Importance of business environment

Importance of business environment

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  IMPORTANCE OF BUSINESS ENVIRONMENT
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  IMPORTANCE OF BUSINESS ENVIRONMENT Identify opportunities andgetting the first mover advantages Identify threats and early warning signals Coping with rapid changes Tapping useful resources Helps in planning and policy formulation Helps in improving performan ce
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  IDENTIFY OPPORTUNITIES ANDGETTING THE FIRST MOVER ADVANTAGES Environment provides numerous opportunities for business men. Early identification of opportunities helps an enterprise to be the first to exploit them.
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  Identify threats andearly warning signals Threats refer to the changes in external environment that may affect the performance of the business. Environment awareness can help mangers to identify various threats on time and serve as a warning signal.
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  Helps in copingwith rapid changes Changes are taking place rapidly in today’s business environment .In order to adjust with the changes ,managers must understand and examine the environment and develop suitable course of action.
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  Helps in tappinguseful resources Environment is a source of various resources for running a business. All business enterprise collects inputs form the environment and supplies its output for the customers.
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  Helps in assistingin planning and policy formulation Environment provides inputs for effective planning and decision making. Business enterprise can formulate policies on the basis of the information they collected by studying the environment.
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  Helps in improvingperformance The future of any organization largely relates to its ability to make changes according to changes in business environment. Thus environmental analysis helps them to improve their performance.
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  THANK YOU