So hello everyone and welcome to the channel Ashwin's Commerce World. My name is Ashwin Jaiswal and we are starting off with the ISC Commerce Class 12 syllabus. You can see on the screen that I have given you a list of all 15 chapters and I am also telling you the questions of how many marks will be made from which portion.
So this is basically your breakup of marks, marks distribution based on past trends. Since the council hasn't said anything, so this is based on past trend. So we are going to start with chapter number one today, very important chapter, the chapter of business environment.
I have updated this chapter according to ISC exams which are going to be in 2025. According to your exam which is going to be in 2025, I have updated this chapter 100% So you don't have to watch my old videos, don't watch the old videos now Watch the latest videos because all the changes are incorporated in this So don't watch all the old videos, they were for the last batch, these are fresh videos for you So you watch this one The notes you need, you will need my notes only. You don't need anything else from here. So just watch my videos on YouTube and use my notes. Where will you get these notes? On Telegram channel.
If you don't have the app on your phone, then install the Telegram app and go to my channel. My channel is the same as YouTube. Go to my channel Ashwin's Commerce World.
I am uploading the latest notes for the ISC 2025 exam. So you have to use the same notes and the same thing you have to write in the exam. I will explain you the chapter in the video but you have to write it down in the exam so what do you have to write? you will know from those notes so follow my videos and use my notes where will you get the notes?
from telegram channel if you don't have telegram then install it and on this channel you can download notes in pdf form print it and read it and you will know everything Telegram link is in the description box below. You can go to that description box also and that is also another route of finding that channel. Council has changed all the paper patterns and 2025 is going to be a very important year because New Education Policy 2020 will be very applicable now.
Gradually its applicability is increasing. And you have to prepare accordingly. Section A of your question paper, 16 marks.
and remaining question paper is case study and analysis based question which is almost 20 marks i.e 16 plus 20 close to 35 marks paper you have to prepare for this with my app I will explain the chapter on YouTube but the marks around 35 in which you will get the preparation of section A plus in section B and C, the analysis based questions and the case study questions, chapter wise I am putting in this course So those who want to try that, they can try it from my app I am guaranteeing you that you will not get anything out of this The content which will come around 35 marks from 80 marks It will be fully covered by this course So those who want, they can try Rest of us, we will start the chapter So come on top of your chapter, I hope you have downloaded the notes Downloaded the notes and printed them and then you are ready to read So let us begin First chapter, Business Environment. So what is business environment? Let us understand. Watch the video with full focus. You will understand very well.
Kids of ISC, listen carefully. What is business environment? See, like human environment, human environment which affects us, which affects human beings. Similarly, what is a business environment?
A business environment is one which affects business. What affects business? Individuals affect, individuals means people.
How are people affected? Like consumers, consumers are people. Consumers can affect the business, individuals can affect the business, institutions can affect the business Like Reserve Bank of India, if any law, guidelines, rules come in front of it, then the entire business will have to accept it It affects the entire business Or if there is any force in the market, like demand, supply, inflation, so there are many things in the market that affect us individuals institutions yeah for the force yeah anything that affects our business effect come at the influence or a BSTs to how many influence career tomorrow functioning or yeah my performance score influence career unsightly so poor totality may business environment both there so everything that affects our business It's called business environment It's a very simple definition It was asked for 2 marks Please download the notes It has all the questions of the past exam It was for 2 marks If it comes in the exam, you only need to write this much Let's move on to the next part and this part is very very important I will also tell you a short cut to remember this so that you remember it while reading so pay attention here first we will read the features and then we will come to the shortcut let us first focus on the points here I am covering 7 points, 7 points are more than sufficient there are more points given in notes but that is not very important if you do as much as I am explaining here then your life is set listen carefully, there are many case studies which I have put in my course do all the case studies there and understand the chapter here Feature number one is totality of external force By the way one more thing, the thing written on the screen is very less I am just using this to explain, the thing written in the notes is a proper explanation You have to write that in the exam, so on the screen I have only Taken few things which I can explain to you Actual is written in notes, so please print out the notes by downloading from telegram First point, totality of external force Here external means that we don't have control can't control external means uncontrollable so business environment is that which we can't control for example RBI has taken out a law if RBI if Reserve Bank of India has taken we cannot prevent business environment from changing it is not under our control, it is external we cannot control it we cannot control business environment next point is general and specific general is for everyone there are certain things which affect everyone like if this is the case We will see this in detail later on.
