case study business environment

CBSE Class 12 Case Studies In Business Studies – Business Environment

BUSINESS ENVIRONMENT Business Environment: Definition The term ‘business environment’ means the sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but that may affect its performance.

Importance of Business Environment

• It enables the firm to identify opportunities and getting the first mover advantage instead of losing them to its competitors.
• It helps the firm to identify threats and early warning signals which are likely to hinder a firm’s performance and take timely actions.
• It helps in tapping useful resources as the enterprise designs policies that allow it to get the resources that it needs so that it can convert those resources into outputs that the environment desires.
• It helps in coping with rapid changes as the managers are able to understand and examine the environment and develop appropriate courses of action.
• It helps in assisting in planning and policy formulation as its understanding and analysis can be the basis for deciding the future course of action or decision making. It helps in improving performance of an enterprise through continuous monitoring of the environment and adopting suitable business practices which help to improve both their present and future performance
• It helps in improving performance of an enterprise through continuous monitoring of the environment and adopting suitable business practices which help to improve both their present and future performance.

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Features of Business Environment

• It is a sum total of all the forces external to business firms.
• It consists of both specific forces such as investors, customers, competitors and suppliers which affect individual enterprises directly and immediately in their day-to¬day working and general forces such as social, political, legal and technological conditions which have impact on all business enterprises and thus may affect an individual firm only indirectly.
• All the elements of business environment are closely interrelated.
• It is dynamic in nature and keeps on changing due to technological upgradations, shifts in consumer preferences or increase in competition in the market.
• It is highly uncertain as it is not always possible to predict future happenings, especially when environment changes are taking place too frequently as in the case of information technology or fashion industries.
• It is complex in nature as it is relatively easier to understand in parts but difficult to comprehend in its totality because it consists of numerous interrelated and dynamic conditions or forces which arise from different sources.
• It is a relative concept since it differs from country to country and even region to region

DIMENSIONS OF BUSINESS ENVIRONMENT Dimensions of the business environment include economic, social, technological, political and legal conditions which are considered relevant for decision-making and improving the performance of an enterprise.

Various Factors Constituting the General Environment of Business

• Economic Environment comprises of factors that can affect management practices ina business enterprise. It includes interest rates, inflation rates, changes in disposable income of people, stock market indices and the value of rupee etc.
• Social Environment includes the social forces like customs and traditions, values, social trends, society’s expectations from business, etc.
• Technological Environment includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating business.
• Political Environment includes political conditions such as general stability and peace in the country and specific attitudes that elected government representatives hold towards business.
• Legal Environment includes various legislations passed by the Government administrative orders issued by government authorities, court judgments as well as the decisions rendered by various commissions and agencies at every level of the government— center, state or local.

ECONOMIC ENVIRONMENT IN INDIA  Various Macro-level Factors of Economic Environment in India

• Stage of economic development of the country.
• The economic structure in the form of mixed economy which recognises the role of both public and private sectors.
• Economic policies of the Government, including industrial, monetary and fiscal policies.
• Economic planning, including five year plans, annual budgets, and so on.
• Economic indices, like national income, distribution of income, rate and growth of GNP, per capita income, disposal personal income, rate of savings and investments, value of exports and imports, balance of payments, etc.
• Infrastructural factors, such as, financial institutions, banks, modes of transportation communication facilities etc.

The Constituents of Economic Environment of Business in India at the time of Independence

• The Indian economy was mainly agricultural and rural in character.
• About 70% of the working population was employed in agriculture.
• About 85% of the population was living in the villages.
• Production was carried out using irrational, low productivity technology
• Communicable diseases were widespread, mortality rates were high and there was no good public health system.

Key Aspects of the Economic Planning in India After Independence

• Initiate rapid economic growth to raise the standard of living, reduce unemployment and poverty.
• Become self-reliant and set upa strong industrial base with emphasis on heavy and basic industries.
• Reduce inequalities of income and wealth.
• Adopt a socialist pattern of development— based on equality and prevent exploitation of man by man.

NEW INDUSTRIAL POLICY OF 1991 Three Major Componenets of New Industrial Policy of 1991

• Liberalisation
• Privatisation
• Globalisation

Disinvestment definition Disinvestments refers to transfer from public sector enterprises to the private sector through dilution of state of the Government in the public enterprise

The Broad Feature of New Industrial Policy, 1991

• The Government reduced the number of industries under compulsory licensing to six.
• Many of the industries reserved for the public sector under the earlier policy, were dereserved. The role of the public sector was limited only to four industries of strategic importance.
• Disinvestment was carried out in case of many public sector industrial enterprises.
• The share of foreign equity participation was increased and in many activities 100 per cent Foreign Direct Investment (FDI) was permitted.
• Automatic permission was now granted for technology agreements with foreign companies.
• Foreign Investment Promotion Board (FIPB) was set up to promote and channelise foreign investment in India.

Liberalisation  These economic reforms signalled the The new set of economic Globalisation means the end of the licence-permit-quota raj reforms aimed at giving integration of the various and were aimed at liberalising the greater role to the private economies of the world Indian business and industry from all sector in the nation building leading towards the unnecessary controls and restrictions. Simplifying procedures for imports and exports. Key initiatives of the government:

• Abolishing licensing requirement in most of the industries except a short list .
• Freedom in deciding the scale of business activities
• Removal of restrictions on the movement of goods and services.
• Freedom in fixing the prices of goods and services.
• Reduction in tax rates and lifting of unnecessary controls over the economy.
• Making it easier to attract foreign capital and technology to India.

Privatisation The new set of economic Globalisation means the end of the licence-permit-quota raj reforms aimed at giving integration of the various and were aimed at liberalising the greater role to the private economies of the world Indian business and industry from all sector in the nation building leading towards the unnecessary controls and restrictions. process and a reduced role emergence of a cohesive to the public sector. Key initiatives of the government:

• Adopted the policy of planned disinvestments of the public sector.
• Decided to refer the loss making and sick enterprises to the Board of Industrial and Financial Reconstruction.

Globalisation These economic reforms signalled the The new set of economic Globalisation means the end of the licence-permit-quota raj reforms aimed at giving integration of the various and were aimed at liberalising the greater role to the private economies of the world Indian business and industry from all sector in the nation building leading towards the unnecessary controls and restrictions. process and a reduced role emergence of a cohesive to the public sector. global economy. Key initiatives of the government:

• Import liberalisation and export promotion through rationalisation of the tariff structure and reforms with respect to foreign exchange.
• Increased level of interaction and interdependence among the various nations of the global economy.

Impact of Government Policy Changes on Business and Industry/ Challenges faced by the Indian Corporate Sector

• Increasing competition for Indian firms due to changes in the rules of industrial licensing and entry of foreign firms.
• More demanding customers as they are more aware and are offered wider choice in purchasing better quality of goods and services due to high competition.
• Repidly changing technological environment creates tough challenges before smaller firms.
• Necessity for change in the way of their operations.
• Need for developing human resource as the new market conditions require people with higher competence and greater commitment. Hence the need for developing human resources.
• Market orientation as the firms have to study and analyse the market first and produce goods accordingly.
• Loss of budgetary support to the public sector has declined over the years

Managerial Response to Changes in Business Environment

• Acquisitions and mergers
• Diversification
• Brand building
• Innovative distribution and selling techniques.
• Changes in capital structure
• Customer-oriented approach
• Technological developments
• Better labour relations

LATEST CBSE QUESTIONS

Question 1: Metlapp Networks and Technologies Ltd. is a leader in technology innovation in the United States, creating products and solutions for connecting the world. It has,, a large research and development team which invented the first smart watch, named as W-7. The watch besides showing the time, also monitors few health parameters like heart beat, blood pressure etc. While in search of markets abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of simplified export procedure and removal of quantitative as well as tariff restrictions in India. It set up its office in Jamnagar with a view to capture the Indian market. In a short span of time, the company emerged as a market leader. Success of the company attracted many other players to enter the market. Competition resulted in reduction in prices, thereby benefiting the customers.

• In the above paragraph, two major concepts related to government policy have been discussed. Identify and explain these concepts.
• Also, explain briefly any three impacts of these concepts on Indian business and industry.
• Liberalisation: These economic reforms signalled the end of the licence-pemit-quota raj and were aimed at liberalising the Indian business and industry from all unnecessary controls and restrictions.
• Globalisation: Globalisation means the integration of the various economies of the world leading towards the emergence of a cohesive global economy.
• Increasing competition: The Indian firms are facing lot of competition due to changes in the rules of industrial licensing and entry of foreign firms. This change is more apparent in the sectors which were earlier reserved for private sector only like banking, insurance, telecommunications, etc.
• More demanding customers: With the easy availability of wider choice in purchasing better quality of goods and services due to high competition consumers have become more aware and demanding. The growing expections of the consumers has increased the pressure on the business firms.
• Rapidly changing technological environment: With the entry of new firms which are far more superior in terms of technology the small firms are facing a lot of challenges. Moreover, the firms are constantly involved in innovating new products and upgrading present products with the help of better technologies in order to satisfy the customers demands.

