1. Yes. The business environment refers to the totality of all factors which are external and beyond the control of business enterprise.
2. The importance of Business Environment are:
a. Identification of opportunities:
Environment provides numerous opportunities for business success. Early identification of opportunities helps an enterprise to be the first to exploit them.
b. Identification of threats:
Environmental awareness help managers to identify various threats on time and serves as an early warning signal.
c. Tapping useful resources:
Business environment helps to know the availability of resources and making them available on time.
d. Coping with rapid changes: Environmental. scanning enables the firms to adapt themselves to the changes in the market.
e. Assistance in planning and policy formulation:
Environmental understanding and analysis is the basis for planning and policy making.
f. Improving performance:
Environment scanning helps an organisation in improving its performance
