For finding business's available opportunities and risks, environmental appraisal is needed. Environmental appraisal means to analyze all the factors of business environments. Following are the main stages involved in environment appraisal.
Following are main objectives of business environment: 1. Knowledge of Information By studying the business environment, we can know the changes of business. This information is very useful for our business. Every businessman should aware current environment of business. With this, he can think the future of his business in such environment. 2. Basis of Decisions One of main objective of the study of business environment that it can provide all the information which is needed for taking good decisions. Suppose, you completed your internal business environment study. With this study, you can take decision relating to purchase, sale, salary and price because you know your competitor, you know your suppliers and you know your customers. 3. Helpful in making of Policies For making good business policies, we need to know and scan business through business environment. 4. Technological Planning Today, technology is changing very fastly. 3 years ago, I have to search software for downloading …
Following are main limitation of business environment analysis:
1. Unexpected and Unanticipated Events
We can not tell unexpected and unanticipated events in business environment analysis. Sometime, business has to face unexpected happenings. So, there will no benefit of business environment in these cases.
2. No sufficient Guarantee
Business environment analyst does not give any guarantee whether all events will happen as per estimation in business environment.
3. Uncritical Faith
Sometime data may be incorrect. So, decisions on basis of these analysis may be risky for business.
4. To much information
Sometime too much information relating to business environment analysis will create the doubt in businessmen.