The Business Environment Influences Decision Making

Compose a 1500 words assignment on the business environment influences the decision making. Needs to be plagiarism free! business glossary, the concept of business environment encompasses diverse elements, which are capable of influencing the activities and operations of an organization directly or indirectly. These factors include competitors, customers, distributors, suppliers, substitutes, industry trends, government activities, regulations, demographics, economy, innovations, competitors, social and cultural factors, and all the technological developments. This environment of the business can also be termed the operating environment (Quantumiii, 2012).&nbsp.The definition clearly exhibits that the external forces, which are aggregative in nature, are the significant players in the decision making of an organization and are the elements that make up the part of the business environment. They are specific as well as general in nature and keep the environment of the business dynamic so that it is well-aligned with the changing preferences of customers as well as with the advancements in innovative technologies. However, these factors make up a largely uncertain business environment due to their varying nature, and thus, the environment of one region or country can possibly be different from that of another region or country.The nature of the business environment is significant. Some organizations operate with a placid or static environment. In such a context, it is reasonable for them to assume that the future of the firm will be a continuation of its past strategies and circumstances. Such organizations may be in a happy situation in current times and can afford to limit their anticipations and analysis of the environment management to history only. However, such firms may not be properly aware of the changes occurring in the nature of their business environment.On the other hand, there are many organizations that may also experience a turbulent environment due to the brisk dynamism of changing forces. One of the alternatives may be the fact that their environment is complex, and thus,& complicated to analyze and anticipate in order to be proactive in decision making.

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