The Forces Influencing the Business Environment

There are rapid changes in each business environment and the managers should become aware with these changes enable businesses to survive. But where are these changes come from? Upon researching, I found out that there are different forces causing the changes and influence the business environment. All of these forces may bring threats or opportunities to them. So I can say that it is important to become responsive with the changes by providing contingency plans to all forces. I came out with the idea of discussing four major forces affecting the environment.

1. Market
The market can be referred to the consumers, business competitors, and public awareness. It directly influences the business environment in terms of strategic planning, managers’ decision making, and overall business operations. Setting up own marketplace from variety of consumers is essential to all businesses.

2. Legal Policies
Business permits, mandatory benefits, recognitions, and accreditations are some of legal policies issued by the government and will vary depending on the business rank and type. It is also considered as protection from any legal issues coming from the competitors and public. And a value added to businesses in providing high quality of products and/or services.

3. Workforce
Human resources play big roles in businesses. The quality of products and/or services came from the effort done by the workers. A business is composed of personnel with different nationalities which will have effect on the settings of its environment. They could be differed in many aspects of life including culture, personality, principle and even interests that affect the business social status as well as the work output. Diversity of workload varies as it has to fulfill the needs of effort in businesses.

4. Technology
The technology is always changing and it has gradual or sudden effect in business environment and in the community as well. Automation, microchips, and online services control the business management and operations. It is important to adopt technology to improve the designs, services, processes, and output. Technology can boost global competitiveness among businesses.

Changes make differences in the business and its environment which should give continuous attention. Forces causing the changes in business environment are factors to consider enable to take actions in it. And so business managers must provide risk management plans for these uncontrollable forces.