"Businesses are built on relationships." What are the implications of this idea for managing the external environment?
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What this idea implies is that managers must actively involve themselves in the external environment. They must be proactive and do things like networking with people who are important to their firm or who may become important to their firm.
When we say that businesses are built on relationships, we mean that it is necessary for people in one firm to have good relations with people in certain other firms. This is particularly true for firms up and down your own supply chain. Managers in a firm need to cultivate good relationships with those who supply their firm and with those to whom their firm sells. By cultivating these relationships, they make it easier to do business with these other firms.
Because business is built on relationships, it is important for managers to actively network among people in the external environment.
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