THE IMPORTANCE OF BUSINESS ENVIRONMENT
a. Determining opportunities and threats
The interaction between the business and its environment gives the advantage of identifying opportunities for and threats against the business. The business manager can then strategise to maximise the opportunities and minimise the threats.
b. Gives directional clarity
The interaction will lead to opening up of new frontiers for growth and sustainability of the business.
c. Serves as a continuous learning process
Managers are motivated to continuously update their knowledge, understanding and skills to meet the challenges of business.
d. Image building
Business interaction with the environment helps the business organisations to improve their image by being socially responsible.
e. Identification of firm’s strength and weakness
Business environment helps to identify strengths and weaknesses of the business organisation for immediate response of the management.
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