Class 12 Business Studies Business Environment – Get here the Notes for Class 12 Business Studies Business Environment. Candidates who are ambitious to qualify the Class 12 with good score can check this article for Notes. This is possible only when you have the best CBSE Class 12 Business Studies study material and a smart preparation plan. To assist you with that, we are here with notes. Hope these notes will helps you understand the important topics and remember the key points for exam point of view. Below we provided the Notes of Class 12 Business Studies for topic Business Environment.
- Class: 12th
- Subject: Business Studies
- Topic: Business Environment
- Resource: Notes
CBSE Notes Class 12 Business Studies Business Environment
Candidates who are pursuing in Class 12 are advised to revise the notes from this post. With the help of Notes, candidates can plan their Strategy for particular weaker section of the subject and study hard. So, go ahead and check the Important Notes for Class 12 Business Studies Business Environment.
Points to Remember
1. Business Environment Business environment as such is the total of all external forces which affect the organisation and operation of business.
2. Features/Characteristics of Business Environment
- Totality of External Force Business environment includes all the external forces so it is aggregative in nature.
- Specific and General Forces Business environment includes both specific and general forces. Specific forces such as investors. customers affect business directly.General forces auch as social. political. legal and
technological conditions. - Inter-relatednes All the forces and factors of business are inter-related.
- Dynamic Nature Business environment is dynamic in nature. It keeps on changing whether in terms of technological unprovements.
- Uncertainty Business environment is uncertain and these changes are difficult to predict
- Complexity BusIness environment is difficult to understand. It can be understood easily in parts but in totality it is difficult to understand.
3. Importance of Business Environment
- Environment Provides Numerous Opportunities for Business Success It enables the firm to identify opportunities and getting the first mover advantage.
- Threats and Early Warning Signals Environmental awareness can help managers to identify various threats on time and serve as an early warning signal.
- It Helps in Tapping Useful Resources Environment is a source of various resources for running a business. Like as finance, machines, raw materials etc.
- It Helps in Copying with Rapid Changes Knowledge of environmental changes sensitises the management to make new strategy to copy with the emerging problems of changes.
- It Helps in Assisting in Planning and Policy Formulation Its understanding and analysis can be the basis for deciding the future course of action or training guidelines for decision making.
- It helps in Improving Performance With continuous scan of business environment, companies can easily improve their performance.
4. Dimensions of Business Environment
- Economic Environment It consists of Gross Domestic product, Income at National level and per capital level. Profit earning rate, monetary and fiscal policy of the government etc.
- Social Environment It consists of the customs and traditions of the society in which business is existing. It includes the standard of living. taste, preferences etc.
- Political Environment It constitutes all the factors related to government affairs such as type of government, power, attitude of government towards different groups of societies etc.
- Legal Environment It constitutes the laws and various legislations passed in the parliament. Like as Trade Mark Act, Essential Commodity Act, Weights and Measures Act etc.
- Technological Environment It refers to changes taking place in the method of production, use of equipments and machineries to improves the quality of product.
5. Economic Environment in India
Since 1991 India has been going on economic reforms. We have now adopted the policy of liberalisation, privatisation and globalisation, We have started modernising the country’s industrial system.Unproductive control are being removed private investment, including foreign investment is being encouraged.
(i) Liberalisation It means removing unnecessary trade restrictions and making the economy more competitive like as freedom of production, expansion of industries.
(ii) Privatisation It means removing strict control over private sector and making them free to take necessary decisions. Like as reduction in the number of reserved public sector industries, increasing the share of private
sector investment.
(iii) Globalisation Free interaction among economies of the world in the field of trade, finance, production, technologies and investment is termed as globalisation. Our new economic policy contributed towards globalisation in the following ways.
(a) Devaluation of rupee
(b) Raising foreign equity participation
(c) Long period trade policy
(d) Convertability of rupee
6. Impact of Government Policy Changes on Business and Industry
- Increasing Competition There is a tough competition between multinationals and there is also competitions between Indian enterprises and foreign enterprises.
- More Demanding Customers Customers today become more demanding because they are well-informed.
- World Class Technology Changes in government policy regarding business and industry has provided us with world class technology.
- Necessity for Change After 1991, the market forces have become turbulent as a result of which the enterprises have to continuously modify their operations.
- Need for Developing Human Resource The new market conditions requires people with higher competence and greater commitment.
- Market Orientation Today firms are market oriented. They research the market, need and wants of consumers and then they produce good accordingly.
- Loss of Budgetary Support to Public Sectors The government’s budgetary support for financing the public sector has declined over the years.
Class 12 Key Points, Important Questions & Practice Papers
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Class 12 NCERT Solutions
Candidates who are studying in Class 12 can also check Class 12 NCERT Solutions from here. This will help the candidates to know the solutions for all subjects covered in Class 12th. Candidates can click on the subject wise link to get the same. Class 12 Chapter-wise, detailed solutions to the questions of the NCERT textbooks are provided with the objective of helping students compare their answers with the sample answers.
Class 12 Mock Test / Practice
Mock test are the practice test or you can say the blue print of the main exam. Before appearing in the main examination, candidates must try mock test as it helps the students learn from their mistakes. With the help of Class 12 Mock Test / Practice, candidates can also get an idea about the pattern and marking scheme of that examination. For the sake of the candidates we are providing Class 12 Mock Test / Practice links below.
Class 12 Exemplar Questions
Exemplar Questions Class 12 is a very important resource for students preparing for the Examination. Here we have provided Exemplar Problems Solutions along with NCERT Exemplar Problems Class 12. Question from very important topics is covered by Exemplar Questions for Class 12.
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