How business is affected by crisis.

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Crisis in business environments can definitely happen in various ways, however for us to know how businesses are being affected by crisis we need to first of all consider the type of crisis. We have four main type of crisis which are social crisis economic crisis political crisis and natural crisis. When we talk about social crisis in business we are mainly referring to the lack of social amenities and infrastructural concepts that can totally accelerate the pace in which business activities are being carried out in respective business organisations. Economic crisis in business refers to the situation in which cost of production and cost of business management is being increased as a result of economic factors like recession, inflation, and currency devaluation. Thirdly, political crisis simply refers to political instability and this is more likely to influence businesses in areas where the welfare of businesses are not consequently provided by respective governments. Last of all natural crisis involve the risk of natural disasters on businesses. Businesses existing in most areas of west Africa and countries in Asian continent have been affected by erosion, tornadoes, and earthquakes, however natural disasters like this affect the prolonged existence of successful businesses.

To prevent businesses to be affected by crisis, business managers and business owners need to plan ahead of time. For example to prevent natural disasters from affecting a business, the business owner to make sure that he or she is look at his or her business in a land or area that is not easily affected by natural disaster such as erosion.