Question

What is the importance of Business Environment?

Answer 1

The following points highlight the importance of the business environment -
(i) It enables the firm to identify opportunities and getting the first-mover advantage.
(ii) It helps the firm to identify threats and early warning signals.
(iii) It helps in tapping useful resources.
(iv) It helps in coping with rapid changes.
(v) It helps in assisting in planning and policy formulation.
(vi) It helps in improving performance.