NCERT Solutions Entrepreneurship Class 12 Chapter 2 Environmental Scanning Notes PDF

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NCERT Solutions Entrepreneurship Class 12 Chapter 2 Environmental Scanning Notes PDF

Chapter NameEnvironmental Scanning
Chapter number02
Medium English
Study MaterialsImportant questions answers
Download PDF Entrepreneurship Class 12 Chapter 2 Hindi Notes PDF

Environmental Scanning Notes

It is very important for an entrepreneur or adventurer to study the environment closely. Because having a favorable environment is beneficial for the success of business and industries. The success of business and industries depends on favorable environment.

By studying the structure of environment, an entrepreneur or adventurer achieves success in his work. Under entrepreneurship, it is useful to have an in-depth study of the environment. The literal meaning of intensive study is to study closely. The adventurer must study the social, economic, political and other supporting elements of the environment. 

Environmental study is a process that focuses on strategy, which helps in understanding the importance of many threats in business. An adventurer earns profit in his business by making proper use of business opportunities.

NCERT Solutions Entrepreneurship Class 12 Chapter 2 Environmental Scanning Notes PDF

It is necessary to do an in-depth study or micro-study of the environment from different perspectives. Like effective use of resources, continuous analysis of the environment, identification of threats and opportunities, helpful in making strategy, helpful for managers and observing the future, it is very important to have a detailed study of the environment. 

By doing this the adventurer can achieve success in his business work. There are various components or elements of environmental analysis, such as socio-cultural components, political components, economic components, legal and financial components, etc.

Environmental analysis has various limitations or shortcomings, such as the future being uncertain, effectiveness of the organization not being guaranteed and difficulties in practicality, etc. Nevertheless, these shortcomings can be reduced by adopting various efforts.

It is also necessary for the organization to be in an effective form for environmental analysis. The work of environmental analysis is done by the organization. These are related to the organization. Some examples can be given such as higher employees, marketing managers and finance managers etc. who are related to environmental analysis. Nowadays based on management information system

Environmental analysis work is also done. At present in India, environment is being taught as a subject in various universities. Under this, facility is provided to study the future threats and their suggestions in detail. In fact, by deeply studying the risks arising in the field of business and industries, they can be faced efficiently and businesses and industries can be made successful.


1. What do you understand by microscopic study of the atmosphere? 

Ans. The detailed study of the environment done by adventurers in the field of business and industries is called micro study of the environment. Under this, social, economic, political and other supporting elements are studied by the entrepreneur or adventurer.

2. Which steps are completed in the process of environmental analysis?

Ans. In connection with the microscopic study of the environment, various activities are completed by the adventurers. To complete these actions one has to go through various process steps, 

Like- (i) Finding business opportunities (ii) Evaluating ideas (iii) Identifying products and services (iv) Starting projects and running them successfully etc.

3. Define environmental study given by Janch and Glueck.

Ans. While giving the definition of micro study of environment, Jonch and Guluk have said that environment study is a process whose strategy should be given attention which can be helpful in understanding the importance of many risks and dangers of business in practice.

4. For what reasons is it necessary to do a microscopic study of the environment? 

Ans. There are some reasons due to which a detailed study of the environment is necessary.

These reasons are – (i) Effective use of resources (ii) Continuous study of the environment (iii) Helpful in making strategy (iv) Identification of threats and opportunities (v) Helpful for managers (vi) In observing the future. Assistant etc.

5. What are the elements of microscopic study of the atmosphere? Write.

Ans. There are various elements or components of micro study of environment which are as follows – (i) Socio-cultural component (ii) Political component (iii) Economic component (iv) Legal component (v) Financial component (vi) Institutional component.

6. What are the sources of microscopic study of the atmosphere?

Ans. There are various sources of micro study of the environment which are as follows – (i) Daily newspapers (ii) Various types of journals (iii) Other sources, such as census data, papers related to the five-year plan, bulletins of the Reserve Bank of India, Economic survey and publications related to economic, trade and industry of the Government of India etc.


