Assertion: If a company is sensitive to the external environment, it will come out with new products and services to meet the requirements of the customers.
Reasoning: Coming out with new products and services build the image or reputation of the firm in the eyes of the general public.
Reasoning: Coming out with new products and services build the image or reputation of the firm in the eyes of the general public.
Answer & explanation
Correct answer: option 2
Image building: If a company is sensitive to the external environment, it will come out with new products and services to meet the requirements of the customers. This would build the image or reputation of the firm in the eyes of the general public. For example, call–radio taxis with additional features like GPS systems, online booking etc.