Importance Of Business Environment
Answer:
① Identification of opportunities to get first mover advantage:
Understanding of business condition helps an association in recognizing favorable open doors and getting their advantages preceding rivals and ,competitors in this way receiving the rewards of being a pioneer. It helps the business enterprises for meeting the challenges successfully.
② Identification of threats:
Correct and revised information of business environment causes an organisation to distinguish those dangers which may antagonistically influence its operations. For instance, Bajaj Auto made impressive enhancements in its bikes when Honda and different MNCs entered the vehicle business.
③ Giving Direction for Growth:
The collaboration with the environment prompts opening up new frontiers of development for the business firms. It empowers the business to distinguish the zones for development and extension of their activities, services and products line.
④ Tapping useful resources:
Business environment makes accessible different assets, for example, capital, work, machines, crude material and so on to a business firm. So as to know the accessibility of resources and making them available on time at practical value, learning of business environment is important.
⑤ Continuous Learning:
Environmental analysis makes the assignment of directors and managers less demanding in managing business challenges. The business people are inspired to ceaselessly refresh their insight, update theie skills and abilities to meet the anticipated changes in domain of business.
⑥ Coping with Rapid changes:
Continuous study and scanning of business environment helps in knowing the changes which are taking place and thus these can be faced effectively.
⑦ Image Building:
Environmental understanding helps the business associations in enhancing their picture by demonstrating their affectability and sensitivity to the environment inside which they are working. e.g. Identifying the impacts of globalization and internet commerce, many organizations start offering e-commerce models in their trades.
⑧ Assistance in planning, strategy and policy formulation:
Understanding and examination of business environment helps an association in analysis the competitors’ strategies and formulate their own strategies accordingly. For instance, ITC Hotels arranged new hotels in India in the wake of watching boom in tourism part.
⑨ Helps in Improving performance:
Correct analysis and continuous monitoring of business environment helps an organisation in improving its performance.
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