BBA 1st Year Business Environment Social Responsibilities of Business Long Question Answer
BBA 1st Year Business Environment Social Responsibilities of Business Long Question Answer: BBA Section C Important Long Question Answer for Exam Question Paper New Syllabus 2019.
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BBA 1st 2nd 3rd Year Study Material Notes
Q. 1. Discuss the concept of the business environment.
What do you understand by the concept of the business environment?
Ans. A business enterprise is a part of society and the business environment has a direct relationship with the business. The environment may impose various constraints on businesses where business enterprises do not have any control over the environment. Therefore, adaptability and adjustability to the environment is the ‘success mantra’ of a business enterprise.
The business environment is made of two words “Business” and “Environment”.
- Meaning of Business: Business is an important institution in society, required for the supply of goods and services, for certain job opportunities, and for the contribution to the economic growth of the country. It is the organized effort of the enterprise to supply consumers with goods and services, for profit. All the activities of the business are organized and carried on, with the important purpose of earning profit by supplying goods and services to consumers in order to satis1 their needs. People occupy central Place, around whom, by whom, and for whom business is run. According to Boone and Kurtz, “Business comprises all profit-seeking activities and enterprises that provide goods and services necessary to the economic system. It is the economic pulse of a nation, striving to increase society’s standard of living. Profit is a mechanism for motivating these activities.”
- Meaning of Environment: Environment refers to all external factors which have a bearing on the functioning of the business. These are primarily beyond the control of industrial enterprises and their management. It may pose threats to a firm or may offer immense opportunities for potential market exploitation. According to William F. Gluck and Lawrence R. bunch, “The environment includes factors outside the firm which can lead to opportunities for threats to the firm. Although there are many factors, the most important factors are solo-economic, technological, suppliers, competitors and the government.”
- Meaning and Definition of Business Environment: Thus, by combining two words, “business” and “environment” we can say that business environment refers to those aspects of the surroundings of a business enterprise that affect or influence its operations and determine its effectiveness and success. It has been defined in the following ways:
- According to Keith Davis, “Business environment is the aggregate of all conditions, events, and influences that surround and affect it.”
- According to Arther M. Weimer, “Business environment is the climate or set of conditions-economic, social, political or institutional in which business operations are conducted.”
- According to William Glucck and Jaurch, “In the environment, there are external factors which constantly spin-out opportunities and threats to the business firm. Although there are many factors but most important among these are socio-economic, technological, suppliers, competitors, and government.”
- According to Bayard 0. Wheelers, “Business environment is the total of all things external to the business firm and industries which affect their organization and operations.”
Thus, business environment refers to, “The process by which a strategist monitors by economic, governmental and legal market competitors, geographical and social settings to determine opportunities and threats to their firm.”
Q. 2. What are the various factors that influence the business environment?
Explain the internal and external factors of the business environment
Ans. Environment means the surrounding external objects and influences under which something exists. There are two types of factors that influence the policy of a business organization.
- Internal factors.
- External factors.
- Internal Factors: Internal factors are those factors that can be controlled by the organization itself. Organizations can alter these factors to suit the environment. There are a large number of internal factors which contribute either to the success or failure of the business. These factors either work as a strength or cause trouble to the organization. Various internal factors are as follows
- Value system, business policies, law, and regulations: The value systems of the founders and those at the helm of affairs have an important bearing on the choice of business, the mission, the objectives of the organization, business policies, and practices.
- Mission and objectives aim and target The business domain of the company, philosophy, business policies, targets, and direction of development is guided by the mission and objectives of the company.
- Company image and brand equity: The image of the company matters while raising finance, forming joint ventures or other alliances entering purchase and sale contracts, and launching new products.
- Management structures and nature: The organization structure, the board directors, extent of professionalization of management, etc., are important factors influencing business decisions.
- Human resources: The characteristics of human resources like skill, quality, moral commitment, attitude, etc. could contribute to the strength and weaknesses of an organization.
- Internal power relationship: Factors like the support of top management enjoyed from different levels of employees, shareholders, and board of directors has an important influence on the decision and its implementation.