Explain five ways in which external business environment may negatively affect business operations.
Answer Text: -Obsolete technology leads to cost of production-Changing demographic features leads to irrelevant products-Political instability leads to frequent stoppage or closure of the firm-Worsening economic environment leads to reduced demand for products.-Change in laws leads to firms operations being illegal and may stop business operations-poor relations with suppliers lead to unfavorable terms and high costs-Failure to analyze competitors strategies results in losing market share
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