Question

Organizational threats are an environmental factor that can hinder an organization's ability to achieve a competitive advantage. For example, managers may realize that the government is about to place restrictions on exports, which will limit the company's ability to sell its products overseas (which will in turn greatly reduce its profits).

True / False.

Answer 1

Answer: True

Explanation: Threats are negative influences or vices, which cause

disturbance to the productivity of an organization, it's reputation and integrity. Examples of common threats faced by an organizations are

1. Security threats

2. Government restrictions

Government restrictions earlier this year the US placed a restriction on China this restriction greatly affected one of China's best mobile phone makers Huawei which cost them a loss running into billions of dollars in income.

Answer 2

True

Step-by-step explanation:

Every organization has an internal and external environment , in order for the organization to be successful, it is important that it scans its environment regularly to assess its developments and understand factors that can contribute to its success.

Environmental scanning is the identification of opportunities and threats affecting the business for making strategic business decisions, as part of the environmental scanning process, the organization collects information regarding its environment and analyze it to forecast the impact of changes in the environment.