Business activities, in general, were formerly regarded as problem for the environmental movement, but the two are now increasingly complementary. There has been an increase in the use of green approach to market products.
Explain in FOUR (4) ways how physical environmental conditions are important for strategic planning. [10marks]
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Physical environmental conditions are important for strategic planning.
i. Resource inputs. Managing physical resources successfully (e.g. oil companies, mining companies) is a good source of profits.
ii. Logistics. The physical environment presents logistical problems or opportunities to organisations. Proximity to road and rail links can be a reason for sitting a warehouse in a particular area.
iii. Government. The physical environment is under the control of other organisations.
1. Local authority town planning departments can influence where a building and necessary infrastructure can be sited.
2. Governments can set regulation about some of the organization’s environmental interactions.
iv. Disasters. In some countries, the physical environment can pose a major ‘threat’ to organisations.