Question

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.

Hint:

Entrepreneurs must continuously scan the environment to identify opportunities early and reduce risks from sudden changes.

Answer 1

(a)
The point of importance of environment discussed here is:
“Helps in Identifying Opportunities and Getting the First Mover Advantage”.
Manorama’s keen observation of fashion trends and customer needs allowed her to adapt quickly and introduce sustainable clothing, thus capitalizing on emerging opportunities.

(b)
Another important point showing how sensitivity to environmental factors is crucial for an entrepreneur is:
“Helps in Reducing Risks and Uncertainties”.
By understanding and adapting to changes in the environment such as customer preferences, technology, government policies, or competition, entrepreneurs can anticipate challenges and make informed decisions, thereby minimizing risks and ensuring business sustainability.