Managing within

the Dynamic
Business
Environment:
Taking Risk and
Making Profits
C A R L J O S E P H L . PAT O T O Y

INTRODUCTION TO BUSINESS
What is BUSINESS

A business is defined as an organization or enterprising entity

engaged in commercial, industrial, or professional activities.
Businesses can be for profit entities or non-profit organizations.
Business types range from limited liability companies, sole
proprietorships, corporations, and partnerships.
• Business is the activity of making one's living or making money
by producing or buying and selling products.

• It is "any activity or enterprise entered into for profit.”

EXAMPLE OF BUSINESS
Why is BUSINESS important?

Businesses play a huge role in culture and society in general.

They not only take up the most amount of time in most people's
lives, but they also help create innovations and make
important technological advancements. Businesses thrive on
excited and motivated employees reaching for a common goal.
DYNAMIC
BUSINESS
ENVIRONMENT
EXTERNAL AND INTERNAL
External Business Environment

Businesses operates on a dynamic environment that has a direct influence on

how they operate and whether they will achieve their objectives. This external
business environment is composed of numerous outside organizations and forces
that we can group into 2 called Macro Environment and Micro Environment
Macro and Micro Environment
Demographic Forces
Demographic forces relate to people. The name refers to the term Demography. The latter
refers to the study of human populations. This includes size, density, age, gender, occupation
and other statistics. Why are people important? Because, on the whole, their needs is the
reason for businesses to exist. In other words, people are the driving force for the
development of markets. The reason is that changing demographics mean changing
markets. Further, changing markets mean a need for adjusted marketing strategies.
Economic forces
The Economic forces relate to factors that affect consumer purchasing power and spending
patterns. For instance, a company should never start exporting to a country before having
examined how much people will be able to spend.
Natural Forces
Ecological, or natural forces in the Macro Environment are important since they are about the
natural resources which are needed as inputs by marketers or which are affected by
their marketing activities. For instance, world, air and water pollution are headlines every
marketer should be aware of.
Technological forces
Technological forces form a crucial influence in the Macro Environment. They relate to factors
that create new technologies and thereby create new product and market opportunities. A
technological force everybody can think of nowadays is the development of wireless
communication techniques, smartphones, tablets and so further. This may mean the emerge
of opportunities for a business, but watch out: every new technology replaces an older one.
Thus, marketers must watch the technological environment closely and adapt in order to
keep up. Otherwise, the products will soon be outdated, and the company will miss new
product and market opportunities.
Political forces
Every business is limited by the political environment. This involves laws, government
agencies and pressure groups. These influence and restrict organizations and individuals in a
society. Therefore, marketing decisions are strongly influenced and affected by developments
in the political environment. For example, laws covering issues such as environmental
protection, product safety regulations, competition, pricing etc. might require the firm to adapt
certain aspects and strategies to the new market.
Cultural forces
The Cultural forces link to factors that affect society’s basic values, preferences and behavior.
The basis for these factors is formed by the fact that people are part of a society and cultural
group that shape their beliefs and values. For instance, symbols may carry a negative
meaning in another culture. 
Internal Business Environment
Business owners and managers have a great deal of control over the internal environment of business,
which covers day-to-day decisions. They choose the supplies they purchase, which employees they
hire, the products they sell, and where they sell those products. They use their skills and resources to
create goods and services that will satisfy existing and prospective customers. However, the external
environmental conditions that affect a business are generally beyond the control of management and
change constantly. To compete successfully, business owners and managers must continuously study
the environment and adapt their businesses accordingly.
 How to Manage Dynamic
Business Environment?
In a constantly changing business environment, the ability to modify and implement new
strategies quickly is important. Economic pressures, industry changes, regulatory pressures
and changes in consumer preference can all impact a business' ability to sell its products or
services.

1. Watch Competitors

2. Plan Flexibly

3. Seek Information

4. Improved Decision Making

5. Need to Grow

6. Process

7. Assessing Positive and negative effects

Watch Competitors
An advantage of watching for competitors is that it allows you to assess any new or emerging threats. These
threats can be in the form of new competitors storming into the market or any existing competitor planning
to takeover your business or other industry.

An effective competitive monitoring strategy entails that you are thoroughly aware of your competitors’
products, as well as their customer base. This can help your businesses in identifying the untapped avenues,
of which you can take advantage of.

Closely studying what your competition has been doing allows you to predict their future moves and
strategies. This is beneficial for your business because it allows your product and services to standout.

By determining where your competitors went wrong, you can ensure to avoid those mistakes to minimize
losses.
 Plan Flexibly
Workplace flexibility involves adapting to
changing circumstances and expectations on
the job. It requires the willingness of both the
employers and employees to be open-minded
and willing to change how work gets done.
Understanding flexibility in business can
enhance your workplace experience and
optimize productivity. In this article, we
discuss the components of business flexibility,
describe why it is important in the workplace
and explore the benefits of utilizing flexible
arrangements.
Seek Information
Good business information systems helps you to manage your business well.
They allow you to monitor profitability, manage inventory and products,
respond to customer demands, improve financial management and provide
banks, partners, investors and key stakeholders with vital and timely
information.
Improved Decision Making
Need to Grow

Growth isn't just important for a company and it's

absolutely essential. Without continued growth,
operations will stagnate. This can result in
lowered standards of quality for products or
services, decreased customer service, poor
employee morale, and a host of other issue
PROCESS
•Step 1: Define your goals.

•Step 2: Plan and map your process.

•Step 3: Set actions and assign stakeholders.

•Step 4: Test the process.

•Step 5: Implement the process.

•Step 6: Monitor the results.

•Step 7: Repeat
Assessing Positive and negative
effects
Knowing the positive and negative effect of the environment on our business is important. This will
help the company or industry to grow their business in many possible way. It will also help them on
making more profit.
Making Profits
1.Understand financials.

2.Create a business map.

3.Set realistic goals.

4.Identify what's holding you back.

5.Add real value for your customers.

6.Focus on strategic innovation.

7.Leverage your connections.

8.Customize your customer engagement strategies.