Introduction

The business environment is too complex especially with increased globalization and hence have to be understood adequately for the continuous operation of the business. Business environment refers to the surrounding atmosphere on which the business operates and the environment encompass the cultural aspect, political dimension and environmental aspect. The business has to analyse the effect of these dimensions and ways of adapting so as to operate profitably and ensure survival in the long term. Business environment refers to all external forces, which have a bearing on the functioning of business. The business environment factors “are largely if not totally, external and beyond the control of individual industrial enterprises and their managements. The business environment poses threats to a firm or offers immense opportunities for potential market exploitation.

Business has to adapt to its environment to ensure survival. The role of business is crucial and involves that it is an important institution in society, it supplies of goods and services, creation of job opportunities and contribute to the economic growth of the country among others. Hence business survival should be ensured, as its success transforms to better economy and standards of living of workers and the society around. The environment includes technological environment, international environment, economic, political, natural environment and social or cultural environment.

There is symbolic relationship between business and its environment and among the environmental factors. Generally, business is influenced by its environment to certain degree and it will influence the external forces. These environmental forces are dynamic. They keep on changing as years roll by, so does business. A particular business firm, by itself, may not be in a position to change its environment, but along with other firms, business will be in a position to mould the environment in its favor.

The benefits of environmental study include the development of broad strategies and long-term policies of the firm, development of action plans to deal with technological advancements, to foresee the impact of socio-economic changes at the national and international levels on the firm’s stability, analysis of competitor’s strategies and formulation of effective countermeasures and to keep oneself dynamic.

The environmental analysis process involves four sequential processes namely scanning, monitoring, forecasting and assessment. Scanning involves general surveillance of all environmental factors and their interactions. Monitoring involves tracking the environmental trends, sequences of events, or streams of activities. Forecasting is concerned with developing plausible projections of the direction, scope, and intensity of environmental change. Assessment, tries to answer questions such as what are the key issues presented by the environment, and what are the implications of such issues for the organization.

Importance of business to adapt to its environment

(a)   To meet Business Goals

If the business adapts to its environment it will be able to meet its business goals. Business goals include profit making, growth, power, employee satisfaction and development, quality services and products, market leadership, joy of creation and service to society.

If the business understands the culture around it, it will be easy for it to operate at a profit because after adapting to the environment it is now easy to strategies way s of conducting business profitably. The business can now afford to separate activities that lead to profit generation from other products. The business can be able to compete for market share for its products and services.

For the achievement of every goal, the business has to adapt to the business environment it operates. If a business is not achieving its goals then its very unnecessary to operate especially if it cannot achieve profitability for a long time. Hence managers should quickly understands and adapt to the environment.

(b)   Enhances Decision Making

Understanding the works of the economy is a means to an end of improving decision making. The decision makers should therefore analyse the economic environment and how it acts as an external constraint on the decision making process. This involves understanding both the micro and macro environments and quickly adapting to the environments.

Adapting to the political environment will also aid decision making. This involves organisation making decision that are in line with the current political environment. Due to the power of politics an organization that fails to comply with such laws and regulations is likely to be punished to the extent of losing operating license. This is very crucial especially to organization in the export sector, banking sector and mining sector. These sectors attract a lot of attention as they derive the economy through linkages.

Understanding the cultural environment also helps in decision making environment. Adapting will mean that as the company advances its products and operations should make sure it does not violate the norms of the society as it risks losing support. If the form diverts from society tastes and preferences its products may be rejected in the market and hence losses are likely to arise. The R&D department should research thoroughly for innovation to be in line with society cultures.

(c)    Product Development

When a firm needs to develop its products it is highly recommended for it to have adapted to its environment. Products and services should be developed in line with the cultural environment in place, legal or political mandates as well as economic bindings. For example in the clothing industry each culture has its own type of clothing and it will only be profitable to develop and sell those type of clothes related to the cultural environment. Even if the business decides to update their products version, it still should be acceptable culturally. This only possible when the business has adapted to the environment and understands it.

Most importantly, adaptation to the political environment is necessary for product development. Firms should develop those products that are legally acceptable. This is only possible if the business understands its political environment and quickly adjust to adapt to the environment. This is very crucial to the services offered by various non-governmental organizations.

(d)   Staff Motivation

Firms usually recruit the bulk of its employees from the local market. So it is wise that the business understands and adapt to its environment. The cultural dimension is the most important in this case, managers should understand the cultures that governs the local people and hence strategies how best to work with them.    Managers should not blame their workers for the behavior related to their culture rather should aim to transform or shape their skills to suit business standards. The political environment should also be taken into account for staff motivation, this refers mainly to the way managers choose to motivate its workers, it should not go against what is legal in those times.

(e)    Competition

For firms to compete in the markets they should understand and adapt to the business environment. There is no way they can effectively compete without understanding the business environment. This ensures long term survival of the business. Addressing of barriers to entry can be effected by organizations that have adapted to the political environment.

(f)    Investment and Business Growth

Efficient investment and business growth are some important factors that cause businesses to adapt to their operating environments. Economic environment is very crucial in this case especially for foreign investors. Foreign investors should adapt to the economic environment in order for them to effectively explore business opportunities  and ensure growth. Mining and transport sectors are good examples in this case.

Conclusion

Adapting to business environments is a crucial to the survival of business. It is very crucial especially for foreign managers to quickly adjust and adapt to the environment they operate. This will enhance their leadership style and be a good leader. The business manager should avoid using the wrong approach to a certain environment which is suitable for another environment. This means that managers should be flexible and willing to learn whenever they join new locations. With increased globalization the business environment has become too complex. Managers and business should not be resistance to change.