Function of Groups in Business
| The Function of Groups in Business | | |
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In an age when global economics is a household term and corporations span continents, the importance of understanding group dynamics is paramount to economic success. Group dynamics is the social science that focuses on advancing knowledge about the nature of group life. In studying group dynamics you are about to look at the behavior of group and how the group develops. Businesses today have decreased their workforce and achieved higher productivity from small groups. The effectiveness of small groups has influenced how businesses design and launch products, conduct research and training, and communicate with other departments in the company. Equally important is to understand how the group interacts with other groups and larger entities. This is a key component in the business world as it can give you direct insight to your target audience.
One example of how businesses research group dynamics is product testing. After a product has been developed, businesses begin testing that product in various markets. These markets are strategically chosen by the groups and classes that operate inside it. Fast food restaurants use this method exclusively when deciding to add new menu items. McDonald’s is one of the leading forces in this area of product development. When introducing the chicken biscuit to their breakfast menu, they began the process of market research. While researching markets, they sought out geographic locations for limited introductions. Implementing knowledge of group dynamics gave them direct insight to optimum demographic locations for the items positive acceptance. Some of the questions and issues to be addressed were the overall desire for poultry, the various items individuals and groups eat for breakfast, and if the customer base has described a need or desire for the item in their market. Once these and other questions are answered, McDonald’s compiled all the data and
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In an age when global economics is a household term and corporations span continents, the importance of understanding group dynamics is paramount to economic success. Group dynamics is the social science that focuses on advancing knowledge about the nature of group life. In studying group dynamics you are about to look at the behavior of group and how the group develops. Businesses today have decreased their workforce and achieved higher productivity from small groups. The effectiveness of small groups has influenced how businesses design and launch products, conduct research and training, and communicate with other departments in the company. Equally important is to understand how the group interacts with other groups and larger entities. This is a key component in the business world as it can give you direct insight to your target audience.
One example of how businesses research group dynamics is product testing. After a product has been developed, businesses begin testing that product in various markets. These markets are strategically chosen by the groups and classes that operate inside it. Fast food restaurants use this method exclusively when deciding to add new menu items. McDonald’s is one of the leading forces in this area of product development. When introducing the chicken biscuit to their breakfast menu, they began the process of market research. While researching markets, they sought out geographic locations for limited introductions. Implementing knowledge of group dynamics gave them direct insight to optimum demographic locations for the items positive acceptance. Some of the questions and issues to be addressed were the overall desire for poultry, the various items individuals and groups eat for breakfast, and if the customer base has described a need or desire for the item in their market. Once these and other questions are answered, McDonald’s compiled all the data and
References: Clifford, S (2008) The New York Times, http://www.cnbc.com/id/24776721/site/14081545 retrieved 20Nov 2010 Johnson, D. & Johnson, F. (2009) Joining Together. Upper Saddle River, NJ Pearson Education, Inc. Kotler, P., & Armstrong, G. (2010). Principles of marketing (13th Ed.). Upper Saddle River, New Jersey: Prentice Hall