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Importance of Business Environment
Importance of Business Environment
(11) Ensures Survival and Growth: Business environment inform about suitable
changes to be affected in business policies. This helps the business organizations to
grow & prosper.
(4) Environment is Multi Faceted: Environmental changes are frequent but their
shape and character depends on the knowledge & experience of the observer. A
particular change in the environment may be viewed differently by different
businessmen. This change is welcomed as an opportunity by some organizations
while some others take it as a threat for their survival.
(5) Environment has Long Term Impact on Business: Environment has long
lasting impact on functioning of business organizations. Their growth and
profitability depends upon the environment under which they have to operate.
Environment influences business enterprises. Such influences may be positive or
negative & may affect the profitability, efficiency & development of business.
(9) Environment needs Adaptability: Business have to learn adjust with ever
changing business environment
. One of the basic laws of nature is that adaptability is the price of survival. In the prehistoric ages,
the dinosaur and the mastodon – two of the strongest and largest animal that ever lived,
perished, while the insignificant cockroach survived. The reason was that those mighty animals
could not adjust themselves to changes brought about by the passage of centuries, while the
cockroach could. Businessmen have to adjust with the prevailing environment. This
adaptability is the price or the key survival in the business world.
(10) Business Environment Changes Regularly: The environment factors changes regularly. The
business environment in India is totally different as was in past. Future environment is the
product of past & present environ