Conditions are changing simultaneously in different fields, social, political, economic and technological, and they are often in conflict. It is difficult to forecast the area where changes will most affect business. For each specific business, it is important to keep in touch with the key changes in each area of the business environment and to update the forecast.<\/p>\n\n\n\n
Technological Environment<\/strong><\/p>\n\n\n\n This is probably the easiest to identify:<\/p>\n\n\n\n Economic Environment<\/strong><\/p>\n\n\n\n This changes in the following areas:<\/p>\n\n\n\n Social Environment<\/strong><\/p>\n\n\n\n Changes occur in:<\/p>\n\n\n\n Political Environment<\/strong><\/p>\n\n\n\n Relative importance of the external factors<\/strong> Generally speaking, the changes in social environment and to some extent the political factors will play a much larger part in shaping the business environment than they did in the past.<\/p>\n\n\n\n General Impact of Environmental Changes on Business:<\/strong> Coping with the changing environment is already a difficult task; the difficulty appears larger when it is realized that not only is the number of changes high, but the difference in \u2018quality\u2019 is even more striking. Most conditions show fundamental differences with past history and knowledge, as well as the past and even the current approach to business theories and management. Things are not only drastically different; they change quickly, much faster than they did in the industrial revolution during the 19th century. These fast changes are therefore very difficult, if not impossible, to foresee; they create business turbulence and unexpected crises at short notice; instability, discontinuity and uncertainty seem to characterize the present years and this situation will continue until the world reaches a new period of stability in all these respects.<\/p>\n\n\n\n Evaluation<\/strong>: All these changes can be frightening and leave one wondering whether the ordinary business executive can cope with them; whether the \u2018human gap\u2019 is not too great. However, there is no choice, so one might as well adopt a responsible and positive attitude instead of a passive and negative one.<\/p>\n\n\n\n The \u2018serenity prayer\u2019 says:<\/strong> In most businesses, a change in environment can be considered either as a threat or as a new opportunity depending on the point of view. A newly industrialized nation can be considered as a threat (cheap competition) or an opportunity (new market).<\/p>\n\n\n\n While excessive inflation is a nightmare for most governments, it is viewed as an opportunity by many businesses. Increasing crime is a frightening trend to most people; but security companies consider it as an opportunity for more business.<\/p>\n\n\n\n It is important to conduct a rational and systematic analysis of the future impact of each environmental factor on a specific business; and to avoid being trapped in a last minute crisis, under the pressure of events, when it may be too late to adjust to them. This analysis can be set out in the following manner.<\/p>\n\n\n\n Environmental Factor: Technological<\/strong><\/p>\n\n\n\n Environmental Factor: Economic etc.<\/strong> The probability level associated with each factor is a basic ingredient of any potential \u2018environment scenario\u2019 and concerns the risk evaluation of each future business strategy. Thus the systematic evaluation of opportunities and threats is a key part of the overall process of strategic business planning.<\/p>\n","protected":false},"excerpt":{"rendered":" Conditions are changing simultaneously in different fields, social, political, economic and technological, and they are often in conflict. It is difficult to forecast the area where changes will most affect business. For each specific business, it is important to keep in touch with the key changes in each area of the business environment and to…<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-101299","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"\n