Business Environment - Essay Example

Module Business Environment A business faces many challenges that emanate both from within and without. It is in this realization that the concept of business environment is derived. Numerous internal and external factors play roles that shape how a business operates. A business environment is therefore the internal and external factors that affect organizational operations and it is important in many ways. In conducting business, organizations have engaged in business markets especially in the contemporary society where businesses market their products to other businesses.

This paper looks into the importance of business environment and how business markets work in contemporary society. Business environment helps in identifying its strengths, weaknesses, opportunities and threats (Davenport, Harris and Morison 6). Strengths of a business need to be identified in order to improve on them further through future plans and policies. Analysis of weaknesses assists in initiating corrective measures to ensure business success. New opportunities open new and innovative doors for a business which in turn strengthens and offers sustainability to its market position.

Exploration and exploitation of new opportunities also enable a business to initiate expansion strategies ensure a strong and reliable future for investors. A business is also able to optimally utilize all the available resources and in this case both economic and technological environments are crucial to analyze. Businesses face numerous threats and environmental analysis pinpoints all for the management to be able to evade or diffuse them as early as possible (Nieuwenhuizen and Rossouw 32).

There are current threats and future ones which make the business adjust boldly early enough. Constant adjustment of policies and strategies towards the environment ensures business survival and prosperity. If this is adopted as a culture by the management and investors, a business is able to maintain a trend of adaptability which in turn results to a longer lifespan. Business marketing is a trend that has gained prominence over the last 3 or so decades. However, this form of market has been in existence for quite a long time especially since the industrialization period.

It involves businesses marketing their products and services to other businesses. The customer businesses in this case can be other companies or businesses and government institutions among others who purchase for use or resale. In this form of business, a business has just a few customers who make large volume purchases making it easy for the manufacturer or service provider to have a personalized relationship with customers. In the contemporary world this form entails lower budgets in advertising as promotion is through Direct Mail and journals.

In this case internet has boosted sales of such businesses while facilitating the formation of new ones. Business markets are formed out of the need for materials that assist in operations by other companies or businesses and government institutions among others (Chesbrough 58). The growing demand for such products and services enhance also the need to open new businesses that deal in the same while facilitating emergence of support services e.g. banking, insurance etc. CONCLUSION In the contemporary world businesses are facing dynamic environmental challenges that require managers to constantly monitor their business environment.

There is need to eliminate weaknesses and threats while improving on its strengths while seeking new opportunities in order to ensure survival in the harsh market environment. The same applies to business markets where competition is rising with increased innovation in technology. Works cited Chesbrough, Henry W. The market for innovation: Implications for corporate strategy. California Management Review. 2007. 45-66. Print. Davenport, T. H., Harris, J. G. and Morison, R. Your business comprehensively: Monitoring and revising your analytical models as the business-or business environment-changes.

Harvard Business Review. 2010. Print. 16pg Nieuwenhuizen, C. and Rossouw, D. Business Management: A Contemporary Approach. Juta and Company Ltd, 2009. Print.