I’m studying for my Business class and need an explanation.
According to Suarez & Oliva (2005), the external or environmental changes can lead the organizations into two ways, positive growth or downfall. The innovations in business models, products, services and operations optimize the organizations to resist the market’s changes. If the organization is prepared for innovation and imply the adaptable changes, it can survive and progress. Whereas, the inability to interpret the changes or external innovations can lead to astray the performance of organizations. Rapid global and local environment changes do crate an impact on the overall performance of organizations. It must be clearly steered so as to adapt the necessary changes (Ahuja, Lampert & Tandon, 2014).
Seeck & Diehl (2017), explain the necessity of early detection and adaption of innovation strategies act as key factors for the organization’s development. A structured business framework is always eager to adapt innovations and changes to make room for future development. Strategic business operations help to create a relationship between rapid environmental changes and the organization’s internal operations. According to Ahuja, Lampert & Tandon (2014), there is a need to understand the underlying concepts of innovations and associated organizational strategies. When there is a delay in analyzing the market’s changes, organizations who fail, there services or products might become obsolete.
According to Suarez & Oliva, (2005), ever since the advancement in technology, the emphasis to grow with the rapid changes has increased. The early realization of new concepts, business models and services benefit the initial focus to survive the market’s pressure. Many scholars asserted that the organizations who adapt the rapid growth in environmental changes, able to significantly remain stable. Economy, technology, resources and end users are all directly proportional to the innovations or environmental changes (Seeck & Diehl, 2017).
The success of an organization is the aim of all its employees, the management and other stakeholders that are involved in the running of the organization. There are also a number of factors that influence the success of the organization some of which include the market forces, the ability of the organization to reinvent itself and the environment of the organization. The environment of the organization include factors that affect the organization both internally which means that the organization has control over these factors and externally which means that the organization has no control over the factors that affect it. Some of the internal factors that affect the organization include financial limits, operational capabilities and employees. These factors can be controlled by the organization. The external environment includes factors such as the political environment, the demographics of a country and the technological environment of an area (Martinez, 2017).
Rapid change in any of the above environmental factors can either affect the organization negatively or positively. Change in the technological environment by advancing it will affect the organization positively through the introduction of technologically efficient machinery. It will also bring losses to the organization because the company has to upgrade or change its machinery frequently. Rapid change in sectors such as the demographics of a country will help in diversifying of the company products that will cater for all and therefore increasing the profit for the organization. Rapid change in some internal environmental factors such as operational capabilities will boost the quality and quantity of goods that are being supplied and therefore increasing revenue for the more company. Rapid change in the financial status of the company will mean that there will be more money at the disposal of the company which it can use to expand and carry out other functions in the company. Therefore rapid change can be good and benefit the company greatly but it can also lead to losses especially if it is not well planned for