General Environment of Business Part I

Author : Ami Fitri Utami, SE., MSM

The general environment contains of segments and elements in the broader society which may affect industries and the competing firm includes demographic, economic, political/legal, sociocultural, technological, global and physical. Unfortunately far from stable phase, current business condition postulated as a high-velocity and hypercompetitive environments which pushes organizations to be able to adapt with the resulted dynamism. According to Rekettye and Rekettye Jr in 2013, Those changes and dynamism reflected by six prominent event in our general environment includes: a. climate change in a form of global warming, b. the shifting buying trends and behavior by the market due to the global recession, c. the changing power in global economy, d. the changing of demographical compositions, e. the proliferation of brand and media, f. the emergence of rapid technological development. All of those visions of business dynamic will be explained below.

The climate change which shown by global warming event also pushes market to change their preference. Rekettye & Rekettye Jr aimed that current extreme climate change brings all business player to be more aware about their contribution to delay and stops the effect. Enforced to do a more sustainable management, consumer, company and government aimed to change their behavior and vision to the business. In this vein, not only companies who should determine the people and planet factors beside the profit, government and consumer should also support these practice by launching a supportive regulation and a more sustainable consumptions. However, a more sustainable consumption also needs to be enforced by the parties outside the customer themselves. This is why, the importance of a more socially responsible marketing evolve which most of them showed in a company’s CSR activities.

Refferences : Rekettye, G., & Rekettye Jr, G. (2013). Global trends and their influence on future business performance. International Journal of Business Performance Management, 14(1), 95-110.