War Is Good For Business Environment Analysis

War; there is a lot of speculation about what it is actually good for. But what actually constitutes as a war? Is it the number of deaths? Above a threshold of 1,000, few doubt a war is going on. A threshold of 100 can be more divisive. In keeping the “troubles” in Northern Ireland from becoming a war, for example, such a threshold fits the views of the British public—but not that of Northern Irish paramilitaries. (Economist, 2013)
Fernando (2011) clarifies that for a business to primarily succeed, it must interact with its environment. However there is a little impact which a firm can have on its environment as the forces which controls the environment is beyond its control. The firm success can be determine on how it identifies and adapts …show more content…
This is because with many unskilled workers within the population businesses may have trouble establishing, and employing capable staff. If the staff is unskilled the business may have to train them which also increases expenses, this large initial investment may not be seen as worthwhile by the employer. Which could be bad for business in the sense the customer may have to pay a higher price for a service or product because, as there is lower competitors the few firms may set the price relatively high, thus because of this there is no price competition. However, this is very specific about just Mozambique, which had when this article was published a population of approximately sixteen million. Therefore the effects of war may not have the same effects in a more established country with a higher population such as France, in which a large majority of the population is well …show more content…
But it can also be a source of conflicts that does just bring death and more problems, without any good, as we discussed it in the second part. That’s why we can think about a new point. What if the Russian conflict with Ukraine begins a new cold war? Will the worldwide economy be affected by this tension? Six main points will arise if so. Firstly the European economy gets worse, secondly; energy prices will rise, and this obviously is a lot harsher on businesses as the fixed costs will rise. Thirdly the Russian economy declines. Fourthly; there will be an increase in spending on defence. Fifthly; there will be “more quantitative easing”. Finally the strategic economies get support. (Lynn, 2014). These points Lynn has proposed however, are merely theoretical, therefore because of this we cannot assume that if such a situation did arise, that these six factors would actually take