Wednesday, June 25, 2008

The Changing Environment of Business

One of the most important reasons for changes in the business environment is due to globalization. For example, Organizations such as General Motors have to worry not only about what Chrysler and Ford are doing, but also what Toyota, Volkswagen, and BMW are doing as well. In fact, Chrysler is not just “Chrysler” anymore. It is now a conglomeration of European, North American, and Asian manufacturers known as DaimlerChrysler. Therefore mangers need to have certain skills in knowing how to analyze and improve the ability of an organization to survive and grow in a complex and changing world. This means that managers must have a set of tools that enables them to grasp the complexity of the organization's environment.

The job of every manager involves what is known as the functions of management: planning, organizing, directing, and controlling. Managers have to understand that business environment is constantly evolving. Therefore they have to keep updating their knowledge on all the management functions.


Personal Experience

One of my personal experiences on the changing business environment is on booking of my travel tickets. Before when I use to book tickets for my travel, I use go to a travel agent and then ask him for information and make my payments through cash or cheque. But now, I book all my tickets online and make payments through credit cards. This means that the companies have improved the technology in their business environment and have created virtual market place for their customers.