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.
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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 .
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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.
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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.
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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.
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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.
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Forecasting is based on future, the future is
highly uncertain. The environment is dynamic
in nature.
The 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.
