Question

Which of the following points state that success of a business is significantly influenced by its environment?

Options

• Identification of Opportunities

• Identification of Threats

• Accumlllating Useful Resources

• All of the above

Answer 1

All of the above

Explanation -

The following points emphasise the significance of an organization's environment to its success.

1. Identification of Opporhinities : The changing business environment provides numerous opportunities for growth. An enterprise can identify these positive opportunities and gain a competitive advantage by carefully analysing the environment. That is, it allows the organisation to maximise its benefit and stay ahead of its competitors. Tata, for example, recognised the demand for a small and economical car in India and launched the popular Tata Nano at a price of just one lakh rupees. As a result, it rose to the top of the low-cost car market in India.
2. Identification of Threats : Aside from positive opportunities, Certain environmental changes can also have a negative impact on how an environment functions. A study of the business environment aids an enterprise in identifying these threats or negative signals.
3. Accumulating Useful Resources :  The environment serves as a source of inputs or resources such as raw materials, machinery, labour, and so on that are required for an organization's operation. On the other hand, the environment serves as a source of demand for the organization's goods and services. As a result, it makes sense for organisations to take up resources from the environment that can be converted into the desired output.