Which of the following examples show the feature ‘inter-relatedness’ of business environment?
(A) Increased life expectancy of people has increased the demand for many health products.
(B) Demand for sarees may be fairly high in India whereas it may be almost non-existent in France.
(C) Maruti Udyog became the leader in the small car market because it was the first to recognise the need for small cars.
(D) Increased awareness for health care has increased the demand for fat-free cooking oil.
(E) Retailers have direct links with suppliers who replenish stocks when needed.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A) and (D) only
(A) Increased life expectancy of people has increased the demand for many health products. — Correct. Inter-relatedness means that the parts of the environment are closely linked, so a change in one brings a change in another. Here a social change, longer life, has raised the demand for health products.
(B) Demand for sarees may be fairly high in India whereas it may be almost non-existent in France. — Incorrect. This shows relativity. The environment differs from country to country and even from region to region.
(C) Maruti Udyog became the leader in the small car market because it was the first to recognise the need for small cars. — Incorrect. This shows a benefit of understanding the environment: spotting an opportunity early and getting the first mover advantage.
(D) Increased awareness for health care has increased the demand for fat-free cooking oil. — Correct. Greater awareness about health has pushed up the demand for fat-free cooking oil. One element has changed another, so this too is inter-relatedness.
(E) Retailers have direct links with suppliers who replenish stocks when needed. — Incorrect. This is an example of the technological environment. Advances in computers and electronics link retailers with their suppliers.
NCERT (2026-27 Edition): “(iii) Inter-relatedness: Different elements or parts of business environment are closely interrelated. For example, increased life expectancy of people and increased awareness for health care have increased the demand for many health products and services like soft drinks, fat-free cooking oil, and health resorts. New health products and services have, in turn, changed people’s life styles.” “(vii) Relativity: Business environment is a relative concept since it differs from country to country and even region to region. Political conditions in the USA, for instance, differ from those in China or Pakistan. Similarly, demand for sarees may be fairly high in India whereas it may be almost non-existent in France.” |