Environmental analysis has three basic objectives: The analysis should provide an understanding of current and potential changes taking place in an environment. One must be aware of the existing environment, but one must also have a long term perspective. The study of environment should provide input for strategic decision making. The environment analysis should provide a rich source of Idea and understanding of the context with in which a firm her operates. It should bring fresh view points into the organisation. The benefit of environment study may be specified as follows ; The Study helps in the development of board strategy and long term policy of the firm. The study of business environment should help in developing action plan to deal with technological advancement. It should help the management in foreseeing the impact of social economic changes as the National and international level on the firm stability. The study should help the management in analysing the competitors Strategies and formulation of effective counter measure. To keep oneself dynamic and innovation.
The relationship between Business and Environment
Business is the product of Economic, political government, socio culture, natural, demographic, technological and international environmental forces and its function amidst these forces. The features which are common to the relationship between business and its environment. Online business environment is very powerful and cheap system in which every type of business runs in a best or good way and to handle these type of business is very easy as compared to offline business. The environment of online business helps to keep the business secure and the marketing of these types of business a spread over a large scale of areas like wide area, means that it spread over the all over world. In these businesses to communicate to the people is very cheap and easy in all over world.
There is correlation between Online business and its environment and among the environmental factors. In other words, business is influenced by environment and in turn it in fluid is the external forces of environment, similar is the relationship between the external factors example political-legal environment influence economic environment and in turn, economic environment influences the political legal environment. The second feature is that the business environment is dynamic. Many elements in the environment undergo changes. They keep on changing as years role by,so does businesses. All the indicates that the business policy should be dynamic enough to be successful adaptable to the changing environment. The third feature is that a particular business firm by itself, may not be in a position to change the its environment. But along with other form business will be in a position to change the environment in its favour to be considerable extent.
Techniques for environmental analysis
Design by Mohit Bhardwaj