Question

The top management of a smartphone manufacturing company recently observed that the government has ordered new safety standards for batteries used in smartphones to prevent overheating. It also noticed that the government announced a reduction in import duties on components used in mobile phones. The dimensions of business environment highlighted in the above case are :

• A. Technological and legal environments
• B. Political and technological environments
• C. Legal and social environments
• D. Political and legal environments

Hint:

Government orders and legislation are "Legal," while changes in how a product is made or functions (like battery safety) are "Technological."

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
The business environment consists of various dimensions: Economic, Social, Technological, Political, and Legal. Understanding which specific changes fall under which dimension is key to environmental scanning.
Step 2: Detailed Explanation:
1. The "new safety standards for batteries" refers to a shift in the Technological environment because it involves improvements and changes in the methods and techniques of production (specifically battery safety tech).
2. The "government ordered" standards and "announced a reduction in import duties" fall under the Legal environment (legislation/government orders) and the Political environment (government policy). However, since the prompt links safety standards directly to battery overheating (tech) and orders/duties (legal/policy), the most accurate pairing provided in the options is Technological and Legal.
Step 3: Final Answer:
The correct option is (A).