Karodimal ltd. manufactures fashionable and designer clothes. Recently it finds that the
demand for its product been declining. After market research it was discovered that fashion and tastes of the consumers is changing a pace. Consumers demand is increasing. New competitors have entered the market with new design. It is difficult for the company to predict future happening. Also it is difficult to know the extent of the relative impact of the social, economic, political, technological or legal factors on decrease in demand of its product in the market. A meeting was held in which managers from different functional level heading production, marketing, financial etc. for example, chief operating officer, chief finance officer, vice president (marketing) were present to discuss how to deal with the situation. After a long discussion, it was decided that they would study and analyze the market first to identify customers taste and fashion and then manufacture garments accordingly. It was also decided to increase expenditure on advertising, after sale service, etc. 

1. Identify any two features a business environment by quoting the lines from the above case.
2. At which level of management the meeting of managers in Karodimal Ltd. was held.
3. Identify any two impacts of government policy changes on business, quoting lines from the above case.
4. State the importance of an understanding of environment by business managers in the light of the above para.