HELP
Write two paragraphs why strategies have implications relative to
business risk.
The capacity for financial and organizational challenges in the business environment entails company threats. All companies face a kind of corporate danger. Because of the low availability of capital or resources, small firms are often more sensitive to business risk. In the economic market there are different types of business risk. Each vulnerability has different consequences for the owners of companies to resolve. Overall economic conditions may also result in business risk. Changes in public monetary or fiscal policy are often the cause of more risky business situations.
The level of competition on the economic market results in strategic business risks. Increased competition will reduce the market share and render a business less competitive. Business owners also need to spend more money and time informing consumers why their products are superior to the product of a competitor. Larger corporations can withstand competition higher than smaller corporate organizations. Small enterprises can also fight to maintain an adequate economic resource supply. Economic resources are the raw materials, labour and other products that companies have to generate.
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HELP Write two paragraphs why strategies have implications relative to business risk.
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