Question

Why is business environment called dynamic? State.

Answer 1

The business environment is dynamic, and it is always evolving in terms of:

1. Improvements in technology,
2. Changes in customer tastes,
3. The emergence of new market competitors.

Example:-

With the entry of 'Patanjali Products,' several established FMCG (Fast Moving Consumer Goods) companies are focusing on manufacturing goods with natural components.

Answer 2

The business environment is called as dynamic because:

Explanation:

• The environment in which the business operates changes continuously because there is a wide variety of factors that exist in the environment, causing it to improve its shape, technologies and character.
• The Business environment is called as dynamic as it keeps on changing.
• It is not static and keeps on changing, its components are also highly flexible and uncertain, e.g. technological, improvement, increase in competition, change in fashion trends etc.
• It is characterized by the uncertainty of the environment that limits the ability of managers to make decisions.