Benefits and Limitations Environmental Analysis

About Environmental analysis Benefits and limitations

1. Name : S.Karunya Roll No : 21PK08 Class : I M.Com Topic : Benefits and Limitations of Environmental Analysis Name : S.Karunya Roll No : 21PK08 Class : I M.Com Topic : Benefits and Limitations of Environmental Analysis

2. Meaning of Environmental Analysis: An Environmental Analysis helps the organisation identify internal and external elements that can either negatively or positively impact their business.

3. Benefits of Environmental Analysis: The changes in Environmental Analysis helps to make modifications in the old strategies. It helps to the prior formation of right strategies in corporate, business and functional level. According to the analysis of threat and opportunities we frame the strategies.

4. Continue… The main aim of Environmental Analysis is the identification of opportunities and risk. If new technology is invented today, how long it will survive in the market and how long it takes to introduce in the market. These kind of knowledge can be obtained via Environmental Analysis .

5. Continue… By doing this analysis, the manager can able to know that there is some link between the environment and business. The both are associated with each other. Any changes takes place in the environment will surely affect the business. So, to know the link between the Environmental Analysis must be done.

6. Continue… By identifying the opportunities and threats the organisation can able to take the right decisions on favour to them. This analysis helps the company to achieve the good stability in national and international market.

7. Continue… The Environment is dynamic in nature it continuously keep on changing, so what kind of changes are take place in the environment and how it will affect our business, to know all these things, the study of environment is necessary.

8. Continue… It also helps in analysis of competitors strategies and formulation of taking effective counter measures. Environmental Analysis helps the managers informed, alert and often dynamic. Even a micro changes in environment also keep on analyse by the manager.

9. Limitations of Environmental Analysis: The manager can identify various problem and the he moves on to the brief analysis. In the stages, the manager can identify the wrong factors the whole process will go wrong. The outcome of the factor will not helpful for their analysis.

10. Continue… Forecasting is based on future, the future is highly uncertain. The environment is dynamic in nature. T he estimation value of factor may create a problem if there are overvalued or undervalued. By doing Environment Analysis there is not sure for the environmental effectiveness of the business.

11. Thank you