Question

why is environment considered dynamic

Answer 1

Nothing stays the same. This underlies strategic management, which seeks to capitalize on change. Of course, rates of change vary, calling for different strategies. Rapid change characterizes dynamic environments -- vigorous marketplace activity, new and evolving products, expanding markets, advancing technology, social revolutions -- and rapid change usually includes uncertainty. To adapt, the small business owner should not only know that fast-moving conditions and some degree of unpredictability represent dynamic environments, but also should know where to look for signs of accelerating change.



Political
The macro-environment refers to the conditions all companies encounter regardless of specific industry. A PEST analysis scans the political, economic, social and technological macro-environments for elements that affect business. The small business owner should make it a habit to analyze the macro-environment for elements that open the door to change. In the political arena, deregulation, for instance, might fuel a dynamic business environment.

Economic
Economic changes can spark a dynamic business environment, too. Falling interest rates may allow a business or its competitors to expand, rapidly changing the industry’s growth rate. Falling prices for needed raw resources may do the same. Look for circumstances that provide an impetus for action.


Societal
Sociocultural conditions can act to catalyze the business environment. Social networking has changed industry thinking about how to connect with markets. In the news industry, for instance, anchors now regularly ask viewers to tweet information or to follow them on Facebook, seeking to interact rather than merely present. Shifting demographics may also lead to a dynamic environment, as businesses respond with new and improved products and services. Aging baby boomers have sparked such a shift in the plastic surgery, cosmetics and vitamin industries.

Technological
A new invention or discovery can revolutionize an industry. The small business owner should be on the lookout for innovations that promise to change the way business is conducted. The invention of the printing press, the automobile and refrigeration opened opportunities for those who could see the implications of the new technologies. Sometimes a breakthrough heralds a period of continual technological advancement. Such is the case in the cellphone industry. Releasing phones from wall jacks was revolutionary enough. Now phones can open garage doors. Such continuous change signals a dynamic business environment.

Market
New players in a marketplace can become change agents, especially if these competitors are aggressive or employ new approaches to courting customers or creating products. Additionally, the markets themselves may create dynamic conditions. For instance, untapped markets in foreign locations may open, presenting vast new opportunities. Examining market events, the small business owner should consider both direct and indirect effects on the company. What affects a company’s suppliers, for instance, may affect the small business itself.

Answer 2

Here is your answer
See down

___________________________________________________________

                             Environment is considered dynamic

Economic changes can spark a dynamic business environment, too. Falling interest rates may allow a business or its competitors to expand, rapidly changing the industry's growth rate.

Falling prices for needed raw resources may do the same. Look for circumstances that provide an impetus for action.
____________________________________________________________



Hope it helped you
If you like my answer then please mark as brainliest answer and rate it