'A business does not function in a vacuum. Like any other organic entity, it is in constant interaction with, and duly impacted by, its environment.' Comment?

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It would be very hard to dispute this statement since it is quite clearly true.

A business is constantly interacting with its environment.  It may have to change its marketing strategy, for example, as new competitors enter its market or as its customers' tastes change.  The business may have to find ways to reduce its costs if competitors enter the market or if the price of its inputs go up.  The business may have to deal with new regulations that are put in place as governments change.  All of these are things that are part of the business's environment and which impact it in significant ways.

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