Question 2: Naman and Govind after finishing their graduation under vocational stream decided to start their own travel agency which will book Rail Tickets and Air Tickets on commission basis. They also thought of providing tickets within ten minutes through the use of internet. They discussed the idea with their Professor Mr. Mehta who liked the idea and suggested them to first analyse the business environment which consists of investors’, competitors and other forces like social, political etc. that may affect their business directly or indirectly. He further told them about the technological improvements and shifts in consumer preferences that were taking place and hence they should be aware of the environmental trends and changes which may hinder their business performance. He emphasised on making plans keeping in mind the threat posed by the competitors, so that they can deal with the situation effectively. This alignment of business operations with the business environment will result in better performance.

• Identify and state the component of business environment highlighted in the above Para.
• State any two features of business environment as discussed by Professor Mehta with Naman and Govind.
• Also state two points of importance of business environment as stated by Professor Mehta in the above situation.
• Technological Environment is the component of business environment highlighted in the above Para. Technological Environment includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business.
• Dynamic nature: It is dynamic in nature and keeps on changing due to technological upgradations, shifts in consumer preferences or increase in competition in the market.
• Inter-relatedness: All the elements of business environment are closely interrelated. Therefore, any change is one element may necessitate corresponding changes in the other elements as well.
• It enables the firm to identify opportunities and getting the first mover advantage: The dynamic business environment provides numerous opportunities for a business to evolve as per the changing needs. Therefore, early identification of the forthcoming opportunities helps an enterprise to be the first to exploit them instead of losing them to the competitors.
• It helps the firm to identify threats and early warning signals: Sometimes the changes in the external environment may pose as a threat and hinder a firm’s performance. An awareness about the business environment helps the managers to identify such threats on time and take necessary decisions and action.

Question 3: With changes in the consumption habits of people, Neelesh, who was running a sweet shop, shifted to the chocolate business. On the eve of Diwali, he offered chocolates in attractive packages at reasonable prices. He anticipated huge demand and created a website chocolove. com for taking orders online. He got a lot of orders online and earned huge profits by selling the chocolate. Identify and explain the dimensions of business environment discussed in the above case. Answer: The various dimensions of business environment being referred to in the above case are as follows:

• Social environment: Social Environment includes the social forces like customs and traditions, values, social trends, society’s expectations from business, etc.
• Technological environment: Technological Environment includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business.

Question 4: A recent rate cut in the interest on loans announced by the banks encouraged Amit, a science student of Progressive School, to take a loan from State Bank of India to experiment and develop cars to be powered by fuel produced from garbage. He developed such a car and exhibited it in the Science Fair organised by the Directorate of Education. He was awarded the first prize for his invention. Identify and explain the dimensions of business environment discussed in the above case. Answer: The various dimensions of business environment being referred to in the above case are as follows:

• Economic Environment: It comprises of factors that can affect management practices in a business enterprise includes interest rates, inflation rates, changes in disposable income of people, stock market indices and the value of rupee etc.
• Technological Environment: It includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business.

Question 5: ‘Accent Electronics Ltd.’ was operating its business in Malaysia. The company started exporting its products to India when the Prime Minister announced relaxation in import duties on electronic items. The company appointed retailers in India who had direct online links with the suppliers to replenish stocks when needed. Identify and explain the dimensions of business environment discussed in the above case. Answer: The various dimensions of business environment being referred to in the above case are as follows:

• Political Environment: Political Environment includes political conditions such as general stability and peace in the country and specific attitudes that elected government representatives hold towards business.
• Technological Environment: Technological Environment includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business.

Question 6: After completing her MBA, Beni took up a job with a multinational company named Fortio. The company paid good salaries and perks to its employees. The wages were within the paying capacity of the company that provided the employees with a reasonable standard of living. The company also had a good work-culture and the behaviour of superiors was very good towards their subordinates. Beni was very happy in this organisation but due to long working hours, she did not have time to cook her meals. 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 and decided to give up her job to supply packaged home-cooked food to office-goers at a reasonable price. At the end of the day, she also distributed the leftover food to the nearby night-shelters.

• State the dimension of business environment being discussed above.
• State the principle of management being followed by Fortio.
• Identify any two values being communicated by the company to society in above case.
• The dimension of business environment being discussed above is Social. Social Environment includes the social forces like customs and traditions, values, social trends, society’s expectations from business, etc.
• The principle of management being followed by Fortio is ‘Remuneration of employees’. Remuneration of employees: The overall pay and compensation should be fair to both employees and the organization. The employees should be paid fair wages, which should give them at least a reasonable standard of living. At the same time it should be within the paying capacity of the company i.e. remuneration should be just and equitable.
• Ethical Behaviour

Question 7: After completing his MBA from the USA, Mr. Ajay came to India to start a new business under the banner Ecom Creations Ltd. He launched a new product in e-learning for senior secondary school students in the commerce stream which already had an established market in the UK and the USA but not in India. His business started flourishing in India. As a result, more Indian companies entered into the market with other subjects also. Identify and quote the lines from the above paragraph which highlight the significance of understanding business environment. Answer:

• The understanding of business environment helps in assisting in planning and policy formulation as its understanding and analysis can be the basis for deciding the future course of action or decision making. It enables the firm to identify opportunities and getting the first mover advantage instead of losing them to its competitors. ” After completing his MBA from USA, Mr. Ajay came to India .to start a new business under the banner Ecom Creations Ltd. He launched a new product in e-learning for senior secondary school students in the commerce stream which already had an established market in UK and the USA but not in India.”
• It helps in improving performance of an enterprise through continuous monitoring of the environment and adopting suitable business practices which help to improve both their present and future performance. “His business started flourishing in India.”
• It helps the firm to identify threats and early warning signals that is likely to hinder a firm’s performance and take timely actions. “As a result, more Indian companies entered into the market with other subjects.”

Question 8: As per the directions issued by the Supreme Court, the government passed an order to ban the sale of tobacco products within the area of 200 meters of all educational institutions as:

• Its consumption is injurious to health.
• People are becoming more conscious about health and fitness. This indicates the government’s attitude towards this business. Identify the business environment under three different dimensions by quoting from above paragraph.

Answer: The various dimensions of business environment being referred to the in the above case are as follows:

• Legal Environment: “As per the directions issued by the Supreme Court.’
• Political Environment: “The government passed an order to ban the sale of tobacco products within the area of 200 meters of all educational institutions.”
• Social Environment: “Its consumption is injurious to health and people are becoming more conscious about health and fitness.”

Question 9: The court passed an order to ban polythene bags as:

• These bags create many environmental problems which affect the life of people.
• Innovative techniques are being developed to manufacture jute bags at low rates.
• Incomes are rising and people can afford to buy these bags. Identify the different dimensions of business environment by quoting lines from the above particulars.

Answer: The various dimensions of business environment being referred to in the above case are as follows:

• Legal Environment: “The court passed an order to ban polythene bags.”
• Social Environment: “The bags create many environmental problems which affect the life of people and society at large is more concerned about the,,quality of life.”
• Political Environment: “The government decided to give a subsidy to the jute industry in order to promote this business.”
• Technological environment: “Innovative techniques are being developed to manufacture jute bags at low rate.”
• Economic Environment: “Incomes are rising and people can afford to buy these bags.”

Question 10: The court passed an order that all schools must have water purifiers for the school children as:

• Society in general is more concerned about the quality of life. .
• Innovative techniques are being developed to manufacture water purifiers at competitive rates.
• Incomes are rising and children are drinking purified water at their homes as well.
• The Government is also showing a positive attitude towards the business of water purification. Identify the different dimensions of business environment by quoting from the above details.
• Legal Environment: “The court passed an order that all schools must have water purifiers for the school children.”
• Social Environment: “Society in general is more concerned about the quality of life.”
• Political Environment: “The government is also showing a positive attitude towards the business of water purifiers.”
• Technological environment: “Innovative techniques are being developed to manufacture water purifiers at competitive rate.”
• Economic Environment: “Incomes are rising and children are drinking purified water at their homes as well.”

Question 11: Just after the declaration of the results of the Lok Sabha Elections, 2009, the Bombay Stock Exchange’s price index (Sensex) rose by 2100 points in a day. Identify the environmental factor which led to this rise. Answer: Political environment has led to the rise in the sensex.

Question 12: The Government of India is seriously thinking of allowing the oil-marketing public sector undertaking to fix their own prices for petrol and diesel. Which economic reform is the reason for this change in the government’s policy? Answer: Privatisation as a reform is the reason for this change in the government policy.

