Importance of business environment:

                                                     Introduction of business environment:

   The definition of business environment means all of the internal and external factors that affect how the company functions including employees employees, customers and management, supply and demand and business regulations.

   the business has to make the necessary changes to adapt it to the new policies. Similarly, A change in a technology May rendered the existing product absolete, As we have seen that the introduction of computer has replaced the typewriting; The colour TV television has made the black and white television out of fashion . Again it changed in the fashion or customers taste may shifted the demand in the market for a particular product. For example the demand for jeans reduced the sale of other traditional wares. All these accepts are internal factors that are beyond the control of the business. So the business unit must have two ads to adopt themselves to these changes in order to survive and succeed in business. Hence, it is very necessary to have a clear understanding of the concept of business environment And the nature of its various compounds. the term business environment conducts extended forces, factors and institutions that are beyond the control of business and their effort the functioning of business enterprise. these these include customers, competitors, suppliers, government, and the social political legal and technology factors etc. while some of these factors may have Directions influence over the business form, other mayor operate in directly. this, business environment may be defined as the total the totals surroundings which have a direct or indirect bearing the functioning of businesses. it may also be demographic factors, technology factors etc. which U Uncontrollable in nature and affect the business decision of a firm.

Importance of business environment:

    There is a close and continuous interaction between the business and its environment. this interaction helps in strengthening the business Form and using its resources more affectively. As a stated above, the business environment is multifaceted, complex and dynamic in nature and has And has a far reaching impact on the survival and growth of the business. to be more specific, proper understanding of the social political, legal and economic environment help the business in the following ways

• determining opportunity opportunities and threats: the interaction between the business and its environment would identify opportunity for for threads threats to the business. It helps the business enterprising for meeting the challenges successfully.
• Giving direction for growth: the interaction with the environment leads to opening up new frontiers Off growth for the business firms. it enables the business the business to identify the areas for growth and expansion of their activities. 
• continuous learning: Environment  analysis makes the tasks Off managers easier in dealing with business challenges. The managers are motivated to continuously update their knowledge, understanding and skills to meet the predicated changes in real M of business. 
• Image building: Environmental understanding helps the business organization in improving their image by showing their sensitivity To the environment within which they are working. for example in view of the shortage of powers common many companies have set up captive power plants CPP in their factories to meet their own requirement of power.
• Meeting competition: It hands the firms to analyze the competitors strategies and  formulate their own strategies accordingly.
• identifying firms strength and weakness: business environment helps to identify the individual strengths and weaknesses in view of the technological and global development.