Cmit321

Business Management 110

Welton Hall

Professor Brandon Cohen

October 9, 2011

Dynamic business environment

To survive and grow, organizations must inevitably interact with their external environment; they influence and are influenced by the environment in which they exist. They influence their environment, for example, with the products and services they produce, the salaries that are paid to their employees, and the suppliers they use. Employees, suppliers, competitors, and government can also transmit environmental influences to the organization. It seems as though that smaller the organization, the more likely it is to be affected by environmental changes. Also because of rapid globalization over the recent years, competition around the world has become much more intense, especially for companies who are in the service industry where they have similar products. The most critical point for business to succeed is not only the quality of products they supply, but the amount of teamwork that is required in such fields as retail sales.

The employees who are always in touch with customers and can realize what customers really need are the first-line staffs. Therefore, it is essential for companies to motivate, reward and train their employees to be the best quality personnel. In a constantly changing business environment, the ability to modify and implement new strategies quickly is important. Economic pressures, industry changes, regulatory pressures and changes in consumer preference can all impact a business' ability to sell its products or services. Dynamic business strategies help to ensure that a business can respond appropriately to changes that may represent both potential opportunities and new threats to its operations.

Critical business functions

In retailing, for example, most business owners describe the critical function as providing good service, providing quality control in product selection, maximizing sales, or turning...