ADDITIONAL QUESTIONS

Question 1: On 8 November 2016, the Government of India announced the demonetisation making all Rs.500 and Rs. 1,000 banknotes of the Mahatma Gandhi Series invalid past midnight. The government claimed that the action would curtail the use of illicit and counterfeit cash to fund illegal activity and terrorism. The BSE SENSEX and NIFTY 50 stock indices fell over 6 percent on the day after the announcement. The decision was heavily criticised by members of the opposition parties, leading to debates in both houses of parliament and triggering organised protests against the government in several places across India. People seeking to exchange their bank notes had to stand in lengthy queues, and several deaths were linked to the inconveniences caused due to the rush to exchange cash. After demonetisation the demand for point of sales (POS) or card swipe machines has increased. E-payment options like PayTM has also seen a rise. In context of the above case:

• Identify and explain the various dimensions of business environment which relate to the above mentioned case.
• List any through two values that the government seeks to promote through demonetisation.
• Legal environment: Legal Environment includes various legislations passed by the Government administrative orders issued by government authorities, court judgments as well as the decisions rendered by various commissions and agencies at every level of the government— centre, state or local .
• Economic Environment: Economic Environment comprises of factors that can affect management practices in a business enterprise includes interest rates, inflation rates, changes in disposable income of people, stock market indices and the value of rupee etc.
• Transparency in dealings
• Promote well being of people

Question 2: Post demonitisation in a further push to cashless economy, the Central cabinet has recently approved the ordinance for paying wages via electronic means. Accordingly, the government approved to Amend Section 6 of the Payment Of Wages Act 1936, to allow employers of certain industries to make payment through the electronic mode and cheques . The new ordinance will be applicable to the public sector. Identify the various dimensions of business environment which relate to the above mentioned case. Answer: The various dimensions of business environment which relate to the above mentioned case stated below:

• Political environment
• Legal environment
• Technology environment

Question 3: Make in India is an initiative launched by the Government of India to encourage national and multinational companies to manufacture their products in India. It focuses on job creation and skill enhancement and is in twenty five sectors of the economy. Under the initiative, brochures on these sectors and a web portal were released. The initiative aims at high quality standards and minimising the impact on the environment. It also seeks to attract foreign capital investment in India. In context of the above case:

• Identify the various dimensions of business environment being referred to by quoting lines from the paragraph.
• List any two values which the Government of India wants to convey through this initiative.
• Political Environment: “Make in India is an initiative launched by the Government of India to encourage national and multinational companies to manufacture their products in India.”
• Technological Environment: “Under the initiative, brochures on the twenty five sectors and a web portal were released.”
• Economic Environment: “It also seeks to attract foreign capital investment in India.”
• High quality standards
• Concern for environment

Question 4: India’s retail sector has been undergoing structural changes for the last two decades. On one hand, the ‘mall culture’ has gradually become a way of life, especially in the metros and mini¬metros. On the other hand, there is accelerated growth in e-business as customers also prefer to buy products and services via the Internet, telephone and television. However, operating in either of the segments is marked by the presence of strong competitors. Identify the components of specific forces and general forces being discussed in the above paragraph. Answer: The components of specific forces discussed in the above paragraph are the customers and competitors. The components of general forces discussed in the above paragraph is the social and technological conditions.

Question 5: Kapil Sharma is working as the Country Head of a company which owns a chain of malls under the name of ‘Virtuoso’ in the various parts of India. Through an analysis report of the business environment, it has been brought to his notice that in the coming years, shopping at a mall will not be a necessity for the buyers as purchases can be made online from anywhere and at any time with ease and at the consumer’s convenience. Hence, malls will have to provide much more than shopping to be able to attract customers. So, he recommends that ‘Virtuoso’ malls should to be restructured into recreation centres, offering more spaces to socialise, host events and concerts, and provide ample Food and Beverages options. Consequently the share of entertainment segment and Food and Beverages segment in the overall mall space is increased by 20%. As a result, the company gains enormously by getting the first mover advantage. In context of the above case :

• Define the term ‘Business Environment’.
• Explain the terms ‘Threats’ and ‘Opportunities’ by quoting lines from the paragraph.
• The term ‘Business Environment’ means the sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but that may affect its performance.
• The term ‘Threats’ refers to the external environment, trends and changes that will hinder a firm’s performance. “Through an analysis report of the business environment, it has been brought to his notice that in the coming years, shopping at a mall will not be a necessity for the buyers as purchases can be made online from anywhere and at any time with ease and at the consumer’s convenience. Hence, malls will have to provide much more than shopping to be able to attract customers.” The term ‘opportunities’ refers to the positive external trends or changes that will help a firm to improve its performance. “As a result, the company gains enormously by getting the first mover advantage.”

Question 6: “Zero Defect Zero Effect” (ZED) is a slogan coined by the Prime Minister of India, Narendra Modi with reference to the Make in India initiative launched by the government. The slogan reflects the efficiency of production processes, i.e. the products have no defects and the process through which the product is made has zero adverse environmental and ecological effects. The ZED model aims to make India the manufacturing hub of the world and prevent the products developed in India from being rejected by the global market. Moreover, before the initiative was launched, the limits of foreign direct investment in various sectors had been relaxed. The application for licences was made available online and the validity of licences was increased to three years. Various other norms and procedures were also relaxed by the government. In the light of the above paragraph, identify and explain the major component of New Economic Policy of 1991 that are being referred to by quoting lines from the paragraph. Answer: The major components of New Economic Policy of 1991 that are being referred to are as follows:

• Liberalisation: These economic reforms signalled the end of the licence-pemit-quota raj and were aimed at liberalising the Indian business and industry from all unnecessary controls and restrictions. “Moreover, before the initiative was launched, the limits of foreign direct investment in various sectors had been relaxed. The application for licences was made available online and the validity of licences was increased to three years. Various other norms and procedures were also relaxed by the government.”
• Globalisation: Globalisation means the integration of the various economies of the world leading towards the emergence of a cohesive global economy. “The ZED model aims to make India the manufacturing hub of the world and prevent the products developed in India from being rejected by the global market.”

Question 7: It is interesting to know that the menu items of the multinational food chains are customised to suit the general palates of the local people in the region. When McDonald’s started its business in India in the year 1996, the company went through a complete localisation strategy. McDonald’s changed its product menu to accommodate the vegetable burger given the large vegetarian population. It also altered its store design and even reduced the product price by close to fifteen per cent. Also , the “McAloo Tikki burger” is not available anywhere but in the Indian outlets of McDonalds. Identify the relevant feature of business environment being discussed above. Answer: Relativity is the relevant feature of business environment which is being discussed above.

Question 8: Eco-friendly products are gaining power as the consumers’ awareness about environmental issues has increased over the years and they are conscious about choosing products that do not have adverse effects on the environment. They are now more conscious about the carbon emission and climate change effects, and want themselves to be ‘seen’ as a green advocate among their peers. In such a scenario, it has become a challenge for the companies as they have to not only meet the needs of the consumers but also ensure that their products are safe and environment friendly. As a result, there is growing need for better and advanced technologies to works as a catalyst in this regard.

• Identify the relevant feature of business environment being discussed above.
• Describe briefly any three points which highlight the importance of business environment and its understanding by managers.
• Inter-relatedness is the relevant feature of business environment which is being discussed above.
• It helps in tapping useful resources: As the enterprise designs policies that allow it to get the resources that it needs so that it can convert those resources into outputs that the environment desires.

Question 9: In the year 2016, the State Government of Kerala had made it mandatory for anganwadis hostels and canteens in educational institutions to secure the Food Safety and Standards Authority of India (FSSAI) licence to ensure food safety. As the educational institutions also get categorised as food business operators in the event of the annual turnover of the hostels, they run exceeding Rs. 12 lakh per annum. In context of the above case:

• Identify and explain the various dimensions of business environment being referred to here.
•  List any two values which the State Government of Kerala wants to convey through this initiative.
• Political Environment: Political environment includes political conditions such as general stability and peace in the country and specific attitudes that elected government representatives hold towards business.
• Legal Environment: Legal environment includes various legislations passed by the government administrative orders issued by government authorities, court judgments as well as the decisions rendered by various commissions and agencies at every level of the government -Center, State or Local .
• Good health

Question 10: Postage stamps have been unveiled to commemorate 140 years of existence of the country’s first stock exchange the Bombay Stock Exchange (BSE). The setting up of BSE is considered to be the greatest revolution that took place in the financial markets in India as it acts as a key driver for economic growth of a country. This is due to the fact that there exists a strong corelation between economic growth and capital accumulation. In the context of the above case:

• Identify the dimension of business environment of India being referred here.
• State any three factors which broadly affect the dimension of business environment of India as identified in part (a) of the question.
• Economic environment is the dimension of business environment of India being referred here.

Question 11: The organic food market in India is growing at 25-30 per cent which reflects a clear shift in consumer tastes and preferences. The current growth in the organic food market is driven by multiplicity of factors like rising health consciousness, changing lifestyles, increase in disposable income and growing availability of organic food products in shopping malls, retail outlets and online. In context of the above case:

• Identify and explain the features of business environment being referred to here.
• By quoting phrases from the paragraph identify the various components of general forces which have led to a growth in the organic food market.
• Social: “rising health consciousness, changing lifestyles”
• Economic: “increase in disposable income”
• Technological: “growing availability of organic food products in shopping malls, retail outlets and online.”

