Directing — Business Studies STD 12 Commerce — Question

In an environment of rising petroleum prices and a large middle class population in India. KV Motors Ltd. recognized the need for small cars in India. It created a product far superior than their competitors not only in terms of quality but also in terms of overall driving experience. It soon became the leader in the small car market. As the Indian government was encouraging foreign investment, MNCs having a big name in car manufacturing entered the Indian market.
KV Motors further expanded its service network and quality creating an entry barrier for the competitors. It depicted its strengths through various brand-building activities. As a result, the market share of KV Motors is refusing to go down in spite of all major automakers as its competitors.

1. Identify the economic reforms highlighted in the above case.
2. Quoting the lines, explain any two points of importance of Business Environment being highlighted in the above case.

Explain by giving any five reasons why understanding of business environment is important for managers.

''Co-ordination is the orderly arrangement of group efforts to provide unity of action in the pursuit of common purpose''. In the light of this statement explain the nature of coordination.

GHJ Private Ltd. is concerned about the external environment of business. It is busy analyzing various factors which are going to affect its business. However with a lot of understanding it developed about the business it found two types of factors; one which affected the firm directly and the other which affected all the firms in the business indirectly. With the passage of time the challenges for the company have increased. The company finds new competitors and technological changes which are posing new challenges for it. The company at the end of the year decides to have a survey. This survey is about knowing the business environment properly. Even after spending a lot of money on the surveys the company comes to conclusion that it's not easy to understand the business environment and it is properly understood only in parts. The company is ready to seek advice from experts and is eager to notice changes in the business environment. When a multinational company enters the market the company is eager in taking preventive measures like improving the product, aggressive advertising etc. A special team of experts have been created. The team observes the changes taking place like changing branding loyalty, more demanding customers, etc. as it knows the pace of change is more important than the change itself. The painstaking efforts of the company don't go unrewarded. The company monitors the business environment and is able to increase its revenue by the end of the year.
Which features of business environment have been highlighted in the above case? Also identify the various points of importance of business environment highlighted above.

Explain ‘Staffing’ as a function of management. Also explain by giving any four reasons why proper staffing is required in an organisation.

Explain the following as factors affecting the requirements of fixed capital:

1. Nature of business.
2. Growth prospects.
3. Diversification.
4. Level of collaboration.

Give the meaning of ‘divisional structure’ of organizing. State its any four advantages.

Explain different financial and non-financial incentives used to motivate employees of a company?

Explain any four factors which affect the working capital requirements of a business.