Uncertainty Of The Business Environment

1291 Words6 Pages
Uncertainty in the business environment plays a critical role in the formulation of business strategy. Today 's business environment has be described as increasingly more complex, competitive, unpredictable (Kanter, 1999) and difficult to manage. The uncertainty in the business environment is affecting almost everyone as many years of economic growth have given way to rising unemployment, increased costs, reduced disposable income and a greater number of risks. Uncertainty is viewed as a product of unpredictability (Cyert and March, 1963), environmental turbulence (Emery and Trist, 1965) and lack of information. To survive in the business environment of uncertainty, organisations need to balance their traditional, planned, structural change methods with the unpredictability and emergence of new approaches traditionally conceived of as polar opposites (Livne-Tarandach and Bartunek, 2009). For this reason, it is important to reflect on the increasing uncertainties in the business environment. • The first uncertainty relates to environmental regulations, such as the ever changing regulatory environment like increasing energy costs, global warming, globalisation and growth of foreign trade, and financial policy that business organisations faces today and causing uncertain future. The understanding of the environmental regulations and its implication on business growth can play a major part when planning for business growth. • The second uncertainty
Open Document