The environment within which a business firm operates is highly dynamic and complex
Answers
Answer:
The given statement is true. Following is its justification.
Explanation:
The environment within which a business operates is indeed a highly dynamic and complex one in nature.
This is so because businesses face an up and down situation depending on various factors, such as season, technological advancements, customer taste and fashion and cost of goods.
Dynamic is something that changes, it varies and is flexible. Businesses are changing. Their environment is changing and varies from supplier nature to customer nature to its stakeholders' interests. It is complex to understand because all functions are interlinked. One action or decision will cause a chain reaction, like a domino affect in multiple areas of that business. For example, you change the price, your entire customer service strategy, marketing and advertisement techniques will change.
There are complex layers to be understood.