Challenges facing businesses

As the world continues to be linked through globalization, the business environment continues to change. In effect, it is expected that business will face unique challenges in the near future owing to a shift in the global business environment. One of the challenges is occasioned by the incidence of climate change and an increase in environmental awareness among consumers. This means that most companies will have to work with limited resources (Alperovitz, 2011) thus lowering their economies of scale. The effect is that economic growth within the business environment must be slowed down and in some cases reversed to redistribute consumption. The effect is that the products will be very hard to sell to people at a time of unemployment thereby posing a challenge to the principles of economic development.

Still, the business environment faces the risk of challenges associated with labor movements and advocates. The growth of many labor groups that are more organized poses a threat to the sustainability of the business environment as it provides them with better bargaining power (Nonaka, 2007). Most labor groups do not also agree with the ideas of reducing growth due to such factors as the global warming phenomenon. Essentially, attempts to lay off some employees will obviously be met with resistance from the labor groups

The existence of traditional environmental organizations is another risk to the success of the business environment. Most of these are unwilling to embrace new concepts of environmental advocacy but choose to dwell on the traditional, non effective ones. They have little capacity to deal with emerging issues and take most of their time dealing with traditional ways of conservation such as tree planting. They cannot however engage in development of deep important strategies.


Alperovitz, A. (2011, May 26). The Old Economy’s Not Coming Back. So What’s Next? Retrieved March 29, 2016, from

Nonaka, I. (2007, August 31). The Knowledge-Creating Company. Havard Business Review, 162-172.