Why is the environment considered as Dynamic?
Answers
Explanation:
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.
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.