(i) Environmental scanning will be helpful to an entrepreneur/firm to understand the actual happening in an organisation (inside and outside),
(ii) It is necessary because of rapid changes taking place in the environment that has a great impact on the working of the business firm.
(iii)Analysis of business environment helps to identify strength, weakness, opportunities and threats. So that the enterprise can survive and grow,for longer time.
(iv)It is helpful to frame out different plans and policies for the establishment and further development.
(a)It act as a tool in understanding, for casting and decision making in all situation of the business enterprise.
(vi)Study of environmental analyses enables the firm to select the best option for the success and growth of the firm.
(vii) It helps an entrepreneur to act quickly, take advantage of all environmental opportunities before others take a chance andimmediate respond to reduce damage
(a) take advantage of opportunities before competitors do
(b) respond to environmental threats before significant damage is done.
