Advertisements
Advertisements
Question
How does understanding of business environment help in improving performance of a business?
Advertisements
Solution
An understanding of business environment help in improving performance of a business due to the following reasons:
a. It helps to identify the best opportunities and getting the first-mover advantage. It is better to analyze the market and grab the opportunity rather than losing it to the competitors. It can prove to positively contribute to the business.
b. A detailed analysis of the business environment helps in the identification of thread which may have a negative effect on the functioning of the Enterprise. They can become an early warning signal and help the Enterprise to formulate adequate steps to cope up with it.
c. The environment provides various resources that are helpful to the business for its running in the long term environment. In return, the environment is provided with output in the form of goods and services by the Enterprise. So the environment is considered to be both a source of demand and the source of resources. So the Enterprises must arrange for the best possible resources which can be done only after a detailed studying of the business environment.
d. The environment is constantly changing in terms of technology, government policies, taste and preference of the consumer, etc. The manager of the firm must analyze the business environment to cope up with the changes.
e. It also helps in formulating new plans and policies according to the current scenario. This, in turn, helps to improve the overall performance of the Enterprise
APPEARS IN
RELATED QUESTIONS
Why it is important for business enterprises to understand their environment? Explain.
Why is management considered as a science?
Select the correct option and rewrite the sentence.
Literacy level is an aspect of __________ environment.
Correct the underlined word and rewrite the following sentence.
Natural resources are related to political environment.
Justify the following statement:
Adequate knowledge of rules and regulations is essential for better business performance.
Attempt the following:
Importance of business environment.
Which of the following best indicates the importance of business environment?
Which of the following best indicates the importance of the business environment?
Which of the following points state that success of a business is significantly influenced by its environment?
| “Dolma’ and ‘Una’ were gardeners with decades of hands-on experience. They were the first ones to recognise the need of indoor gardens specially for plant-lovers living in apartments. They took advantage of this opportunity and decided to offer beautiful designing ideas for indoor gardening through their innovative venture ‘My Space’. ‘My Space’ offered creative ideas like ‘Garden wall’, "Hanging Garden', ‘Window Garden’, “Book-shelf garden’ and many more. Since there were no competitors they soon became the market leaders in the field. |
From the following points, identify the importance of Business-Environment high lighted above:
Mr. Vivek is working as the General Manager of Oshin Hotels Ltd. Mr. Vivek observed that Government was taking a special interest in the Tourism industry as this sector is an important source of foreign exchange and employment promotion. On the basis of this news, the company decided to set up hotels at several tourist places. Oshin Hotels Ltd. established 50 hotels before other companies considered this issue. Very soon, this brand Oshin Hotels Ltd. became well known in the market. Identify the importance of business environment described here.
Which of the following is considered an external factor in the business environment?
Which aspect helps a company compete effectively with other firms?
Using a weather app to plan activities is similar to which business environment concept?
Which of the following aspects focuses on shaping a company’s reputation through its activities and decisions?