For example, for now, let's assume that if RBI brings a law, then it has not brought it for me, it has brought it for the whole of India. So that is general. But there are some things that influence us individually. We call it specific.
Specific is what directly affects us. For example, if our customer leaves us, then we will have to do something. If our customer stops buying from us, will India lose? India will not lose, that loss is only our loss.
If a customer leaves us, if a supplier does not supply good product to us, this will only affect us, this will affect us directly. But if the government comes up with a law, So it is for the whole of India What belongs to everyone is general What affects only us is specific So what is business environment? General or specific? It is general and specific Means both of them can happen Some things affect everyone Some things affect only us So business environment is both Remember this for true and false I have done case study on this You can do that from the app Number 3 Number 3 is interrelatedness means if one thing changes then it can change something else also like here is an example from your book Here it is saying that as health awareness is increasing You will see on YouTube that so many fitness experts have come You will see on Instagram that so many health influencers have come So the health advices that you should eat, exercise, avoid So all these health benefits keep telling you So as its awareness is increasing So with this Related has led to an increase, something else has increased.
Demand for healthy foods has increased, health resorts have increased, gym membership is increasing. So if one thing has changed, then the other thing has changed. One thing is leading change to another. So this is called interrelatedness, everything is related to each other. If one thing changes, then something else will change.
This is called interrelatedness. Point number four, complex. It is very difficult to understand. We call it complex. Business environment is not an easy task.
It is not a child's play. Big managers get payment in crores for this work. So managers are getting paid in crores.
Why? Because understanding business environment is not a child's task. It is not a child's play. It is very complex because it is interrelated. If one thing is there, it will change the other.
Therefore, it is very difficult to understand it is very difficult to comprehend and that is why we call it complex to get point number five other dynamic dynamic to say that the lagata change with our entire it keeps on changing it is not it is not static the static name here static a method to a drop array give but other data yeah true false can you be important marker get along we get false important mark karke chalna ki business environment static hai kya? false business environment is not static it is dynamic point number six aata uncertain uncertain ka makla hai ki future me kya hoga wo pata nahi kab kya ho jaye wo pata nahi koi certainty nahi hai koi guarantee nahi hai kab badal jayega you don't know so it is very difficult to predict in future For example, in the olden days, how phones used to come The phones with QWERTY keypad and number keypad Today, smartphones are coming with touch screen phones But we don't know what will come in the future We never thought that smartphones will come In the olden days, phones with number keypad were there But today, it is happening touch screen phones are happening now what will happen in future we don't know that ok so phone market will change completely so it is uncertain what will happen in future this prediction may be exactly not possible and many businesses due to this they get closed because they cannot predict the market properly they cannot predict the environment properly because environment of business is uncertain and last point which I am discussing here that is of relativity relativity So, in a business environment, there is a different type of product in one place and another type in another place. For example, in your book, it is given that the market of women in saree is very good in India because Indian women wear a lot of sarees.
But if the market of saree is seen in Japan, then it does not work that well. So, the product is the same, the product is the saree and who is wearing it? Women. But what has changed? The market of saree is not the same.
Place has changed If place changes, time changes, situation changes Business environment also changes This is called relative Business environment was different in one place Business environment is different in another place I have discussed 7 points here I have given the same notes points but these 7 points are more important and if you get questions then these 7 points will be there. So this is what you have to do and to remember this you can remember a short cut IDC now people of gen Z you must know what IDC means I don't care leave the U you are. I don't care who you are This is the attitude that works nowadays I don't care who you are IDC you are I for interrelatedness D for dynamic C for complexity IDC interrelatedness dynamic complexity U for uncertain R for relativity You will remember this quickly Whenever you get a question in exam Tell the features I don't care who you are You are Interrelatedness, dynamic, complex Uncertain from U and relative from R So, you have done it The first two Although I have given a lot of case studies here This portion is also important for case studies And this portion is important for true and false Only this one is important for true and false So, you can do all this while marking So, our first part is completed You can go through it from your end now we are moving to a very important part and its name is also important why is it important to understand business environment? why is it important for businesses to understand what is happening around them why is it so important can't business work on its own?
is it important to take care of the things around us? yes it is very important and to remember this I have made a story Listen carefully, you will remember all the points. This is also an important point. There are case studies here too. And direct questions can also come from here.
