Business Environment

What is business environment?
Every time you hear this word you might be thinking what is it so today we are going to clear your few doubts regarding business environment. 
Business Environment refers to all the external forces, or conditions that affect or may affect your business decisions, strategies and actions. For being successful a business must need to identify, appraise and respond to the various opportunities and threats in its business environment. The business should continuously monitor and adapt itself to the environment if it is to survive and prosper.
Now we will discuss a few characteristics of our business environment. Business Environment consists of many characteristics some of the important and obvious characteristics are described briefly here. 

Characteristics of Business Environment:
1. Complex 
Environment is complex that somewhat is easier to understand in parts but difficult to grasp in totality. It consists of a number of factors, events, conditions and influences arising from different sources. 

2. Dynamic
The environment is constantly changing in nature. Due to the many and varied influences operating, there is dynamism in the environment causing it to continuously change its shape and character.

3. Multi faceted
What shape an character an environment will assume depends upon the perception of the observer. A particular Change in environment or a new development, may be viewed differently by different observers. Thus environment is multi faceted.

4. Far reaching impact
Environment has a far reaching impact on organisations. The growth and profitability of an organisation depends critically on the environment in which it exists. 

Importance of Business Environment
1. Determining the opportunities and threats
2. Giving directions for growth and expansion
3. Continuously learning, updating knowledge and understanding the skills
4. Meeting competitors strategies and formulates their own strategies.
5. Image building by showing their sensitivity to the environment.

Above we discussed the Business Environment and its features and importance. Business Environment is complex, dynamic, multi faceted and far reaching impact. 

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