Question

5. Justdial.com was the first company that identified the needs of customers and firms and customized their
services in accordance with them and today this service is a huge success.
a) Identify and explain the importance of business environment given in the above mentioned case.
b) Also explain two more points of importance of business environment ​

Answer 1

Importance of Business Environment in the given case

Explanation:

In the given case,it has been stated that the company,Justdial. com, was able to celebrate its huge success because of their early identification of the needs of the customer and providing them the best customer service.

They were able to achieve this by optimizing their "Business Environment".

But,what is Business Environment you ask and what are its advantages?

a)

• Business Environment refers to the sum total of all internal as well as external factors which affect how a business organization functions.In simple words,Business environment is the sum total of all the factors which influence a business.
• It encompasses the climate or set of conditions such as economical,social,political,or institutional,in which the business organisation operates.
• Such environment contains the external factors that create opportunities and threats for the organisation(refer SWOT analysis for more information).This includes socio-economic conditions,new technology,and political conditions.1

b)

• The following are the advantages or benefits of understanding business environment:

• Helps in understanding Internal Environment: A business enterprise must understand its internal environment in order to function correctly.It helps the management of an organisation to take better decisions and improve their management information system(MIS).

• Helps in understanding Market conditions: Business enterprises should offer goods and services as per their needs of the consumers in order to cater market demand. Knowledge of the market structure helps the organisation to grow and expand its operations. In the given case,Justdial figured out the needs of the customers and provided them with their best services.

• Coping with frequent changes: The environment in which a business operates is dynamic in nature and thus in order to effectively tackle these changes,the management of an organisation must understand and examine the environment to make the necessary changes within their own organisation.