'Mitsu Electronics Ltd.' was operating its business of electronic items in India. The Prime Minister announced relaxation in export duties on electronic items and the company started exporting its products to neighbouring countries. The company developed a better and cheaper video conferencing system to solve the problem, if any, and to replenish the stocks wherever and whenever needed. The demand for its electronic items started increasing day-by-day as there is an increase in the level of education and consumerism globally.
Quoting the lines from the above para, identify and explain any three dimensions of Business Environment.

Question

'Mitsu Electronics Ltd.' was operating its business of electronic items in India. The Prime Minister announced relaxation in export duties on electronic items and the company started exporting its products to neighbouring countries. The company developed a better and cheaper video conferencing system to solve the problem, if any, and to replenish the stocks wherever and whenever needed. The demand for its electronic items started increasing day-by-day as there is an increase in the level of education and consumerism globally.

Quoting the lines from the above para, identify and explain any three dimensions of Business Environment.

Accepted Answer

The three dimensions of the business environment reflected in the case are:

- **Political**: 'The Prime Minister announced relaxation in export duties on electronic items' - a change in the government's trade policy that made it feasible for the company to start exporting its products to neighbouring countries.

- **Technological**: The company 'developed a better and cheaper video conferencing system' - a technological development that helped it solve problems and replenish stocks wherever and whenever needed.

- **Social**: 'There is an increase in the level of education and consumerism globally' - both are components of the social/cultural environment, which raised the demand for its electronic items day by day.

These dimensions of the environment must be monitored continuously, because every change in them creates fresh opportunities and threats for a business.