Business organizations operate in a turbulent environment and the changes in the environment impacts business.
Introduction
Business organizations operate in a turbulent
environment and the changes in the environment impacts business. The changes
that take place in the internal and external environments impinge on the policy decisions
of business enterprises and cast profound influence in their working and
efficiency. The external environmental factors are in a con-tinual flux
creating new opportunities and new threats to the company. They are always
capable of producing major shocks, which Peter Drucker has called as, “an Age
of Discontinuity.” In order to survive and succeed a company must consider and
understand the environment and make policies to adopt to or alter the
environment.
Concept of Environment
Unilever recently sued Proctor & Gamble
(P&G) over that com-pany’s corporate espionage activities to obtain the
secrets of its Unilever hair-care business. After spending $3 million to
establish a team to find out about competitors in the domestic hair care
industry, P&G allegedly took roughly eighty documents from garbage bins
outside Unilever’ s hair-care brands such as ThermaSilk, Suave, Salon
Selective, and Finesse.
Prof. Keith Davis defines business environment as, “the
aggre-gate of all conditions events and influences that surround and affect it.”
These surroundings are constantly changing and uncertain.
Unilever recently sued Proctor & Gamble
(P&G) over that com-pany’s corporate espionage activities to obtain the
secrets of its Unilever hair-care business. After spending $3 million to
establish a team to find out about competitors in the domestic hair care
industry, P&G allegedly took roughly eighty documents from garbage bins
outside Unilever’ s hair-care brands such as ThermaSilk, Suave, Salon
Selective, and Finesse.
Tags : Strategic Management - Environmental Analysis and Diagnosis
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