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Managing the External Environment: A Reaction Paper The report that was presented by the reporter, Arlo Ramos was indeed very comprehensive and informative. I agreed on almost all points on the report especially on how external environment will greatly affect the trend of the business, how these external factors play a very important role in deciding the future of the business and its complexity representing both threats and challenges if not mitigated properly and even potential possibilities if handled the right way.
Having said this in the report, I ould like to shed more light to the emerging importance of political-legal environment as a make or break element in a competitive business firm. As stated in the report, one of the areas that is equally as significant if not more significant today is the political-legal factor affecting the business because it represents serious threats to its stability and development. In todays times for instance, terrorism has gained its serious political and hazardous standing in the international political arena.
The Uinted States along with its political counterparts ad made serious efforts in battling terrorism and its adverse effects in the world as a whole, most especially in the economical way. In the history, there are a lot of terrorist attacks that had greatly affected so many big companies and countries directly and indirectly. The heart breaking September 11 attack of the US has greatly affect all of the businesses not only in the US but also around the globe.
Therefore, to answer this arising and constant threat, there is a new market leader emerging to provide a worldwide book of War and Terrorism insurance cover, otherwise famous as Lloyd’s of London. This insurance cover will nclude the physical loss or damage to residential and commerical establishments, insurance cover for business interruption and terrorism third party liability and employer’s liability as well.
This only goes to show that indeed the external environment has a say as to what and where business firms behave. As to the issue of terrorism, and the emergence of Lloyd’s of London as a terrorism insurance company, we can see the evolution of businesses’ behaviour in the light of the emerging threats that may hamper the development and progress of companies worldwide. Reaction Paper on Management Principles By Patemang