Question

In which of the following ways proper understanding of various aspects of business environment helps the business?

• A. It enables the business to identify the areas for growth and expansion of their activities.
• B. It helps the firms to analyze the competitors strategies and formulate their own strategies accordingly in order to cope with the rapidly increasing competition.
• C. Environmental understanding helps the business organizations in improving their image by showing their sensitivity to the environment within which they are working.
• D. All of above

Answer 1

Answer: (D)

All of above

The following steps are the ways in which proper understanding of various aspects of business environment can be done:

1. Early identification of opportunities so that it can be used to improve the weakness of the business and identify the area of growth and expansion of the activities.

2. Identification of possible threats so that it can be minimized in the best possible way like competitors strategy can be taken care of by analyzing business environment on time.

3. Coping with the rapid changes to understand and survive in the continuously changing business environment.