How would you argue that the success of a business enterprise is significantly influenced by its environment?
Answers
SOLUTION :
Significance of business environment for enterprise is marked by the following reasons :
1.It enables the business firms to identify opportunities and get the first mover advantage :
Opportunities are the positive trends that help firms to grow. A good knowledge of business environment helps the manager to identify opportunities earlier to take its benefit rather than losing it to other competing enterprises.
2. It helps business firms to identify threats and get warning signals :
The businessmen who are able to scan and understand the business environment on time get a warning signal to deal with such negative changes.
3. It helps in coping with rapid changes :
In order to cope up with such changes and derive benefit from them ,managers must examine the environment and develop suitable action.
4. It helps in planning and policy formulation :
Business environment is a source of identifying both opportunities and threats, its proper analysis and understanding provides the base for planning and guides in framing policies.
5. It helps in tapping useful resources :
Environment is a source of various resources for business like finance , machinery, raw materials e.t.c. A good understanding of environment helps the firm to convert resource into output required by the environment and society
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Explanation:
How would you argue that the success of a business enterprise is significantly influenced by its environment? Environment provides numerous opportunities for business success. ... (ii) It Helps the Firm to Identify Threats and Early Warning Signals Environment happens to be the source of many threats.