question_answer

Rajat had opened an internet cafe in the 90's to cash in on the boom of the internet. In the initial years he got good profits. This made him carefree and he started taking his success for granted. But lately for the last few years, he is finding it difficult to even bear the expenses of his cafe, leave alone earning profits.

(i) Which aspect or feature of business environment has Rajat ignored?

(ii) What changes in the macro environment has affected his business?

           

Answer:

(i) Rajat failed to consider that business environment is dynamic. It is right to say that business environment is dynamic because every day new changes are taking place in the business environment. For the survival of the company, it is necessary to scan or recognise these changes from time-to-time. (ii) Rajat has been affected by the technological changes taking place in the macro environment. With the advent of cost-cutting technology and the introduction of laptops, tablets and smart phones, people can assess the internet easily from their personal gadgets. So, the business of internet cafes have suffered.