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प्रश्न
Why is the understanding of business-environment important for managers? Explain with the help of any four points
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उत्तर
No organisation can function in isolation. Understanding of the business environment is of vital importance for the smooth and successful functioning of an organisation. A business environment refers to the aggregate of external conditions, events and resources which are outside the control of a business but interact with it and affect its performance. In other words, everything which is outside the purview of an organisation but affects its performance composes the business environment. Some factors have direct influence and some have the indirect influence on the business. A continuous evaluation and understanding of the business environment help a firm to take account of these forces in a better manner, and thereby improve its functioning. Points highlighting the importance of the understanding of the environment for business enterprises:
- Identification of opportunities and threats: The business environment is ever evolving. An interaction with the environment and careful analysis will help a business identify positive opportunities. It enables the organisation to grab these opportunities, gain maximum benefit and move ahead of its competitors.
- Identification of threats: An identification of the threats can enable the organisation to take appropriate measures such as improving the quality and features of its mobile advertising.
- Accumulating useful resources: The environment offers itself as a source of inputs such as raw material, machinery and labour for the running of an organisation. In return, the business supplies the environment with its output. This is possible only if the enterprises have an understanding of what the environment desires and what it can offer. Thus, it is rational for organisations to take up those resources from the environment which can be converted to the desired output.
- Adjusting to changes: The business environment is dynamic in nature and is prone to numerous socioeconomic changes. A careful analysis and understanding of the environment helps an enterprise in adapting to these changes and taking timely actions
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संबंधित प्रश्न
State any three points of importance of business environment.
What is included in the 'Legal environment' of business? State.
What is included in ‘Technological Environment’ of business? State.
Answer the question.
Explain any four features of the Business Environment.
Select the correct option and rewrite the sentence.
Privatization implies reduction in the role of ___________ sector.
Select the correct option and rewrite the sentence.
Globalization is concerned with __________ market.
Give one word/phrase/term.
The process of transferring ownership of business enterprise, agency or public service from the public service to private sector.
State whether the following statement is True or False.
External factors of business environment are controllable factors.
State whether the following statement is True or False.
Business is the product of different environmental factors.
Select the correct Option
Which factors of Business Environment regards as controllable?
Explain the following term/concept.
Social environment.
The sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but that may affect its performance is known as ______.
Twinkle Stars' is a well-known resort for organizing parties, especially for children. However, in past 6 months its popularity has reduced considerably as a new resort with better ambience and facilities has opened within its vicinity. Name the related feature of business environment which has influenced the business of ‘Twinkle Stars’ adversely.
According to the United Nations Environmental Agency, the world produces around 300 million tons of plastic each year, half of which constitutes single-use items. Ford is recycling over one billion plastic bottles every year to develop elements of the car’s interior, reducing the amount of plastic ending up in a landfill. The American car maker has revealed that their Romanian-built EcoSport SUVs’ carpets are made using 470 recycled single use plastic bottles The process for making Ford EcoSport carpets involves shredding bottles and their caps into tiny flakes and then heating them to 260°C. Identify the related dimension of business environment.
Which of the following is the feature of Business Environment?
"The increase in the demand for many ayurvedic medicines, health products and services in the past few months, is related to the need for building immunity and an increased awareness for health care due to the spread of Corona Virus." Identify the feature of business environment being described above.
"The increase in the demand for many ayurvedic medicines, health products and services in the past few months, is related to the need for building immunity and an increased awareness for health care due to the spread of Corona Virus." Identify the feature of business environment being described above.
Assertion (A): Changes in fashions and tastes of consumers may shift demand in the market from existing products to new ones.
Reason (R): Business environment is dynamic, i.e., it keeps on changing in consumer preferences.
The changes in technology and the tastes and preferences of consumers cannot be predicted Which feature of business environment is highlighted here?
What is identified as a major benefit of understanding the business environment?
