P1.3 Influences on the Business Environment

Every business operates in a state of flux. Everything changes - both internally and external to the firm. The dynamic interrelationship between businesses provides opportunities and threats. Change breaks things down - it challenges those businesses that are at the top. 

If the internal composition of a business does not adapt to the external forces surrounding it, the firm will cease to operate. 

However, being proactive and correctly forecasting (or leading and driving) the change can be incredibly lucrative. 

There are two broad types of influences: those external to business (over which the firm has ZERO control), and those internal (where there is some degree of control).