Question 12: Anurag, aspires to work with a socially and environmentally committed company as he does not want to work just for monetary benefits but also the brand value of the company he works for in the society matters a lot to him. Therefore, he has joined Cerebra Integrated Technologies a Bengaluru-based Infotech company. The company has built India’s largest e-waste recycling plant. The company strives to be one of the leading players in this business which has huge potential not only in terms of generating huge revenues and profits but also wants to contribute to the environment issues that have become crucial worldwide. The company sees big business in the mountains of e-waste in Bengaluru which produces 200,000 tonnes of e-waste a year. The company plans to make its millions by extracting metals such as gold and platinum from the e-waste piling up in the city. As a mobile phone, for example, is made up of a combination of rare earth and precious metals: it contains 250 mg of silver, 24 mg of gold and nine mg of palladium while a laptop has 1,000 mg of silver, 220 mg of gold and 500 grams of copper. To start the business, the company has obtained a licence from KSPCB ( Karnataka State Pollution Control Board) . In context of the above case:

• List any two values which the company wants to convey to the society.
• Technological Environment: Technological environment includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business.
•  administrative orders issued by government authorities, court judgments as well as the decisions rendered by various commissions and agencies at every level of the government— center, state or local.
• Social Environment: Social environment includes the social forces like customs and traditions, values, social trends, society’s expectations from business, etc.
• Sustainable development
• Concern for environment.

Question 13: The government wants to raise Rs.56,500 crore from the sale of stakes in state-owned enterprises National Thermal Power Corporation (NTPC) in the financial year 2016-17. Identify and explain the related concept. Answer: Disinvestment: Disinvestment refers to transfer in the public sector enterprises to the private sector through dilution of stake of the Government in the public enterprise.

Question 14: Bharat is running an ice cream parlour in a local market. Keeping in mind the changing perceptions about health among the people, one of his employee Abhiraj suggests to him that they should introduce a range a flavoured yogurt. Bharat accepts his suggestion as a result both the image and the profitability of his business increases. In the context of the above case:

• Identify the feature of management which is being highlighted.
• State the related dimension of the business environment.
• Name and explain the related principle of general management.
• The feature of management which is being highlighted is Dynamic.
• The related dimension of the business environment is Social.
• The related principle of general management is Initiative.

Initiative means taking the first step with self-motivation. The workers should be encouraged to develop and carry out their plans for improvement. Suggestion system should be adopted in the organization.

Question 15: As a result of the decision by Britian to exit to European Union the new trade agreements will come into force from the EU as it accounts for 35-40% of auto component exports from India. Tata Motors owned Britain’s largest carmaker Jaguar Land Rover (JLR) has been in Britain for three decades and makes 4,75,000 cars a year in the country of which most of them are exported inside the European Union and beyond. JLR estimates that their annual profit could be cut by one billion pounds ($1.47 billion) by the year 2020. In the context of the above case:

• Explain why are all the elements of business environment considered to be closely interrelated?
• Name any two related dimensions of the business environment.
• All the elements of business environment are considered to be closely interrelated as any change in one of them may necessitate a series of changes in other dimensions as well.
• The related dimensions of the business environment are Political and Legal.

Question 16: : After competing his education, Arun joins his father in their family business of manufacturing cookware. As a businessman, his father is rigid in his approach and has fixed ideas about various issues. He tends to maintain a distance from the factory workers. However, Arun is more receptive to the needs of the workers and doesn’t seem to believe in any class- differences. He believes that the prosperity of their business greatly depends upon the prosperity of their workers and vice versa. At the same time, he has a good understanding of the business environment. Therefore, he introduces a new range of green pans that provide a healthy cooking surface, as they are manufactured with all ceramic or silicon coating and are considered safer than the traditional petroleum based nonstick surfaces which may contain toxic substances. Although, the new cookware range is highly priced/, he expects a ready market for it as both the purchasing power of people and their preference for better quality products has increased over the years. In the context of the above case:

• Identify the nature of management which is being reflected in the different styles of management in practice adopted by Arun and his father.
• Name and explain the related principle of scientific management.
• State the related dimensions of business environment.
• The different styles of management in practice adopted by Arun and his father reflect that management is an art.
•  ‘Harmony, Not Discord’ is the related principle of scientific management. Taylor emphasised that there should be complete harmony between the management and workers instead of a kind of class-conflict, the mangers versus workers. To achieve this state, Taylor called for complete mental revolution on the part of both management and workers. The prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity for the employees and vice versa. He advocated paternalistic style of management should be in practice.
• Economic Environment: Economic environment comprises of factors that can affect management practices in a business enterprise includes interest rates, inflation rates, changes in disposable income of people, stock market indices and the value of rupee etc.

Question 17: ‘Gallant’ is a well known FMCG (Fast Moving Consumer Goods) company in India. However, for the past few years its profitability is diminishing due to the presence of a new company ‘Prakritik’. ‘Prakritik’ has gradually acquired a reasonable share in a wide variety segments like soaps, shampoos, detergents, dish wash and oral care. One of the key reason is that ‘Prakritik’ has positioned itself as a natural/Ayurvedic brand and this approach has worked well with the Indian consumer. In order to compete with this threat ‘Gallant’ has acquired a premium Ayurvedic brand ‘Madhumita’ from another group. Moreover its likely to increase its advertising budget to counter the threat from ‘Prakritik’. In the context of the above case:

• Identify the related component of the business environment which has contributed effectively towards the success of Prakritik.
• Also, state the two ways in which ‘Gallant’ has responded to the changes in its business environment.
• Social aspect is the related component of the business environment which has contributed effectively towards the success of Prakritik.
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Banknifty Pivot Point comes under business environment if you see in stock market.

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Top 40 Most Popular Case Studies of 2021

Two cases about Hertz claimed top spots in 2021's Top 40 Most Popular Case Studies

Two cases on the uses of debt and equity at Hertz claimed top spots in the CRDT’s (Case Research and Development Team) 2021 top 40 review of cases.

Hertz (A) took the top spot. The case details the financial structure of the rental car company through the end of 2019. Hertz (B), which ranked third in CRDT’s list, describes the company’s struggles during the early part of the COVID pandemic and its eventual need to enter Chapter 11 bankruptcy. 

The success of the Hertz cases was unprecedented for the top 40 list. Usually, cases take a number of years to gain popularity, but the Hertz cases claimed top spots in their first year of release. Hertz (A) also became the first ‘cooked’ case to top the annual review, as all of the other winners had been web-based ‘raw’ cases.

Besides introducing students to the complicated financing required to maintain an enormous fleet of cars, the Hertz cases also expanded the diversity of case protagonists. Kathyrn Marinello was the CEO of Hertz during this period and the CFO, Jamere Jackson is black.

Sandwiched between the two Hertz cases, Coffee 2016, a perennial best seller, finished second. “Glory, Glory, Man United!” a case about an English football team’s IPO made a surprise move to number four.  Cases on search fund boards, the future of malls,  Norway’s Sovereign Wealth fund, Prodigy Finance, the Mayo Clinic, and Cadbury rounded out the top ten.

Other year-end data for 2021 showed:

• Online “raw” case usage remained steady as compared to 2020 with over 35K users from 170 countries and all 50 U.S. states interacting with 196 cases.
• Fifty four percent of raw case users came from outside the U.S..
• The Yale School of Management (SOM) case study directory pages received over 160K page views from 177 countries with approximately a third originating in India followed by the U.S. and the Philippines.
• Twenty-six of the cases in the list are raw cases.
• A third of the cases feature a woman protagonist.
• Orders for Yale SOM case studies increased by almost 50% compared to 2020.
• The top 40 cases were supervised by 19 different Yale SOM faculty members, several supervising multiple cases.

CRDT compiled the Top 40 list by combining data from its case store, Google Analytics, and other measures of interest and adoption.

All of this year’s Top 40 cases are available for purchase from the Yale Management Media store .

And the Top 40 cases studies of 2021 are:

1.   Hertz Global Holdings (A): Uses of Debt and Equity

2.   Coffee 2016

3.   Hertz Global Holdings (B): Uses of Debt and Equity 2020

4.   Glory, Glory Man United!

5.   Search Fund Company Boards: How CEOs Can Build Boards to Help Them Thrive

6.   The Future of Malls: Was Decline Inevitable?

7.   Strategy for Norway's Pension Fund Global

8.   Prodigy Finance

9.   Design at Mayo

10. Cadbury

11. City Hospital Emergency Room

13. Volkswagen

14. Marina Bay Sands

15. Shake Shack IPO

16. Mastercard

17. Netflix

18. Ant Financial

19. AXA: Creating the New CR Metrics

20. IBM Corporate Service Corps

21. Business Leadership in South Africa's 1994 Reforms

22. Alternative Meat Industry

23. Children's Premier

24. Khalil Tawil and Umi (A)

25. Palm Oil 2016

26. Teach For All: Designing a Global Network

27. What's Next? Search Fund Entrepreneurs Reflect on Life After Exit

28. Searching for a Search Fund Structure: A Student Takes a Tour of Various Options

30. Project Sammaan

31. Commonfund ESG

32. Polaroid

33. Connecticut Green Bank 2018: After the Raid

34. FieldFresh Foods

35. The Alibaba Group

36. 360 State Street: Real Options

37. Herman Miller

38. AgBiome

39. Nathan Cummings Foundation

40. Toyota 2010

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Top 40 Most Popular Case Studies of 2020

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Case Study – Business Environment

Welcome to study research . This time all-important case studies inform of questions and answers.

