UGB366 Critical And Emerging Themes In Marketing

The purpose of this report is to discuss about business environment that is under constant change and affect the businesses of the organizations. There are many environmental factors that play important role in changing the way of business process to do in the market. The main environmental factors that affect the business of the companies are political factors, social factors, technological factors, etc. The constant change in the market develops an environment to do preparation for the change and make the business sustainable and profitable (Hanelt et al., 2021). The focus of the organization to believe in change takes more advantage than other companies because it prepare itself to face the challenges of change in the market.

The Effect of Constant Change in Business Environment:

The effect of constant change in business environment can be identified as fluctuation of economy. It can be up or down in the case of change in business environment that affect business to alter its operational ways. The entry of competitors in the marketplace creates huge impact on the other companies. The entry of competitors is a constant change in which most of the companies leave the market because of not altering itself against competition and according to the market demand (Hanelt et al., 2021). In most of the situations, such as natural disaster and shifting of weather patterns are also force the businesses to change the ways of business operations.

Further, the economic changes some time bring positive change to the companies, such as increasing profitability and increasing customer base. This is possible in the case of economic growth of a country that increases the purchasing capability of customers. At this stage, opportunities for further growth and business expansion can be possible in the market. The business environment under constant change basically in political factors introduces a risk factor (Hanelt et al., 2021). The political factors bring the condition of a company to suffer losses and reduce the profitability because of changing taxes and other hidden charges on the company income.

Further, in constant change in business environment is also possible because of development of advanced technologies. The advanced technologies help the organizations to improve their working system and make better than rival companies. This way of change is a slow process in which business environment adopt changes in the products or services to avoid shifting of large population. Therefore, internal change of a company is required to manage in order to increase sustainability of key employees and performance effectively and efficiently (Hanelt et al., 2021). The attention of the organizations to know the market condition and make preparation according to the change is very helpful to survive in the market.

Apart from this, technological change that is associated with innovation brings advantages and opportunities for businesses. The new product development is part of innovation that also needs to capture whole market before entry of other companies. At this stage, transforming the working system with implementation of innovative ideas and technologies can help the organization to take competitive advantage in the market (Galabova, 2021). However, the improvement of products and technologies also increase the productivity and reduction of product costs that beneficial in long term business operations.

The political environment should be understood by the companies to take advantage in business operation otherwise the crucial decision-making processes could be affected adversely. Democratic countries in the world are considered as the safe market to do business freely without any losses because the rules and regulations are made in democratic countries suitable to the common people and businesses. Additionally, communism environment of a country is considered as the part of social revolution in which political and economic systems are integrated and working class of the people help to guide the social revolution (Galabova, 2021). The fascism political environment controls everything in which nationalism and corporate state class is not possible at all. Therefore, business environment under political change can be seen as direct affect on the business working environment.

The social factors in the business environment that is also a constant change brings an environment based on the belief of the people. The belief and practices of the people always needs to be considered by the organizations in order to target them accordingly. The customs, trends, traditions and behavior of the people are constant change that needs to make a plan in product or service development to satisfy needs and expectations of the customers.

There are some other changes also in the business environment in which organization structure is one of the essential changes to impact the business of the company. The company structure decides whether the company should stand in the market. The decisions in the company are based on the management structure that can be hierarchical organization structure, functional organization structure, horizontal, team-based organization structure, etc. These organizational structures assist in providing guidance to all employees because of a formal outline of roles and responsibilities to perform (Galabova, 2021).

The organizational behavior with the employees is necessary to face the challenges of constant change in the business environment. The organizational behavior is related to transformation strategy of the company in which motivation of employees and providing training to work according to the change is critical for sustainable and maintaining competitive advantage in the market. Therefore, the inevitable change in every aspect of business activities or in business environment is not always acceptable according to the expectations (Al-Haddad & Kotnour, 2015). However, in a case of advantage of a change is acceptable by most of the organizations and they spend money to make a balance in business operations and earnings.

The critical impact in the business environment under constant change is related to mainly economic, political, and social factors because these are more effective amongst others. Everyone faces constant change in both the market and life of the individual. The business environment that holds external forces and factors on the priority basis cannot be controlled by the businesses and affect the business activities and functions effectively (Al-Haddad & Kotnour, 2015). In business environment that brings constant changes in the market and affect the functions of the business are customers, competitors, and suppliers. The main impact of constant changes can be seen as governmental factors, social factors, political factors, and technological factors.

In this scenario, the business environment that is under constant change should be focused by the organizations effectively and efficiently. Apart from thinking about economic, political and social factors, the other factors should also be considered that have large impact on business activities and their functions. The level of impact of constant change on business environment required to focus on transformation at all level, such as administrative level, sales level, marketing level, etc. in order to be sustainable and maintain competitive advantage (Al-Haddad & Kotnour, 2015). The preparation before increasing a critical situation of a company under constant change is profitable in the market.

Conclusion:

After discussion of business environment that is under constant change, it can be stated that there are many environmental factors that play important role in changing the way of business process to do in the market. The effect of constant change in business environment can be identified as fluctuation of economy. In constant change in business environment is also possible because of development of advanced technologies. The political environment should be understood by the companies to take advantage in business operation otherwise the crucial decision-making processes could be affected adversely.

References

Al-Haddad, S. & Kotnour, T. (2015). Integrating the organizational change literature: a model for successful change. Journal of Organizational Change Management, 28(2), 234-262.

Galabova, B. (2021). Open innovation – potential, constraints and prospects. International Scientific Journal “Innovations”, 9(1), 7-10.

Hanelt, A., Bohnsack, R., ………………….., Marante, C.A. (2021). A Systematic Review of the Literature on Digital Transformation: Insights and Implications for Strategy and Organizational Change. Journal of Management Studies, 58(5), 1159-1197.