Question

X-Brand Bikes, a manufacturer of off-road bicycles, carefully developed a strategy for moving into South America. The strategy had poor results after interest rates and inflation rose rapidly in most of its South American markets, demonstrating the influence of the __________________ on marketing strategy.

Answer 1

Answer:  Economic environment

   

Explanation: In simple words economic environment refers to the factors that affects the behaviors of consumers in an economy. Interest rates, inflation, taxation are some of the many examples of factors constituting economic environment.

The main problem with these factors is they affect the organisations heavily but are not in the control of organisation.

In the given case, the strategy implemented failed because of high interest rates.

Hence from the above we can conclude that it illustrates economic environment.