Top 25 interview question of Business Environment

Top 25 interview question of Business Environment

Q1) Define Business Environment?

Answer:

The totality of all individuals, institutions and other forces that are outside a business enterprise but that may affect its functioning and performance.

Q2)What Is Environmental Analysis?

Answer :

Environmental analysis is defined as “the process by which strategists monitor the economic, governmental/legal, market/competitive, supplier/technological, geographic, and social settings to determine opportunities and threats to their firms.

Q3) What Do You Mean By Consumerism? Give Two Rights Of The Consumer?

Answer :

Consumerism is the movement seeking to protect and inform consumers by requiring such practices as honest packaging and advertising, product guarantees and improved safety standards. Rights of the  

1. Right against exploitation by unfair trade practices.
2. Right to protection of health and safety from the goods and services the consumers buy or are offered free.

Q4) What Is Environmental Diagnosis?

Answer :

“Environmental diagnosis consists of managerial decisions made by analysing the significance of the data (opportunities and threats) of the environmental analysis.”

Q5) What Kind Of External Factors Influence The Process Of Business Enterprises?

Answer :

The external factors are by and large, beyond the control of a company. The external or environmental factors such as the economic factors, socio-cultural factors, government and legal factors, demographic factors, geo-physical factors, etc., influence the process of business enterprises.

Q6) Why Are Internal Factors Of A Business Enterprise Regarded As Controllable Factors?

Answer :

The internal factors are generally regarded as controllable factors because the company has control over these factors; it can alter or modify such factors as its personnel, physical facilities, organization and functional means, such as marketing mix, to suit the environment.

Q7) What Kind Of External Factors Influence The Process Of Business Enterprises?

Answer :

The external factors are by and large, beyond the control of a company. The external or environmental factors such as the economic factors, socio-cultural factors, government and legal factors, demographic factors, geo-physical factors, etc., influence the process of business enterprises.

Q8) What Do You Mean By Micro Environment?

Answer :

The micro environment consists of the factors in the company’s immediate environment that affects the performance of the company. These include the suppliers, marketing intermediaries, competitors, customers and the public.

Q9) What Is Environmental Analysis?

Answer :

Environmental analysis is defined as “the process by which strategists monitor the economic, governmental/legal, market/competitive, supplier/technological, geographic, and social settings to determine opportunities and threats to their firms.

Q10) List Any Two Elements Of Political Environment?

Answer :

1. Political idedogy & practices of the ruling pa1ty
2. Nature of relationship of our country with foreign countries.

Q11)Mention Some Important Determinants Of Business Strategies.

Answer :

The economic conditions of a country—for example, the nature of the economy, the stage of development of the economy, economic resources, the level of income, the distribution of income and assets, etc—are among the very important determinants of business strategies.

Q12) what Do You Understand By Free Market Economy?

Answer :

The free market economy is not planned, controlled or regulated by the government. The government satisfies community or collective wants, but does not compete with private firms; nor does it tell the people where to work or what to produce.

The completely free market economy, however, is an abstract system rather than a real one Today, even the so-called market economies like the United States, Japan, Australia, Canada and member countries of the EEC are subject to a number of government regulations.

Q13) Which Environment Describes Characteristics Of The Society In Which The Organization Exists?

Answer :

Social Environment

Q14) What Do You Mean By Demarketing?

Answer :

Demarketing refers to the process of cutting consumer demand for a product back to level that can be supplied by the firm. Some oil companies—the Indian Oil Corporation, for example—have publicized tips on how to cut oil consumption.

When the fertilizer price shot up following the oil crisis, some fertilizer companies appealed to the farmers to use fertilizers only for important and remunerative crops. The importance of natural manure like compost as a substitute for chemical fertilizers was also emphasized.

Q15) What Are The Utilities Of Consumerism?

Answer :

Well-organized and dynamic consumerism may be expected to produce the following results:

1. Producers and sellers will not take the consumer for granted.
2. Consumerism will provide feedback for the business.
3. Producers will be able to enlist the support of consumers to minimise the imperfections on the distribution front.
4. Consumerism will make the government more responsive to consumer interests, prompt it to take necessary statutory measures, and make the required institutional arrangements to safeguard consumer rights.