1. Describe the limitations of environmental analysis.

Ans. The main limitations of environmental analysis are as follows-

(i) Uncertain Future – Environmental analysis does not tell anything about future uncertainty. New problems keep arising in business every day, no matter how much care is taken.

(ii) No guarantee of Enterprises Effectiveness – Environmental analysis in itself is not a guarantee of the effectiveness of any organization. This is just a strategy which helps in testing development.

(iii) Practical Difficulties – Putting environmental analysis into practice is actually a complex task. This sometimes leads to distrust in the short term. They are not able to check the data and find out whether the data is correct or incorrect.

2. Write the meaning of market environment.

Ans. Meaning of Market Environment – ​​Actually, marketing work is performed in a certain environment. While performing marketing work, accurate information about the marketing environment is necessary. Marketing mix is ​​also possible only in a certain environment. It is not possible for marketing management to control all the components of the marketing environment. 

Marketing strategy should be prepared only after careful study of the marketing environment. There are mainly two components influencing the marketing process – controllable components and uncontrolled components, which affect the business. The marketing department should perform within the limits of these factors.

3. Discuss the various stages of the process of microscopic study of the atmosphere. 

Ans. Adventure activities are hidden in the environment; the adventurer studies them closely and considers various sources and options. It is these ideas which are put into reality through a creative approach and develop into successful projects. The various steps in completing this process can be described as follows-

(i) Spotting Opportunities – Various problems and needs are present in every environment. The courageous person analyzes them thoroughly and marks them.

(ii) Evaluating the Ideas – After analyzing various ideas, one evaluates only those which solve the best problem and draws appropriate conclusions.

(iii) Identification of Product and Services – After careful consideration, a conclusion should be drawn as to which project is most appropriate and that should be selected.

(iv) Starting Projects – Starting projects and running them successfully is the main job of an entrepreneur. Environmental analysis also involves managerial decisions through which the importance of the environment can be understood.

4. Define in-depth study of the environment and explain its meaning.

Ans. According to the dictionary the word Scan means Close Examination. The adventurer should study the social, economic, political and other such supporting components of the environment.

According to Jonch and Gluck, “Environmental study is a process whose strategy, which helps in understanding the importance of many threats in business in practice.

It is possible.” (Environmental analysis is the process by which startups monitor environmental factors to determine opportunities and threats for their firms.) Environmental analysis also includes managerial decisions made by assessing the significance of environmental analysis data.

An opportunity afforded by an adventurer is not the sleep of a project. Here the emphasis is on converting golden opportunities into profits. This process is explained in the following chart. May go. 

And appropriate business selection should be made. Deep analysis (Interference) is the 5th action of evaluation which helps in decisions. Can this idea be put into action? Is this format necessary for business? If yes, then be brave enough to move on to the second step. Thinks about what is called identification of products and services.

long answer questions

1. Why is it necessary to study the environment minutely? (Why is environmental scanning necessary?)

Or, discuss the importance of microscopic study of the environment. (Explain the importance of environment scanning.)

Ans. Various studies have proven that organizations that have analyzed the environment have received greater financial benefits. Sometimes the company may have to change its strategy again and again and the organization may face difficulty in achieving the desired objectives. Environmental study is necessary from the following point of view-

(i) Best or Effective use of Utilization of Resources – The key to the success of a business is the effective use of its financial resources.

Depends on expenditure. The success and failure of the company should be analyzed through the threats and opportunities of the environment, otherwise the companies may have to face losses.

(ii) Continuous study/analysis of the environment (Constant Monitoring of the Environment) – Through the study of environmental analysis, we get knowledge of what is happening in the environment. 

In the absence of environmental analysis, there will be no knowledge of consumers’ interests and preferences, no knowledge of competition, no knowledge of modern and new inventions, and no knowledge of new business policies. To control all this, in-depth analysis of the business environment is necessary.

(iii) Helpful in strategy formulation – Through environmental analysis, diversification and growth and solution to the problems arising in business can be possible. For example, Reliance and Hindustan Lever Limited have made great progress through diversification, apple computer – 5 is very popular in USA. Colgate was not liked in the Japanese markets, not in India.

goes. The entrepreneur should pay close attention to the market preferences of his product and create a more comprehensive marketing strategy.

