Political and legal Environment of business plays a vital role. Justify by bringing in suitable examples. (10 Marks)

 

Answer: Dimensions of or the agents forming the business environment involve economic, social, legal, technological and political circumstances which are contemplated properly for decision-making and enhancing the achievement of the trading concern. In distinction to the precise environment, these aspects manifest the prevailing environment, which often affects many companies at the same time. However, the administration of every business can profit from being informed of these dimensions rather than being unbiased in them. A concise argument of the multiple factors comprising the global environment of the company is provided below:

(A) Legal Environment

• It includes various laws passed by the

 

 

8. Evaluate the advantages and disadvantages of FDI. What is your opinion on the role of FDI in the Retail Sector? Justify your views with India's experience in this sector.               (20 Marks)

 Answer: Foreign direct investment (FDI) allows companies in developing countries to get multinational funding and expertise to boost their operations and ensure improved performance. When business enterprises execute acquisitions of business assets or expand operations in another country, the investment made by investors is termed as FDI. It implies that an international company can be directly involved in the management of company operations in another country.

 

Advantages of FDI

• Economic growth: One of the most important advantages of foreign direct investment in a developing country is the boost in the economy with the

 

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