This study emphasizes the need for managers to promptly and effectively respond to changing business environment. Also, special review on limiting factors in the activities of managers and limiting their ability to anticipate and respond to the challenges of change in the business environment. This study also suggests some ways in which managers and organizations might improve own readiness and flexibility which is needed to respond promptly to business environmental changes. Different types of organizational learning and their relationship to strategy formulation and implementation are described in this study.