Problem:
The Euro crisis will enfold a major impact on Mauritian economy. Many businesses in Mauritius depend on European countries for the exportation of their services and products. One of the sectors that will be affected negatively will be the tourism sector since they depend on European tourists for a large part of their revenue. This instance clearly shows that business organizations are open systems and hence they are impacted by changes in local and international business environment. Nowadays managers have to be proactive and hence they should be able to forecast alters in the business environment and prepare the organization to deal with these alters.
Required:
Question 1: Taking in consideration the above proclamation, illustrate out what are the main elements of external business environment by providing appropriate examples.
Question 2: Illustrate out how good people management can aid an organization to be competitive.