Explain how does the understanding of business environment help the management in the following:
(a) Tapping useful resources; and
(b) Coping with rapid changes
(A) Tapping useful resources: Environment is the source of all resources a business needs for its operation. It takes natural resources, human resource and financial resource and convert them to goods and services to customers, make payment of taxes to government, return on financial investment to investors and so on. As an organisation is completely dependent on the resources from environment, a manager should have a good understanding about business environment.
(B) Coping with rapid changes: Business environment is increasingly dynamic where changes are taking place in a fast pace. Business, Social, political, economic and technological environment is changing in such a pace that managers must understand and examine the environment thoroughly and develop suitable course of action.
