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Question : Case Study 1:

ABC Ltd. is a well-established manufacturing company that has been operating for several years. Recently, the company faced a decline in sales due to the economic recession in the country.

Q :- Why is understanding the business environment important for ABC Ltd.?
 

 

Option 1: To ensure complete control over external factors

Option 2: To analyze the internal structure of the company

Option 3: To identify potential opportunities and threats in the market

 

Option 4: To determine the pricing strategy for existing products


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: To identify potential opportunities and threats in the market


Solution : The correct answer is (C) To identify potential opportunities and threats in the market

Understanding the business environment is important for ABC Ltd. (and for any business) because it helps in identifying potential opportunities and threats in the market. By being aware of external factors, such as economic conditions, competition, and market trends, ABC Ltd. can make informed decisions and adapt its strategies to capitalize on opportunities and mitigate potential threats. This understanding allows the company to be more responsive and better prepared to navigate the challenges and changes in the market.

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