Uncertainty Of The Business Environment

ParadoxThere are many paradoxical issues present in change management. Just one manifestation of this would be middle managers withholding information they are given to disseminate because they wish to retain their knowledgeable image; defeating the point of a middle manager. Michael E Raynor (2007) in his book entitled ‘The Strategy Paradox’ presents the idea that a successful strategy requires the full commitment of the organisation, which leads to unsuccessful performance overall; due to over commitment.  Flood and Dresher’s (1950) Prisoners’ Dilemma, applied to the world of business, will also conclude that non-competition is the most effective path in the long run. Both imply that strong competition efforts eventually lead to failure – that mediocrity is the best route to follow as companies have a silent agreement to operate in a state of equilibrium. However, in the case of HMV Group, its operating industry is in decline; therefore failure is the only eventuality of a failure to compete.  ContextAs identified above, much of the literature on the subject of managing strategic change has an element of paradox attached to it. The logical reason for this is that different methods depend on the circumstances the organisation is faced with. As there are no exact laws of change management, this is what makes the subject complex; but more interesting. Most of the literature aims to provide a theory for each and every eventuality;

Organisations today find themselves operating in an environment that is changing rapidly. The process of analysing the implications of these changes and modifying the way that the organisation reacts to them is known as business strategy.

During these times of change business may have to change its orgainsation, operation and its nature to deal with the challenges of each stage in the business life cycle. For business to be successful they must constantly develop and change strategies to deal with the growth of the business or the life of the business may be cut short.

In today’s society, we live in a time of increasingly rapid change in business for both personal and professional. Technology, business, and our culture are all evolving in fast and remarkable ways. Scanning forward and anticipating change is a complex task that takes the right combination of perspectives brought together in just the right way. Numerous businesses don't embark on the challenge at all but could benefit from a strong strategic plan and quarterly updates to track both increase and decrease of profits, trends and expenses.

Within business, there will always be operational risks to consider. "Operating risk is the basic

Organizations plan according to the changes in the environment. Planning for organizations 25 years ago was stable. This was due to the fact; organizations during that time frame remain essentially the same. There was no need to be worried about a volatile economy, or market. In the past organizations didn’t have to primarily plan for the uncertainty, as they have to do now. They generally planned for making profits and understanding how to enlarge

Environmental issues that affect their business operation include industrial waste, sustainable development of raw materials and water and air emissions. Most times when businesses are trading internationally, these issues affect business because the laws in which they operate sometimes require businesses to change equipment they use and adjust their former procedures to meet imposed standards, which sometimes is at a financial expense to the business.

A business has many influences that provide a duel effect on its operations. Not only can they cause the business to undergo change and continually adjust to the external factors in the business environment, but they also provide threats and opportunities in the operations process.

It fascinates me how businesses operate in frequently changing environments. Particularly, the way employees are managed in order to maintain a flowing business structure whilst achieving business aims and objectives and by using calculated risks to overcome challenges. Thus leading to the progression and success of a business.

Businesses continually adapt to a changing environment to maintain their market position (Appelbaum, Habashy, Malo, & Shafiq, 2012; Biedenbacha & Soumlderholma, 2008). Change is inevitable considering the current rate of technological advancement and the growth in global competition (Appelbaum et al., 2012; Armenakis & Harris, 2009; By, 2007). Increasing competition and the need for strategic flexibility and globalization is affecting almost every organization today, regardless of size, market, focus, and so on (Jaros, 2010).

Business leaders are not only uncertain about the economy and policy, but also tax and regulatory issues. Uncertainty causes doubt, which creates real suffering. For example, the implementation of the Patient Protection and Affordable Care Act commonly referred to as the Affordable Care Act or Obamacare was signed into law March of 2010. Since the enactment, it has impacted every American and employer in the country because it has been the biggest ever regulation of it’s sector to impact the economy. Proverbs 16:12 conditions “kings detest wrongdoing, for a throne is established through righteousness” (NIV). Social influence for good or bad is exemplified in Proverbs because when a king follows God’s ways, he will be king for a long time, and an evil king will be dethroned. Therefore, in my opinion, the most logical way to prepare for business uncertainties of the future is to most importantly follow the life and walks of our Father and savior, Jesus Christ. As well as prepare for multiple outcomes, use analytical techniques, rely on predictable elements of the situation, remain agile and strive to responds quickly, and cultivate your reputation an business leader for extreme

The importance of government regulation on the destruction and industrialization of the environment in immense. If companies could develop as they please, we would be in a very different world compared to where we are now. These strict,

Changes are necessary for every organization in order to survive from strong competition, although changes always follow risks, organization must properly handle the existing institution, some employee’s resistance, or the uncertainty reduction. “Organizations pursue to enhance their competitive positions and their adaptability in volatile markets. At the same time, they seek the uncertainty reduction and inimitable resources that stability can provide” (Leana & Barry,

In continuation, Duncan’s framework for assessing environmental uncertainty, which examines the environment from environmental change and complexity perspective, will be used to further analyze the type of external environment and thus methods to overcome and adapt to it. All resources from external environment will be adopted to Fayol’s 4 management functions starting from planning, organizing, leading and controlling. The aftermath of this adoption would result in completing best performance for the organization and thus compete effectively. The model is shown at the figure below:

With the development of the global economy, the interaction between environment and companies became more important, therefore, throughout macro environment analysis, which includes political, economic, social, environment, legal and technology (PESTEL) that provides an indispensable part in the comprehensive list to understand opportunities and threats on the businesses (Searle and Barbuto, 2010). In this industry, political, economy and technology would mainly influence the strategies, thus