CASE STUDY – BUSINESS ENVIRONMENT

For class 12 cbse students of business studies..

Q1:  Anil a marketing manager of a car manufacturing company is of the view that in case of construction companies and automobiles manufacturers , low longer term rates are beneficial because they results in increased spending by consumers for buying homes and cars on borrowed money. Identify and explain the component of business environment that Anil is referring in the above case.

Q2:  In an interview , an interviewer asked the interviewee regarding the need of considering the changes of environment . In reply one of the interviewee replied,” Every business should consider the changes going on in inflation rates before taking any financial decisions because inflation rates result in constraints on business enterprises as they increase the various costs of business such as the purchase of raw materials or machinery and payment of wages and salaries to employees.” Interviewer liked the answer . Interviewee has put emphasis on the understanding of only one of the element of business environment. Identify that Element of Business environment.

Q3:’  Atul has got tremendous feedback from public for his newly started Gym plus gym related goods store which is a one stop solution for health conscious people. When asked about his success story then Atul said that the health and fitness trend has become popular among large number of urban dwellers. This has created a demand for products like organic food, diet soft drinks, gyms, bottled water and food supplements. that is why I thought of starting this business. Identify the dimension of business environment whose understanding has helped Atul in garnering the success,

Q4: Asia who is working as a advertisement advisor with one of the consumer goods manufacturing company is of the view that nowadays in order to inform and persuade the potential buyers to buy the product new and modified ways should be adopted by the companies to advertise their products. That is like CD-ROM’s , computerised information kiosks and internet/ world wide web multimedia pages highlighting the virtues of products. Marketing team really appreciated her idea. Identify the element of business environment on which Ashia has put the emphasis.

Q5: Ananya ‘s grand father while telling her about the past of Indian economy told her that even after opening up of our economy in 1991, foreign companies found it very difficult to cut through the bureaucratic red tape to get permits for doing business in India. Sometimes it took months to process even their application in process. As a result these companies were discouraged from investing in India but the situation has improved overtime. Identify the Element of business environment which was the cause for discouragement to foreign companies based on above case.

Q6: While doing labelling of the products companies have to write down certain statutory warnings over it. Understanding of which environment helped them taking above action Identify.

Q7:Identify the importance of Understanding business environment in the following cases:

(a) Maruti Udyog became the leader in the small car market because it was the first to recognise the need for small cars in an environment of rising petrol prices and a large middle class population of India.

Answer: It enables the firm to identify opportunities and getting first mover advantage.

(b) If  an Indian firm  finds that a foreign multinational is is entering  the Indian market with new varieties. On the basis of above information the Indian firms can prepare themselves to meet the threat by adopting such measures as improving quality of the products , reducing cost of the production , engaging in aggressive advertising and so on.

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Case Study Chapter 3 Business Environment

Please refer to Chapter 3 Business Environment Case Study Questions with answers provided below. We have provided Case Study Questions for Class 12 Business Studies for all chapters as per CBSE, NCERT and KVS examination guidelines. These case based questions are expected to come in your exams this year. Please practise these case study based Class 12 Business Studies Questions and answers to get more marks in examinations.

Case Study Questions Chapter 3 Business Environment

Read the source given below and answer the following questions : Unique Ltd. is an electronic goods manufacturing company situated in Uttar Pradesh. It is earning low revenue in comparison to another electronic company ‘Pace Ltd.’ situated in Delhi. Both the enterprises are affected by the investors , customers, competitors and suppliers in their respective locations. At the same time both are also affected by economic condition, change in technology, etc.

Questions :

Question. Economic condition, changes in technology are related to (a) General forces (b) Specific forces (c) Both (a) and (b) (d) None of the above

Question. Business Environment includes : (a) All internal forces (b) All external forces (c) Both Internal (d) None of the above

Question. There is variation in the revenue of company operating in Uttar Pradesh and operating in Delhi. This is related to which feature of Business Environment ? (a) Uncertainty (b) Relativity (c) General and specific (d) None of the above

Question. Customers and suppliers represent : (a) General forces (b) Specific forces (c) Both (a) and (b) (d) None of the above

Read the source given below and answer the following questions : Two big banner movies were scheduled to be released on the same date. On the last moment release of one of the movies had to be postponed due to opposition of a group of people due to some unethical contents related to their religion was shown in the that movie. The other movie released on time and made huge profit as there was no competition and movie which was postponed suffered loss. “It may be difficult to know the extent of the relative impact of the social economic, political, technological or legal factors on change in demand of a product in the market.”

Question. When there is no competition then firms get : (a) First mover advantage (b) Warning signal (c) Resource allocation (d) None of the above

Question. Identify the dimension of Business Environment that delayed the release of movie. (a) Economic (b) Social (c) Technical (d) Legal

Question. The dimensions of Business Environment are : (a) lndependent (b) Interrelated (c) Both (a) and (b) (d) None of the above

Question. Which feature of Business Environment is highlighted here? (a) Uncertainty (b) Specific and general (c) Dynamic (d) Relativity

Read the source given below and answer the following questions : Naman and Govind after finishing their graduation under vocational stream decided to start their own travel agency which will book Rail Tickets and Air Tickets on commission basis. They also thought of providing tickets within ten minutes through the use of internet. They discussed the idea with their Professor Mr. Mehta who liked the idea and suggested them to first analyse the business environment which consists of investors, competitors and other forces like social, political, etc., that may affect their business directly or indirectly. He further told them about the technological improvements and shifts in consumer preferences that were taking place and hence they should be aware of the environmental trends and changes which may hinder their business performance. He emphasised on making plans keeping in mind the threat posed by the competitors, so that they can deal with the situation effectively. This alignment of business operations with the business environment will result in better performance.

Question. “He emphasised on making plans keeping in mind threat posed by the competitors.” This is related to which importance of Business Environment ? (a) Getting first mover advantage (b) Getting warning signal (c) Help in making plans and policy formulation (d) None of the above

Question. “They should be aware of the environmental trends and changes which may hinder their business performance”. This is related to which feature of business environment ? (a) All external forces (b) Specific and general (c) Relativity (d) Dynamic

Question. “The Alignment of business operations with the business environment will result in better performance.” This is related to which importance of Business Environment ? (a) Getting first mover advantage (b) Getting warning signal (c) Help in improving performance (d) Help in making plans and policy formulation

Question. “First analyse the business environment which consists of investors, competitors and other forces like social, political, etc.” This is related to which feature of business environment ? (a) All external forces (b) Specific and general (c) Relativity (d) Uncertainty

Read the source given below and answer the following questions : The name and taste of Coca-Cola is known to almost each and every individual in India as well as throughout the world. This carbonated soft drink holds the most market share in the soft drink market and got itself a special seat in each and every gathering. The Coca-Cola Company has on occasion introduced other cola drinks under the Coke name. The most common of these are Diet Coke, along with others including Caffeine free Coca-Cola, Diet Coke Caffeine free, Coca-Cola Zero Sugar, Coca-Cola Cherry, Coca-Cola Vanilla and the list goes on. It has capitalized on each and every opportunity to market itself effectively and place itself in the middle of every gathering. The main reason for such an outstanding placement of product goes to the way they have established the connection between every occasion and the need for Coke to be present there, product design and creative advertising.

Question. Which of the following is not a product of COCA-COLA? (a) Diet Coke Caffeine free (b) Coca-Cola Zero Sugar (c) Coca-Cola Avocado (d) Coca-Cola Cherry

Question. In the context of the above given case, identify one valid importance of Business Environment. (a) Enables a firm to identify opportunities and getting first mover advantage (b) Uncertainty (c) Delay in action (d) Pervasive function

Question. Identify the feature of Business Environment which The Coca-Cola Company managed to get in their favour. (a) Complex (b) Specific and general forces (c) Futuristic (d) Mental Exercise

Question. Which business environment did Coca-Cola majorly tap into ? (a) Technological Environment (b) Social Environment (c) Political Environment (d) Economical Environment

Read the source given below and answer the following questions : Metlapp Networks and Technologies Ltd. is a leader in technology innovation in the United States, creating products and solutions for connecting the world. It has,, a large research and development team which invented the first smart watch, named as W-7. The watch besides showing the time, also monitors few health parameters like heart beat, blood pressure etc. While in search of markets abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of simplified export procedure and removal of quantitative as well as tariff restrictions in India. It set up its office in Jamnagar with a view to capture the Indian market. In a short span of time, the company emerged as a market leader. Success of the company attracted many other players to enter the market. Competition resulted in reduction in prices, thereby benefiting the customers.

