how business environment influences business management?
Answer Hello Monika This is a good question: many companies are not aware of changes in their environment and therefore miss opportunities or even jeopardize their own survival. Changes in the business environment may have a major impact on the strategy of a company. If these changes are not “seen” in time, they could lead to serious problems. Example: the present financial crisis originated in the USA because the American economy was declining, which meant that many owners of houses could no longer pay for the mortgage on their house. This meant that some very big financial institutions (such as Citibank, UBS, Bear Stearns ….) which had lend money to these home owners got into liqudity problems themselves. These companies had not foreseen the consequences of a recession in the US and are therefore facing major losses and even bankruptcy Example: Internet allowed Dell/ Ebay to sell computers and other articles on line. As they were the first to see this opportunity, they have been ab
