1. INTRODUCTION 1.1. Background to the Study Businesses play a significant role with the economies of all countries, whether developed or developing. It contributes to the welfare of the society through the satisfaction of needs, provides a source of livelihood to millions of people worldwide. Businesses do not operate in vacuums but operate within business environments. The events in the environment of a company have a direct effect on the success or failure of that company. According to Jain, Trehan and Trehan (2009), business environments can be categorized in two: (1) internal business environment; (2) external business environment. Institutions and organizations are usually in a position of controlling their internal business environment. By doing so, they gain the ability of affecting their institutional performance. On the contrary, it is difficult for a business to control the external environment; however, businesses can identify in advance the opportunities and threats presented by the external environment and take decisive actions to ensure its continued success (Jain, Trehan & Trehan, 2009; Goyal & Goyal, 2009). Scholars and researchers characterize the business environment as dynamic (Nieuwenhuizen & Rossouw, 2008). This is because; the business environment is not static but ever changing. The changes in the business environment are fuelled by the changing preferences and tastes of consumers. Changes in consumer preference of products and services drive the institutions and organizations to a sequence of unending research and development. Institutions invest a substantial amount of their resources in research and development in an effort to meet the demands of the market. By so doing, institutions gain the abilit... ... middle of paper ... ...Reuters. (2013). Safaricom limited. Retrieved March 29, 2013, . Sautet, F. E. (2000). An entrepreneurial theory of the firm. London: Routledge Publishers. Shafer, S. M., Smith, H. J., & Linder, J. C. (2005). The power of business models. Business Horizons, 48(3), 199-207. Stokes, D. R., Wilson, N., Wilson, N., & Mador, M. (2010). Entrepreneurship. Connecticut: Cengage Learning. Teece, D. J. (1998). Economic performance and the theory. Cheltenham: Edward Elgar Publishing Limited. Teece, D. J. (2010). Business models, business strategy and innovation. Long Range Planning, 43(2-3), 172-194. Wantao, Y., & Ramanathan, R. (2012). Effects of business environment on international retail operations: case study evidence from China. International Journal of Retail & Distribution Management, 40(3), 218-234.
A business can either take a step forward or a step back depending on the external and internal influences and how they handle them, they can either flourish or enter stages of degradation and cessation. External and internal influences on a businesses plays a part in the opportunities that arise in the industry the business operates in, otherwise the business may choose to venture out of it’s defined industry depending on the opportunities at hand. Businesses are affected by internal and external influences to a degree where they are either benefiting or suffering from the way they handle opportunities that arise. The five articles depict the problems encountered by businesses no matter their size or industry.
Innovation has rapidly assumed a position of prominence in world competition on a global scale. To compete in this environment, organizations need a level of innovation. As competition becomes more global and time-based, organizations must develop and deliver new and superior products or services in less time. The challenge for modern organizations is to revitalize them so they can successfully and continuously develop newer products and enhance business development.
Businesses depend on the external environment as much as they depend on the internal environment.
Business models are possibly the most discussed and least understood facet of the web. Brokerage models, such as Priceline.com are market makers: they bring buyers and sellers together to facilitate transactions. Priceline.com leads the way to a unique new type of e-commerce known as a "demand collection system". Priceline.com is the world's first online buying service through which consumers name the price they're willing to pay. Leveraging the unique attributes of the Internet, Priceline.com finds sellers willing to meet buyers' needs and price.
Many firms pursue multiple business models at once. Nevertheless, there clearly are dominant patterns to all this variety on the Web.
Business environment includes the internal as well as external factors that affect the operation of a business. Therefore, business environment is the sum total of the forces or the surroundings that have an influence on the business operations. The internal environmental factors are usually controllable because the management has control over it. Whereas the external environmental factors are difficult to control by the company. There are two types of external environment: Microenvironment and Macro environment.
In the nutshell, changes in business environment are unforeseeable. It is common that sometimes company’s activity shall change to continues sustainable in the open market. Some company may threat of downsizing, bankruptcy or changing business model due to unfavorably change of business environment. Thus, it is important to manage change of business environment, which involved internal and external forces of change that contribute to incremental changes and transformation quantum changes in the organisation.
Organizational Change "The effectiveness of organizational change is greatest when a firm’s strategy is consistent with environmental conditions and there is internal consistency." (D A Nadler, 2003:204) The only thing that is constant in this world is change and this is widely acknowledged by many in the world, may it be a corporation or a social forum or a governmental body. What comes in this world has to experience change in the light of environmental elements and pressures and influences, internal or external. The study of organizational behavior gives that environmental factors are the political, legal, economic, demographic, technological, social and societal. While these are the external environmental factors that are and cannot be counted among the controllable factors for an organization, they do in fact influence organizational structure, policies and strategies. In turn, the internal environment of the organization, that is very much controlled by the management of the organization and comprises of the top to bottom managerial levels, the staff, the employees, the board of directors, the owners etc. this internal environment, is to a great extent the result of external environmental factors, the change of which results in the direct impact on the internal environment of the organization. As such in lieu of external environmental factors; change agents with in the organization tend to accept the change in their external factors and tries to bring about a compatible change within the internal environment of the organization. The effectiveness of the change that is being brought about with in the organization as a result of the changing external environmental forces is best when, as described by Nadler, the internal facto...
The contemporary business environment is dynamic, ever-changing and increasingly competitive. Their is potential for success, but even more for failure. Businesses are heavily influenced by the changing organisational environment and this intern creates much uncertainty for managers and organisations. With increasing uncertainty in the external environment, the more important it is that managers engage in continual planning. (Robbins 2012 p. 32) Businesses must be flexible and evolve in accordance with their external environment.
The objective of this research is to help a company or an entrepreneur understand the business environment better as well as customers’ needs and, therefore, make better business decisions.
When the buzzword of business model was very active and reactive during the internet boom, many individuals did not understand the concept of the proper business model for the proper business (Magretta, 2002). When not utilizing the right type of model for the organization, the model will be misused and distorted (Magretta, 2002). Understanding the traditional organization and learning organization, will allow an organization to determine which time of organization they desire the most.
Organisation is the most important element in management. Any organization is located and operated in the environment. Every action of all organizations is possible only if it allows its realization. The internal environment is the source of its vitality. It involves the capacity needed for the functioning of the organization, but at the same time can be a source of problems and even her death of the organisation. The external environment is the source that supply organization resources. The organization is in constant exchange with the external environment consequently it provides itself with survival. The main objective of this work is to consider elements of the internal and external environment of the organization which are in a constant
The first external environment of a business factor is economic that plays a significant role in business. The Republic of Kazakhstan is rich in mineral resources, vast agricu...
The main objective of this paper is to understand, analyze, and explore globalization and discuss factors that influence the global business environment. There are many strategic intricacies in the global environment, which will be evaluated in this report. Furthermore, the effects of structures, cultures, and functions on the global environment will be explored. The paper will also cover the changes that globalization makes in an organizational decision making.
The business environment that firms operate in can be divided into the internal environment and the external environment.