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Case Study On Business Environment With Solutions

Dear students

You already know that as per new pattern , questions based on case study can be asked in exam .These type of questions are introduced  to check students ability to understand and apply his/her knowledge to given situation .

  • Do not fear the questions based on case study.  If you are well prepared and have through understanding of chapter, those questions will not be difficult
  • Case study questions are lengthy but answers to them are generally short.
  • Read Case study carefully, do not jump to conclusion without reading entire case study
  • Before reading case study, read the question given under it. It will save your precious time of reading long case study again and again.
  • Practice Case study questions from sample papers and previous year papers

Example of case study question (question 20 From CBSE Sample paper -2016)

Q20  Joseph Bros. was a firm manufacturing jute lamp shades. It uses left over jute pieces from various jute factories to manufacture economical lamp shades which are supplied to various hotels in nearby towns. It employs men and women from nearby villages as workers for creating good lamp shade designs.Joseph Bros., is not able to meet its targets. Namish, the supervisor of the company, was told to analyse the reasons for the poor performance. Namish found following problems and suggested certain solutions in the working of the business. The number of workers employed was less than what was required for the work. As a result, the existing workers were overburdened. The firm decided to search for new workers and it asked the present employees to introduce candidates or recommend their friends and relatives to the firm. This enabled the firm in "putting people to jobs" and assured attainment of objectives according to plans.

a) Identify the functions of management being performed by the firm in the above situation.

b) Name the concept and its source used by the firm to attract more workers for the firm.

c) State any two values being followed by Jacob Bros. (4 Marks )


(a) Staffing and Controlling

(b) Recruitment, External Source of Recruitment (Recommendations of employees)

Values being followed by Joseph Bros. :(any other suitable value.)

(i) Creating employment opportunities.

(ii) Utilizing resources efficiently by using leftover clothes.

Case Studies - (Chapter- 3) Environment

Q. 1. Mr. Ajay after completing MBA from USA comes to India to start a new business under the banner Ecom Creations Ltd.  He launches a new product in a e-learning for senior Secondary School students in Commerce stream, which already has n established market in UK and USA but not in India.  His business starts flourishing in India.  Now more Indian companies entered into the market with other subjects also.

Identify and quote the lines from above para which highlight the significance of understanding business environment.                                                              (4 marks)


  • “Comes to India to start a new business … launches a new product in e-learning for Senior secondary school students in Commerce stream.”
  1. It helps in assisting in planning and policy formulation.
  2. It helps the firm to identify opportunities and get the first mover advantage.
  • “His business starts flourishing in India.”
  1. It helps in improving performance.
  • “Now more Indian companies entered into the market with different subjects also.”
  1. It helps the firm to identify threats and early warning signals.


Q. 2. Just after declaration of Lok Sabha Elections 2014 results, the Bombay stock exchange’s price index (Sensex) rose by 1000 points in a day. Identify the environmental factor which led to this rise giving reason.  Also explain any two other dimensions of business environment.                                                                                     (5 marks)

Ans. Rise in stock market index (Sensex) is economic environment.  But Political environment (declaration of Lok Sabha Elections 2014 results)) led to this rise.

Two other dimensions of business environment:

  1. Legal Environment:
  2. Technological environment:


Q. 3. The court passed an order that all schools must have water purifier for the school children as

  1. Society in general is more concerned about quality of life.
  2. Innovative techniques are being developed to manufacture water purifier at competitive rates.
  3. Incomes are rising and children at home are also drinking purified water.

The government is also showing positive attitude towards the water purifier business.

Identify the different dimensions of business environment by quoting from the above details.                                                                                                        (5 marks)


  1. Legal environment:
  2. Social environment:
  3. Technological environment:
  4. Economic environment:
  5. Political environment:


Q. 4. ‘It is common now to see CD-ROM’s, computerized information kiosks, and Internet/Word Wide Web multimedia pages highlighting the virtues of products.’ Name the dimension of the business environment highlighted by this stateme.                       (1 mark)

Ans. Technological environment

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