Changes in business environment as a driver for enterprises development

The functioning and development of an enterprise are always characterized by changes in its internal environment and this occurs in a changing environment, that is the external environment. Moreov ...

The functioning and development of an enterprise are always characterized by changes in its internal environment and this occurs in a changing environment, that is the external environment. Moreover, changes in the internal environment of the enterprise are mainly due to changes in environmental factors and are actually a reaction to them. The combination and interaction of such changes can increase the risks in the activities of an enterprise and reduce its efficiency, or vice versa strengthen the competitive position in the case of timely and adequate response to environmental challenges. If the challenge is accepted, entrepreneurs assess the consequences and use the available resources, transforming internal weaknesses into strengths, which creates a solid basis for further development, finding new answers to future inevitable changes. Such changes, which require innovative and urgent business responses, including through the improvement or creation of new management processes and systems, are a much more effective driver of enterprise development, compared to planned changes under the conditions of relative stability and the use of economic growth factors.