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CHAPTER2BUSINESS ENVIRONMENT LEARNING OUTCOMES After studying this chapter, you will be able to: understand the concept of business environment with its characteristics and importance.understand what
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Identify the purpose of the analysis.
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Gather relevant data on the industry, market trends, competitors, and regulatory environment.
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Assess the impact of external factors on the business.
04
Analyze the strengths, weaknesses, opportunities, and threats (SWOT) of the business.
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Who needs business environment analysis why?

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Business owners and entrepreneurs need business environment analysis to understand the external factors that could impact their business operations.
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Investors also benefit from business environment analysis as it helps them evaluate the potential risks and opportunities of investing in a particular company.
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Business environment analysis involves evaluating the external factors that can impact a business's operations, such as economic conditions, regulations, and competition. It's important to understand these factors to make informed strategic decisions.
Businesses of all sizes and sectors may be required to conduct a business environment analysis to understand the market dynamics and regulatory requirements that affect their operations.
To fill out a business environment analysis, businesses should gather relevant data on external factors, assess their impact on the business, and document their findings in a structured format for review and decision-making.
The purpose of business environment analysis is to identify opportunities and threats in the market, enabling businesses to adapt their strategies effectively and remain competitive.
Key information that must be reported includes market trends, competitor analysis, regulatory changes, economic indicators, and social influences that could impact the business.
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