BASIC NOTES IMPORTANCE OF THE BUSINESS ENVIRONMENT

BASIC NOTES IMPORTANCE OF THE BUSINESS ENVIRONMENT

Here, we are trying to provide you some information about basic notes for business studies, business studies tutorials, CBSE business studies notes for class 11 class 12 BBA MBA BCA MCA B.com M.com BMS MMS PGDM Entrepreneur other further management classes.

Today, we are going to provide basic notes features characteristics of the business environment in management notes CBSE study material for commerce students to become great and better managers in any organization. Previously, we studied BASIC NOTES NATURE SIGNIFICANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CHARACTERISTICS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CONCEPTS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES OBJECTIVES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES FEATURES NATURE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES IMPORTANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES LEVELS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES SIGNIFICANCE PRINCIPLES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES TAYLOR SCIENTIFIC MANAGEMENT for BUSINESS STUDIESBASIC NOTES PRINCIPLES OF SCIENTIFIC MANAGEMENTBASIC NOTES TECHNIQUES OF SCIENTIFIC MANAGEMENT, BASIC NOTES FAYOL PRINCIPLES OF MANAGEMENT, BASIC NOTES INTRODUCTION OF BUSINESS ENVIRONMENT, BASIC NOTES FEATURES THE NATURE OF THE BUSINESS ENVIRONMENT, BASIC NOTES IMPORTANCE OF THE BUSINESS ENVIRONMENT

BASIC NOTES IMPORTANCE OF THE BUSINESS ENVIRONMENT
BASIC NOTES IMPORTANCE OF THE BUSINESS ENVIRONMENT

Now, similarly to human beings, business enterprises do not exist in separation. Each business firm is not a land unto itself; it exists, survives, and grows within the setting of the elements and forces of its environment. While an individual firm can do little to change or control these forces, it has no alternative and responding or adapting according to them. Good knowledge of the environment by business executives enables them not only to know and evaluate but also to respond to the forces external to their firms.

The understanding and awareness of the business environment are a necessity for every businessman as ignorance about the business environment can deliver the businessman out of the market. Proper understanding and awareness about the business environment bring lots of benefits for the businessman and these benefits are:

The importance of the business environment and its understanding by managers can be appreciated if we consider the following facts:

It Allows The Firm To Know Opportunities And Getting The First-Mover Advantage

The businessmen who can understand and scan the opportunities of the business environment at an early stage get maximum benefit or they can capture a big share in the market. Everybody can run completely forward to their competitors.

Opportunities refer to the visible trends or changes that will help a firm to develop its performance. The situation provides numerous opportunities for business benefit. Initially, the identification of opportunities helps the industry to be the first to use them instead of losing them to opponents.

It Helps The Firm To Know Threats And Early Warning Signals

Threats refer to the visible environment trends and changes that will end a firm’s production. Besides opportunities, the environment occurs to be the source of many threats. Environmental knowledge can help executives to recognize the numerous threats on time and serve as an early warning signal. Based on this information, the Indian firms can make themselves meet the threat by using such measures as improving the quality of the product, reducing the cost of the product, occupying inoffensive publicity, and so on.

The businessmen who can scan and understand the business environment on time get a warning signal to deal with the constraints of the negative policies of the business environment. Timely scanning of the business environment and the qualitative information which businessmen get is taken as a warning signal and changes in the companies are made.

It Helps In Tapping Useful Resources

The environment is a source of many resources for running a business. To occupy in any type of activity, a business enterprise constructs many resources called inputs like finance, machines, raw materials, power and water, labor, etc., from its environment includes: financiers, government, and suppliers. They decide to provide these resources with their expectations to get something in return from the enterprise. The business enterprise supplies the environment with its outputs such as goods and services for customers, payment of taxes to the government, return on financial investment to investors, and so on. Because the business depends on the environment (situation) as a source of inputs for supplies and as an exit for outputs, it only makes sense that the company designs policies that allow it to get the resources that it needs so that it can change those resources into outputs that environment wants. This can be done better by knowing what the environment has to offer.

Businessmen have to supply the goods to the market according to the demand in the market. To supply output they need input, raw materials, etc. They receive raw materials and other resources keeping in mind the output demanded in the situation. They select resources according to availability in the environment and demand of output in the environment.

It Helps In Coping With Rapid Changes

Today’s business environment is growing increasingly dynamic where conversions are taking place at a fast pace. It is not the case of change itself that is so valuable as the pace of change. Rough market conditions, less brand loyalty, divisions and subdivisions of markets, demanding customer’s rapid changes in technology, and intense global opposition are just a few of the visions used to explain today’s business environment. All sizes and all kinds of businesses are facing more dynamic environments. To effectively cope with these vital changes, executives must understand and analyze the environment and grow suitable courses of action.

Today changes are taking place very quickly & these changes have a vast impression on the business. So, it is necessary to know these variations as early as possible. Business environment scanning helps companies to scan and understand these changes with environment scanning. The businessmen create variations in their internal environment also to match the external environment. So, environment scanning helps in coping with the quick changes.

 It Helps In Assisting In Planning And Policy Formulation (Policymaking)

Since the environment is the origin of both chances and warnings for business activity, its understanding and analysis can be the basis for judging the future course of action (planning) or training guidelines for the decision making (policy). For instance, the entry of new players in the market, which means more competition, may make an enterprise think afresh about how to deal with the situation.

The major strategies or plans and policies in the organization are formed keeping in mind the business environment because the policies and strategies have to be implemented in the presence of environmental factors. So those must be keeping in mind the environmental factors. Scanning of environmental factors helps in finding out the chances of business & approaches can be made to take these chances.

It Helps In Improving Performance

The final reason for understanding the business environment relates to whether or not it makes a difference in the performance of an enterprise. The answer is, it appears to get a difference. Many researchers disclose future of an industry is closely secured with what is happening in the environment.

With continuous scanning of the Business environment companies can easily improve their performance. By making changes in the internal environment matching the external environment, organizations can prosper and improve market share.

Here, we are trying to provide you some information about basic notes for business studies, business studies tutorials, CBSE business studies notes for class 11 class 12 BBA MBA BCA MCA B.com M.com BMS MMS PGDM Entrepreneur other further management classes.

Today, we are going to provide basic notes features characteristics of the business environment in management notes CBSE study material for commerce students to become great and better managers in any organization. Previously, we studied BASIC NOTES NATURE SIGNIFICANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CHARACTERISTICS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CONCEPTS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES OBJECTIVES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES FEATURES NATURE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES IMPORTANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES LEVELS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES SIGNIFICANCE PRINCIPLES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES TAYLOR SCIENTIFIC MANAGEMENT for BUSINESS STUDIESBASIC NOTES PRINCIPLES OF SCIENTIFIC MANAGEMENTBASIC NOTES TECHNIQUES OF SCIENTIFIC MANAGEMENT, BASIC NOTES FAYOL PRINCIPLES OF MANAGEMENT, BASIC NOTES INTRODUCTION OF BUSINESS ENVIRONMENT, BASIC NOTES FEATURES THE NATURE OF THE BUSINESS ENVIRONMENT, BASIC NOTES IMPORTANCE OF THE BUSINESS ENVIRONMENT

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