Question

HOW CAN THE BUSINESS BE CONSTRAINED BY THE ENVIRONMENT

Answer 1

A business can be constrained by the environment in which it functions. There are many factors which can limit its strategy. Some of them are:

1. Competition with other businesses.

2. Political conditions.

3. Social and cultural expectations.

4. Legal requirements.

5.Technological requirements - For example, what the business can produce and sell or how it can operate depends on the technology that is available for it.

6. Economic and external factors.