Understanding of environment by business managers enables them not only to identify and evaluate, but also to react to the forces external to their firms? In the light of the statement, explain any four points of importance, of business environment.
Importance of understanding business environment: 1. It enables the firm to identify opportunities and getting the first mover advantage. 2. It helps the firm to identify threats and early warning signals. 3. It helps in tapping useful resources. 4. It helps in coping with rapid changes.
