DCM3203 BUSINESS ENVIRONMENT

Description

SESSION	JULY-AUGUST 2025
PROGRAM	BACHELOR OF COMMERCE
SEMESTER	VI
COURSE CODE & NAME	DCM3203 BUSINESS ENVIRONMENT

 

 

Set – 1

 

 

1. (i) Explain the SWOT analysis and steps involved in the application.

(ii) Describe the instruments of monetary policy. 5+5

Q1. (i) SWOT Analysis and Steps Involved (ii) Instruments of Monetary Policy

Ans 1.

(i) Meaning of SWOT Analysis

SWOT analysis is a strategic management tool used to identify and evaluate the Strengths, Weaknesses, Opportunities, and Threats of an organization. It helps businesses understand internal and external factors that influence their performance and competitiveness. Strengths and weaknesses are internal elements, while opportunities and threats arise from the external environment. The purpose of SWOT analysis is to help organizations align their capabilities with the changing business environment, formulate strategic plans, and achieve sustainable growth.

Steps Involved in SWOT Analysis

The application of

 

2. Write a short note on the given topics:

(i) Changing profile of the Indian economy

(ii) Influence of culture on communication and decision-making 5+5

Ans 2.

(i) Changing Profile of the Indian Economy

The Indian economy has experienced a remarkable structural transformation since independence in 1947. Initially, it was primarily agrarian, contributing more than 50% to GDP and employing the majority of the workforce. However, with planned economic development through Five-Year Plans, emphasis shifted towards industrialization and infrastructure development. The 1991 economic reforms marked a turning point by introducing Liberalization, Privatization, and Globalization (LPG), which opened Indian markets to foreign investment and competition.

Over time, the contribution of agriculture to GDP declined, while the industrial and service sectors gained prominence. Today, the service sector contributes more than 50% of India’s GDP, driven by information technology, telecommunications, finance, and e-commerce. Industrial development has been supported by initiatives like Make in India, Startup India, and Atmanirbhar Bharat, which aim to boost domestic manufacturing and innovation.

Another significant change is the rise of digitalization, fintech, and e-governance, making India a hub fIts Half solved only

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or digital innovation. The workforce has shifted from rural to urban areas, and employment opportunities have diversified across technology and service-based industries. Despite these advancements, challenges such as income inequality, unemployment, and regional disparities persist. Nevertheless, India’s demographic advantage, large consumer base, and policy reforms position it as one of the fastest-growing economies globally. The ongoing focus on green energy, sustainable growth, and infrastructure modernization reflects the evolving profile of the Indian economy as a resilient and competitive global force.

(ii) Influence of Culture on Communication and Decision-Making

Culture profoundly impacts communication and decision-making processes within organizations. It shapes how individuals perceive authority, share information, and resolve conflicts. In high-context cultures such as India, Japan, and China, communication tends to be indirect,

 

3. (i) Describe the characteristics of a mixed economy.

(ii) Explain the role of Foreign Direct Investment. 5+5    

Ans 3.

(i) Characteristics of a Mixed Economy

A mixed economy is a system that combines features of both capitalism and socialism to achieve economic efficiency along with social welfare. It seeks to balance private enterprise with government control to ensure inclusive growth and equitable distribution of resources. The key characteristics include:

• Coexist

 

Set – 2

 

 

4. (i) Discuss the different laws impacting the business in India.

(ii) “An ideal economy is based on three principles”. Elaborate the statement. 5+5      

Ans 4.

(i) Different Laws Impacting Business in India

The business environment in India is governed by a comprehensive legal framework that ensures fair competition, consumer protection, environmental sustainability, and ethical corporate practices. These laws provide guidelines for business conduct, protect stakeholders’ interests, and promote transparency. One of the key legislations is the Companies Act, 2013, which governs company formation, corporate governance, mergers, and financial reporting. It ensures

 

 

5. (i) Describe the crisis of June 1991.

(ii) Discuss the benefits of privatization.      5+5     

Ans 5.

(i) The Crisis of June 1991

The economic crisis of June 1991 marked a turning point in India’s financial history. The country faced a severe balance of payments crisis, characterized by dwindling foreign exchange reserves, mounting fiscal deficits, and high inflation. By mid-1991, India’s foreign exchange reserves had fallen to less than one billion US dollars—barely sufficient to cover two weeks of imports. This crisis was a result of years of inefficient public sector performance, excessive government borrowing, and dependence on foreign debt.

Political

 

6. (i) Explain the concept of globalization and its benefits.

(ii) Write a short note on the structure of WTO.    5+5     

Ans 6.

(i) Concept of Globalization and Its Benefits

Globalization refers to the process of increasing interconnection and integration of national economies through trade, investment, technology, and cultural exchange. It allows goods, services, information, and capital to move freely across borders, reducing geographical and economic barriers. In the modern era, globalization has been driven by technological advancement,