So we prepare here for direct questions. Listen carefully, keep this story in mind. The story I am going to show you now, keep this story in mind. Remember all the points quickly. First of all, you see in this story, five people are sitting in the office.
Five people are sitting, okay? But one person is standing. His name is Amit.
Okay, for example, his name is Amit. What is Amit doing? There is some noise and noise from outside.
Amit is sitting in the office. So while sitting in the office, what is coming from outside? The sound of noise and noise is coming from outside.
Some noises are coming from outside, some sounds are coming. So what does Amit do? Everyone sits down, but Amit stands up and starts looking at the window. why are people shouting outside so what amit did, see the rest of the people are sitting but amit took the first mover advantage first of all he moved, leaving his group, he moved and when he looks out of the window, he sees that there is a crowd of customers there is a crowd of customers, the crowd is very crowded, people are coming and why are people coming because there will be some problem with their product amit is seeing that this is a very tension thing, all the customers are coming to kill us protest Amit moved first rest of the people stayed only Amit moved and then he saw the crowd and he got the early warning signal early warning signal he saw that customers are coming in a big anger he saw that people are coming to protest so what did he catch he got the early warning signal he understood earlier that something is wrong and And then based on his expectation, based on his experience, he started making strategies. He started seeing what is the problem with his product that why are customers shouting so much?
Why are customers protesting so much? He sat down to make a strategy. See, he is making a strategy. Here is Amit with his laptop and he sat down to make a strategy. He made a strategy, he brought changes, he co-opted the changes that the customers asked him to change.
Listen to the words carefully. First of all, he took the first mover advantage. He took the first mover advantage and saw the early warning signal.
Then he co-opted the change. For that, he needed to make strategy. He needed to make strategy and he made those strategies. And after making the strategy, the focus on the customer was He gave satisfaction to customers.
His attention was on customer's needs. Right from the beginning, he was focused on his customers. Did you understand?
You will learn 4-5 points in a day. Let's see all the points. First important point is first mover advantage.
If you understand your environment, if your parents are in any business, if your parents are in any business and they understand your environment, who is the competitor, who are the customers, what is the new trend in the market, if you understand that, you will take the first mover advantage. I gave an example in the book of Maruti. Maruti saw that people want to buy cars but people don't have much money So they started buying small affordable cars And India took the first mover advantage Today, the whole of India is in the car of Maruti Today, 50% of the cars in India are sold by Maruti That means, out of all the cars you see in India, only 50% are of Maruti Why? Because Maruti took the advantage Already understood that if Indians want to sell cars Not luxury cars, but affordable cars will have to be sold Indians don't buy cars worth 30 lakhs or 1 crore Indians buy cars worth 10 lakhs or so This is called the first mover advantage What did Amit do? First he took the first mover advantage Then he went to the window and saw the early warning signal Next point is early warning signal If you If you are attentive to what is happening around you, you will understand what is going to happen.
You will understand what is going to happen and you will take the early warning signal and make changes. During the time of COVID, everything was closed. The government said that the lockdown would last for two months, but it lasted for a year.
It lasted for a year after saying two months. So many people thought that after two months it will be normal. It didn't go normal, it went on for one year. So those people who caught the early warning signal, they took their businesses online.
They took online at the right time. And those who did not take online, their business was closed. So those who understood this warning, those who understood the COVID, importance how it will impact their business they did their business online and their business are flourishing today number 3 point focus on customer see in our story Amit right from the beginning he was focused on customer what customer needs then only a business will be successful customer needs service Next point is strategy formulation.
