Changing Environment Of Business

Business environment changes rapidly and has become more complex and competitive. It is agreed that the changing environment throws up opportunities for organizations to exploit. It is also agreed that if an organization exploits these opportunities then it can benefit. Some of the factors that contribute to these changes are:

• Political
• Economic
• Social
• Technological

Political: It is a well established fact that the political environment impacts businesses. The economic environment is often a byproduct of the political environment. Legislation's, policies (foreign and economic) are dependent on the ruling political party. Any alteration in policies can pose threats or opportunities to organizations. For instance, IBM and Coca Cola had to literally pack their bags and leave India in 1973 due to political considerations.

Economic: It is the purchasing power of the people that brings in new businesses, for instance 10 years ago in India we have to wait for 2 years to get basic telephone connection but now things have changed, I could see all college going kids carry cell phones, this change is possible due to change in economic condition and all multinational companies want to introduce their product in India because people are young and are ready to try new technology no matter what the cost is.

Social: Social change is when the people in the community adjust their attitudes to way they live. Businesses will need to adjust their products to meet these changes, e.g. taking sugar out of children’s drinks, because parents feel their children are having too much sugar in their diets.

Technology: Technology has become a paramount factor for organizations. Collating, storing, analyzing information has become technology based. A firm has to decide on how to embrace technology to improve operations and at the same time keep a watch at substitute products emanating from new technology. One does not only have to view the technological environment pertaining to the industry in which he is in. technology can throw up opportunities and threats in a multitude of ways. The example of Satyam, Infosys is very appropriate at this juncture. This well known company was once associated with an industry totally unrelated to information technology. It was formally involved in the construction business. However, the trends indicated that IT was ripe for investment and thus ensure the foray into IT from construction and Satyam Infosys was the thus the first private Internet Service Provider in India. The government was embracing IT in a big way and the environment in India was conducive to investment in IT industry. These factors prompted the switch and it seems to have been judicious.

In conclusion, Business that can adapt to these rapid environmental changes can survive in market and others will have to die.