Answer to Question #165149 in Management for Asare Owusu Isaac

Question

MGT111

Assignment 5

1. "Business is build on relationship". What do you think this statement means? What are the implications of managing the external environment?

Answer 1

"Business is build on relationship". What do you think this statement means? What are the implications of managing the external environment?

The statement ‘Business is built on a relationship’ means that in a business world that is more connected than ever before, businesses are ever-increasingly built on relationships. Having good relationships with employees, service providers, suppliers, and stakeholders can make the difference between the success and failure of a business.

For instance, if a business has a good relationship with its suppliers, and both parties have shown their loyalty to one another, the business will get the best possible price on raw materials. Therefore, the stronger the relationships that a business has with its suppliers and customers, the better equipped it is to handle the challenges that the business environment throw at it.

External environment refers to all outside influences and factors that affect a business’s operation. Examples of factors in the external environment include the price o raw materials, global crises like Covid – 19 and the interaction of competitors. Managing the external environment ensures that bot the directly interactive and indirectly interactive factors function collaboratively to achieve the business’s objectives.

For example, one of the most significant technological dimensions of the last several decades has been the increasing availability and affordability of management information systems (MIS). Through these systems, managers have access to information that can improve the way they operate and manage their businesses.