‘Every change in the political and legal environment creates an adjustment problem for the marketers’ – as a budding manager what is your opinion about this statement and suggest a suitable strategy to adopt successful and smooth running of your business.
Answers
Answer:
Every change in politics and legal environment creates a need for adjustable strategies and models of the business. When there are some new laws applied in the market, at that moment if any business activity goes out of the prescribed rules of the law, then that has to be terminated.
Explanation:
When there are changes made to a business structure of operation, at that moment many crucial managerial decisions are taken for the new actions to be performed in a completely new business model.
Answer:
This is because during political change and legal price flooring and ceiling that the government put on the market, the market needs some time to adjust supply and demand. And due to short run change prices are sticky so to adjust the manager needs to recheck it’s production technology and try to reduce labor; and the short run cost is reduced by changing the variable cost.