Amit was sitting in the laptop and doing strategy formulation. So you have to do strategy formulation. How will you move forward without strategy? If you understand the business environment, market trend, customer's need, competitors'strengths and weaknesses, then you can make a good strategy and move forward. Even if you are right now behind, but if you understand all this, then you will become number one in 5 years.
It will take time but it will be done Coping with the change Amit did it, he saw the customers He made a strategy according to their needs Changed it Businesses last for the same long time That changes Tata Motors is not a modern company, it is a very old company But it is still running today Look at the latest cars of Tata Motors And look at the old cars of Tata Motors There is so much change in it But with time, they changed. Today, Tata Motors is bringing electric vehicles. Did they bring it 30 years ago? Then they used to drive different vehicles.
But with time, they are changing. And that is why these companies are long lasting companies. One last point is public image.
The companies which understand the business environment, long lasting companies, and serve the customers, such companies have good public image. And good image means you will get a lot of relief in the time of getting a loan. because banks see your image, what type of business you do, profit or loss, whether your name is bad in the market, will you pay or not, image is very useful in the market, image perception is very useful in the business market, to get a loan specially, so all this is important, if you understand the business environment, then all the good things will happen with you, if you don't understand the business environment, then you will be in loss, if you understand the story, then what did I tell you in the feature, I don't care who you are. I for interrelatedness, D for dynamic, C for complexity, U for uncertain and R for relative.
So this is the shortcut I told you and the importance we have shown you like a story. Remember it immediately There are proper wordings in notes How to write proper wordings And all the case studies The app link is given below You can register there It is a one time registration You will get the course for that, you will not get anything out of it I take the guarantee of 35 marks You will get 35 marks from the same app content Just do this mark, as I am doing it, just do it Please read the notes once, then we will move ahead Now since we have already seen the definition of business environment we are moving to the next topic and the topic name is dimensions of business environment. How many parts are there in business environment? So basically there are two parts of business environment. One is called micro.
As you can see in the chart, one combo is called micro and second one is called macro Micro is direct, means it is specific It will only affect your business, it doesn't affect the rest of India And macro is general or you can call it indirect It will affect you indirectly, means it will affect other people as well Thank you So this is for everyone, macro is for everyone and it will directly affect you. Micro is specific to you, this will directly affect your business. Now direct is also divided into two parts, some are internal factors. Some of these are internal factors which are related to your organization These are within the organization And some are external factors, external means people outside Outwardly factors But effects are only on you So direct means Micro which affects you And indirect means Macro which affects everyone There are two parts in direct Some are internal And some are external External So now we are going to see these, off late, direct questions come from here, that is, from this part The part I am going to do I have seen the trend, I don't think that case study can be made from here Mostly direct questions are coming from this part from the last few terms So let's see, first of all we are discussing micro In Micro we are discussing internal and external You have to learn minimum 4 internal and external You have to learn minimum 4 external and internal You can also learn 5 external and internal If you learn 5 internal and external then only problem will be solved Listen carefully In internal, which is the internal part of our organization The first thing that will affect our business is our business culture Our business values, beliefs, attitude See, like there is culture in family, you will go to your grandmother's house What is the culture there, you will be kept very lovingly You will be fed night and day, you will not have any work You have to do it, just eat, drink, sleep, have fun. This is the culture of your grandmother's house.
You go to your aunt's house, see there is a different attitude, there is a different value, there is a different culture. Okay, so in the same way, there is a different culture in business. In some business, there is a lot of discipline with respect to time. In some business, late coming, absenteeism, late work submission, there are strict rules with respect to everything.
And there is no such rule anywhere. So the way the business, the culture, the result will be there. Subtitles by the Amara.org community Businesses who show a very strict attitude towards their work, their work is good And businesses who don't care about time, their work is bad So business should be done according to their culture Next is what is the mission and objective of your business?
Means why did you start your business? What was the aim of your business? Elon Musk is an environment friendly person He tries to make sure that the destruction of the environment is low If someone else does the same business, it damages the environment more But he is doing business in such a way that is environment friendly or less destruction So that is the mission and objective of the business.
So that also affects your business. The motive with which you are moving forward will also affect your business. Next comes that how are the top people of your business?
Means are they qualified people or not? Are they responsible people or not? Are they honest people or not?
