Question

Identify one environmental factor or risk that affects the decision-making opportunities within your organization. Provide a brief description of the concerns and potential solutions for addressing the concerns or risks. Are there financial requirements that must be considered when processing decisions within a company?

Answer 1

A business organization requires proper environment for accelerating and growth. Environmental factors are political environment, economic environment, demographic environment, cultural environment, and infrastructural environment. All these are important factors.

Suppose the political environment is taken for discussion. This includes a stable government and its business-friendly policies like quick registration, relaxation of tax, financial facilities, etc. If these are conducive, businesses could be promoted there.

If there is an unrest political environment, such as frequent change of government, today’s investment in business there may not be fruitful tomorrow. Today’s lower tax rates may be offset by tomorrow’s higher tax rates, since the new government may impose higher taxes. If this happens the decision-making may be affected, since doing business there may not be profitable.

Solution:

One of the best solutions is to make an alternative market, so that the business can never be stopped. If a market is politically unrest, the scale of business could be minimized there and then the alternative market could be explored.

Financial requirement:

There may be an additional financial requirement in order to switch to that alternative market; but, this amount would not be so high and would be very low compare to the loss arises out of the business carrying on unrest political environment.