2 Importance of Business Environment
(1) Identification of opportunities :
Environment provides numerous opportunities for business success. Early identification of opportunities helps an enterprise to be the first to exploit them.
(2) Identification of threats :
Environmental awareness help managers to identify various threats on time and serves as an early warning signal. awareness help managers to identify various threats on time and serves as an early warning signal.
(3) Tapping useful resources :
Business environment helps to know the availability of resources and making them available on time .
(4) Coping with rapid changes :
Environmental . scanning enables the firms to adapt themselves to the changes in the market.
(5) Assistance in planning and policy formulation:
Environmental understanding and analysis is the basis for planning and policy making.
(6) Improving performance:
Environment scanning helps an organisation in improving its performance
