| Level: Bachelor | Year: 2023 |
| Programme: BBA/BBA-BI | Full Marks: 100 |
| Course: Business Environment in Nepal | Pass Marks: 45 |
| Semester: VII Semester | Time: 3hrs |
| University: Pokhara University |
Business Environment in Nepal Questions with Answer – 2023 Spring (BBA/BBA-BI)
Section “A”
Very Short Answer Questions
1. Define business environment.
Answer: The business environment is everything around a business that affects its operations, like laws, economy, customers, and competition.
2. List the components of the task environment.
Answer: The components are customers, suppliers, competitors, and regulators.
3. Explain the concept of liberalization.
Answer: Liberalization means reducing government restrictions on businesses to encourage private sector growth and free trade.
4. What do you understand by Sustainable Development Goals (SDG)?
Answer: SDGs are global goals set by the UN to end poverty, protect the planet, and ensure well-being for all by 2030.
5. Point out the two major problems of the industrial sector of Nepal.
Answer: The two major problems of the industrial sector of Nepal
(1) Lack of infrastructure and energy supply.
(2) Dependence on imports for raw materials.
6. Write down three key roles of government.
Answer: The three key roles of government
(1) Making laws and policies.
(2) Providing public services.
(3) Ensuring economic stability.
7. List out three objectives of tourism policy in Nepal.
Answer: The three objectives of tourism policy in Nepal
(1) Increase tourist arrivals.
(2) Develop infrastructure for tourism.
(3) Promote Nepal’s cultural and natural heritage.
8. Write down two political risks of doing business in Nepal.
Answer: The two political risks of doing business in Nepal
(1) Political instability.
(2) Frequent changes in government policies.
9. State the difference between Patent and Trademark.
Answer: A patent protects an invention, while a trademark protects a brand name, logo, or symbol.
10. Write down the full form of BIMSTEC.
Answer: Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation.
Section “B”
Descriptive Answer Questions
- What is Environmental Analysis? How does this information help in strategy formulation for businesses? – Answer (Click Here)
- Taking reference to manufacturing businesses in your native town, explain the socio-economic dimensions and their effect on the business environment. – Answer (Click Here)
- How do you observe the present condition of the agriculture sector of Nepal? Is it strong enough to contribute to the national economy? Why or why not? Explain. – Answer (Click Here)
- Enumerate the current trend of Nepalese politics. Is it business-friendly in Nepal? Justify your answer. – Answer (Click Here)
- Economic liberalization plays a vital role in enhancing financial and capital market sectors of Nepal. Analyze with your views. – Answer (Click Here)
- Elaborate on the energy situation and its emerging issues of energy management in Nepal. – Answer (Click Here)
- How is WTO significant for the development of the global economy? Being a WTO member, explain the opportunities for Nepalese businesses. – Answer (Click Here)
Section “C”
Case Analysis
18. Read the case situation given below and answer the questions that follow: [20]
Crunchy Confectionery (CC), founded in 1975, is one of Nepal’s pioneer confectionery manufacturers. The main factory of the company, located in Balaju Industrial Estate, was equipped with modern confectionery items producing technology, which at that time was deemed to be sophisticated.
At the initial phase of CC’s operations, it had a workforce of 10 skilled and 75 semi-skilled staff, which swelled threefold by the year 2000. With an initial capital of one and a half million rupees, the average annual turnover grew to six million rupees.
CC was started at a time when people were not aware enough about the confectionery items. Their acquaintance with food items was very limited. But when CC offered new varieties of food items, a new market niche instantly grew, and people changed their feeding patterns from traditional items to baked foods that were easily available and ready to serve.
Operating as a pioneer company, CC was benefited by people’s attitude toward baked items, minimum competition, government policies, and the steadily improving economic status of people. Further success of CC came from the positive attitude of the workers. Literally, CC had a tremendous opportunity to seize the big market. However, the attitude of the managers prevented the company from grabbing that opportunity.
Rather, they adopted a “go slow” strategy, which resulted in steady growth of the company. During the first ten years of its operation, CC did not expand its product line and operated with the same organizational structure and management style. It failed to notice the ongoing changes in people’s preferences, consumption patterns, competition, and rising income of the urban people.
After 2000, a number of challenges emerged for CC. Due to the globalization movement, the government adopted a liberalization policy, which resulted in the abundant inflow of better confectionery items into the country at almost the same prices as CC was offering. At the same time, a few multinational companies with sophisticated technology and improved marketing networks also started operating their activities in the country. Within a few years, CC witnessed a very tough and difficult situation. Its sales dropped by more than thirty percent, causing profits to decline sharply.
Employees were dissatisfied with their payroll, incentives and the management system, which dropped their performance. The situation became worse when the employees, with the support of trade union, started agitation for additional pay and other facilities. Now can CC is in the verge of collapse.
Questions:
a) Critically examine the situation under which CC had operated till the year 2000.
b) Did you see any mistakes committed by the managers of CC? Give reasons for your answer.
c) Suggest the measures which you think would rescue the company from the onging troubles.