Sunny Puri said the Business environment is the network of economic, legal, social, technological and political factors that influence the success of businesses on both local and global scales. A company must be flexible enough to adapt to these changes quickly in order to stay competitive over time and thrive.
What is the importance of environment?
A well-managed business environment can help a company stay one step ahead of its competitors by identifying and exploiting opportunities and first-mover advantages. These include economic trends, new technologies and government policies.
Moreover, it can enable companies to make strategic decisions about their operations and how they use resources to maximise profits while minimizing risk. This includes determining how best to meet the needs of customers and stakeholders in their community.
The environment also involves legal factors, including laws governing taxes, contracts and labour relations. These laws can impact the way a business operates, making it vital for business owners to be familiar with relevant legislation.
Other elements of the business environment include natural resources, which are important for many types of business. They can also affect how a company operates and what products it sells.
Business environments are dynamic, meaning they change on a regular basis. For example, new technologies are developed and older ones become obsolete.
Keeping up with the latest technology is essential for companies that want to be successful. Developing and using innovative technologies can lead to increased sales and better customer service, which can increase revenue. This can also result in reduced costs and increased productivity for the company.