Mr. Ajay after completing MBA from USA comes to India to start a new business under the banner Ecom creations Ltd. He launches a new product in e-learning for senior secondary school students in commerce stream, which already has an established market in UK and USA but not in India. His business starts flourishing in India. Now more Indian companies entered into the market with other subject also.
Identify and quote the line from above para which highlight the significance of understanding business environment.

Solution

Comes to India to start a new business……. launches a new product in e-learning for senior secondary school student in commerce stream.
1. It helps in assisting in planning and policy formulation.
2. It helps the firm to identify opportunities and get the first mover advantage.
His business starts flourishing in India.
1. It helps in improving performance.
Now more Indian companies entered into the market with different subject also.
1. It helps the firm to identify threats and early warning signals.