(iv) Identification of threats and opportunities – Through environmental analysis, the entrepreneur gets knowledge about the threats and golden opportunities coming in the business. After proper analysis, a proper strategy should be made to correct them and the appropriate deception of the threats should be found in advance.

(v) Useful to Managers – Managers have obtained a lot of useful material from environmental analysis. People’s organizations have conducted environmental analysis and those that have not done so have found significant differences in efficiency and profitability.

(vi) Prediction of Future – Forecasting the future has become an important task of management. Vigilant managers of the future should be very alert.

They should not only find solutions to problems but should also try to prevent problems from arising. In this way, managers can fulfill their managerial responsibilities well by studying the environment.

2. Describe the components or elements of environmental analysis. (Explain the factors of Environmental Scanning.)

Ans. The components of environmental analysis are as follows-

(i) Social-Cultural Factors: Through in-depth study of socio-cultural factors, the life style of human beings, beliefs, customs, etc. and the attitudes, expectations of every person are the product of his family conditions, age group and education. And services are impacted differently.

(ii) Political Factors – There is a close relationship between business and politics. The government makes policies and rules from time to time which are directly related to business, the entrepreneur should conduct business within these limits only. The government continues to encourage entrepreneurs to promote trade and industry. The government also makes policies that can improve the business environment and promote business growth. 

(iii) Economic Factors- Political factors and economic factors are directly related to the business world. Study of the factors that affect demand and supply prices. Consumer attitudes, economic preferences, costs, cuts, etc. are all economic decisions that have an impact on business.

(iv) Legal and financial factors – The legal environment of business can affect the form and nature of business. The government policy is that industries that are detrimental to the nation will not be established, no matter how many facilities are available. Employee welfare and safety are legal aspects of the type of organization (large/small) that the business owner must consider. For example, a simple contract which will provide material and manpower to the organization will also have to resort to legal process.

(v) Development of Institutional Support Factors – There are many government and non-government organizations which provide support, assistance and guidance to the adventurers. A range of opinions, based on your maximum knowledge and experience, and guidance on what products and services may be required. How and where can a businessman get cheap finance? What are the various rules and regulations? Organizations keep giving such knowledge to the courageous people.

In fact, the environmental factors or benefits that should be kept in mind are as follows- 

(i) Detailed strategies should be made which can have an impact on the organization. 

(ii) Work Plan / Action Plan which is related to technological progress. 

(iii) What effect can national and international level, social and economic changes have on the stability of the firm?

(iv) What is the solution or alternative to the competition?

(v) A courageous person should be dynamic. 

3. Discuss the limitations of environmental analysis. (Explain the limitations of environmental analysis.)

Ans. (i) Uncertain Future – Environmental analysis does not tell anything about the uncertainty of the future. New problems arise every day in business, no matter how many precautions are taken. Sometimes losses still occur.

(ii) No guarantee of Organizational effectiveness – Environmental analysis in itself is not a guarantee of the effectiveness of any organization, it is a strategy that can help in testing development.

(iii) Practical difficulties – Putting environmental analysis into practice is a very difficult task. This is sometimes a reflection for a short period. Sometimes managers become distrustful of the data; they do not even check the accuracy of those data, even if the data is correct.

For example, the American company Norton was in competition with 3M Company. Norton Company seriously analyzed the business environment – yet the company did not show the results as expected, the company had to enter into a partnership with the French company Saint Gobain in 1990. Had to mix.

3M made great progress and the company did not analyze any components of the environment. Here planning and controlling is done only at upper/lower level. This company simply came up with a new idea by which it trained sales representatives and created new products with new technology. Norton and 3M were the same company. In 1980, 3M’s sales were 8 (eight) times that of Norton. After absorption 3M in 6 times

It was named America’s number 10 company 5 times. It is rightly said that success comes only through effort. Those who do not have courage cannot go ahead. Environmental analysis makes bets better than expected and chances of loss are reduced.

NCERT Solutions for Class 12 Commerce Stream

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