Question

Alfa Graphics Ltd. was a reputed Indian company which had been in business for many years. The Chief Executive Officer of the company, Rohit Gupta, always believed in understanding the business environment as well as responding and adapting to it. When he found that a foreign multinational company, Leno Graphics, is entering the Indian market with new substitutes, he prepared to meet this threat by reducing cost and creating good quality and aesthetically appealing layouts, advertisements, logos, etc. As a result, Alfa Graphics Ltd. was not only able to retain its own customers, but also started getting new projects. The point of importance of Business Environment discussed above is:

• A. Tapping useful resources.
• B. Identifying threats and early warning signals.
• C. Improving performance.
• D. Identifying opportunities and getting first mover advantage.

Answer 1

The Correct Option is B

In the given case, Alfa Graphics Ltd. identified the potential threat from the multinational company, Leno Graphics, entering the Indian market. The CEO adapted to the business environment by reducing costs and improving product quality, thereby addressing the threat before it could have a significant impact. This highlights the importance of identifying potential threats and acting on early warning signals to maintain a competitive edge. Thus, the correct answer is Identifying threats and early warning signals