Question

Explain the benefits of understanding the relevant environment of business?

Answer 1

he business executive can successfully conduct the business operation. Since chances for losses are minimized, the firm can withstand in the long run, widen its financial base and face competition more effectively. All these finally lead the business venture to a grand success.

Answer 2

The Importance of Business Environment

Determining Business Opportunities and Threats

One of the primary benefits of a business environment is that the interaction between a business and its environment, usually, highlights the business opportunities and threats to the business.

Giving Direction for Growth

When a business interacts with its environment, it becomes easier to identify areas for growth and expansion of its activities. Are consumers moving away from certain goods or services? Also, are your competitors offering features that you should include in your products too? A firm can get answers to similar questions by tapping into its business environment.

Continuous Learning

Since the environment is inherently dynamic in nature, it constantly keeps changing. This keeps the managers motivated to continuously update their knowledge and skills. This helps them prepare for predicted and unpredicted changes in the realm of business. For example, after the introduction of GST, how has your consumers’ buying behavior changed?