| There are four critical areas causing business plans to | | | | customers and products. Inventors, with changes in |
| change. All are changing trends in the business | | | | product lifecycles or adopting new ideas, normally |
| environment. The four areas we will examine are: 1) | | | | trigger these trends. We can prepare for these |
| government trends, 2) economic trends. 3) | | | | changes by keeping up-to-date with trends, new |
| technological trends and 4) cultural trends. Each one | | | | advances and what our competitors are doing. It may |
| causes a specific impact on our decisions and requires | | | | mean new sources of raw materials, different |
| us to make adjustments. Some changes are dramatic | | | | marketing techniques, or perhaps the loss or |
| and require dramatic reactions to minimize their effect | | | | emergence of a new market. |
| on our business. | | | | Finally, cultural trends have a direct impact on our |
| First are government trends. There are several | | | | business plan and the business environment. The |
| different sources caused by changes in regulations, | | | | demographics of our customers may change, new |
| tax policies and new legal precedence. Most of these | | | | social concerns can arise and new lifestyles evolve. If |
| are not a direct result of what we are doing in our | | | | our customers move from the cities to the country, our |
| business, but are the result of political and social shifts. | | | | business will be affected not only in what we sell, but |
| On the legal side, changes result from court cases. It is | | | | also, in how we deliver it. Too, as social consciences |
| absolutely necessary to address these changes | | | | change, acceptable business practices will change. |
| because of both the financial and legal jeopardy. The | | | | These could include environmental and social |
| result will be changes to not only our business plans | | | | programs. For example, government might require a |
| but also our business conduct. | | | | business to provide a certain level of retirement |
| Second are economic trends. These changes occur | | | | benefit. These trends often burden businesses with |
| because the local, national and international | | | | new and unplanned costs but must be assimilated into |
| environment changes. Typical of these trends are | | | | the business plan to remain a viable enterprise. |
| changes in inflation rates, interest rates and the | | | | Notice, these trend types have definite impacts on our |
| comparative value of currency (foreign exchange | | | | business plan. They are all threats to present business |
| rates). Notice that all of these changes are directly and | | | | operations and also present new opportunities. If we |
| indirectly effects of government actions. These trends | | | | make changes in our business operations to become |
| require us to adapt our business plan to the new | | | | environment friendly, employee friendly, or |
| conditions. | | | | technologically modern our business accrues new |
| Next are technological trends. The amount of effect | | | | public interest leading to new sales. Too, we receive |
| that these trends have on our business depends on | | | | free publicity that positively impacts our business |
| how directly the changes impact our present | | | | credibility and stature. Regardless of the fringe benefits |
| operations. For instance, if we are making vacuum | | | | to our business, we must continually be aware and |
| tubes when integrated circuits arrive, we will have to | | | | open to new directions so that our business plan and |
| make some major changes. Note that the changes in | | | | operation doesn't stagnate or become less functional in |
| our business plan may mean acquiring or learning new | | | | the changing environment. |
| technologies, retraining our people, or seeking new | | | | |