Question

Mr. Ambani’s father has a good business of Iron and Steel. He wants to go to U.S.A. for M.B.A., but his father wants that he should join the business. On the basis of emerging trends, do you think that Mr. Ambani should send his son to the U.S.A. ? Give any two reasons in support of your answer.

Answer 1

Yes, I think that Mr. Ambani should send his son to U.S.A. as it will provide the understanding of environmental content of a business which has the following benefits.

(a) Helps in the identification of threats and early warning signals. Threats refer to the changes in external environment that will have an adverse effect on the firm’s performance. A good knowledge and understanding of the business environment enables managers to identify the various threats and serve as an early warning signal. In fact, they not merely recognize and ward off threats; they convert threats into opportunities. 

(b) Source of intellectual stimulation/Improvement in performance. Environmental scanning provides intellectual stimulation to planners in their decision making. The executive should also lead by empowering people. They have to come forward to make every possible change and transformation in their corporations.