IGNOU| BUSINESS ENVIRONMENT (ECO - 13)| SOLVED PAPER – (DEC - 2023)| (BDP)| ENGLISH MEDIUM
BACHELOR’S DEGREE PROGRAMME (BDP)
Term-End Examination
December - 2023
ELECTIVE COURSE: COMMERCE
ECO–13
BUSINESS ENVIRONMENT
Time: 2 Hours
Maximum Marks: 50
Weightage: 70%
Note: (i) Attempt any five questions.
(ii) All
questions carry equal marks.
हिंदी माध्यम: यहां क्लिक करें
1. What is meant by business environment? Discuss various non-economic environmential factors of business. 2+8
Ans:- The term "business environment"
refers to the totality of all external factors that are beyond the control of a
business but potentially affect its performance. These factors can be
classified into two main categories: economic and non-economic environment.
Non-economic
Environmental Factors of Business:-
The
non-economic environment of business includes various social, political, legal,
educational and cultural factors that affect business operations.
These
factors can be further classified into five main components:-
(i)
Political-Legal Environment:
(a) It
includes political institutions such as legislature, executive and judiciary,
which shape and guide business activities.
(b)
Political stability is important for business development, and instability can
significantly affect business activities.
(ii) Demographic
Environment:
(a) It
includes demographic factors such as population size, growth rate, age and sex
structure, rural-urban distribution, educational level, religion, ethnicity and
language.
(b) These
factors influence the demand pattern for various goods and services and affect
labour supply and wage rates.
(iii)
Socio-cultural environment:
(a) It
includes people's attitudes towards work and money, ethical issues, family,
marriage, religion, education and social responsibilities of business.
(b) Businesses
must consider these factors while designing products and advertising to ensure
a good market response.
(iv)
Technological environment:
(a) It
refers to the systematic application of scientific knowledge to practical
tasks, which is constantly changing.
(b)
Businesses must adapt to these changes to remain competitive.
(v)
Natural environment:
(a) It
includes natural resources, weather, climatic conditions, port facilities,
topographical factors and other natural factors.
(b)
Businesses must consider these factors while choosing a location for their
operations.
Importance
of non-economic environmental factors:-
These
non-economic factors are important for businesses as they can significantly
affect business activities and performance. For example, a stable
political-legal environment can facilitate business growth, while a favorable
socio-cultural environment can enhance customer satisfaction. Similarly, a
suitable natural environment can provide the resources necessary for business
operations.
2. Define the concept of social responsibility of business.
Discuss views against and in favour of social responsibility of business. 2+8
Ans:- Business social responsibility refers to the
obligation of a company to make decisions and actions that benefit society and
the environment in addition to maximizing profits for its shareholders. It is
based on the idea that businesses should work for the betterment of society and
respect its values and aspirations while achieving their business goals.
Considerations
against business social responsibility:-
(i)
Violation of profit maximization objective: The primary goal of a business is to
maximize profits and engaging in socially responsible activities is considered
a violation of this objective.
(ii)
Burden on consumers: Socially responsible initiatives such as
environmental protection and pollution control can be costly for businesses.
Critics argue that companies may try to pass these costs on to consumers, which
is unfair.
(iii) Lack
of social skills: Not all businesses have the skills and
knowledge required to effectively engage in socially responsible activities.
Considerations
in favour of business social responsibility:-
(i)
Changing expectations of society: Society now expects more from
businesses than just providing goods and services. It expects companies to give
back to the community and work for the welfare of society.
(ii)
Reputation and brand building: Engaging in socially responsible
practices can help companies build a positive reputation, increase sales,
achieve sustainable growth, and attract talent.
(iii)
Avoiding government interference: Governments have created laws and
regulations that put moral and legal pressure on companies to be socially
responsible. Avoiding these practices can lead to government interference in
business operations.
(iv)
Long-term self-interest: Practicing socially responsible activities not
only benefits society, but it also proves beneficial for companies in the long
run. It helps build the company's image as a brand that serves society, which
is good for its self-interest.
(v)
Contribution to social problems: Businesses often create social
problems such as pollution, inequality, discrimination, and unsafe workplaces.
It is their duty and obligation to engage in socially responsible activities to
solve these problems and improve society.
(vi)
Better environment for business: Businesses use natural resources for
their operations and may degrade the environment in the process. Being socially
responsible not only benefits society by avoiding environmental degradation,
but also provides businesses with a healthy and safe environment to grow.
In conclusion,
while there are valid arguments against social responsibility, its benefits to
both society and businesses far outweigh its drawbacks. Companies that adopt
social responsibility can create a positive impact as well as achieve long-term
success.
3. Explain the meaning of economic development. Describe various
trends for evaluating economic development. 2+8
[COMING SOON]
***
BUSINESS ENVIRONMENT SOLVED PAPERS PAGE LINK - Click here
IGNOU PAGE LINK - CLICK HERE
Also Read: