Changes in Environment and their Impact on Strategy

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Table of Contents

TABLE OF CONTENTSII

INTRODUCTION1

The Importance of the Topic1

Reasons for Selecting the Topic1

Goals and Objectives2

REVIEW OF THEORY AND ACTUAL APPROACHES3

What is Strategy?3

Purpose of Strategy12

Different Kind of Strategies and Objectives15

External Conditions that Influence Strategy15

OBJECTIVES - FOR THE THEORRETICAL AND PRACTICAL PART27

METHODOLOGY29

Characteristics of the Subject of Investigation29

Procedures29

Methods of Obtaining Data and Sources30

RESULTS AND DISCUSSION30

Recommendations31

REFERENCES32

INTRODUCTION

The Importance of the Topic

The research is based on the topic of environment changes and business strategy. The changes in the environment have an impact on the strategies adopted and implemented by a business. This research is significant because it will determine the importance of considering the changes in environment for the development of business strategy.

The evolution and development of business environment require businesses to adapt their practices according to the changing taking place in the environment. The environment consists of a set of interest groups including managers, customers, owners, and suppliers. The actors present in the external environment of a business are also known as stakeholders. Stakeholders are people who are directly or indirectly affected by the organization's work. In order to be successful, a harmony should be created and maintained between the internal and external environment of businesses. The internal environment consists of resources, structure, culture, and leadership. The external environment consists of political, technological, legal, and economic factors (Damdinov, 2012).

Reasons for Selecting the Topic

The topic of the impact of environmental changes on business strategy is significant because of the following reasons:

Environment issues are of great importance for businesses operating in national as well as international markets. In the global business environment, it is not enough for companies to evaluate the changes taking place in the local environment but also the changes taking place in the global environment.

The success of business strategies is associated with their compatibility with environment changes.

The above mentioned reasons suggest that the topic is important because it will help in determining how environmental changes affect business strategies.

Goals and Objectives

The goal of the research is to determine the impact of environment changes on business strategy.

The research is based on following objectives:

To determine the importance of understanding changes taking place in the business environment

To determine the impact of environmental changes on business strategies

To explore the importance of business strategy for the success of a business

REVIEW OF THEORY AND ACTUAL APPROACHES

What is Strategy?

The concept of strategy evolved from the ancient Greece. The term strategy was evolved in the context of war. The term strategy has been derived from the term 'strategos' that is an Athenian word. During 60s and 70s, the term strategy became synonym with the term corporate strategy. The term strategy meant rational approaches to planning. This interpretation of strategy was defined as the classical perspective. In the 1980s, the concept of strategy started to conceive (Struwig & Meru, 2011). At that time, strategy was started to be considered as a competitive process that consisted of survival regulated by the external market. Another perspective of strategy was competitive perspective. According to the perspective, the main ...