There is an extended communication between business and the environment. In fact, this communication is helping in strengthening the organization and its assets effectively. There are various complicated factors which have an influence on the survival and growth of the business. Social environment, political environment, legal environment and economic environment have greater influence in business in many ways. The following are those environmental factors affecting business.
Resolving Opportunities and Threats
The continuous interaction between business and the environment will foretell opportunities for the obstacles in the business. Thus studying about the threats helps business firms meet the challenge successfully.
Guidance for Growth
The communication between the environment and the business usually open up new areas for growth. Identifying and expanding the activities that are growth-oriented leads to success in business.
Continuity in Learning
Analysis of the business environment makes the duties of managers easy in dealing with the problems faced easily. The MBA professionals should be ready in updating the facts and information and learn new skills for meeting the changes that may arise during the business.
Knowing about the environment is very useful in boosting the public image by showing the sensitivity to the environment in which they are working. An example of this is the implementation of alternative power sources in case of power failure.
Identify Strength and Weakness
Knowing about the environmental factors affecting business helps to identify the strength and weakness in compliance with the development happening globally.