Organizations as well as societies can find approaches to all three ultimate goals to better their environment all at the same time through environmental protection, economic development and social well- being or the triple bottom line.
As the success of any business depends on the adapting capabilities of that business to its environment, it is vital for every organization to continuously change and adjust itself to the ever changing environment within which it operates. The dynamic nature of the environment leads to changes in the economic conditions which in turns affects businesses accordingly. It thus becomes imperative that decision makers within businesses act in accordance with the dynamism and make their business dynamic to environmental change as well. Change in things like technologies and government policies render the existing methods and methodologies obsolete. Even a change in consumers taste shifts the demand in the market. So, all units of the business need to constantly adapt to all such changes in the environment not only to survive but to do well too. (Elearn Limited, 2005,Worthington, and Britton, 2009,Kew,and Stredwick, 2005).
In short, we can summarize the business environment factors to be:
- The sum of the total factors which are external to the organization or firm and that which affect and influence the way it operates can be described as the business environment.
- Aspects such as consumers, suppliers, competitors, government and cultural, legal, social, technological all come under the business environment.
- It is ever changing and dynamic in nature.
- It differs from place to place, tastes and values of people.
There is a close and constant relationship between the business and its environment. This relationship is subject to the dynamic nature of the environment and constant state of flux as a result of globalization. This in turn leads to businesses being affected in accordance with this flux. This relationship strengthens the organization and its resources and assets. It helps in determining the opportunities and threats facing the business, giving way for growth, continuous learning, image building, facing the competitors, and recognizing the strengths and weaknesses. (Elearn Limited, 2005,Worthington, and Britton, 2009,Kew,and Stredwick, 2005).