BRAC Business School

BBA Program

BUS 203-1: Business Environment

Final Examination: Summer 2020

Total Marks: 40

Question will be circulated at 11 AM and answers must be submitted by 11 PM on September 27, 2020

Full Name: Fairooz Md. Moonwar Haque ID: 19204072

1. Write short notes on any two: (5×2 =10)

a. IMF
b. Social Business
c. Predatory Pricing
d. Ethics Office
e. Development Driven Business

2. Answer any two: (5×2 =10)

a. Why is inflation harmful for business?
b. Why is high budget deficit harmful for business?
c. What will be the likely effects of devaluation on the economy of Bangladesh?
d. Is ethics good for business? Give reasons for your answer.

3. Answer any two: (10×2 =20)

a. What in your opinion are essential elements of CSR?
b. Discuss the main features of Competition Act in Bangladesh.
c. Summarize the main features of Industrial Policy in Bangladesh.
d. Enumerate the main functions of WTO. Give one example of free trade and one example of fair trade
provision of WTO Charter.
e. Discuss the main features of e-commerce. What are the main weaknesses of e-commerce in Bangladesh?
 Start Writing Your Answers Here (Times New Roman, Font Size 12, Line Spacing 1.5, Justified)

Answer No 1 (a)

IMF is called International Monetary Fund. The International Monetary Fund (IMF) is an organization of
189 countries, working to foster global monetary cooperation, secure financial stability, facilitate
international trade, promote high employment and sustainable economic growth, and reduce poverty around
the world. The IMF promotes economic stability and global growth by encouraging countries to adopt sound
economic and financial policies. To do this, it regularly monitors global, regional, and national economic
developments. It also seeks to assess the impact of the policies of individual countries on other economies.

Answer No 1 (e)

Business-driven development is a meta-methodology for developing IT solutions that directly satisfy

business requirements. This is achieved by adopting a model-driven approach that starts with the business
strategy, requirements and goals, and then refines and transforms them into an IT solution. Business driven
development is a software development paradigm that focuses on the needs of the business over the tech. It
is designed for enterprise software, which differs markedly from consumer-facing apps. BDD relies on
modelling the needs of the business and uses these models to drive the design.

Answer No 2 (a)

Inflation is harmful for business. inflation or price inflation is a general rise in price level relative to
available goods resulting in a substantial and continuing drop in purchasing power in an economy over a
period of time.

Inflation is regarded as a bad process because it leads to distortions and problems in an economy. A short list
of the key disadvantages of inflation includes the following: Losses to savers: If you save your money by
hoarding cash, inflation erodes the purchasing power of the amount saved.

Answer No 2 (d)
Business ethics help ensure a good reputation for your company. Not only does it feel good to be part of a
company with a great reputation, but it’s great for business. When you have a reputation for consistently
being ethical in how you source and build products, and treat employees, customers and the community,
more people will want to do business with you. Even social media ethics is important for your reputation.

This means you’ll appeal to a variety of people and organizations that will be great for boosting your
business such as:

Clients and customers who believe in your company and want to support it

Trade and community organizations who want you as a member

Investors who want to help your business grow

Communities that want to host your business or events

Other businesses that want to partner with you

Newspapers, magazines and other media who want to offer you special recognition

Answer No 3 (e)

E-commerce is a business model or a larger business model that allows companies or individuals through the
electronic network and is usually the type of business segments in the internet. E-commerce is also can do
business it can provide a new way to companies of all sizes to create new relationships and extended
relational operations on the basis of the now, website and network activity

The main features of e-commerce

A main feature of e-commerce through commercial transactions is making money on the Internet. ... In E-e-
commerce e-commerce site types are 7 unique features, such as the Ubiquity, Global Reach, Universal
Standards, Richness, Interactivity, Information Density, and Personalization.

Ubiquity- The traditional business market is a physical place, access to treatment by means of document
circulation. For example, clothes and shoes are usually directed to encourage customers to go somewhere to
buy. E-commerce is ubiquitous meaning that it can be everywhere. E-commerce is the world reduce
cognitive energy required to complete the task.

