Question:
‘Good Air Ltd.’ is the manufacturer of different types of electric fans like ceiling fans, table fans, exhaust fans, etc. It wanted to start its operations in the recently electrified rural areas ahead of its competitors. It invested in research and development to adopt new technology so that it could produce energy efficient fans at lower cost.
The government was stable for the last many years and was focusing on electrification of rural areas. ‘Good Air Ltd.’ took advantage of this and started its operations. The company complied with health and safety regulations, as well as environmental protection laws, to ensure customer safety. As its policy, the company also assures compensation to its customers in case of an injury or accident due to its fans.
Since the disposable income of the people in rural areas was low, the company offered an instalment scheme, making its products more accessible to them. Committed to sustainability, the company ensures that its production causes minimum environmental damage. For this, it focuses on reducing waste by recycling production by-products and using biodegradable packaging materials whenever possible.
Quoting lines from the above text, identify five macro environmental factors that the company took into consideration while operating its business.
‘Good Air Ltd.’ is the manufacturer of different types of electric fans like ceiling fans, table fans, exhaust fans, etc. It wanted to start its operations in the recently electrified rural areas ahead of its competitors. It invested in research and development to adopt new technology so that it could produce energy efficient fans at lower cost.
The government was stable for the last many years and was focusing on electrification of rural areas. ‘Good Air Ltd.’ took advantage of this and started its operations. The company complied with health and safety regulations, as well as environmental protection laws, to ensure customer safety. As its policy, the company also assures compensation to its customers in case of an injury or accident due to its fans.
Since the disposable income of the people in rural areas was low, the company offered an instalment scheme, making its products more accessible to them. Committed to sustainability, the company ensures that its production causes minimum environmental damage. For this, it focuses on reducing waste by recycling production by-products and using biodegradable packaging materials whenever possible.
Quoting lines from the above text, identify five macro environmental factors that the company took into consideration while operating its business.
Show Hint
Macro environment includes Political, Economic, Social, Technological, and Environmental factors influencing business decisions.
Updated On: Jul 4, 2025
Hide Solution
Verified By Collegedunia
Solution and Explanation
The five macro environmental factors taken into consideration by ‘Good Air Ltd.’ are:
1. Technological Factor:
“It invested in research and development to adopt new technology so that it could produce energy efficient fans at lower cost.”
2. Political/Legal Factor:
“The government was stable for the last many years and was focusing on electrification of rural areas.”
“The company complied with health and safety regulations, as well as environmental protection laws, to ensure customer safety.”
3. Economic Factor:
“Since the disposable income of the people in rural areas was low, the company offered an instalment scheme, making its products more accessible to them.”
4. Environmental Factor:
“Committed to sustainability, the company ensures that its production causes minimum environmental damage.”
“It focuses on reducing waste by recycling production by-products and using biodegradable packaging materials whenever possible.”
5. Social Factor:
“As its policy, the company also assures compensation to its customers in case of an injury or accident due to its fans.”
(Shows concern for customer welfare and social responsibility.)
1. Technological Factor:
“It invested in research and development to adopt new technology so that it could produce energy efficient fans at lower cost.”
2. Political/Legal Factor:
“The government was stable for the last many years and was focusing on electrification of rural areas.”
“The company complied with health and safety regulations, as well as environmental protection laws, to ensure customer safety.”
3. Economic Factor:
“Since the disposable income of the people in rural areas was low, the company offered an instalment scheme, making its products more accessible to them.”
4. Environmental Factor:
“Committed to sustainability, the company ensures that its production causes minimum environmental damage.”
“It focuses on reducing waste by recycling production by-products and using biodegradable packaging materials whenever possible.”
5. Social Factor:
“As its policy, the company also assures compensation to its customers in case of an injury or accident due to its fans.”
(Shows concern for customer welfare and social responsibility.)
Was this answer helpful?
0
0
Top Questions on Business Environment
- ‘Royal Fruit Juice Ltd.’ are the manufacturers of different types of fruit juices. They do not use any artificial flavours in their products. The fixed cost of the production process is Rs. 1,76,000. Given below is information about Mango, Orange and Guava fruit juices.From the above data, calculate the following :
Type of Juice Mango Orange Guava Selling Price (Rs./Litre) 150 135 100 Variable Cost (Rs./Litre) 80 65 60 Sales Mix Percentage 20% 40% 40%
(a) Total weighted average contribution margin per unit.
