why important understand the environment interms 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.
1. The environment provides numerous opportunities, and it is necessary to identify the opportunities to improve the performance of a business. Early identification gives an opportunity to an enterprise be the first to identify opportunity instead of losing them to competitors.
2. Business managements must study business environmental factors so as to be aware of changes in input supplies, changes in social factors like consumer behaviour, state of competition in industry etc. to ensure smooth functioning of their business cycles.
Answers & Comments
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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Answer:
1. The environment provides numerous opportunities, and it is necessary to identify the opportunities to improve the performance of a business. Early identification gives an opportunity to an enterprise be the first to identify opportunity instead of losing them to competitors.
2. Business managements must study business environmental factors so as to be aware of changes in input supplies, changes in social factors like consumer behaviour, state of competition in industry etc. to ensure smooth functioning of their business cycles.