Question

There are various environments in which businesses operate (social, technological, economic, legal, global, and market). Based on what you have learned about the various business environments, which environment, in your opinion, has the greatest impact on business operations?

Answer 1

In my opinion, economic environment has the greatest impact on business operations.

Any for-profit organization's primary strategic objective is to earn revenue and profits. Hence, to run a firm it should consider the economic environment and how its business will compete, sustain economically and earn profits.

Other environment which is must needed from regulatory standpoint is legal; as the firm grows the compliance requirements also increase.

Social and market environments become important as the firm starts creating an impact on multiple stakeholders.

Finally, technological environment helps the firm's business in enabling it to grow multi-fold.