Q16)What Factors Show That “the Freedom Of Private Enterprises Is Greatest In The Free Market Economy?"

Answer :

The freedom of private enterprises is the greatest in the free market economy, which is demonstrated by the following facts:

1. The factors of production (labour, land, capital) are privately owned, and production occurs at the initiative of the private enterprise.
2. Income is received in monetary form by the sale of services of the factors of production and from the profits of the private enterprise.
3. Members of the free market economy have freedom of choice in so far as consumption, occupation, savings and investments are concerned.

Q17) Mention The Socio-cultural Fabric As An Important Environmental Factor That Should Be Analysed While Formulating Business Strategies?

Answer :

The socio-cultural fabric is an important environmental factor that should be analysed while formulating business strategies. The cost of ignoring the customs, traditions, taboos, tastes and preferences, etc., of a people could be very high.

The buying and consumption habits of the people their language, beliefs and values, customs and traditions, tastes and preferences, education are all factors that affect business.

Q18) Mention Some Important Determinants Of Business Strategies.

Answer :

The economic conditions of a country—for example, the nature of the economy, the stage of development of the economy, economic resources, the level of income, the distribution of income and assets, etc—are among the very important determinants of business strategies.

Q19) What Is Environmental Diagnosis?

Answer :

“Environmental diagnosis consists of managerial decisions made by analysing the significance of the data (opportunities and threats) of the environmental analysis.”

Q20) What Is Meant By The Capitalist System?

Answer :

The capitalist system is one characterized by the private ownership of the means of production, individual decision making, and the use of the market mechanism to carry out the decision of individual participants and facilitate the flow of goods and services in markets.

Q21) What Are The Principal Characteristics Of A “pure” Capitalist System?

Answer :

The principal characteristics of a “pure” capitalist system are:

1. The factors of production—land, labour and capital—are privately owned, and production occurs at private initiative.
2. Free enterprise is merely an extension of the concept of property rights.
3. Consumer’s sovereignty where consumers have complete freedom of choice of consumption.
4. The individual is free to choose any occupation he is qualified for.
5. The freedom to save is implied in the freedom of consumption, for savings depend on income and consumption.
6. The market mechanism is the key factor that regulates the capitalist economy.
7. Competition among sellers and buyers is an essential feature of an ideal capitalist system
8. The absence of a central plan.

Q22) What Do You Mean By Business Environment And Economic Environment Respectively?

Answer :

Business environment refers to the totality of all the factors which are external and out of control of an individual, business enterprise and their management. The most important factors are socio-economic, technological, suppliers, competitors and government.

The economic conditions such as, the nature of the economy, the stage of development of the economy, economic resources, the level of income, the distribution of income and assets etc., all mean economic environment.

Q23) Mention The Socio-cultural Fabric As An Important Environmental Factor That Should Be Analysed While Formulating Business Strategies?

Answer :

The socio-cultural fabric is an important environmental factor that should be analysed while formulating business strategies. The cost of ignoring the customs, traditions, taboos, tastes and preferences, etc., of a people could be very high.

The buying and consumption habits of the people their language, beliefs and values, customs and traditions, tastes and preferences, education are all factors that affect business.

Q24) What Are The Drawbacks Of The Totalitarian Socialism?

Answer :

Some drawbacks of the totalitarian socialism are:

1. Civil liberties are suppressed.
2. There is no consumer sovereignty.
3. There is a limited scope for accommodating different views and making critical evaluations.
4. As private enterprise is not allowed to operate, the talents of the nation are not fully utilised.
5. People may lack incentive to work hard in the absence of private property.
6. The absence of freedom of choice of occupation is undemocratic.

Q25) How Have Customers Benefited By Increased Competition After Liberalisation And Globalisation?

Answer :

At the time of purchase customers get a wider choice of products and services They can compare quality of the products.