(b) Break-even point in units of sales mix.
(c) Break-even point (in <) for each type of juice.- CBSE CLASS XII - 2025
- Entrepreneurship
- Business Environment
- Manorama opened a retail outlet in Bengaluru selling readymade fashionable garments like t-shirts, skirts, kurtis, etc. for girls. Her decision was based on recent trends in clothing of young girls. Since fashion changes very fast in the garments business, Manorama not only wanted to understand the business environment but also wanted to adapt it to succeed in the long run. So, she monitored fashion trends through social media and introduced sustainable clothing. A keen watch on the trends in the environment had sensitized Manorama to the changing needs of customers. By doing this, Manorama is concentrating on one of the points of importance of environment.
(a) Identify the point of importance of environment discussed above.
(b) Explain with the help of one more point how sensitivity to environmental factors is crucial for an entrepreneur.- CBSE CLASS XII - 2025
- Entrepreneurship
- Business Environment
- Rajat was carrying on a business of manufacturing plastic disposables like plastic plates, plastic cups and plastic straws. He heard about the upcoming ban on single use plastics. He was able to identify this external environmental trend which could hinder his firm’s performance. So he took action and shifted to manufacturing the plates, cups and straws from bamboo and palm leaves. As a result, his business not only survived but was able to generate profit.
The point of importance of Business Environment highlighted above is :- CBSE CLASS XII - 2025
- Business Studies
- Business Environment
- The dimension of business environment reflected in the above para is:
- CBSE CLASS XII - 2025
- Business Studies
- Business Environment
- Statement – I : Business Environment is dynamic as it differs from country to country.
Statement – II : Business Environment is largely uncertain as it is very difficult to predict future happenings.
Choose the correct option from the following :- CBSE CLASS XII - 2025
- Business Studies
- Business Environment
View More Questions
Questions Asked in CBSE CLASS XII exam
- If \( \mathbf{a} \) and \( \mathbf{b} \) are position vectors of two points \( P \) and \( Q \) respectively, then find the position vector of a point \( R \) in \( QP \) produced such that \[ QR = \frac{3}{2} QP. \]
- ‘An affluent individual who provides capital for a business start-up and early stage companies having a high-risk, high-return matrix usually in exchange for convertible debt or ownership equity.’
(i) Identify the source to raise finance available to an entrepreneur discussed in the above lines.
(ii) State any four features of the source of raising finance discussed in (i) above.- CBSE CLASS XII - 2025
- Business Finance
- ‘It is an equity-based investment in a growth-oriented small to medium business to enable the investor to accomplish objectives in return for minority shareholding in the business.’ This investment has to be carefully evaluated and analysed by an entrepreneur to find out the stage at which he/she requires this investment to assist in.
(i) Identify the type of capital discussed in the above lines.
(ii) Explain the three stages included in ‘Early Stage Financing’ if the capital identified in (i) above is required at this stage.- CBSE CLASS XII - 2025
- Business Finance
- ‘Chai Cart’, an Indian company, was set up in 2021 near a prime office hub in Nurgaon. The company aimed to fulfil the high demand for tea among office goers. Within a few months, the demand picked up and the business started earning good profits. In response to the rising demand, the company decided to expand its operations. Expansion of its business could be based on activities or on acquisition of ownership and control of other business concerns. ‘Chai Cart’ expanded its present production capacity by adding more machines. Furthermore, it opened its branches in shopping malls, airports and suburban locations, allowing it to reach more customers and to increase brand visibility. They also introduced new products, including a wider range of food items, coffee and other beverages to attract more customers. In this way, the company increased its business activities and broadened its present capital structure.
(a) Identify and explain the type of expansion discussed in the above paragraph.
(b) Also explain one other type of expansion.- CBSE CLASS XII - 2025
- Growth Strategies
- What is meant by ‘franchising’? Explain the main components of a franchise agreement.
- CBSE CLASS XII - 2025
- Business Strategy
View More Questions