BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It helps in coping rapid changes
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It helps in improving performance
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It helps in assisting in planning and policy formulation
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It helps in tapping useful resources
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Detailed explanation-1: -(E) It Helps in Assisting in Planning and Policy Formulation The business environment brings both threats and opportunities to a business. Awareness of business environment helps in deciding future planning or decision making.
Detailed explanation-2: -Opportunities are factors external to a business that positively impacts its performance. To assess opportunities, a business seek out elements in its environment that it could exploit to its advantage. PESTLE analysis helps understand businesses’ macro-environment.
Detailed explanation-3: -Environmental scanning meaning is the gathering of information from an organizations internal and external environments, and careful monitoring of these environments to identify future threats and opportunities. It is the analyses of all factors that may affect the future of the organization.
Detailed explanation-4: -Understanding of business environment is important for managers because, (i) It helps the firm to identify opportunities and get the first mover advantage: The ability to identifying the external opportunities early and to make the first move, makes an organisation the market leader.