A greeting card making company in USA is flourishing well. The company makes cards for 3 different occasions. During the time of Christmas and New Year, the production and selling of cards reaches a new high. The company exists in an environment which is democratic and there are rules for every business firm. Once you step out of the company there are customers, 11 competitors, government authority and almost everything one can think of. The company appears to have a promising future. However the firm will have to understand the close relationship between various elements of the business environment around it.
i) In the above case which dimension of business environment is highlighted?
ii) Which features of business environment are highlighted in the above case? Explain them.
Answers
Answer:
i) The dimension of the business environment highlighted in the above case is the external environment.
ii) The following features of the business environment are highlighted in the above case:
Industry: The company is in the greeting card making industry and experiences high demand during the Christmas and New Year holidays.
Competitors: The company has 11 competitors in the industry.
Customers: The company serves customers who purchase their cards for different occasions.
Government regulations: The company operates in a democratic environment where there are rules for every business firm.
Economic conditions: The company is flourishing well, indicating positive economic conditions.
These elements of the business environment are closely related to the company's performance and its future prospects, the firm will have to understand the close relationship between these elements in order to make effective strategic decisions
Explanation: