Question

Organizational threats are an environmental factor that can hinder an organization's ability to achieve a competitive advantage. For example, managers may realize that the government is about to place restrictions on exports, which will limit the company's ability to sell its products overseas (which will in turn greatly reduce its profits). â—‹ True â—‹ False

Answer 1

Answer: True

Explanation:

Organizational threats are the external factors which will affect the business operations of the company. These threats can be caused by the policies and framework in the country, laws, competitors, market etc. They affect the profitability of the company by hindering the growth and development of the company.

The organizations have to plan their activities in accordance to protect themselves from the hazards of the environment factors and threats. The environmental factors can be macro or micro factors. Macro are outside the company while micro factors are within the company.