Question

VBR Cinema an Indian multiplex cinema hall was the first to recognize the change in consumption habits of people. It changed its food menu from burgers, pizza, soft drinks, etc. and switched over to healthier options like salads and smoothies, soups and anjeer-based sweets. Within a month, the revenue of the multiplex from sale of food items doubled. VBR Cinema, by continuously monitoring the environment and adopting suitable business practices, was able to improve its revenues and profits and was hopeful that it will continue to succeed in the market in the long run too. Identify and explain one dimension of business environment and one point of importance of understanding the business environment highlighted in the above case.

Hint:

Monitoring the business environment regularly gives companies a competitive edge.

Answer 1

• Dimension: Social Environment – VBR Cinema responded to changing preferences of health-conscious consumers.
• Importance: Helps in Identifying Opportunities – By understanding trends early, VBR was able to gain first-mover advantage, doubling their revenue.