QUESTION

why important understand the environment in terms of business?

ANSWER

In any business, it is important to be aware of the actions and strategies of your competitors. A business environment enables firms to analyze their competitors’ strategies and actions. Further, they can create their own strategies accordingly. If you take a quick look at the telecom sector, almost all providers offer similar services at similar prices.

QUESTION

Why must we study the environment in business?

ANSWER

Business environment is the aggregate of all conditions, events, and influences that surround and affect a business firm. Business environment generally refers to the external factors affecting, either positively or negatively, the operation of a firm. The most important external factors include economic, legal, political, social and technological factors

An analysis of the external environment helps the business firm to identify the opportunities in the market. The business firm should make every possible effort to grab the opportunities as and when they come.

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