Business Adaptation: Responding to Ongoing Changes in the Future

This discussion post addresses how businesses must adapt to ongoing changes in the future. It explores key factors such as globalization, demographic shifts, emerging technology, climate change, and increasing competition. The post highlights the importance of adapting to these changes to ac...Read More

DISCUSSION
QUESTION

TABLE OF CONTENTS
U1 - “How businesses will need to adapt to ongoing changes in the future”..................................3
REFERENCES ...............................................................................................................................5

U1 - How businesses will need to adapt to ongoing changes in the future
The business environment is changing with changing time, this is a way how the old
things evolve and new products or services are created. For example, if earlier the life cycle of a
product was 10 years it has been reduced to 2 years. The world is changing with time, needs,
demands, preferences of people are also changed greatly (Kew and Stredwick, 2017). It is
important to consider all elements or factors that are affecting business. There are many factors
that are influencing businesses in today's world which are important to be controlled and adapted
in order to achieve success and high rate of profit in changing business environment.
The factors influence business environment and the ways in which businesses can adapt are
described below -
 Globalisation – A major change or shift in the pace or area where a business is
conducted is occurring now. It is estimated that half of the world's largest companies or
organisations are headquartered in emerging markets such as India, Brazil and few
eastern nations. Pressure from international competitions and various other factors
resulted in around 40% of organisations that were in Fortune 500 in 2000 were not in the
list by 2014. They are getting replaced highly by new global companies. The companies
can adapt by entering into global markets which can help them to achieve more success
and profit in business (Cook and Bahles, 2017).
 Demographic Shifts – In various economies in the world, decreasing birth rates and
advances in healthcare have resulted in population which includes more old people and a
workforce that is reducing. People are working and living longer, with an average of
retirement age for most people is expected to be between 57 and 66. The medium age
individuals are not the largest generation in an organisation within most of the countries,
and their ideas or voices are connected by various innovations such as social media. It is
very important for an organisation to expand business in various demographic areas so
that it can attract variety of customers from various segments.
 Emerging Technology – The technological changes in the business environment is
influencing organisations and companies. Nowadays many organisations and hotels in
developed countries like Japan are using robots to provide services. In order run an
effective and efficient business, it is essential to adopt new or innovative technology in

their organisational functions. These technologies can assist and support business to
increase productivity and profitability which are major objectives of every business. The
technology plays an important role in each and every organisation; it assists to perform
various business functions in less time as well as with more accuracy as compared to
Human Resources.
 Climate Change – Climate change have a strong impact on economy of each and every
country; according to OECD by 2050 more than 40% of the world population will live in
high water stress. This will result in drought or floods which will create high risk for
economic value of assets. To become efficient with resources is cost beneficial and
socially responsible. The companies require adopting increased regulations that are
supporting energy efficiency, water leakage, waste, urban congestion, land degradation,
efficiency in transportation etc. Permitting employees to work virtually also decreases the
need for various facilities and helps organisations decrease their negative impact on the
environment (Chattopadhyay and Bhawsar, 2017).
 Increasing Competition – another most influencing change is increasing competition in
global market. There are many types of organisations and businesses that enter into the
market with various new products and services to attract customers. It is important for
organisations to accept and sustain the competitive market. Therefore, the business needs
to develop effective business strategies for their organisational activities and functions.
The companies can use different strategies such as product diversification, market
expansion, pricing strategies etc to attract customers and sustain their position in the
market. It is essential for each and every business as there are many substitutes available
in the marketplace that can affect customers to switch to other brand.
All the above factors greatly influence or affect the business functions or activities of
organisations or companies. In order attain success and sustain in the changing business
environment it is important for each and every organisation to adapt these changes in the
business environment.

REFERENCES
Books and Journals
Chattopadhyay, U. and Bhawsar, P., 2017. Effects of Changing Business Environment on
Organization Performance: The Case of HMT Watches Ltd. South Asian Journal of
Business and Management Cases, 6(1), pp.36-46.
Cook, G. and Bahles, M., 2017, May. Changing Motives towards Cars in the Younger
Generation. In Proceedings of the 17th International Joint Conference on Central and
Eastern Europe in the Changing Business Environment (pp. 9-20).
Kew, J. and Stredwick, J., 2017. Business environment: managing in a strategic context. Kogan
Page Publishers.