Question

Explain how does the understanding of business environment help the management in the following:

(a) tapping useful resources; and

(b) coping with rapid changes.

Answer 1

(a) Understanding of business environment helps in tapping useful resources by designing the policies that allow it to get the resources it needs so that it can convert those resources into outputs that the environment desires.

(b) Understanding of business environment helps in coping with rapid changes by developing suitable courses of action to deal with changes taking place in the environment as well as with the pace of change.