Business To Business Essay

1890 Words8 Pages
the business environment The uncertainty surrounding small businesses including heightened environmental turbulence are due to pressures from economic restructuring, increased competition, government regulations and advancement in technology. Covin and Slevin (1989) mention that lack of adequate resources and managerial decisions made poorly lead to small businesses vulnerability to environmental influences. The authors also mention that hostility is another environmental aspect that poses a threat to the feasibility of small business entities. Hazardous industrial surroundings, excessive competition, severe, devastating business conditions and the lack of available business niches are what characterize hostility. On the other hand, the high level of generosity and wealth available through marketing and investment opportunities are the characters of non-hostile environments (p. 75). Porter (1980) argues that creativity and diligence are what brings about differences within the business environment. A prediction by Ireland et al. (1987) is that in order to gain a competitive edge over other businesses, firms will diversify in their strengths in various divisions of industry. A study conducted by Covin and Slevin (1989) on the most successful strategies that may be implemented by small business corporations in hostile environments discovered that the institutions’ procedures and business responses varied and in some cases shaped the strategies of a business. Competitive strategies and business performance: The ability of a firm to select and put into practice an effective business policy is what keeps them apart from competitors and increases the business’ ability to survive within the environment. Implementing different marketing strategies such as low cost high quality and service products and competitive schemes such as product branding, technology and

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