BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The importance of understanding of business environment is signified by:
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coping with rapid changes
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improvement in performance
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all of the above
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Detailed explanation-1: -Identification, Improvement In performance, coping with rapid changes all are the indicators of importance of business environment.
Detailed explanation-2: -Solution : Understanding of business environment is important for managers because, <br> <b>(i) It helps the firm to identify opportunities and get the first mover advantage: </b>The ability to identifying the external opportunities early and to make the first move, makes an organisation the market leader.
Detailed explanation-3: -Business environment helps in determining the various business opportunities, resources and also assists in forming plans for the growth of the organisation. The components of a business environment can be media, customers, government, economic conditions, suppliers, competitors etc.
Detailed explanation-4: -Study of business environment helps in identifying the positive changes as well as threats or hindrances that affects the performance of an organisation. Thereby, it helps them in taking appropriate measures for improving the performance.
Detailed explanation-5: -Definition of Business Environment is sum or collection of all internal and external factors such as employees, customers needs and expectations, supply and demand, management, clients, suppliers, owners, activities by government, innovation in technology, social trends, market trends, economic changes, etc.