CHANGING BUSINESS ENVIRONMENT

The Global Business Environment has been dynamic. Over the years, it has undergone mutation. Businesses today are not the same as they used to be 50years ago.

The way business is perceived these days is different. Organizations cannot afford to be static. Usually, corporates hold a negative image in the minds of the public in the United States. The efforts of the corporations include mechanization of all their production activities during the industrial revolution in order to increase efficiency and reduce the cost of production, thus making the products cheaper for consumers. The consumers rather saw the negative side of this- the dangerous working conditions for the laborers. The Businessmen were perceived as corrupt individuals who were there for their own needs rather than the consumer welfare. Take the example of the accounting fraud of Enron and Arthur Anderson, their audior. Even the movies and Television shows, depicted Businessmen negatively.

In order to survive and compete in the market, managers need to:

· Recognize the changing environment.
· Adapt to environment without compromising their values and principles
· Not assume problems will disappear automatically
· Keep corporate communication connected to strategy

The business environment is constantly changing. Every business needs to deal with changes small or big. The way the businesses adapt to these changes will determine their success in the 21st Century.


REFERENCE:

Marshall Mcluhan and Bruce R. Powers, The Global Village: Transformations in World life and Media in the 21st Century.

Raskin, P., T. Banuri, G. Ga llopín, P. Gutman, A. Hammond, R. Kates, and R. Schwartz. 2002.

LINKS:

http://en.wikipedia.org/wiki/Liberalization


http://www.sourcewatch.org/index.php?title=Privatization

The changing business environment has seen the emergence of three key policies.
Liberalization, Privatization and Globalization.

Globalization: It refers to the growing integration and interdependence between organizations around the world economically, politically, socially, technologically and ecologically. While some scholars and observers of globalization stress convergence of patterns of production and consumption and a resulting homogenization of culture, others stress that globalization has the potential to take many diverse forms.

Liberalization: In general, liberalization refers to a relaxation of previous government restrictions, usually in areas of social or economic policy.

Privatization: Privatization refers to the sale of publicly owned assets to the private sector. The trend of privatization is prominent in developing countries as well, where natural resources are often the assets targeted for sale.
These changes in Business environment has also led to the rise of technology, which has strengthened communication channels around the globe, integrating national borders to create a “Global Village”.

Personal Experience:
Global business environment can be compared to fashion. Business environment is changing similar to fashion.
The extent of liberalization can be seen in the Indian Television. Before Liberalization, only Indian channels like Doordarshan used to run in Televisions at home. Since Liberalization took place, foreign channels like Star Movies, ESPN, channel [V], VH1 are available in India. Same can be said about Globalization. Lot of Multi-national companies can be spotted having their offices in India today. Many Government organizations in India are also being privatized today.