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Business Environment Essay

In the light of the fundamental gross and incremental changes that are constantly occurring in the external and internal business environment of organizations, leaders need to realize their organization can only survive if they recognize, anticipate, plan and implement adequate strategies to accommodate the changes in a timely manner (Toyne & Nigh, 1999).

Currently the organizations are facing many challenges that include global market competition, mergers, managerial restructuring, and acquisition and break up of the companies, media scrutiny, and increased business regulation, desire of employees to participate in decision making process and declining business ethics. Such increasingly and unpredictable changes in the business environment requires that the leaders in business organizations are properly and constantly aligned with the new business realities (Jain & Tandan, 2006).

The changes in the business organization can become a treat to the business and therefore it requires the leaders to anticipate these changes before they become real. In addition leaders also require redefining the ethical framework in order to come up with a proper in organizations in the global business setting (Toyne & Nigh, 1999). If the leaders do not introduce adequate change in ethical and timely manner then the organization are likely to face difficult time and significantly reduces the chances of long time survival of the business (Gholipour, 2007).

Organizational behavior Change in business environment indicates any act that makes it to be different. The factors that contribute to changes in the business environment include technology people, competition and processing of information and communication. Some of the changes in the business organization may occur suddenly without conscious efforts of leaders. Changes that occur without the efforts of the people are unplanned changes (Jain & Tandan, 2006).

On the other hand planned changes may be initiated by the leaders in the organization in order to achieve some objectives ands goals. Both planned and unplanned changes are met with resistance. The resistance can be covert i. e. implicit or overt/explicit. Classification of resistance to change can be classified to organization resistance or individual resistance (Toyne & Nigh, 1999). Individual resistance to changes in the business environment can occur since the individuals perceive it to be a threat to their economic conditions, security and habit.

On the other hand organization resistance to changes may occur because of group inertia, structural inertia, control of resources, expertise, fear of loosing power etc (Gholipour, 2007). To overcome these resistances to changes, the leaders can educate employees, go for negotiation, co-optation, coercion, manipulation and ensure that workers are involved in decision making process. For example the management can use Lewin’s three step model to manage the planned changes (Jain & Tandan, 2006).

Lewin’s three step approaches suggest that business organizations can develop permanent changes in the behaviors of the employees by making them unlearn the old working procedures and behaviors (Gholipour, 2007). On the other hand modern organizations place emphases on innovation and how they can learn to cope with the changes in business environment in order to stay ahead of competition (Toyne & Nigh, 1999).

Sources of innovations may include acquisition of new knowledge that leads to changes of perception and awareness, change of market and industrial structures, demographic changes etc. usiness organizations require to be committed in innovation and change and also change their cultures and structure in order to facilitate continuous learning of the employees. Conclusion The main purpose of change in a constantly changing business environment is to learn to adapt to those changes very quickly and also develop planned strategies to deal with the changes. Organizations need to introduce their own changes considering their size, goals and circumstances (Toyne & Nigh, 1999).


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