Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Read the following Case Study and answer, question.

Aryan is a CEO of RS Infotech Ltd., which is a company working in the technology sector for the last 55 years. The company is doing very well in this sector and now has a growth plan of entering into cosmetics market.

Keeping in view the changing tastes and preferences of customers, it is planning to enter organic products market.

The company targets to achieve 20% of market share in the first 2 years of its entry.

For financial issues, Aryan consulted his chief finance officer, Raj and found that it requires 50 crores of additional capital for setting up a separate cosmetics division.

The Company plans to arrange this money by issuing equity shares in the market but it lacks sufficient cash to bear the floatation cost and hence planned to approach the financial market for the same.

Identify the feature of business environment that is highlighted in the case.

Options:

Complexity

Dynamic

Relativity

Interrelatedness

Correct Answer:

Dynamic

Explanation:

The correct answer is option 2- Dynamic

The feature of the business environment highlighted in the case is Dynamic.

The business environment is dynamic because it is constantly changing due to factors such as shifting customer preferences (as seen with the company's decision to enter the organic products market). The company's adaptation to new opportunities reflects the changing nature of the business environment. The companies must adapt to changing market conditions, evolving customer preferences, and emerging industry trends. The decision to enter the organic products market demonstrates the company's responsiveness to the dynamic shifts in consumer demands and preferences.