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Social Change In The Business Environment

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Today’s business world is evolving faster than ever before (Achrol, 1991). Nowadays business are forced to accept, receptive, efficient, innovative and adapt these new challenges to the business environment. Business environment is comprised a set of relationship between the stakeholders in the environment whichever the relationship that are changed by individual decisions taken (Wheatley, 1996). The change in the environment has been rapid and unpredictable where competitive advantages have been demonstrated in the most dramatically changes. Competitors have been applying the business strategy adapt to the dynamic and unpredictable nature of the business environment. Business challenges faced by the managers are becoming dynamic rather than …show more content…

Change in social trends might impacts on the demand for firm’s products and business’s profitability. Social change includes the effect of demographic pattern, taste, and behaviors are concern about environment and sustainable development (Gupta, 2013). Technology continuously changes rapidly have greatly influences on business environment. Technological factors include ecological and environmental aspects such as research and development activities, automation, technology incentives and rate of technologic change. This factor takes into consideration technology issues that affect how an organization delivers its products or service to marketplace. The rapid development of technology requires quick reaction by businesses in order to survive in an emerging environment and keep up with new trends and innovative services (Koumparoulis, 1997). Environmental factors include climate change, weather and natural disaster which might influence on business. Managers must aware of natural disaster such as earthquake that can disrupt production and supply operations. They must prepare to handle the environmental issues caused in businesses. Legal factors such as employment regulation, products regulation, and health and safety regulation caused limit in business operation. Managers must avoid legal pitfalls when dealing business with …show more content…

Manager must have a clear understanding of internal and external business environment which might impacts of business’s decision and performance. PESTEL analysis and SWOT analysis are the effective and efficient tools that able to help managers to overcome and be ready to face those rapidly changing business environments in the 21st century. The role of today’s manager is becoming more and more difficult. These modern challenges in management require a lot of experience and skills along with the ability to foresee the

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