Question

What Is the Importance of the Business Environment?

Answer 1

The importance of the business environment can be understood from the following points:

1. It helps in identifying opportunities and making the first move, thereby providing the first mover advantage to the businesses.
2. It helps the business firm in identifying threats and provides early warning signals
3. It helps in tapping useful resources.
4. It helps in coping with rapid changes in the market
5. It helps in planning, strategy and policy formation
6. It helps in improving the business performance

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