The importance of the business environment can be stated with the help of the following points:
Capitalizing early opportunity – Environment-friendly enterprises are the first movers to avail of the existing and emerging opportunities. These enterprises do not lose emerging opportunities to their competitors. Asian Paints have been losing its market to Goodness Nerolac because it failed to match its technology with Goodness Nerolac.
Activating Management to changing needs: Knowledge of environmental change sensitizes the management to make new strategies to cope with emerging problems.
Intellectual Stimulation: Knowledge of environmental changes provides intellectual stimulation to planners and decision-making authorities.
Image Building: Environmental understanding by the management builds a better image of the company in the minds of the people. They feel that the company is sensitive and responsive to their needs and problems.