CSEET · Economic and Business Environment · Business Environment
A packaged-foods company in Pune finds that a new government rule on food labelling forces it to redesign all packs. Within the external environment, this change is best classed as part of the:
The labelling rule is part of the macro environment, under legal and political factors. Government regulation is a broad external force that applies to all firms in the industry, rather than a relationship specific to the firm's own suppliers, customers or internal operations.
- AMicro environment, as it concerns only the firm's suppliers
- BInternal environment, as the packs are made by the firm
- CMacro environment, specifically the legal and political factorsCorrect
- DMicro environment, as it affects only the firm's customers
Explanation
Government regulation is a general force affecting all firms in the industry and is not specific to one firm's suppliers or customers. It therefore belongs to the macro environment, under legal and political factors. Redesign of packs is the firm's response, not the source of the change.
Did you get it right without looking?
One question tells you little. A timed set on Business Environment shows your real accuracy, how long you take and where you lose marks.
More Business Environment questions
- A company secretary of a packaging firm systematically collects and studies information about changes in government policy, consumer tastes,…
- A Pune-based food processing company finds that it has a highly skilled R&D team, but a new regulation will soon sharply raise compliance st…
- Ananya Textiles Ltd. finds that a new government import policy has made imported yarn cheaper, while a competitor has launched a lower-price…
- A listed company's board decides to change its internal organisational structure and revise its HR policy to improve productivity. Simultane…
- A company's SWOT matrix pairs its internal strengths with external opportunities and uses them to pursue growth, for example using its stron…
- The 1991 economic reforms in India are commonly summarised by three terms. Which option lists them correctly?