Business Environment Dynamics: A Comprehensive Analysis

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CONTEXT OF BUSINESS

Table of Contents
INTRODUCTION............................................................................................................................. 3
LO1.................................................................................................................................................3
LO2.................................................................................................................................................4
CONCLUSION................................................................................................................................. 5
REFERENCES...................................................................................................................................6

INTRODUCTION
The nature of business environment is changing and dynamic is a necessity of development and
modification of an associational strategy including its services and products, other operational
activity and most expressively the marketing infrastructures. Marketing direction has set to
complete customer wants and satisfaction as the most priority of an association.
Business environment is dynamic in its nature because it changes rapidly for example changes
in choice and taste of the customer, government policies change, technology changes etc. Such
changes might be caused by external and internal reasons.
In the past associations were designed for effectiveness and efficiency that leading to
complicated business environment. Instead in present more successful and efficient
organizations should be designed for eligibility, adaptability and speed to enable them to strive
and win in present global business environment.

LO1
The essential characteristics of dynamic nature of the business are as follows:
External Forces: - Business environment is the sum of all external issues that impact the
function of business.
General and Specific forces: - general forces are political, social, technological, legal and other
forces that indirectly affect the operations of the business while specific forces are competitors,
investors customers and so that directly affect to the internal work(Teece et al., 2016).
Uncertainty:- Environment of the business is very uncertain because one can’t predict that
what can happen in the future particularly in IT industry, film and fashion industry. So the
dynamic nature marks it all very challenging.
Change in economy: - the arcade system adopted in the business organization directs on the
strategic economy change for it.
Change in technology: -Technology can lead to changes in efficiency, productivity and
occupation demand (Teece et al., 2016).
Environmental expectations:- It is the changes in the environment mostly caused by natural
disaster and human impacts.
Legal changes: - Legal changes in zones such as property rights and business rules.
To be successful a business should be able and willing to react positively to these changes when
they happen (Li and Liu, 2014).
Future of organization in the of environment global business:-

In the world of business, company demand increasing for something new. The ratio business
directs on truthful sources in order to gain information and symmetry changes in the business
on the global basis and comprehensive marking the decisions.
The solution is in emerging a platform to help business network with consistent bodies and
taxation (Gupta, 2013). Following are the several trends to design a responsive platform:-
Compliance: Increasingly open source towards the innovation and cloud are flowing the taxes
and compliance landscape.
Customer Experience: This is enhancing the driving factor for selection of technology.
Co-creation: Associations are working more closely with the partners to Co-create new services
(Hamilton and Webster, 2018).
Interoperability: This architecture disables historic problems like less interoperability between
systems those handle calculation of tax. Cash flow statement, reporting of tax, tax returns and
payments.
High Flexibility: Rules are changing frequently, so companies are need solution that retains
them up to date.
Enlarged Revenue for products and company: All the environmental hurdles are removed and
the brands and products discover new sales, markets and revenue will definitely get increase
(Hamilton and Webster, 2018).
Enlarged Global product awareness: The product is globally more popular instead of a countries
or a particular country, the name of the product get recorded all over in the world.
Intrusive focus on unexploited market: Outcome from studies and surveys that the products
could be marketed and launched in untouched markets that will guarantee the triumph of the
company.

LO2
Understanding of ethical approaches and issues helps organizations to build a solid foundation
for making future decisions. Ethics is the moral values code and principles that shows the
behavior of an individual or organization with the respect to wrong or right (Goebel et al.,
2012). Ethics deals with external environment to shapes decisions making social responsibility
and also with the internal values which are the share of the corporate culture.
Social responsibility: It is the duty of managements to take actions and make decisions that will
contribute to the interest and welfare of the society. Social responsibility means identify right
from the wrong. Social responsibilities cover an extensive range of problems (Goebel et al.,
2012).
Culture of any association is the determined behavior of participants of that company and the
visions, habits, values and beliefs that they adhere to their activities. Culture of an association
plays an important role in achieving its success as the decisions made for a product by the
company keeping in mind the cultural background of that place. It helps in protect the place of
the business environment and protective the wider community rights (Jones et al., 2014).
The managers and the leaders of organization should also ensure that strategies and policies of
that organization must not misguide to society and must be fair in nature. Ethics plays a strong
role in making decision of the organization. Ethical decisions for an organization focus on
providing an aim for the benefit of oneself and also to the shareholders of the business (De
Grosbois, 2012).
Sustainability is defined as a method which focuses on to encounter the requirements of the
present generation without negotiating the requirement of the future generation. It is very
important aspect of every organization. The company should ensure that, it produces the
product in a sustainable manner, so that it won’t harm the atmosphere by polluting it. It should
not put pressure on the resources but it has to promote sustainable development. By the

sustainability, society will be benefitted mostly because less the level of the pollution and
utilization of less.
The business is an economic activity itself. The main aim of the business is make profit (De
Grosbois, 2012). It means that to recognize the demand and wants of customers whether it is
regarding to the price of the product and or its quality. Understanding the viewpoint of the
customer and fulfilling their demands and needs to make a profit is the business economic
responsibility.

CONCLUSION
This entire report is based on to understand the dynamic nature and changing nature of
business and future of the organization within the international business environment. It has
been seen that the organization has to manage ethical responsibility towards the various issues
i.e. social, economic, environmental and cultural.
The effort that business has to make that it has to behave ethically, whatever the situations are
present. The effort that business takes to increase social effect frequently refer to impact to the
company.

REFERENCES
 De Grosbois, D. (2012). Corporate social responsibility reporting by the global hotel
industry: Commitment, initiatives and performance. International Journal of Hospitality
Management, 31(3), 896-905.
 Goebel, P., Reuter, C., Pibernik, R., & Sichtmann, C. (2012). The influence of ethical
culture on supplier selection in the context of sustainable sourcing. International Journal
of Production Economics, 140(1), 7-17.
 Gupta, A. (2013). Environment & PEST analysis: an approach to the external business
environment. International Journal of Modern Social Sciences, 2(1), 34-43.
 Hamilton, L., & Webster, P. (2018). The international business environment. Oxford
University Press.
 Idowu, S. O., Capaldi, N., Zu, L., & Gupta, A. D. (2013). Encyclopedia of corporate social
responsibility (Vol. 21). New York: Springer..
 Jones Christensen, L. I. S. A., Mackey, A., & Whetten, D. (2014). Taking responsibility for
corporate social responsibility: The role of leaders in creating, implementing, sustaining,
or avoiding socially responsible firm behaviors. Academy of Management
Perspectives, 28(2), 164-178.
 Li, D. Y., & Liu, J. (2014). Dynamic capabilities, environmental dynamism, and
competitive advantage: Evidence from China. Journal of Business Research, 67(1), 2793-
2799.
 Teece, D., Peteraf, M., & Leih, S. (2016). Dynamic capabilities and organizational agility:
Risk, uncertainty, and strategy in the innovation economy. California Management
Review, 58(4), 13-35.