The top people in any business, the top 12, 15, 20 people So how are they? So, their honesty level, their education level, their qualifications, their responsibilities, their experience, their long term vision will decide how your company or business will run Next is Power Structure There are two types of people in business One is Board of Directors Board of Directors work is to take decisions And the other is Chief Executive Executive work is to work So one is taking decisions And the other is doing the work One is giving orders And the other is doing the work So how the power is distributed between them This also affects the business a lot Power should be properly distributed. If more power goes into one hand, then business will be lost. Then there will be no work.
Both will always fight. This is also very important. The company's image. This also plays a very important role because if your company image is good, you will get loans easily or else you will not get loans If the company image is good, then there will be tie ups in the business, there will be partnerships with other businesses, customers will come If the image is bad, then everything will be a mess and last point is human and other resources human resources means employees how are your staffs?
how much educated staff are you? how much advanced staff are you? how much honest staff are you?
how much dedicated staff are you? and other resources means how are the machines in your factory? old, new, advanced imported How much money you have in your business How many resources you are doing business with This is also a very important role to play To take your business forward All these are internal factors And this is very important You have to learn this immediately Otherwise you will forget it later Read it with notes and do it with notes Let's go to external When I do external I take the example of Lay's This makes it easy to understand Suppose our product is Lay's Potato chips So let's see who are the people who impact the lay from outside Who are the people who impact the lay from outside Number 1 is the customer Why does it impact the customer? Because the business runs on the customer only So if you want to run a successful business So, keep the customers happy, keep the taste good, increase the quantity and this way the people outside will support you Next, let's come to the competitors, the other chip brands of Lays are competitors So, they also impact Lays and our business, how? They can take our share They can take our customers So this is why competitors are very important Next comes suppliers Who are the suppliers for Lays?
The potato seller, farmers The potato seller for Lays Potato suppliers are also important because if they stop the supply, our factory will be closed. If they stop the supply, the chips packet will be closed. So we have to keep a good tie up with them And we don't have to be dependent on one farmer group We have to have multiple options If we have a problem with them, we will buy from someone else So we have to have multiple options with suppliers And who helps us outside?
Market intermediaries, middlemen Who comes between us and our customers? Wholesalers, retailers, agents, transporters, all these people come Without them our product will never reach our customers So they also help us and impact our business Who else helps us? Financers who give us money, banks from where we take loans, institutions from where we take loans, government from where we take money.
So anybody who is financing us, they are also from outside but they are also impacting our business by giving us money. And last point is public. Public means everything except the customer.
Everything except the customer. Like media, like NGO. If they spread any false news about us, our business will be impacted.
Our business will be impacted if they run any wrong news or bad news about our business. The market will be impacted. So these are the factors that affect us only, not the rest of India. This is micro. Some are internal, some are external Off late, there are a lot of direct questions coming from here You have to learn at least 5 points from here You have to learn 5 each from here And I don't expect direct questions from here I don't expect case study Although I have added one case study Just for practice purpose I have added case study in the app But I expect a direct question Next we come to Very very important part And this is macro In short we call it PESTEL PESTEL means P for Political, E for Economic, S for Social, T for Technology and L for Legal In short, PESTEL is Macro Macro means Indirect or General Indirectly, you can say that these 5 factors that you see here PESTEL, Political, Economic, Social, Technological, Legal These 5 factors don't affect you alone It affects everyone, you also get affected indirectly But you didn't give a specific target Micro was specific, it only affected you Some internal and some external but you will be affected Here you will be affected along with other people Everyone will get affected and since you are also there you will also get affected indirectly Now this is important Now I will explain the meaning of all this You have to learn the components, how many components you have to learn?
Any three What are the components? What are the components? So, it is just a learning, there is nothing to explain in it.
It is given in notes, for now I will explain the meaning, but mainly you have to focus on the component. Meaning will also be done by writing one line. Listen carefully. First of all, who is the political force? Okay, case study is very important from here I can't even tell you how important it is I think I have made case study on all points All five It is very important Okay and component is very important you can ask in case study also and component is very important these two things you should understand from here first of all, who is called political let me explain you the meaning political means where you are doing management So, where it is about managing the public, that is called as political Where it is about government, political parties, and public related policies, that is called as politics It is important for identification In case study, you will be asked to identify who is being talked about How will you identify?
