Fluctuation is a normal part of business. A nation’s economy changes several times for different reasons, be it a response to customer demand or an increase in business costs. Business owners and managers must respond to this change in order to maximize their profitability.
Change management--a formal process that recognizes the importance of change--is important for a business to stay relevant in the business environment. Companies must often change production process to refine their products or save capital on economic resources.
Leadership is an important feature of recognizing the importance of change in business. Leaders often spend time evaluating the economic market and meeting with individuals to discuss current business conditions. Leaders also provide the mission and vision for change in a business.
Change allows a business to stay one step ahead of its competitors. Customers can be fickle when spending money. A product popular last week may be unimportant today. Companies must understand changes will occur and engage in flexible operations to take advantage of change in the business environment.