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'Konark Ltd.' is an electronic goods manufacturing enterprise situated in Shivpuri, Madhya Pradesh. It is earning a very low revenue in comparison to a competing electronic goods manufacturing enterprise, 'Nova Ltd.' situated in Mumbai. Both Konark's and Nova's operations are affected directly by the investors, customers, competitors and suppliers, which are unique to their respective locations. In addition to this, individual firms of this field are affected indirectly by the factors like the money supply in the economy, composition of the families, the technological changes, etc.
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Question : 26
Total: 32
Also, state any four points of importance of this concept.
Solution:
Importance of business environment (any four):
(i) It helps firm to identify opportunities and getting the first mover advantages.
(ii) It helps to identify threats and early warning signals.
(iii) It helps in tapping useful resources.
(iv) It helps in coping with rapid changes.
(v) It helps in assisting in planning and policy formulation.
(vi) It helps in improving performance.
(i) It helps firm to identify opportunities and getting the first mover advantages.
(ii) It helps to identify threats and early warning signals.
(iii) It helps in tapping useful resources.
(iv) It helps in coping with rapid changes.
(v) It helps in assisting in planning and policy formulation.
(vi) It helps in improving performance.
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