why is it said that business environment is a relative concept?
Answers
Business environment refers to all the external forces such as economic, social, political, technological or legal that affects the performance of a business organisation. In other words, everything that is outside the purview of an organisation but affects its performance composes business environment. Business environment is relative in nature. It differs from region to region. For example, political conditions, religious beliefs, government rules and policies differ from one region to another.
Answer:
Business environment is a relative concept as it is highly affected by its environmental factors.
Explanation:
The phrase "business environment" refers to the whole of all forces, factors, and institutions that are not under the direct control of any one particular business firm yet have a considerable impact on how well those businesses operate and develop.
Initially, the business environment was exclusively thought of in terms of external factors. However, internal influences also have an impact on company policies and activities in the modern world. Because both internal and external factors have an impact on business, they are both essential components of the business environment.
Any business' ability to adapt to changing environmental conditions and its inherent abilities (physical, financial, human, and other resources) determine its potential to survive and succeed. Understanding the changes taking place in the environment and how they affect business organisations is crucial.
Businesses that are aware of their surroundings and prepared to adjust to environmental changes will succeed.
On the other hand, businesses that don't adapt to their surroundings aren't going to last very long.