If it is about government, then it is called as political If it is about a political party, then it is called as political If it is about a political issue, then it is called as political It is related to public affairs Next is economic, where we talk about economic factors Like factors of production, distribution of wealth Inflation, deflation, demand, supply, the chapters of eco When we talk about balance of payment, government budgets, etc So remember the name of your chapters of eco book It will help you Then comes social When it comes to society When it comes to people Okay What kind of food people are eating What kind of language people are speaking What kind of clothes people are wearing What kind of products people are buying It is about people's choices We are talking about people at large and their choices. We will say that this is a social environment. The kind of religion they belong to, the kind of language they speak, the kind of food they eat, the kind of clothes they wear, all this is social. The whole is public focus. Technology relates to the state of technology means the place where you are doing business state means condition in which condition is technology like in Japan technology is very advanced Technology in villages is very backward So we are talking about the state and condition of technology When it will be related to technology, we will say this is technological environment Remember the components, this is not given in the book Or it might have been mentioned in the new book It was not mentioned in the previous book, I have put it here Legal, when it will be related to law and regulation We call it legal environment fines, penalties, imprisonment, etc. when we talk about rules and regulations we will then talk about legal environment if there is a law mentioned in case study we will call it legal environment remember the components do it 3 times and do the case study these are the two important things Alright, now we come to the last topic of this chapter and that is SWOT analysis.
So here you can see that a short form is written S for strength, W for weakness, O for opportunity and T for threat So, we will discuss about these four names First of all, these first two, strength and weakness are our internal elements, this is the inside of our business if it is an advantage, means there is something good in our business like our staff is very advanced, our staff is very skillful our staff is very dedicated, then it becomes our strength weakness, any disadvantage in our business like in our factory, old machines are used So this is our weakness If there is an internal disadvantage then we call it weakness If there is an internal advantage then we call it strength Next two are opportunity and threat These are external These come from outside These are external, if there is any good news from outside, like government banned foreign companies It would be good for us, we are Indian people, we will do business here, foreign people will stop coming and now they will buy our product External good news is opportunity and external bad news is threat If there is any bad news from outside, like till now we were doing business, suddenly three competitors came in the same area. Oh brother, three people came from outside, doing business in our place, this is a threat. So when it comes to our business, it is called strength or weakness When it comes to outside our business, it is called opportunity or threat I have told you this in the chart form, but if you read the notes, there is a proper answer in the notes So you read from the notes, I will tell you one thing that why do you do SWOT analysis? Why is SWOT analysis done? To make a strategy, it is written in the first line It is helpful in the formulation of effective strategy So you should know your strengths, you should know your weaknesses You should know what opportunity and threat is coming from outside Then only you can make a good strategy So that's why we do SWOT analysis You are also taking class 12 exam So do your SWOT analysis Find out what are your strengths and weaknesses What are the opportunities and threats coming from outside And after that make a good plan for your 12 months So this is basically SWOT analysis.
So this was first chapter, I hope you understood it very well. Our videos will be coming in almost 10-15 days. If you liked this video, please like it and share your feedback in the comments How are you liking this video?
If you have any suggestions, I am open to it You can read the notes in the description box below You don't have to read any other book Any other notes are given in tuition But I am saying that my book is sufficient You don't have to do anything more than this I had asked some important questions last year also I had already uploaded it in the app and I had also told you some things openly As you can see, section B and C were included in the comments The entire section B and C, which was in Feb 2024 15th Feb was the exam for commerce The entire section B and C were included in the comments And I am telling you that do what I am doing in the app From here, you are covering the chapter, YouTube is general But if you want to do very well, if you want to get all those exam related strategies, you are most welcome in my app. You can go there and register one time and you will have your validity for 12 months. You can attend it.
I guarantee you will benefit a lot. It happened to the previous batch and it happened to the previous batch as well. And now it's your turn.
You did well in this chapter and we will meet in the next. You can join me on Instagram, the link is given below Thank you so much everyone and we will meet very soon