The correct answer is option 2- (B) and (D) only.
(B) Suppliers & (D) Competitors are the factors constitutes the specific environment of business.
Business environment includes both specific and general forces. Specific forces (such as investors, customers, competitors and suppliers) affect individual enterprises directly and immediately in their day-to-day working. General forces (such as social, political, legal and technological conditions) have impact on all business enterprises and thus may affect an individual firm only indirectly.
- Suppliers: They provide the raw materials, components, or services a business needs to operate. Any change in supplier pricing, quality, or delivery time directly affects the business.
- Competitors: Competing businesses influence how a company prices, promotes, and improves its products. The actions of competitors directly impact market share and profitability.
OTHER OPTIONS
- Economic environment- Interest rates, inflation rates, changes in disposable income of people, stock market indices and the value of rupee are some of the economic factors that can affect management practices in a business enterprise. Short and long term interest rates significantly affect the demand for product and services. Some components of economic environment are Existing structure of the economy in terms of relative role of private and public sectors, The rates of growth of GNP and per capita income at current and constant prices, Rates of saving and investment, Volume of imports and exports of different items, Balance of payments and changes in foreign exchange reserves.
- Technological environment includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business. For example, recent technological, advances in computers and electronics have modified the ways in which companies advertise their products. It is common now to see computerised information kiosks, and World Wide Web multimedia pages highlighting the virtues of products. Similarly, retailers have direct links with suppliers who replenish stocks when needed. Manufacturers have flexible manufacturing systems.
|
