What Factors Affect The Change Of A Business?

Change happens in a business environment for a variety of reasons. Those reasons depend on both internal and external factors.

Political factors relate to way in which changes in the government and government policies can influence the business.

Change comes at a fast or slow rate it all depends on whom is watching and what they are looking for, one thing is for sure change will happen. It will happen because we make it happen or it happens because someone else forces us. Either way we have to be ready to make the change, we do this by studying and learning, the business, the business environment, the competitors, and the industry. Watching for the signs that change is in the wind and watching which way the change is blowing.

To build a successful business model, the organization must analyze the business environment for external forces. Osterwalder and Pigneur (2010) discuss the importance of identifying the external factors in the business environment; the organization must be able to adapt the business model to the changing environment. External factors of demand play a critical role in developing a business model, an organization must quickly identify external threats and opportunities to stay competitive. Competition in the industry is an external factor that may impact the business model; the firm must monitor the value creation of the competitor. Mapping the external forces can help an organization see future trends that may be disruptive to the current business model so that the organization can take a different direction to achieve their goals (Osterwalder & Pigneur, 2010, p. 200).

As a business matures and evolves, it will experience change. Implementing change can be challenging therefore responsibility lies with the management team to develop a plan to efficiently introduce and implement change, which can ease the stress induced when change is introduced. The steps a manager must take to effectively implement change are clear. In order to effectively implement a change, an organization must asses the change that needs to occur, come up with a plan to implement the change, implement the change, and then evaluate the effects of the change in a timely fashion. In order to successfully implement the new change, the manager must be proactively involved in each step. By engaging employees, managers are able to use

It’s that time of year when companies spend time reflecting on the end of one year and begin making goals for the next. And there’s one goal that we’re willing to bet is likely at the top of nearly everyone’s list: growth.

There are a number of factors that affect organizational functions and require change; organizations must make the transition from its current state to some desired future state because change is inevitable. New markets, products and services, new production methods, technologies and social values affect the daily environment. Thus, adaptiveness, flexibility, and responsiveness are characteristics that enable organizations to meet the competitive challenges businesses face, today. Nelson & Quick share in Organizational Behavior (2013), “the current environment demands excellence in all areas and vigilant leaders.” Organizational change comes in two forms: planned, when change results from a deliberate decision to alter the organization, or unplanned, change imposed on the organization and is often unforeseen (Nelson & Quick, 2013, p.668). Organizations are pressured and forced into change for several reasons, some are external forces that arise from outside the company, and some may be internal forces that arise from sources within the company. While there are a significant number of external forces that lead to organizational change, a few common considerations like globalization, workforce diversity, and managing ethical behavior should be managed and monitored. Internal forces include a decline on effectiveness, a crisis, or even a change in employee expectations.

Among other factors, change in organizations occurs due to competition, survival, need for improved performance, and changed corporate culture (Pieterse & Homan, 2012, p. 799). Personally, I can easily relate these concepts to my workplace especially when it comes to organizational change. Within my workplace, changes keep on occurring in the operations and objectives of the company. For instance,

There are many factors that affect business such as: labour market, capital and target market. Ever since international trading has become more liberalised and popular, the changes of international economy has also impacted on development of companies, especially effect of foreign exchange rate. A foreign exchange rate can be defined as the price of one currency compared to another currency. This essay will focus on some different issues related to the foreign exchange rate, which include a tendency of losing the value of currency or inflation risk, the difficulty of making future plans, facing increasing cost and profit reduction. It will then move on to evaluate the solutions for these aforementioned problems.

As an electrical company, your business success depends upon growth. Growth can come from cultivating new clients through referral from an existing client and networking with businesses or homeowners in your community. Your business may be seeing a decrease in customer inquiries and bid acceptance. There are many factors that can affect the growth of your company. Likewise, there are many efforts your business can make to counter the decline of growth.

There are four factors of production. All four are required to produce goods and services and they include land, capital, labor, and entrepreneurs.

Change can be defined as being ‘to make the content, nature, future course etc., of something different from what it is or from what it would be if left alone’ (Dictionary.com 2016). As societies change so do their demands. This not only results in the development of new products, but also forces those already in business to make necessary changes in order to remain competitive (Joseph,C 2016).

Urbanization causes the population to grow significantly, one of the negative outcome from this is decrease of net wages which is caused by more workers available and willing to work for less in exchange for a job. With lower wages, organizations can either increase their margins or decrease their prices to increase overall sales.

Key economic factors include: the general economic framework of a country, its degree of economic stability, the existence and role of capital markets, the presence of factor endowments, market size, and the existence of economic infrastructure. Factor conditions represent available inputs to the production process, such as human, physical, knowledge, and capital resources, as well as infrastructure. [See Fig. 4.1.]

Inorder to better understand change, we must understand how change is promoted by various external and internal factors