Change is inevitable for all businesses because of the dynamic nature of the market environment. There are a number of factors that necessitate these changes in the environment which are felt and replicated in all businesses. For instance, the entry of strong competitors in the market would force existing businesses to review their practices in order to ensure that they remain profitable. The businesses may be required to improve their customer service or reduce prices among other measures to ensure that they remain competitive.
Government policies are also another factor that would lead to changes in business. For instance, the new emission standards in the automotive industry have forced car manufacturers to adopt new manufacturing practices in accordance with the regulations.
Businesses may also be forced to change due to developments in technology. A number of businesses have included E-commerce in their operations taking advantage of opportunities offered by the internet. Businesses gravitate towards new technology because they expect improvements in their operational efficiency and cost effectiveness. Adoption of such technologies may lead to streamlining of the business and changes in its internal and external structures which affect all stakeholders.
In summary, changes in the micro and macroeconomic factors forces businesses to change in order to survive, adapt or thrive. Thus, businesses have no choice but to respond to changes in the market environment to meet their common objectives, which include profitability and increased shareholder value.
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