Question. In the above paragraph, two major concepts related to government policy have been discussed. Identify and explain these concepts.

Liberalisation and Globalisation are the two major concepts related to government policy that have been discussed.

• Liberalisation:  These economic reforms signalled the end of the licence-pemit-quota raj and were aimed at liberalising the Indian business and industry from all unnecessary controls and restrictions.
• Globalisation:  Globalisation means the integration of the various economies of the world leading towards the emergence of a cohesive global economy.

Question. Also, explain briefly any three impacts of these concepts on Indian business and industry.

The three impacts of reforms on Indian business and industry are outlined below:

• Increasing competition:  The Indian firms are facing lot of competition due to changes in the rules of industrial licensing and entry of foreign firms. This change is more apparent in the sectors which were earlier reserved for private sector only like banking, insurance, telecommunications, etc.
• More demanding customers:  With the easy availability of wider choice in purchasing better quality of goods and services due to high competition consumers have become more aware and demanding. The growing expections of the consumers has increased the pressure on the business firms.
• Rapidly changing technological environment:  With the entry of new firms which are far more superior in terms of technology the small firms are facing a lot of challenges. Moreover, the firms are constantly involved in innovating new products and upgrading present products with the help of better technologies in order to satisfy the customers demands.

Read the source given below and answer the following questions : Naman and Govind after finishing their graduation under vocational stream decided to start their own travel agency which will book Rail Tickets and Air Tickets on commission basis. They also thought of providing tickets within ten minutes through the use of internet. They discussed the idea with their Professor Mr. Mehta who liked the idea and suggested them to first analyse the business environment which consists of investors’, competitors and other forces like social, political etc. that may affect their business directly or indirectly. He further told them about the technological improvements and shifts in consumer preferences that were taking place and hence they should be aware of the environmental trends and changes which may hinder their business performance. He emphasised on making plans keeping in mind the threat posed by the competitors, so that they can deal with the situation effectively. This alignment of business operations with the business environment will result in better performance.

Question. Identify and state the component of business environment highlighted in the above Para.

Technological Environment is the component of business environment highlighted in the above Para. Technological Environment includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business.

Question. State any two features of business environment as discussed by Professor Mehta with Naman and Govind.

The two features of business environment as discussed by Professor Mehta with Naman and Govind are as follows:

• Dynamic nature:  It is dynamic in nature and keeps on changing due to technological upgradations, shifts in consumer preferences or increase in competition in the market.
• Inter-relatedness:  All the elements of business environment are closely interrelated. Therefore, any change is one element may necessitate corresponding changes in the other elements as well.

Question. Also state two points of importance of business environment as stated by Professor Mehta in the above situation.

The two points of importance of business environment as stated by Professor Mehta in the above situation are described below:

• It enables the firm to identify opportunities and getting the first mover advantage: The dynamic business environment provides numerous opportunities for a business to evolve as per the changing needs. Therefore, early identification of the forthcoming opportunities helps an enterprise to be the first to exploit them instead of losing them to the competitors.
• It helps the firm to identify threats and early warning signals: Sometimes the changes in the external environment may pose as a threat and hinder a firm’s performance. An awareness about the business environment helps the managers to identify such threats on time and take necessary decisions and action.

With changes in the consumption habits of people, Neelesh, who was running a sweet shop, shifted to the chocolate business. On the eve of Diwali, he offered chocolates in attractive packages at reasonable prices. He anticipated huge demand and created a website chocolove. com for taking orders online. He got a lot of orders online and earned huge profits by selling the chocolate. Identify and explain the dimensions of business environment discussed in the above case.

The various dimensions of business environment being referred to in the above case are as follows:

1. Social environment:  Social Environment includes the social forces like customs and traditions, values, social trends, society’s expectations from business, etc.

2. Technological environment:  Technological Environment includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business.

A recent rate cut in the interest on loans announced by the banks encouraged Amit, a science student of Progressive School, to take a loan from State Bank of India to experiment and develop cars to be powered by fuel produced from garbage. He developed such a car and exhibited it in the Science Fair organised by the Directorate of Education. He was awarded the first prize for his invention. Identify and explain the dimensions of business environment discussed in the above case.

1. Economic Environment:  It comprises of factors that can affect management practices in a business enterprise includes interest rates, inflation rates, changes in disposable income of people, stock market indices and the value of rupee etc.

2. Technological Environment:  It includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business.

‘Accent Electronics Ltd.’ was operating its business in Malaysia. The company started exporting its products to India when the Prime Minister announced relaxation in import duties on electronic items. The company appointed retailers in India who had direct online links with the suppliers to replenish stocks when needed. Identify and explain the dimensions of business environment discussed in the above case.

1. Political Environment:  Political Environment includes political conditions such as general stability and peace in the country and specific attitudes that elected government representatives hold towards business.

2. Technological Environment:  Technological Environment includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business.

Read the source given below and answer the following questions : Neel and Aakash after finishing their graduation under vocational stream decide to start their own travel agency which will book rail tickets and air tickets on commission basis. They also thought of providing tickets within 10 minutes through the use of internet.They discussed the idea with their professor Mr. Singh who liked the idea and suggested them to first analyse the business environment which consist of investors, competitors and other forces like social, political, etc., that may affect their business directly or indirectly. He further told them about the technological improvements and shifts in customer preferences that were taking place and hence, they should be aware of the environmental trends and changes which may hinder their business performance. He emphasised on making plans keeping in mind the threats posed by the competitors so that they can deal with the situation effectively. This alignment of business operations with the business environment will result in better performance.

Question. Identify the points of importance of business environment as stated by Professor Singh in the above situation. (a) It enables the firm to identify opportunities and getting the first mover advantage (b) It helps the form to identify threats and early warning signals (c) It helps in tapping useful resources (d) The it helps in assisting in planning and policy formulation.

Question. Identify the components of business environment highlighted in the above paragraph (a)economic environment (b) social environment (c) technological environment (d) political environment

Question. Neel and Aakash after finishing their graduation under vocational stream decided to start their own travel agency which will book rail tickets and air tickets on commission basis which dimension of business environment highlighted here. (a) Economical (b) Political (c) Legal (d) social

Question. Identify the features of business environment as discussed by Professor Singh with Neel and Akash. (a)specific and general forces (b)inter-relatedness (c) dynamic nature (d) uncertainty

Question. Which of the following is not an element of legal environment (a) court judgement (b) The extent and nature of government intervention in business (c) Government regulations (d) Administrative orders issued by the government authorities.

Read the source given below and answer the following questions : The government all over the world are becoming more and more cautious towards the environment.To ensure the same, recently, many state governments passed an order to ban polythene bags since these are non biodegradable. As a result, the government also decided to give a subsidy to jute industry (bags). The minister said in the statement that they believe it will be helpful as income of people are rising and people can afford jute bag. After this subsidy, Aman saw great potential in jute multi-pocket bags business which was not established yet in India but had been flourishing in UK where he studied during his graduation. He launched the product and his business started to boom. So, more companies entered into the market with other articles and improvisations.

Question. Which business dimension is highlighted in the line,” As a result, the government also decided to give a subsidy to jute industry (bags).” (a) Legal (b) Political (c) Economic (d) Social

Question. Which merit of business environment is highlighted in the lines,” He launched the product and his business started to boom. So, more companies entered into the market with other articles and improvisations.” (a) Identify opportunities (b) Identified threats (c) Assisting in planning (d) Coping with rapid changes

Question. Which dimension of business environment is highlighted in the given lines,” To ensure the same, many state government passed an order to ban polythene bags since these are non biodegradable.”? (a) Political (b) Legal (c) Technological (d) Economic

Question. Which business dimension is highlighted in the line,” The Minister said in the statement that he believes it will be helpful as income of people are rising and people can afford jute bags.”? (a) Legal (b) Political (c) Economic (d) Social

Question. Which merit of business environment is highlighted in the lines, “After the subsidy Aman saw great potential in jute multi-pocket bags business which was not established yet in India but had been flourishing in UK where he studied during his graduation.” (a) Identify opportunities (b) Tapping useful resources (c) Coping with rapid changes (d)Assisting in planning

Read the source given below and answer the following questions : Yogesh Agro limited started a new venture for distribution of harmful and chemical free fertilizers vegetables they conducted a survey to find out customer preferences for such vegetables.They found out that most of the customers were concerned about the harmful chemicals being used in growing the vegetables. They found out that 90% of the households were searching for alternatives. The company connected a group of agriculture experts to lay down the procedure for growing the vegetables by the farmers. They decided to train the farmers in new technology to grow chemical free vegetables according to new innovative methods. The experts also suggested soil management techniques through which farmers would be able to create an abundant and lasting harvest. Due to increased awareness for healthcare, demand for products of Yogesh agro limited increased and thus the business flourished

Question. “Due to increased awareness for healthcare demand for products of Yogesh Agro limited increased and thus the business flourished.”What feature/ characteristic of business environment is highlighted above? (a) Specific and general forces (b) Inter-relatedness (c) Dynamic nature (d) Relativity

Question. Which of the following is not a component of economic environment? (a) Balance of payments and changes in foreign exchange reserves (b) The nature of relationship of our country with foreign countries (c) Expansion of transportation and communication facilities (d) Volume of imports and exports of different items.

