Problem:

Globalisation and trade liberalization are having a lot of impact on the way businesses are being managed today. The business environment has become very dynamic. In such circumstances, managers have to be more proactive in dealing with the different impacts on the organization so as to ensure their survival.

(a) What are the different components of the external business environment?

(b) According to the omnipotent view, managers must be able to deal with the external environment. In this context, explain how managers can deal with the various components of the external environment.