With Jim king discusses the factors involved in not using wholesale distributors

Question

With Jim king discusses the factors involved in not using wholesale distributors Cisco or direct sales to the consumer which category of external environment factors is he discussing

With Jim king discusses the factors involved in not using wholesale distributors Cisco or direct sales to the consumer which category of external environment factors is he discussing

With Jim king discusses the factors involved in not using wholesale distributors Cisco or direct sales to the consumer which category of external environment factors is he discussing

Explanation / Answer

External environment to a business consists of the factors which impact the business but raised by outside of the business unit. Example for this are:

As the question is about focusing on sales and distribution of Cisco product, by own, direct sales to customers without intermediaries, it comes under Economic factors only. Because, it effects the cost to the firm. Appointing middlemen like distributors and wholesalers will cost to the firm. Hence, if Cisco offers the products directly to the customers, without any middlemen, it helps them to minimize some cost. At the same time they can interact with the customers directly, they closely observe the expectations of the customers and plan business activities based on these.

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