CSEET · Economic and Business Environment · Business Environment
Which of the following is a feature of business environment that makes it hard for managers to forecast future conditions accurately, yet requires them to adapt strategy continuously?
Business environment is dynamic and uncertain: its elements keep changing, often unpredictably, which makes forecasting hard and forces managers to adapt strategy. It is not fixed, not controllable by one firm, and not identical across countries.
- ABusiness environment is fixed and unchanging, but uncertain only in the short run
- BBusiness environment is dynamic and uncertain, as it keeps changing in ways that are often unpredictableCorrect
- CBusiness environment is entirely controllable by the firm
- DBusiness environment is the same in every country
Explanation
Technology, tastes, policies and competition keep changing, often unpredictably, so forecasting is difficult and strategy needs adjusting. The environment is largely uncontrollable by a single firm and differs across countries, so the other options fail.
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