ADL 23 Business Environment V1

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ADL 23 Business Environment V1
Assignment – A
Question 1: Discuss the different components of business environment. How socio
culture factors may affect the function of a business?
Question 2: What do you mean by globalization? Discuss the process of
globalization in India.
Question 3: Discuss the followings;
Foreign Direct Investment
Economic Systems
4. Write short notes on the followings;
Banking sector reforms in India
Insurance sector reform in India
Capital Market reform in India
5. Explain the followings;
Initial Public Offer
Mutual Funds
Monetary Policy
Assignment – B
Question 1: Write an essay on “Political Condition of India”.
Question 2: Discuss the effect of globalization on small scale industries in
Question 3: Discuss the EXIM policy of India.


Case Study
Balsara Hygiene Products Ltd., which had some fairly successful household
hygiene products introduced in 1978 a toothpaste, Promise, with clove oil (which
has been traditionally regarded in India as an effective deterrent to tooth
ache) as a unique selling proposition. By 1986 Promise captured a market share
of 16 per cent and became the second largest selling toothpaste brand in India.
There was, however, an erosion of its market share later because of the fighting
back of the multinationals. Hindustan Lever’s Close-Up gel appealed to the
consumers, particularly to the teens and young, very well and toppled Promise
from the second position.
Supported by the Export Import Bank of India’s Export Marketing Finance (EMF)
programme and development assistance, Balsara entered the Malaysian market with
Promise and another brand of tooth paste, Miswak.
The emphasis on the clove oil ingredient of the Promise evoked good response in
Malaysia too. There was good response to Miswak also in the Muslim dominated
Malaysia. Its promotion highlighted the fact that miswak (Latin name : Salvadora
Persica) was a plant that had been used for centuries by as a tooth cleaning
twig. It had references in Koran. Quoting from Faizal-E-Miswak, it was pointed
out that prophet Mohammed used “miswak before sleeping at night and after
awakening.” The religious appeal in the promotion was reinforced by the findings
of scientists all over the world, including Arabic ones, of the antibacterial
property of clove and its ability to prevent tooth decay and gums.
Market intelligence revealed that there was a growing preference in the advanced
counties for nature based products. Balsara tied up with Auromere Imports Inc.
(AAII), Los Angeles. An agency established by American followers of Aurobindo,
an Indian philosopher saint. Eight months of intensive R&D enabled Balsara to
develop a tooth paste containing 24 herbal ingredients that would satisfy the
required parameters. Auromere was voted as the No.1 toothpaste in North Eastern
USA in a US Health magazine survey in 1991.
The product line was extended by introducing several variants of Auromere. A
saccharine free toothpaste was introduced. It was found that mint and menthol
were taboo for users of homeopathic medicines. So a product free of such mints
was developed. Auromere Fresh Mint for the young and Auromere Cina Mint
containing a combination of cinnamon and peppermint were also introduced. When
the company realized that Auromere was not doing well in Germany because of the
forming agent used in the product, it introduced a chemical free variant of the
1. Explain the environmental factors which Balsara used to its advantage.
2. What is the strength of AAII to market ayurvedic toothpaste in USA ?


Assignment – C
1. Which of the following is not a financial institution?
(a) IDBI
(b) SEBI
(c) IFCI
2. How many sectors are reserved for Public sector
(a) 3
(b) 4
(c) 5
(d) 6
3. Which of the following is most liquid form of money?
(a) M1
(b) M2
(c) M3
(d) M4
4. How many states are there in India
(a) 26
(b) 27
(c) 28
(d) 29
5. Which is the biggest state of India?
(a) UP
(b) MP
(c) Mahatastra
(d) Rajsthan
6. GDR stands for
(a) Gross Domestic Revenue
(b) Gross Domestic Receipt
(c) Global Depository Receipt
(d) Global Depository Revenue
7. Repo rate is
(a) Thr rate at which RBI discount the bills of banks
(b) The rate at which RBI gives credit to another bank
(c) The rate at which one bank gives credit to another bank
(d) None of the above
8. Which of the following developmental bank is oldest?
(a) IDBI
(b) IFCI
9. CRISIL is a
(a) A book
(b) A stock exchange
(c) A credit rating agency
(d) None of the above
10. Which of the following product is not FMCG?
(a) Hair Oil
(b) Toothpaste
(c) Computer
(d) Washing Powder
11. Which of the following bank is having maximum overseas branches?
(a) SBI
(b) PNB
(d) BOB
12. Which of the following is not a direct tax?
(a) Income tax
(b) Wealth tax
(c) Trade tax
(d) Road Tax
13. Major proportion of Indian population is employed in
(a) Service sector
(b) Exports
(c) Agriculture
(d) Manufacturing sector
14. Planning commission was established in
(a) 1948
(b) 1949
(c) 1950
(d) 1951
15. The company LG originally belongs to
(a) USA
(b) UK
16. The headquarter of IMF is at
(a) London
(b) Washington
(c) Paris
(d) Geneva
17. WTO was incorporated in
(a) 1994
(b) 1995
(c) 1996
(d) 1997
18. The cellular phone service started in India
(a) 1995
(b) 1996
(c) 1997
(d) 1998
20. How many Indian economists got the Nobel prize?
(a) 1
(b) 2
(c) 3
(d) 4
21. BPO stands for
(a) Business Product Outsourcing
(b) Business Process outsourcing
(c) Business Process outcome
(d) Business product outcome
22. Which company started the cellular service first time in India?
(a) Airtel
(b) Hutch
(c) Essar
(d) Modi Telestra
23. The capital of UAE is
(a) Dubai
(b) Sharjahe
(c) Riyad
(d) None of the above
24. The Stock exchanges are regulated by
(a) RBI
(b) SEBI
(c) Both
(d) None
25. How many stock exchanges in India
(a) 22
(b) 23
(c) 24
(d) 25
26. First computer in India was installed in
(a) 1955
(b) 1956
(c) 1957
(d) 1958
27. Current bank rate is
(a) 5%
(b) 6%
(c) 7%
(d) 8%
28. Lufthansa airline belongs to
(a) France
(b) UK
(c) Germany
(d) USA
29. Which is the richest country in the world?
(a) USA
(b) Brunei
(c) UAE
(d) Luxemburg
30. Which company is having maximum number of internet users?
(a) India
(b) USA
(c) Japan
(d) Germany
31. The minimum capital needed to started a private bank in India
(a) 100 cr
(b) 200 cr
(c) 300 cr
(d) 500 cr
32. Fiscal policy deals with
(a) Monet supply
(b) Taxes
(c) Both
(d) None
33. NASDAQ is
(a) A fighter plane
(b) Stock exchange
(c) IT company
(d) None of the above
34. The process of deliscencing started in India
(a) 1991
(b) 1992
(c) 1993
(d) 1994
35. NSE started in
(a) 1992
(b) 1993
(c) 1994
(d) 1995
36. Recently CANCUN was in news because of
(a) WTO
(b) Iraq War
(c) Terrorism
(d) Cricket Match
37. CANCUN is located in
(a) USA
(b) Australia
(c) Mexico
(d) Brazil
38. Which of the following is not a part of external environment?
(a) Technology changes
(b) Government
(c) Supplier of raw material
(d) Culture
39. Which of the following is not a demographic factor?
(a) Sex ratio
(b) Age
(c) Technology
(d) Birth rate
40. Service industries belongs to
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) All above

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