Business Environment: Business environment means the sum total of those factors which influence the business and over which the business has no control.
Changes: A prominent feature of business environment is its being dynamic. It means that business environment undergoes continuous changes, for example,
i. Change in the taste of the customers.
ii. Change in the attitude or conduct of the suppliers (for example, laying down the condition of advance payment).
iii. Change in the form or nature of competition because of the entry of many competitors in the market.
iv. Change in the attitude of the general public (for example, opposing the pollution spread firm).
v. Change in the expectation of the people from business.
vi. Change in the political structure.
vii. Change in the economic policies.
viii. Change in the legal regulations.
Managerial Response: After having clarified that there are compulsory changes going on in the business environment, the major question about the managerial response to these changes remains to be tackled. In other words, whether the managers give them any importance or not. In response to this question it would be appropriate to say that if the managers want that their business should continue to exist for a long time and that it should continue developing, giving importance to these changes is absolutely essential, otherwise not. It is obvious that all the managers would like to see their business to continue for a long time and flourish. Consequently, they would give importance to changes.
