Explain importance of business environment

Importance of Business Environment
(i) Environment Provides Numerous Opportunities for Business Success It enables the firm to identify opportunities and getting the first mover advantage.
(ii) Threats and Early Warning Signals Environmental awareness can help managers to identify various threats on time and serve as an early warning signal.
(iii) It Helps in Tapping Useful Resources Environment is a source of various resources for running a business. Like as finance, machines, raw materials etc.
(iv) It Helps in Copying with Rapid Changes Knowledge of environmental changes sensitises the management to make new strategy to copy with the emerging problems of changes.
(v) It Helps in Assisting in Planning and Policy Formulation Its understanding and analysis can be the basis for deciding the future course of action or training guidelines for decision making.
(vi) It helps in Improving Performance With continuous scan of business environment, companies can easily improve their performance.