Question

'Environment provides both constraints and opportunities'. Comment.

Answer 1

Business environment provides both constraints and opportunities. Some of the constraints are economic conditions, customs, government regulations, availability of natural resources etc. Inspite of many initiatives, FDI is not picking up in India due to political and bureaucratic hurdles.

On the other hand, environment also offers various opportunities which includes changing needs of customers, technological advances etc. e.g. the growing demand for ACs has attracted many new players, domestic (Godrej, Kirloskar) as well as multinationals (LG Electronics) to this industry.