Global Reach- E-commerce allows business transactions on the cross country bound can be more convenient
and more effective as compared with the traditional commerce. On the e-commerce businesses potential
market scale is roughly equivalent to the network the size of the world’s population
Universal Standards- E-commerce technologies is an unusual feature, is the technical standard of the
Internet, so to carry out the technical standard of e-commerce is shared by all countries around the world
standard. Standard can greatly affect the market entry cost and considering the cost of the goods on the
market. The standard can make technology business existing become more easily, which can reduce the cost,
technique of indirect costs in addition can set the electronic commerce website 10$ / month.

Richness- Advertising and branding are an important part of commerce. E-commerce can deliver video,
audio, animation, billboards, signs and etc. However, it’s about as rich as television technology.

Interactivity- Twentieth Century electronic commerce business technology is called interactive, so they
allow for two-way communication between businesses and consumers.

Information Density- The density of information the Internet has greatly improved, as long as the total
amount and all markets, consumers and businesses quality information. The electronic commerce
technology, reduce the information collection, storage, communication and processing cost. At the same
time, accuracy and timeliness of the information technology increases greatly, information is more useful,
more important than ever.

Personalization- E-commerce technology allows for personalization. Business can be adjusted for a name, a
person’s interests and past purchase message objects and marketing message to a specific individual. The
technology also allows for custom. Merchants can change the product or service based on user preferences,
or previous behavior.

Main weaknesses of e-commerce in Bangladesh

The study further reveals that quality of the product, consumer dishonesty, lack of proper cyber security in
some e-commerce site, unavailable banking facility, product availability and mandatory credit card
requirement are the major challenges to the development of e-commerce in Bangladesh. There are multiple
reasons for that: low level of awareness and lack of customer-friendly infrastructure, high card fees and POS
costs for merchants, the reluctance of banks to promote in-store and e-commerce transactions. There are also
regulatory barriers. There can be lack of system security, reliability or standards owing to poor
implementation of e-commerce. The software development industry is still evolving and keeps changing
rapidly. In many countries, network bandwidth might cause an issue.

Answer No 3 (a)

Corporate social responsibility (CSR) is a type of international private business self-regulation that aims to
contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting
volunteering or ethically-oriented practices.
There are four key aspects of social responsibility: ethical, legal, economic and philanthropic. Businesses
that have CSR policies first ensure they are accountable to themselves, their shareholders and their
employees. In addition, they hold themselves accountable to their customers and the world around them.

Economic Social Responsibility

Economic social responsibility begins with being profitable. Before a business can give back, it must be
sustainable. Sustainability includes making a profit for shareholders, paying its employees an appropriate
wage, paying business taxes and meeting other financial obligations. Corporations can show economic
social responsibility by being transparent with all stakeholders regarding the financial status of their
business.

Legal Social Responsibility

Consumers are more likely to buy products and utilize services from companies they trust. A part of building
that trust is abiding by the laws that regulate your business. Paying the required taxes, adhering to labor laws
and allowing inspections are all examples of legal social responsibility. It may sound basic, but not being
attentive to your legal obligations can lead to your business being sued and can hurt the business’ reputation
and your reputation is vital to your success.

Ethical Social Responsibility

Economic and legal corporate responsibility lay the groundwork for corporations to move into ethical social
responsibility, which means doing the right thing at all levels of your business. This ranges from paying
employees a living wage to ensuring that the companies you work with and buy materials from are abiding
by all labor laws.

In addition to ensuring ethical workplace practices, you should also look at the environmental impact your
business makes. If possible, consider using recycled materials and clean energy. Go beyond meeting the
minimum environmental requirements and look at how you can exceed those requirements, which gives
consumers a good impression of your brand.

Discretionary Social Responsibility

Discretionary social responsibility means using your company’s time and resources to contribute to the
community at large in whatever way is meaningful for you and your brand. This may include providing your
employees with opportunities to volunteer; donating money, services or products to charitable organizations;
or initiating your own charitable organization that ties into your company’s mission and goals. You may
want to support multiple organizations or simply focus your efforts on one or two meaningful ones.

Corporate social responsibility shows that your company is about more than just the numbers. It shows that
you care about your impact on the world, which appeals to consumers who want to feel good about the
products they buy. By making an effort to be socially responsible, you can ensure that your company leaves
a lasting, positive impact.