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QUESTION
The Euro crisis will have a major impact on the Mauritian economy. Many businesses in Mauritius depend on European countries for the exportation of their products and services. 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 example clearly shows that business organizations are open systems and hence they are impacted by changes in the local and international business environment. Nowadays managers have to be proactive and hence they should be able to forecast changes in the business environment and prepare the organization to deal with these changes.
(a) Taking into consideration the above statement, explain what are the main components of the external business environment by providing suitable examples
(b) Explain how good people management can help an organization to be competitive
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