Question

Turbulent business environment – what does it mean? What are factors?

Answer 1

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Turbulent business environment refers to the unpredictable changes that take place in the healthy functioning of a business as the business environment is dynamic in nature and keeps on changing which may harm the revenue/reputation of the company or may lead to the closure of an organisation and in order to deal with such unpredictable changes every company must scan the business environment so that they can make some necessary improvements with their techniques to maintain their market share.

The factors of the turbulent environment are :-

Change in demand- This factor arises when there is a sudden change in the demand for a particular product, due to new a new product available in the market with more and better features. Whereas, It is very difficult for the marketer or the company to cope up with such changes and requires more resources in order to satisfy the demand of the customers to maintain a brand value in the market.

Change in price - This factor arises when there is a sudden inflation in the price of the available products in the market and could hamper the sales of the particular brand/product as customers prefer cheap and best alternatives.

Change in taste and preferences - This factor arises when there is a change in the fashion be it in any industry could possibly   hamper the sales of a successful business if this type of change is not considered at an early stage.

Social changes -  A company or a corporation has to make sure that their functioning doesn't harm the environment to the point of degradation. It is the responsibility of the business to invest a small part of their earning into the benefit of the environment.

These type of changes can throw a company out of the business if it fails to cope up with the current changes in the business environment, A company needs to monitor the business environment by proper scanning to get the first-mover advantage and newer techniques must be formulated with the help of Planning in order to survive these kinds of changes.