Impact of Environmental Changes in an Organization

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Table of Contents

Introduction
Discussion
Conclusion
Reference List

Introduction

Studies reveal that change is steadfast and unchanging. The organizations that do not keep up with change end up being unstable. However, the long term survivability of such organizations is questioned. Events and situations happen in the business environment and they influence the manner in which businesses operate. They influence the performance of a business both in a constructive or destructive manner (Watkins, 2012).

These events or situations act as the environmental factors that influence the performance of organizations. External and internal situations are the major environmental factors that affect the performance of organizations. The goal of this paper is to discuss the manner in which changes in the business environment affect the performance of organizations. It will focus on changes in economic, cultural, technological and ethical environments.

Discussion

Changes in the economic environment

Today, the economic environment acts as the key driver of major organizations in the world. This means that an organization needs to look for ways that can allow it to address the needs of its customers appropriately. The global market provides organizations with opportunities to expand their operations significantly (Watkins, 2012). As a result, it is the duty of managers to ensure that their organization embarks on the production of goods and services that meet the needs of the customers in the global market.

For example, the railway industry in the UK is adopting measures to help it cope with the changing economic forces. Changing lifestyles have made many people to own cars. This situation has made railway companies to adopt measures that will help them compete with road users effectively.

As a result, most railway companies are being privatized so as to ensure that they are properly managed. Moreover, they have been able to provide their customers with incentives that have enticed them to use rail transport. People’s living standards have changed drastically. As a result, most companies are investing funds to improve their infrastructure thereby allowing them to provide their customers with comfortable and reliable means of transport (Kirkup, 2012).

In this perspective therefore, it is evident that the railway industry in the UK is responding to the changes that are taking place in the global business environment. This situation has allowed the industry to address the needs of its customers in an efficient manner. As a result, most people now prefer to use rail transport because of the comfort and convenience it offers.

Changes in the cultural environment

The cultural environment plays an essential role in terms of boosting the productivity of an organization. Therefore, most organizations are responding to the needs of diverse cultural backgrounds in order to build customer loyalty and confidence (Watkins, 2012).

In this perspective therefore, most banking institutions are engaging in reforms aimed at responding to the diverse needs of their customers. For example, Barclays has set up banking standards aimed at responding to the needs of its customers.

It has embarked on a legislation policy aimed at responding to the banking needs of its customers that will ensure that its customers are able to increase their returns on investment. In this perspective therefore, it is true that in order for an organization to win the confidence of its customers, it should study the cultural environment to help it understand the needs of its customers in an efficient manner (Stewart, 2012).

Changes in the technological environment

The field of technology is growing at a fast pace. As a result, global organizations are embracing technology to allow them boost their competitiveness and profitability in the market (Watkins, 2012).

For example, the Royal Academy of Engineering recently made a proposition that digital literacy, information technology and computer science should be taught to all people who have attained the age of five. This would make people to change their negative perception about the subject being dull. The goal of this initiative is to inform people that the subject is meant for the 21^st century students and that it can make students to be creative and pervasive.

The Royal Academy of Engineering stipulated that digital literacy, information technology and computer science should be taught to children when they start going to school (Cookson , 2012). When children are exposed to technological concepts at an early age, they become innovative and creative. Therefore, when they find employment, they boost the productivity of their organizations significantly.

Changes in the ethical environment

The ethical environment is changing. The ethical environment plays an important role since it increases the customer base of an organization. This means that an organization needs to portray ethical behavior to its customers in order for it to gain their loyalty and confidence.

Therefore, to remain competitive in the global market, most organizations are engaging in green initiatives to help them build a sustainable customer base. For example studies reveal that low-carbon businesses in the UK provide a third of the growth that has been observed in the region. Moreover, approximately 1 million people in the UK have been employed by those organizations that offer green jobs (Harvey, 2012).

The green economy is regarded as the biggest source of growth in the region. However, most businesses in the UK are frustrated since the government is not paying significant attention to the issue of green businesses. For example, Michael Heseltine stipulated that wind energy will provide the energy-deprived regions with affordable supply of energy. Moreover, this initiative is expected to provide the region with opportunities for growth.

There are approximately 10 foreign companies in the UK which are considering investing in wind energy (Harvey, 2012). This is because the issue of green businesses is gaining popularity in most parts of the world. As a result, the businesses that will take advantage of this opportunity today are expected to boost their productivity significantly. Therefore, because of the urge to conserve the environment, most consumers are shifting to green organizations in order to ensure that the environment is not subjected to destruction.

Conclusion

From the analysis therefore, it is true that in order for an organization to remain competitive in the market, it should adopt the changes that take place in the business environment today. The factors that influence the manner in which an organization copes with the changes in the environment include the economic environment, cultural environment, technological environment, and ethical environment.

Once an organization pays attention to these factors, it is able to respond to the changes that take place in the business environment in an efficient manner. This way, an organization is able to gain access to new production techniques and customer support skills thereby boosting its competitiveness in the market.

Reference List

Cookson , C 2012, Willetts announces new school IT curriculum. Web.

Harvey, F 2012, Green economy is on the rise but remains to be fully exploited. Web.

Kirkup, J 2012, Investment in rail industry. Web.

Stewart, H 2012, Banking sector reform. Web.

Watkins, R 2012, Business Environment, Pearson Custom Publishing, New York.

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