STABLE ENVIRONMENT/DYNAMIC

ENVIRONMENT

SANDEEP AZARIROLL NO:161403

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WHAT IS BUSINESS ?

ANY ORGANISATION OR ECONOMIC SYSTEM WHERE GOODS AND SERVICES ARE EXCHANGED FOR ONE ANOTHER OR FOR MONEY IS KNOWN AS BUSINESS

THE MAIN MOTIVE OF BUSINESS IS PROFIT EARNING

BUSINESS ENVIRONMENT

The combination of internal and external factors that influence a company’s operating situation

The business environment can include factors such as: clients and suppliers; its competition and owners; improvements in technology; laws and government activities; and social and economic trends

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STABLE ENVIRONMENT

WHEN THE BUSINESS ENVIROnMENT IS STABLE ,THAT MEANS ECONOMY IS HEALTHY AND THE BUSINESS CAN BE PROFITABLE.

FACTORS EFFECTING STABILITYTECHNOLOGICAL INNOVATIONCHANGES IN THE CAST PLAYERSCHANGES IN GOVERNMENT REGULATIONSCHANGE IN CUSTOMER NEEDS

1. TECHNOLOGICAL INNOVATIONWhen there is a high rate of technological innovation (software and other I.T products and components),New developments constantly upset the status quo and change the nature of competitive advantage as well as determine who can keep it2. CHANGE IN CAST PLAYERSIn industries where rivals regularly exists or enter the competition, competitive advantage is likely to be rapidly re-define and market leadership changes rapidly. This condition often occurs in very young industries are very old industries- both good candidates for market shakeouts

3. CHANGES IN GOVERNMENT REGULATIONSAs government regulation (like TRAI for fixing the telecom charges and licenses, SEBI for stock market and FII portfolio investments, RBI credit policy for interest rates for housing, Business ,personal loans and so on) can be an important factor effecting a competitive advantage changes in this arena can obviously alter competitive standing4.CHANGES IN CUSTOMER NEEDSAs customers changes, so do their needs and there so does the nature of competitive advantage. When customers placed more emphasis on the cost of getting an item delivered, the government – owned speed post had a competitive advantage over privately owned courier and parcel services

DYNAMIC ENVIRONMENT

A successful marketing campaign increases a company's profits and helps it reach its strategic goals. However, there are challenges to marketing because the business environment is constantly changing.

Customer preferences and attitudes keep evolving and require managers to adapt rapidly.

Another challenge involves reaching different target markets with culturally relevant propositions.

1.Societal ChangeDemographic, social and cultural changes are altering the competitive landscape. The aging population means there will be an expansion in the health care sector. The rising new generation has fundamentally different tastes and reshapes the economy. For example, new industries such as computer gaming were formed to satisfy their distinct needs.2.Technological ChangeThe pace of technological change is high, and presents both opportunities and threats. As a case in point, rapid expansion of information and communications technology has given rise to e-commerce. Businesses can source and sell to a global market, but this also means that their markets are constantly under threat from foreign companies.3.Economic and Political ChallengesIn the interconnected world economy, companies are affected by economic and political challenges from abroad. Political upheavals, recession and natural disasters thousands of miles away affect business outlook, stock market indexes, and prices of important commodities such as oil.

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