Question

Very Short Answer Question:
"Companies that fail to adopt to their environment are unlikely to survive in long run."

Discuss with an example.

Answer 1

Yes, the above statement is correct. Since business environment is dynamic in nature in the sense that consumer's tastes and preferences, technology, political conditions, etc., change continuously, thus it is important for companies to adopt to their environment. Otherwise companies will not survive in long run. In this regard, understanding of business environment is of vital importance for successful functioning of an organisation.