Question : Case Study 10:
XYZ Corp. is a technology-based company operating in a country that recently went through a privatization process. The company is facing changes in the regulatory environment.
Q:- How can understanding the political environment help XYZ Corp. in dealing with changes in the regulatory environment after privatization?
Option 1: By seeking government subsidies
Option 2: By finding alternative suppliers
Option 3: By complying with new regulations and policies
Option 4: By expanding into new markets
Correct Answer: By complying with new regulations and policies
Solution : The correct answer is (C) By complying with new regulations and policies
Understanding the political environment can help XYZ Corp. in dealing with changes in the regulatory environment after privatization by enabling the company to comply with new regulations and policies. This is important as regulatory changes often result from political decisions and government policies. By understanding the political landscape and the rationale behind these changes, XYZ Corp. can adapt its operations to meet the new regulatory requirements and remain in compli ance.