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Identify and justify with examples of any two components of business environment?
Anonymous
Oct 23, 2023
Identify and justify with examples of any two components of business environment?
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ChatGPT
Oct 23, 2023
Two components of the business environment are:
1. Economic Environment: The economic environment refers to the overall economic conditions and factors that can impact a business. This includes factors such as economic growth, inflation, interest rates, exchange rates, and government policies. The economic environment can have a significant impact on a business's profitability and success.
Example: During a recession, consumer spending tends to decrease, leading to a decline in sales for businesses. For example, during the global financial crisis in 2008, many businesses experienced a decrease in demand for their products or services as consumers tightened their budgets. This economic environment forced businesses to adapt their strategies, such as reducing costs or diversifying into new markets, to survive the challenging economic conditions.
2. Technological Environment: The technological environment refers to the advancements and innovations in technology that can impact a business. This includes factors such as the availability of new technologies, the rate of technological change, and the impact of technology on business operations and processes.
Example: The rise of e-commerce and online shopping has significantly impacted traditional brick-and-mortar retailers. Companies like Amazon have disrupted the retail industry by leveraging technology to offer convenience, competitive pricing, and a wide range of products. This technological environment has forced traditional retailers to adapt by investing in online platforms, improving their supply chain management, and enhancing the overall customer experience.
In both examples, the identified components of the business environment (economic and technological) have had a direct impact on businesses, requiring them to adapt their strategies and operations to remain competitive and successful.
1. Economic Environment: The economic environment refers to the overall economic conditions and factors that can impact a business. This includes factors such as economic growth, inflation, interest rates, exchange rates, and government policies. The economic environment can have a significant impact on a business's profitability and success.
Example: During a recession, consumer spending tends to decrease, leading to a decline in sales for businesses. For example, during the global financial crisis in 2008, many businesses experienced a decrease in demand for their products or services as consumers tightened their budgets. This economic environment forced businesses to adapt their strategies, such as reducing costs or diversifying into new markets, to survive the challenging economic conditions.
2. Technological Environment: The technological environment refers to the advancements and innovations in technology that can impact a business. This includes factors such as the availability of new technologies, the rate of technological change, and the impact of technology on business operations and processes.
Example: The rise of e-commerce and online shopping has significantly impacted traditional brick-and-mortar retailers. Companies like Amazon have disrupted the retail industry by leveraging technology to offer convenience, competitive pricing, and a wide range of products. This technological environment has forced traditional retailers to adapt by investing in online platforms, improving their supply chain management, and enhancing the overall customer experience.
In both examples, the identified components of the business environment (economic and technological) have had a direct impact on businesses, requiring them to adapt their strategies and operations to remain competitive and successful.
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Kassa Fufa
Oct 23, 2023
Assessing the impact of Core Banking on Customer Satisfaction in
Commercial Bank of Ethiopia (in a case of Bishoftu Branch) �
Commercial Bank of Ethiopia (in a case of Bishoftu Branch) �
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Kassa Fufa
Oct 23, 2023
Make research proposal under topic Assessing the impact of Core Banking on Customer Satisfaction in
Siinqee Banks.c(in a case of Bishoftu Branch) �
Siinqee Banks.c(in a case of Bishoftu Branch) �
0
Kassa Fufa
Oct 23, 2023
Make research proposal under topic Assessing the impact of Core Banking on Customer Satisfaction in
Commercial Bank of Ethiopia (in a case of Bishoftu Branch) �
Commercial Bank of Ethiopia (in a case of Bishoftu Branch) �
0
