BUSINESS ENVIROMENT — OCM STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceOCMBUSINESS ENVIROMENT5 Marks
Question
“Business environment creates opportunities as well as obstacles.”-Explain.
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Answer
Introduction :
Business environment cover factors such as economic, technological, social, employees, competitors. They all are directly or indirectly connected.
All there factors sometimes create new avenues for employment along with some obstacles.
How business opportunities are created by business environment ?
Free trade policy is adopted in capitalist economic system. It permits manufacturers to take all decisions regarding economic activity.
As a result many new business opportunities can be seized.
Government implements various schemes for development of agriculture sector.
It creates business opportunities in this sector.
Due to development of transport, banking, tourism, education, hygiene, service sector opportunities of business investment increases along with it increase the development opportunities.
With the increase of national income, prestige value based product / services are in demand which also create opportunities for business investment.
Raw material and its supply machinery, financial facilities etc. generate new opportunities.
Social factors include human being, social organization, social traditions, people’s life-style, people’s living, etc. which include business opportunities.
Political factors include ideology of the concerned ruling party.
It covers its economic ideology too.
Business opportunities emerge from this. E.g. providing cleanliness campaign, related instruments, constructing latrines, manufacturing solar energy producing instruments for which government sanction grant.
How business environment becomes obstacles ?
Business entrepreneurs analyze business environment and size business opportunities.
Factors influencing business are never stable.
Sometimes changes occurred in business harm individual and community and become obstacles in business.
In capital economic system there is policy of free trade and all the decisions are taken by manufacturers.
Probability of exploitation of customers is not avoided.
So community protests some of the products.
Due to government’s subsidy to agriculture sector, employment does increase and work force for other sectors is not available which is an obstacle in the progress of other sectors.
Agriculture, industry and service sectors are inter-related. So problem arise in one sector affects other sectors and finally the investors suffer.
With the increase of national income, new business opportunities emerge. But as it is unequally distributed, class difference are found in society which result in social conflict.
Due to the facilities of raw – material and its supply, machinery and financial facilities evils like hoarding of goods, manmade shortage, monopoly, etc. arise.
Social factors include social traditions, life-style of people, etc. these factors are not stable.
They sometimes create obstacles in business environment.
Business opportunities emerge from the ideologies of the concerned political parties.
When government is changes or rules and regulations of the present government changes and laws are changed then industries have to suffer.
Conclusion :
Business opportunities are created from various factors affecting business environment.
If foresight is not used then these factors are proved obstacles for investors and society.
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