Question. “They found that most of the customers were concerned about the harmful chemicals being used in growing the vegetables. They found out that 90% of the households searching for alternative.” identify the dimension of business environment highlighted above. (a) Economic environment (b) Social environment (c) Technological environment (d) Political environment

Question. “They decided to train the farmers in new technology to grow chemical-free vegetable according to new innovative methods.” Identity the dimension of business environment highlighted above. (a) Economic environment (b) Social environment (c) Technological environment (d) Political environment

Question. “The experts also suggested soil management techniques through which farmers would be able to create an abundant and lasting harvest.” which dimension of business environment is highlighted here? (a) Technological (b) Legal (c) Political (d) Social

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• Business Cycle
• Business Environment
• Consumer Protection
• Corporate Responsibility
• External Influences
• Globalisation
• Government Influence
• International Business
• Financial Risk
• Investment Appraisal
• Sources of Finance
• Competitive Advantage
• Customer Focus
• International Marketing
• Market Research
• Marketing Planning
• Marketing Strategies
• Product Launch
• Product Life Cycle
• Product Portfolio
• Segmentation
• The Marketing Mix
• Continuous Improvement
• Customer Service
• Health and Safety
• Lean Production
• Location of Business
• Management of Change
• Merger and Acquisition
• New Product Development
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Business Environment - Case Studies

Understanding the business environment is crucial for organisations aiming to thrive amidst external challenges and opportunities. Our collection of case studies explores how companies assess and adapt to various external factors, such as economic trends, regulatory changes, and competitive landscapes. These real-world examples provide valuable insights into strategies for effectively responding to shifts in the business environment. Whether you’re a business leader, strategist, or student, discover how these case studies can enhance your understanding of the external environment and inform your approach to strategic decision-making.

Balancing a fine line in an environment of change

A revolution in banking, business activities and care for the environment, maintaining the co-operative difference, how a regulatory system works in practice, taking direct banking a step further, golden lights – responding to a changing market, the value of responding to a changing market, the stockbroking revolution, the changing environment within the gas industry, focus on convenience trading, constructing the future, encouraging innovation through intellectual property rights, the message is in the medium, packaging and sustainable development, competing in a highly regulated environment, doing better by the environment, responding positively to a changing environment, fuelling the digital revolution, how an environmental management system ems helps create a sustainable business, popular articles, 2021’s 5 best wholesale cbd vendors – buyer’s guide, top 5 uk cbd oil brands for 2022, tips for the best online gambling experiences at casinos without a swedish license, top free youtube converter tools online, ethical business practices, aims and functions of the production department, creating an effective organisational structure, rights and responsibilities of employers and employees, the advantages and disadvantages of a swot analysis, swot analysis and sustainable business planning, physics problem solver apps to help students with their homework, how to know who viewed your facebook profile, employee participation, market and product orientation: balancing consumer needs and product quality, understanding methods of remuneration in the workplace, internal organisation, methods of production: understanding the processes behind goods and services, the use of it, recruitment selection and training, chain of production, how the business environment shapes activity: understanding environmental constraints, constraints, slept analysis, personnel functions, economic conditions, constraints on production, production technology, elasticity of demand, more case studies, strategic planning responding to external influences, extending the product life cycle, branding strategies to create value, building the jaguar s-type at castle bromwich, lean production, fastflow to fashion, creating value through the marketing mix, a truly global market.

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Teaching Resources Library

Case studies.

The teaching business case studies available here are narratives that facilitate class discussion about a particular business or management issue. Teaching cases are meant to spur debate among students rather than promote a particular point of view or steer students in a specific direction.  Some of the case studies in this collection highlight the decision-making process in a business or management setting. Other cases are descriptive or demonstrative in nature, showcasing something that has happened or is happening in a particular business or management environment. Whether decision-based or demonstrative, case studies give students the chance to be in the shoes of a protagonist. With the help of context and detailed data, students can analyze what they would and would not do in a particular situation, why, and how.

Case Studies By Category

7 Favorite Business Case Studies to Teach—and Why

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• Case Teaching
• Course Materials

FEATURED CASE STUDIES

The Army Crew Team . Emily Michelle David of CEIBS

ATH Technologies . Devin Shanthikumar of Paul Merage School of Business

Fabritek 1992 . Rob Austin of Ivey Business School

Lincoln Electric Co . Karin Schnarr of Wilfrid Laurier University

Pal’s Sudden Service—Scaling an Organizational Model to Drive Growth . Gary Pisano of Harvard Business School

The United States Air Force: ‘Chaos’ in the 99th Reconnaissance Squadron . Francesca Gino of Harvard Business School

Warren E. Buffett, 2015 . Robert F. Bruner of Darden School of Business

To dig into what makes a compelling case study, we asked seven experienced educators who teach with—and many who write—business case studies: “What is your favorite case to teach and why?”

The resulting list of case study favorites ranges in topics from operations management and organizational structure to rebel leaders and whodunnit dramas.

1. The Army Crew Team

Emily Michelle David, Assistant Professor of Management, China Europe International Business School (CEIBS)

“I love teaching  The Army Crew Team  case because it beautifully demonstrates how a team can be so much less than the sum of its parts.

I deliver the case to executives in a nearby state-of-the-art rowing facility that features rowing machines, professional coaches, and shiny red eight-person shells.

After going through the case, they hear testimonies from former members of Chinese national crew teams before carrying their own boat to the river for a test race.

The rich learning environment helps to vividly underscore one of the case’s core messages: competition can be a double-edged sword if not properly managed.

Executives in Emily Michelle David’s organizational behavior class participate in rowing activities at a nearby facility as part of her case delivery.

Despite working for an elite headhunting firm, the executives in my most recent class were surprised to realize how much they’ve allowed their own team-building responsibilities to lapse. In the MBA pre-course, this case often leads to a rich discussion about common traps that newcomers fall into (for example, trying to do too much, too soon), which helps to poise them to both stand out in the MBA as well as prepare them for the lateral team building they will soon engage in.

Finally, I love that the post-script always gets a good laugh and serves as an early lesson that organizational behavior courses will seldom give you foolproof solutions for specific problems but will, instead, arm you with the ability to think through issues more critically.”

2. ATH Technologies

Devin Shanthikumar, Associate Professor of Accounting, Paul Merage School of Business

“As a professor at UC Irvine’s Paul Merage School of Business, and before that at Harvard Business School, I have probably taught over 100 cases. I would like to say that my favorite case is my own,   Compass Box Whisky Company . But as fun as that case is, one case beats it:  ATH Technologies  by Robert Simons and Jennifer Packard.

ATH presents a young entrepreneurial company that is bought by a much larger company. As part of the merger, ATH gets an ‘earn-out’ deal—common among high-tech industries. The company, and the class, must decide what to do to achieve the stretch earn-out goals.

ATH captures a scenario we all want to be in at some point in our careers—being part of a young, exciting, growing organization. And a scenario we all will likely face—having stretch goals that seem almost unreachable.

It forces us, as a class, to really struggle with what to do at each stage.

After we read and discuss the A case, we find out what happens next, and discuss the B case, then the C, then D, and even E. At every stage, we can:

see how our decisions play out,

figure out how to build on our successes, and

address our failures.

The case is exciting, the class discussion is dynamic and energetic, and in the end, we all go home with a memorable ‘ah-ha!’ moment.

I have taught many great cases over my career, but none are quite as fun, memorable, and effective as ATH .”

3. Fabritek 1992

Rob Austin, Professor of Information Systems, Ivey Business School

“This might seem like an odd choice, but my favorite case to teach is an old operations case called  Fabritek 1992 .

The latest version of Fabritek 1992 is dated 2009, but it is my understanding that this is a rewrite of a case that is older (probably much older). There is a Fabritek 1969 in the HBP catalog—same basic case, older dates, and numbers. That 1969 version lists no authors, so I suspect the case goes even further back; the 1969 version is, I’m guessing, a rewrite of an even older version.

There are many things I appreciate about the case. Here are a few:

It operates as a learning opportunity at many levels. At first it looks like a not-very-glamorous production job scheduling case. By the end of the case discussion, though, we’re into (operations) strategy and more. It starts out technical, then explodes into much broader relevance. As I tell participants when I’m teaching HBP's Teaching with Cases seminars —where I often use Fabritek as an example—when people first encounter this case, they almost always underestimate it.

