Question

Explain the following point of importance of business environment:

Helps in coping with rapid changes

Answer 1

Today’s business environment is becoming increasingly dynamic, with changes taking place at a fast pace. It is not the fact of change itself that is so important as the pace of change. Turbulent market conditions, less brand loyalty, divisions and subdivisions (fragmentation) of markets, more demanding customers, rapid changes in technology and intense global competition are just a few of the images used to describe today’s business environment. All sizes and all types of enterprises are facing an increasingly dynamic environment. To effectively cope with these significant changes, managers must understand and analyse the environment and develop appropriate courses of action.