Contemporary Business Environment

Topics: Business, Globalization, Currency Pages: 2 (604 words) Published: July 17, 2012
1.0 Introduction
Contemporary business environments are increasingly competitive and dynamic. The fact that it is changing at a fast pace there are changes in the new concepts accounting control must be developed in order to cope up with the changes. Therefore, companies will have to develop logical and reliable business strategies and to utilize management accounting tools in order to support planning, control and decision-making. It is important that before engaging in any management plans the organization should understand that the accounting information is affected by the modern business environments which are dynamic, turbulent as well as complex. Hence accounting systems must be designed in a way that will enable them to withstand such environmental conditions (Coombs, Hobbs & Jenkins 2005, p25)

1.1 Globalization
As the world becomes one global playing field, the environmental changes in countries affect business decision and the performance of firms. There are changes in the economic, business, social and cultural environments which have brought a change in business firms and other organizations. We will look on some of the factors below. 1.1.1 Technology Advancement

Technology is one of the important factors in the development of globalization. Information technology is helping more to improve globalization.  It has contributed to globalization by providing infrastructure for connections. In particular, developments in means of transport, communications, and data processing have allowed global links to become denser, faster, more reliable, and much cheaper. 1.1.2 Religion and cultural

As companies risk into many new markets to hit on potential business opportunities, they would see the impact of the difference in the religious and cultural practices and how they shape the business practices. There is a need to be sensitive to the practices in each different country so as not to cross the line and breach their trust. For example, in Islamic...
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