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Why is the degree of uncertainty in an organisation’s environment so important for business strategy?
Explain the segments into which the business environment can be analysed?
Give an example of how government as segment of the environment may be regarded as an aid to business and another example where government may be regarded as an impediment to business.
Greater uncertainty in an organisation’s environment makes planning for the future more difficult and risky.
The basic environmental segments would be political, economic, social and technological in the sense of the wide business environment.
Government could be helpful as a potential customer for some businesses goods and services. It could also arguably use economic policies (fiscal and monetary) to try to create a stable economic environment in which for business to operate. Disadvantages could be too high a level of taxation and/or regulation of business and economic decisions being taken on the basis of political expediency.
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