Forces Affecting Business Environment
Revolutionary forces that are changing the business environment that companies must compete.
The business landscape is changing rapidly. Companies must continuously adapt to these changes in order to survive. As such, business managers must be responsive to these developments to protect the existence of their organization. These so-called changes maybe considered as threats or opportunities to the company.
Listed below are some of these forces that are changing the business setting.
- Technological Innovations. Internet, microprocessors, automation, information hi-way, etc., these are some of the technological innovations penetrating the business community and affecting the way companies compete. For instance, more and more companies are focusing on online marketing models in selling their products and services.
- Globalization. Local companies have already saturated their local markets and the only way for them to grow is to tap markets of other countries. The world economy is becoming a single market place resulting to intense competition among multinational and local companies.
- New Breeds of Workforce. Due to globalization, employees from all sorts of race and nationalities are moving in and out of these multinational companies. Diversity in the workforce is changing how companies are being managed.
- Deregulation. Government regulations are changing the way business operates. The protectionist policies of the government are now being dismantled from one country to another. Affected companies must beef up their operations since their respective government will no longer guard their turf. Competitiveness is now the key of the game.
- Emphasis on Human Capital. More companies are producing more services than tangible products. Even manufacturing firms are adding “value-added services” to their physical products. The growing importance of services led to the emphasis on human capital. Companies are relying more and more on the skills and creativity of their employees. As such, they are investing more capital on “knowledge workers”.
These mentioned forces are changing the way companies compete with each other. The new business landscape is becoming more and more merciless to organizations that are unprepared to meet these challenges. Companies who are not committed to the doing even more than their best will probably die and become food for the worms.
3 Comments
Awesome and very informative article.
Informative analysis.
great analysis.. cool pic of the office table on the grass..