Question

In the context of the internal and external forces that affect business, which of the following is a difference between stable environments and dynamic environments?

Answer 1

Answer:

The major difference between a stable and a dynamic environment is that in a stable environment, the change is slow so the key decision makers in that company have time to assess and react effectively to the situation, while in a dynamic environment, change is rapid and thus the managers have to react in a quick manner in their response.

Explanation:

A business is an activity that is pursued for commercial purposes. In the business environment, there are factors that contribute towards how the business operates. These factors can be divided into two broad factors, namely; internal and external factors or forces.

1. Internal forces

Refers to anything withing the business, whether tangible or intangible that is under the control of the business. When a force is beneficial to a company it is a strength, however, when it is detrimental to the company it is a weakness.

2. External forces

External forces are factors outside the business that the business has no control over.

A business environment refers to all the internal and external forces that affect the business. A business environment can either be stable or dynamic. The major difference between a stable and a dynamic environment is that in a stable environment, the change is slow so the key decision makers in that company have time to assess and react effectively the situation while in a dynamic environment, change is rapid and thus the managers have to react in a quick manner in their response.

Internal forces can occur in a stable or a dynamic environments depending on a range of factors. The same holds true for external forces.