Business Studies 6 Marks Question

i. The communication tool used by the marketer m the above case is 'Public Relations' Public relation is an important element of marketing It means maintaining relations with public By maintaining such relations, companies create goodwill Public relations evaluate public attitudes, identify the policies and procedures of an organisation with the public interest to earn public understanding and acceptance. The professional maintenance of a favourable public image by a company or other organization or a famous person. Public does not mean only customers, but it includes shareholders, suppliers, intermediaries, customers, etc Thus, it helps in maintaining and establishing mutual understanding between an organisation and public.
ii. Role of Public Relations The role of public relations can be discussed with respect to functions performed by the public relations department. These functions are
a. Smooth Functioning of Business: It helps in analysing trends, predicting their consequences, counselling organisational leaders and implementing a planned programme of action and thus helps in smooth functioning of business and achievement of objectives.
b. Building Corporate Image and Brand Equity: Public relations cover a wide range of tactics, tools and programmes to promote and protect a company's image and products. It uses the tools to build a corporate image which ultimately affects favourably on its products. Sponsoring various efforts to publicize specific products or services.
c. Launching New Products: The good image promotion itself lends credibility to new launches of the organisations. d. Press Relations: The public relations department is m contact with the media to present true facts and a correct picture about the company, otherwise, news can get distorted if it is taken from some other source. Or Communicating news and information of interest about organizations in the most positive light.
e. Corporate Communication: The public relations department promotes the image of the company by communicating with the public and the employees of the organisation. In simple words, we can say that Promoting a better and more attractive understanding of the organization with internal and external communications.
f. Lobbying: The public relations department is liable to maintain healthy relationships with government officials, ministers of industry and finance, associations of commerce and industry and etc. At the same time, they have to be proactive in promoting or defeating regulations that affect them. In simple words, we can say that communicating with key individuals to positively influence legislation and regulation.
g. Counselling: The public relations department advises the management on general issues that affect the general public and the goodwill of the company.
h. Internal Feedback: Advising decision makers within the organization regarding the public's perception and advising actions to be taken to change negative opinions. This feedback is given from the proprioceptive sensors.

i. Delegation of authority is the concept used by Aman Chadha in the above case which helped him in focusing on objectives. The delegation of authority is the process of granting of authority to the subordinates to operate within prescribed limits.
ii. The four points of importance of delegation of authority are described below:
a. Effective management: It helps the managers to function more efficiently as they get more time to concentrate on important matters. Freedom from doing routine work provides them with opportunities to excel in new areas.
b. Employee development: By empowering the employees, they are given more opportunities to utilize their talent and this may help them to become better leaders and decision-makers in the future.
c. Motivation of employees: Delegation also has psychological benefits as helps in building the self-esteem of an employee and improves his confidence and work performance. When a superior entrusts a subordinate with a task, it is not merely the sharing of work but involves trust in the superior's part and commitment on the part of the subordinate. Thus, delegation may give rise to latent abilities in the subordinates.
d. Facilitation of growth: With the increase in the competence of the employees, an organisation tends to gain in many ways. The growth and expansion of the firm become easy as the capable workforce is ready to take greater responsibilities.

The various features of business environment which are highlighted in the above case are:
i. Specific and general forces: However with a lot of understanding it developed about the business it found two types of factors; one which affects the firm directly and the other which affected all the firms in the business indirectly.
ii. Dynamic nature: The Company finds new competitors and technological changes which are posing new challenges for it.
iii. Complexity: Even after spending a lot of money on the surveys the company comes to a conclusion that it's not easy to understand the business environment and it is properly understood in parts.
The various benefits of business environment highlighted in the above case are:
i. It helps the firm to identify threats and send early warning signals: When a multinational company enters the market the Company is eager in taking preventive measures like improving the product, aggressive advertising, etc.
ii. It helps in coping with rapid changes: 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.
iii. It helps in improving performance: The Company monitors the business environment and is able to increase its revenue by the end of the year.

a. The Concept discussed above is 'Business Environment'.The feature of the business environment discussed above is-
Specific and General forces: Business Environment is made up of both specific and general forces. Specific forces refer to the customers, competitors, investors, etc. which have a direct effect on the day to day working of the business while the general forces refer to social, political, legal, technological and other forces which indirectly affect the operations of a business.
b. The Four points of importance of Business Environment are:
(i) Enabling the identification of opportunities and getting the first-mover advantage: The business environment provides many opportunities for firms to improve their performance. The firms which are able to scan these opportunities at an early stage get maximum benefit and can leave their competitors behind.
(ii) Helping in the identification of threats and early warning signals or the Radar effect: Environment understanding helps an enterprise to recognize qualitative information in advance, which can be used to prepare it for facing likely challenges.
(iii) Improvement in performance: Environmental awareness provides continuing, broadbased education for management. Objective qualitative information generated by such understanding provides a strong basis for strategic thinking. The enterprises that monitor their environment closely can adopt suitable business practices not only to improve their performance but also to become leaders in the industry.
(iv) Image building: Environmental understanding generates a feeling among the public that business is sensitive and responsive to its environment. This helps in building the image or reputation of the firms.

Internal sources of recruitment are better than external sources in the following respects
i. Economical sources: Internal sources are less time-consuming and less expensive because it reduces the need for tests and selection process.
ii. Simplifies the process of selection: Since the employees are already known to the organisation, therefore, the process of selection and placement gets simplified.
iii. Motivates employees: Filling higher level jobs through promotion helps to improve the motivation and morale of employees as they know that they can be promoted to a senior position in the organisation if they work harder for the organisation. Ambition to occupy post of higher rank will add to their morale.
iv. The sense of security: Internal recruitment creates a sense of security among the staff.So, their selection for the higher post involves no risk.
v. No problem in adjustment: As the organisation and the employees are familiar with each other, this leads to the smooth functioning of the enterprise without any problem in adjustment on the part of the new employees or the organisation.
vi. Industrial peace: The promotion process continues from top to bottom in the whole organisation. This motivates the employees to enhance their performance through learning and peace.

Staffing means putting people to jobs. It begins with human resource planning and includes different other functions like recruitment, selection, training, development, promotion and performance appraisal of work force.
Other steps which Nisha has to perform to complete the process being discussed above are:
i. Selection
ii. Placement and Orientation
iii. Training and Development
iv. Performance Appraisal
v. Promotion and career planning
vi. Compensation