Environmental Change

Business environment is dynamic. May elements in the environment undergo changes. Technology changes are frequent. Tastes and the preferences of the people change. The competitive situations changes, Demographic factors, including population size, change. Attitudes and value system undergo changes. Economic factors, like income, change continuously. Government policies and regulations also changes to cope with the changing environment.

All these factors indicate that a, business policy should be dynamic enough to be successfully adaptable to the changing environment. The success of a business depends on its ability to foresee the environmental changes and to modify its business strategies appropriately.

An exact predication of the future events is, of course, very difficult. However, reasonably reliable forecasts are possible in many areas. For example, if the relevant data are available, it is possible to forecast the demand for a product. There are a number of forecasting techniques. An appropriate technique or techniques can be used, depending upon the characteristics features of the situation. Similarly, forecasts can be made of such environment. Glueck mentions the following techniques for environmental analysis.

(i) Verbal and written information

(ii) Search and scanning

(iii) Spying

(iv) Forecasting and formal studies.

As these techniques are quite well known, we do not intend to explain them here.