Business in Today's Globalized Environment
Business can be simply defined as “the purchase and selling of goods in an attempt to make profit.” A business is also a profession, occupation or trade of goods. Any business may deal with the manufacturing, promotion and sales of any objects or services. Both production and distribution activities are the responsibility of any business and these factors make it complex.
In today’s globalized environment, there are various factors that make a business more complex than what existed a few years ago. The various factors and their relation to the complexity of business are mentioned below.
Competition: Globalization leads to increased competition. When a company sells with less cost and sells cheaper, it is able to increase its market share.
Any business must always be ready for price, product and service and customer preferences because all of these are global market requirements.
Technology: Another manifestation of globalization is the acquiring and use of new technology from across the world. This is now possible as markets have now become global too. Any business, to improve its sales and product quality, has to make sufficient use of technology to meet customer expectations. This is what is now directing markets.
Customer Expectations: Generally, consumers all over the world are better-informed, have higher incomes and therefore higher and more exacting expectations. This forces businesses to meet higher standards.
Multi-national and multi-cultural managements: Any multi-national business environment is more complex with more variables, and so is more difficult to manage. Handling a multi-cultural business deals mostly with employees from different cultural, racial, ethnic and religious backgrounds. This requires a certain amount of empathy from the employers.
The essence of globalization of business is broadening interdependence of people from different parts of the world, especially among different countries, and growing relationships to enhance and
In today’s globalized environment, there are various factors that make a business more complex than what existed a few years ago. The various factors and their relation to the complexity of business are mentioned below.
Competition: Globalization leads to increased competition. When a company sells with less cost and sells cheaper, it is able to increase its market share.
Any business must always be ready for price, product and service and customer preferences because all of these are global market requirements.
Technology: Another manifestation of globalization is the acquiring and use of new technology from across the world. This is now possible as markets have now become global too. Any business, to improve its sales and product quality, has to make sufficient use of technology to meet customer expectations. This is what is now directing markets.
Customer Expectations: Generally, consumers all over the world are better-informed, have higher incomes and therefore higher and more exacting expectations. This forces businesses to meet higher standards.
Multi-national and multi-cultural managements: Any multi-national business environment is more complex with more variables, and so is more difficult to manage. Handling a multi-cultural business deals mostly with employees from different cultural, racial, ethnic and religious backgrounds. This requires a certain amount of empathy from the employers.
The essence of globalization of business is broadening interdependence of people from different parts of the world, especially among different countries, and growing relationships to enhance and