Question

"The understanding of business environment helps the manager to identify 'threats'. What is meant by 'threats' here ?

Answer 1

Answer:

In the given context, threat refers to the dynamic external environmental trends and all other changes that are likely to affect the business.

The external environmental trends such as technological improvements, increase in competition, etc. are highly flexible and keep changing. It is uncertain as the future changes can never be predicted accurately.

Answer 2

Explanation:

An organization is exposed to external environment, which is dynamic in nature. Threats are anything from an organization's external environment that can adversely affect its performance or achievement of goals.