?Kolkata Rice Foods Limited? is a well known rice producing
company. The sales have been falling down right from the
beginning of the year. The Managing Director Mr. Dhiru Bhai
Aggarwal is worried about this situation. With a view to find out the
solution of this problem, he made a team of four persons. In this
team one manager, one deputy manager, one superior and one senior
worker were included. After the survey, he told the following four
reasons for the falling down of the company?s sales.
i. On account of increase in Export Duty made by the
Government, the foreign demand has gone down.
ii. On account of the availability of several eatable substitutes
the attention of people has been diverted from rice.
iii. Some other rice producing companies have set up
Imported Machines with which they are producing better
quality.
iv. The export has been affected on account of bitterness
created in the relations with one of the chief rice importing
countries.

a) Identify the 4 dimensions of business environment in the above case
b) Which point of importance of business environment
has the Managing Director admitted his inability to
make a guess of?

Dear student, 

The dimensions of business environment that have described in the given situation are as follows:
  1. Economic
  2. Social
  3. Technological
  4. Political
b) The manager is not able to guess the reason for the fall in demand due to "inability to make adjustment to changes". The organisation does not keep a track of the various changes in the business environment, thereby, is not able to deal with the changes in the external forces. 

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