In order to be successful, a business manager should have a thorough knowledge of the business environment. In order to make wise business decisions, a business manager needs knowledge of all aspects of the environment affecting the business. In this case, knowledge is power. The manager should know the trends in the business environment. The manager should what future expectations may be. Not having this information could lead to poor decision-making. This could cost the company money, customers, and profits. The effective business manager also should be in tune with what the employees of this company are thinking. Does the manager listen to their ideas? Are the workers happy? Is morale positive? Do the workers feel valued by the company and the manager? If the business manager can effectively handle the personnel side of the business, this should help make the business environment better. This tends to impact productivity in positive ways. By being in touch with all aspects of the business environment, and then by making wise business decisions, a business manager will increase the chances that he or she will be very successful.
The business manager should have a firm understanding of their work environment because this specific knowledge could help in avoiding costly mistakes over the existence of the company. When the business manager understands the policies and regulations of their organization, it also aids in identifying those unique opportunities that could potentially take the company to the next level and beyond that of their competitors.
There are two components in particular, which a business manager could utilize to help them gain more insight about his or her company. The first step is to carefully evaluate the current position of their company. For instance, a business manager may complete this step by determining the needs of the customer and building on those needs when appropriate.
The second component is to allow the staff members to voice their opinions about the organization as well. Members at lower levels of management and regular employees are the "ears" of the organization so they would understand the needs of the customer and company strategic plans.