Explain Importance Of Business Environment?

Firstly, it is useful to define exactly what is meant by the term 'business environment'. The business environment relates to the 'external forces' that can influence the decisions of a business. Technological, political, social and economic factors all make up the business environment and all these factors are very difficult for a business to control.

There are several reasons why the business environment is of great importance. The first of these is that if the heads of businesses keep a firm eye on potential economic or technological changes then they can swiftly adapt their business to capitalize on such changes. This can get a business ahead of its competitors, as any business will testify, speed and adaptation are crucial for success.

Another reason the business environment is crucial to the success of a business is that if a company does not successfully predict an upcoming trend or danger such as the recent recession then they will not be able to survive. Banks and independent and private investors which would freely lend to companies can suddenly withdraw existing funds or offers of credit which can lead a business to cut staff or close down all together.

As stated,environment is the surrounding of business which influence its operation and determine its effectiveness.A businessman should continously can its environment because environment is not static,rather it is continuously changing.The continuous scannin of business environment leads to the ultimate benefits.   By MD.MUNTAQUIR,BBA   ARA,(BIHAR)

The term pertains to the variable set of internal and external conditions affecting a company's ability to acquire necessary resources, efficiently manage activities, and competitively delivers its goods or services. An organization aware of the importance of the business environment will be able to hire sophisticated personnel with a demonstrated ability effortlessly to circumvent the tried and trusted channels of ethical and intellectual development and knowledge acquisition by outsourcing and other expedient means.