Question

Given that the external environment will continue to change - and that change may be unpredictable in terms of timing and strength - a firm’s management is challenged to be aware of, understand the implications of, and identify patterns represented in these changes by taking actions to improve the firm’s competitive position, to improve operational efficiency, and to be effective global competitors.  How would a firm do this?

Answer 1

It is very essential for any firm to be aware of external environmental changes and how it impacts the organization. In order to be aware, following things are important:

• Actively involved with government official for changes in political or economic scenario: Example - If a government is planning to introduce new taxation, what will be the implication? When it is likely to be enforced? etc. This information can help organization to be well prepared in advance
• Involvement with external agency or consulting firms: There are various firms who provide insight on market trend with drivers or reasons for change. The information is crucial to give insight and take actions as desired
• Interaction with existing supplier or machine vendors for information on latest technology in order to help improve system or Operational efficiency
• Attending Seminars on business environment and future challenges to be well aware in advance