Question

Raunaq, while studying at the university, felt that there should be a food joint in the university campus to provide food to students round the clock. After passing out of college, he set up ‘Hunger Point’ in the university campus. Since he was the first one to recognize this need, it soon became popular and profitable. Identify the point of importance of business environment discussed in the case:

• A. It enables the firm to identify opportunities and get the first mover advantage.
• B. It helps the firm to identify threats and early warning signals.
• C. It helps in assisting in planning and policy formulation.
• D. It helps in improving performance.

Hint:

Recognizing early signals from the environment can help firms act quickly and gain competitive edge.

Answer 1

The Correct Option is A

The key aspect of the case is that Raunaq identified a business opportunity before others and acted on it. He saw a gap in the market — a food joint on campus — and took advantage of it. This reflects how a good understanding of the business environment helps entrepreneurs identify opportunities and gain a first-mover advantage, meaning entering a market before competitors.
Final Answer: (A) It enables the firm to identify opportunities and get the first mover advantage.