A business's competitive environment describes:
A)how a business competes for critical resources.
B)how a business is affected by the overall economy.
C)how a business uses its business model to create a competitive advantage.
D)how a business makes its product.

Question

Quizplus · Accepted Answer

A business's competitive environment refers to the context in which it competes for resources such as customers, suppliers, employees, and financial resources. It includes factors such as the level of competition, the bargaining power of suppliers and customers, and the threat of new entrants or substitutes.

B, C, and D are not correct as they do not fully capture the concept of a competitive environment. B refers to the broader economic conditions rather than specifically the competitive factors affecting the business. C refers to a business's own strategic choices rather than the external factors impacting its competition. D specifically refers to the production process of a product, which is only one small aspect of a business's overall competitive environment.

A Business's Competitive Environment Describes