Strategic Response to Business Environment

Internal environment refers to the immediate surrounding of the organisation it consists of customers, suppliers, employees and their union, competitors and so on. While the external environment are the forces which indirectly affect company’s operation and working condition. These factors are uncontrollable and the company is powerless and incapable of exercising any control over them.

Since the environment is complex, dynamic, multi- faceted and has a far reaching impact, organisation should take a action in such manner which directs to take the opportunities and manage threats.

It is therefore very essential to know characteristics of  the environment, its division into external and internal parts, understanding how a systematic approach can help in environmental appraisal, and classifying the external environment into two parts, the general and the relevant environment.

Business environment is consist of business organisation itself and other a lot  factors to have implications on the operations. So it may be difficult to identify the factors and their probable impact on achieving business goals.

As a result it is difficult to determine exactly what business should do in  response to a particular situation in the environment.

therefore the business should make efforts to exploit the opportunity and draw measures to minimise threats.

We can categories organisations on the basis of how they react to the environmental changes and how they manage their environmental factors.

Then, what would be the organisations responses to the changing environment ?

Least resistance:

It is for those who just aim to survive in the market. They just manage to survive by way of coping with their changing external environments.

They normally do not react to the environment till it is enforced by the external factors to do so.They operates simply to maintain its business goals.

Organisations which do not have any ambitious rather they simply want simple paths of least resistance in their goal-seeking and resource transforming behaviour.

Proceed with caution:

At this level, organisations analyse the environmental changes which may affect the organisations and take an intelligent way to adapt with the changing external environment.

They always attempt to manage the environmental factors, analyse their expected impact on their business goals and make strategy to monitor the environmental changes, analyse their impact on their goals and move with the strategy for survival, stability and strength.

They always prefer to take a strategic response for managing the external environmental elements. So, they also analyse future expected factors that might have implication on the business operation and take corrective-adaptive action than just wait for changes to occur.

Dynamic response:

These are the organisations which are leading the market and also affect the whole industry where they operate. They can manage the factors to some extent.

They are highly dedicated to solve the customers concern. They are highly confident of their own strengths  and can convert threats into opportunities.

So they just not only wait to react the environmental changes rather they are highly involved in finding strategic alternatives to control the create favorable environment.

These are the strategic responses which an organisation take as reply to the environmental changes.

Factors in the environment enforce the organisation to do something as a reply to the  business environment.

Strategic response to the environment is all about knowing the status of organisation and react to the environment accordingly.

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Thank You.