Question

The understanding of business environment help the managers to identify threats what is meant by Threats

Answer 1

Threats refers to the external environment trends and changes that will hinder a firm's performance. Threats work as warning signals for organisation to take suitable actions. By identifying threats and early warning signals, the organisation may effectively overcome it by adopting counter strategy. Timely scanning of business environment acts as warning signals for a business to prepare itself to modify its working in advance and try to utilize the qualitative information it receives about the competitors.