It has great characters—especially Arthur Moreno, who looks like a troublemaker, but who, discussion reveals, might just be the smartest guy in the factory. Alums of the Harvard MBA program have told me that they remember Arthur Moreno many years later.

Almost every word in the case is important. It’s only four and a half pages of text and three pages of exhibits. This economy of words and sparsity of style have always seemed like poetry to me. I should note that this super concise, every-word-matters approach is not the ideal we usually aspire to when we write cases. Often, we include extra or superfluous information because part of our teaching objective is to provide practice in separating what matters from what doesn’t in a case. Fabritek takes a different approach, though, which fits it well.

It has a dramatic structure. It unfolds like a detective story, a sort of whodunnit. Something is wrong. There is a quality problem, and we’re not sure who or what is responsible. One person, Arthur Moreno, looks very guilty (probably too obviously guilty), but as we dig into the situation, there are many more possibilities. We spend in-class time analyzing the data (there’s a bit of math, so it covers that base, too) to determine which hypotheses are best supported by the data. And, realistically, the data doesn’t support any of the hypotheses perfectly, just some of them more than others. Also, there’s a plot twist at the end (I won’t reveal it, but here’s a hint: Arthur Moreno isn’t nearly the biggest problem in the final analysis). I have had students tell me the surprising realization at the end of the discussion gives them ‘goosebumps.’

Finally, through the unexpected plot twist, it imparts what I call a ‘wisdom lesson’ to young managers: not to be too sure of themselves and to regard the experiences of others, especially experts out on the factory floor, with great seriousness.”

4. Lincoln Electric Co.

Karin Schnarr, Assistant Professor of Policy, Wilfrid Laurier University

“As a strategy professor, my favorite case to teach is the classic 1975 Harvard case  Lincoln Electric Co.  by Norman Berg.

I use it to demonstrate to students the theory linkage between strategy and organizational structure, management processes, and leadership behavior.

This case may be an odd choice for a favorite. It occurs decades before my students were born. It is pages longer than we are told students are now willing to read. It is about manufacturing arc welding equipment in Cleveland, Ohio—a hard sell for a Canadian business classroom.

Yet, I have never come across a case that so perfectly illustrates what I want students to learn about how a company can be designed from an organizational perspective to successfully implement its strategy.

And in a time where so much focus continues to be on how to maximize shareholder value, it is refreshing to be able to discuss a publicly-traded company that is successfully pursuing a strategy that provides a fair value to shareholders while distributing value to employees through a large bonus pool, as well as value to customers by continually lowering prices.

However, to make the case resonate with today’s students, I work to make it relevant to the contemporary business environment. I link the case to multimedia clips about Lincoln Electric’s current manufacturing practices, processes, and leadership practices. My students can then see that a model that has been in place for generations is still viable and highly successful, even in our very different competitive situation.”

5. Pal’s Sudden Service—Scaling an Organizational Model to Drive Growth

Gary Pisano, Professor of Business Administration, Harvard Business School

“My favorite case to teach these days is  Pal’s Sudden Service—Scaling an Organizational Model to Drive Growth .

I love teaching this case for three reasons:

1. It demonstrates how a company in a super-tough, highly competitive business can do very well by focusing on creating unique operating capabilities. In theory, Pal’s should have no chance against behemoths like McDonalds or Wendy’s—but it thrives because it has built a unique operating system. It’s a great example of a strategic approach to operations in action.

2. The case shows how a strategic approach to human resource and talent development at all levels really matters. This company competes in an industry not known for engaging its front-line workers. The case shows how engaging these workers can really pay off.

3. Finally, Pal’s is really unusual in its approach to growth. Most companies set growth goals (usually arbitrary ones) and then try to figure out how to ‘backfill’ the human resource and talent management gaps. They trust you can always find someone to do the job. Pal’s tackles the growth problem completely the other way around. They rigorously select and train their future managers. Only when they have a manager ready to take on their own store do they open a new one. They pace their growth off their capacity to develop talent. I find this really fascinating and so do the students I teach this case to.”

6. The United States Air Force: ‘Chaos’ in the 99th Reconnaissance Squadron

Francesca Gino, Professor of Business Administration, Harvard Business School

“My favorite case to teach is  The United States Air Force: ‘Chaos’ in the 99th Reconnaissance Squadron .

The case surprises students because it is about a leader, known in the unit by the nickname Chaos , who inspired his squadron to be innovative and to change in a culture that is all about not rocking the boat, and where there is a deep sense that rules should simply be followed.

For years, I studied ‘rebels,’ people who do not accept the status quo; rather, they approach work with curiosity and produce positive change in their organizations. Chaos is a rebel leader who got the level of cultural change right. Many of the leaders I’ve met over the years complain about the ‘corporate culture,’ or at least point to clear weaknesses of it; but then they throw their hands up in the air and forget about changing what they can.

Chaos is different—he didn’t go after the ‘Air Force’ culture. That would be like boiling the ocean.

Instead, he focused on his unit of control and command: The 99th squadron. He focused on enabling that group to do what it needed to do within the confines of the bigger Air Force culture. In the process, he inspired everyone on his team to be the best they can be at work.

The case leaves the classroom buzzing and inspired to take action.”

7. Warren E. Buffett, 2015

Robert F. Bruner, Professor of Business Administration, Darden School of Business

“I love teaching   Warren E. Buffett, 2015  because it energizes, exercises, and surprises students.

Buffett looms large in the business firmament and therefore attracts anyone who is eager to learn his secrets for successful investing. This generates the kind of energy that helps to break the ice among students and instructors early in a course and to lay the groundwork for good case discussion practices.

Studying Buffett’s approach to investing helps to introduce and exercise important themes that will resonate throughout a course. The case challenges students to define for themselves what it means to create value. The case discussion can easily be tailored for novices or for more advanced students.

Either way, this is not hero worship: The case affords a critical examination of the financial performance of Buffett’s firm, Berkshire Hathaway, and reveals both triumphs and stumbles. Most importantly, students can critique the purported benefits of Buffett’s conglomeration strategy and the sustainability of his investment record as the size of the firm grows very large.

By the end of the class session, students seem surprised with what they have discovered. They buzz over the paradoxes in Buffett’s philosophy and performance record. And they come away with sober respect for Buffett’s acumen and for the challenges of creating value for investors.

Surely, such sobriety is a meta-message for any mastery of finance.”

More Educator Favorites

10 business case studies to teach online, 6 favorite business simulations to teach—and why, 7 favorite business case studies to teach undergrads—and why.

Emily Michelle David is an assistant professor of management at China Europe International Business School (CEIBS). Her current research focuses on discovering how to make workplaces more welcoming for people of all backgrounds and personality profiles to maximize performance and avoid employee burnout. David’s work has been published in a number of scholarly journals, and she has worked as an in-house researcher at both NASA and the M.D. Anderson Cancer Center.

Devin Shanthikumar  is an associate professor and the accounting area coordinator at UCI Paul Merage School of Business. She teaches undergraduate, MBA, and executive-level courses in managerial accounting. Shanthikumar previously served on the faculty at Harvard Business School, where she taught both financial accounting and managerial accounting for MBAs, and wrote cases that are used in accounting courses across the country.

Robert D. Austin is a professor of information systems at Ivey Business School and an affiliated faculty member at Harvard Medical School. He has published widely, authoring nine books, more than 50 cases and notes, three Harvard online products, and two popular massive open online courses (MOOCs) running on the Coursera platform.

Karin Schnarr is an assistant professor of policy and the director of the Bachelor of Business Administration (BBA) program at the Lazaridis School of Business & Economics at Wilfrid Laurier University in Waterloo, Ontario, Canada where she teaches strategic management at the undergraduate, graduate, and executive levels. Schnarr has published several award-winning and best-selling cases and regularly presents at international conferences on case writing and scholarship.

Gary P. Pisano is the Harry E. Figgie, Jr. Professor of Business Administration and senior associate dean of faculty development at Harvard Business School, where he has been on the faculty since 1988. Pisano is an expert in the fields of technology and operations strategy, the management of innovation, and competitive strategy. His research and consulting experience span a range of industries including aerospace, biotechnology, pharmaceuticals, specialty chemicals, health care, nutrition, computers, software, telecommunications, and semiconductors.

Francesca Gino studies how people can have more productive, creative, and fulfilling lives. She is a professor at Harvard Business School and the author, most recently, of  Rebel Talent: Why It Pays to Break the Rules at Work and in Life . Gino regularly gives keynote speeches, delivers corporate training programs, and serves in advisory roles for firms and not-for-profit organizations across the globe.

Robert F. Bruner is a university professor at the University of Virginia, distinguished professor of business administration, and dean emeritus of the Darden School of Business. He has also held visiting appointments at Harvard and Columbia universities in the United States, at INSEAD in France, and at IESE in Spain. He is the author, co-author, or editor of more than 20 books on finance, management, and teaching. Currently, he teaches and writes in finance and management.

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