Practicing Success
How can environmental awareness benefit managers of an organization? |
By creating more threats By reducing opportunities By serving as an early warning signal for threats By limiting the firm's performance |
By serving as an early warning signal for threats |
Threats refer to the external environment trends and changes that will hinder a firm’s performance. Besides opportunities, the environment happens to be the source of many threats. Environmental awareness can help managers to identify various threats on time and serve as an early warning signal. For example, if an Indian firm finds that a foreign multinational is entering the Indian market with new substitutes, it should act as a warning signal. On the basis of this information, the Indian firms can prepare themselves to meet the threat by adopting such measures as improving the quality of the product, reducing cost of the production, engaging in aggressive advertising, and so on. |