An environmental conscious multinational company “AXN Ltd.” follows certain well-defined business principles that result to minimize the employee turnover. Following are some of the important environmental factors followed by ‘AXN Ltd.’
(1) Honour the law of every country in which it operates.
(2) Respect the culture and customs of all nations.
(3) Provide clean and safe products to enhance the quality of life throughout the world.
(4) Develop a culture in the company that enhances individual creativity and team work while honouring mutual trust and respect between management and labour.
From the above:
(i) identify and state any one general principle of management and any one dimension of business environment.
(ii) also identify any two values which the above guiding principles and environmental factors are conveying to the society.
(i) The general principles of management that can be identified is the principle of initiative and principle of Espirit De Corps (write anyone). According to Fayol, Workers should be encouraged to develop and carry out their plans for improvements. Here the company is enhancing individual creativity and thus encouraging initiative. In the same way through teamwork and by honouring mutual trust and respect, they are following the principle of Espirit De Corps.
The dimensions of business environment are legal environment, social environment and cultural environment.
(ii) Values, conveying are:
(a) Respect for law
(b) Cleanliness and hygiene
(c) Raising standard of living and
(d) Secularism.
Why is the understanding of business environment important for managers? Explain with the help of any four points.
What is included in ‘Political Environment of business? State.
State any five impacts of government policy changes on business and industry.
Explain how does the understanding of business environment help the management in the following:
(a) Tapping useful resources; and
(b) Coping with rapid changes
