Organizations must cope with constant change in society and the economy. The most significant recent changes include the following:
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- Transportation has developed rapidly due to population growth, and communication networks and highways have been built.
- Changes in the population pyramid, such as the growth of adults over 65, have created new markets such as private clinics, senior tourism, and other convenience services.
- New products have created markets that were unknown a few years ago.
- They have also created opportunities for the service industry, such as video rentals and, currently, DVDs. Computers have even opened sales channels for online movie rentals.
- New tastes have changed, and companies must always be prepared to adapt their products and services.
For example, food manufacturers have incorporated light or low-calorie foods into their product lines.
Social changes, such as the integration of women into the workforce, have revolutionized the organization of companies.
Legislation can force a business to make changes such as avoiding discrimination or modifying products to meet new safety standards.
The increased use of leisure time has led to a rise in demand for leisure, entertainment, and tourism services.
Globalization and international competition, particularly for manufacturers, have made it increasingly difficult for organizations to survive in international markets.