June 30, 2008

Changing Environment of Business














Summary

The relation between a business environment and an organization is one of the issues of organizational management. If you want to understand the relation between a business environment and an organization, first you should understand the organization as deeply as you can. A business environment is the main factor during making decisions of an organization’s policies and strategies, and is also the target of organizational management; this is because a good business environment can accomplish a good way of management. Usually the reason for a failed company is because the company served the relation between the business environment and the organization.

Because the business environment is constantly changing, everyone in business today needs to communicate strategically. Therefore, how to compete in changing environments and how managers can adapt to the challenges of business environments have become big issues for organizations.



  • Recognize the changing environment—first the managers need to understand the business environment is constantly evolving. So, they need to look at the big picture of how the changing environment affects the company’s image in order to prevent the damaging results from happening in the future.
  • Adapt to the environment without compromising principles—companies must adapt to the changing environment without changing what they stand for or compromising their principles, and to react in a timely fashion to whatever news they receive. In short, they need to continue learning and adapting.
  • Don't assume problems will magically disappear—they will only get worse and you will be better off in today's complex environment if you think problems will magically disappear. Consumers have longer memories than you think, especially with bad news, as witnessed by boycotts of companies such as Nike, Coors, Shell, Texaco, and Wal-Mart.
  • Keep corporate communication connected to strategy—corporate communication must be closely linked to a company's overall strategy and vision. Successful companies connect communication with strategy through structure, such as having the head of corporate communication report directly to the CEO.
Example and Self-Experience

This video talks about the business environment.


Today, the business environments are changing into a new type—e-business—almost every shop now moves toward virtual, which means online stores. John Barbour, CEO of Toysrus.com, commented on the challenges of competing in an e-business environment, “We learned that you need to have a very robust infrastructure to handle this business and the scale of it. One of the things people don't realize is that most of these Internet businesses, including ourselves, have to grow infrastructure at a dramatic rate. Companies are increasing tenfold within a space of a year, two years. And that's incredibly tough to manage, no matter who you are.”

Also, the manager's leadership could effect the business environment a lot. When I worked in the pharmacy, some of employees didn't like my manager because of her leadership. So, sometimes a simple problem would become difficult to solve, or the communication barrier would appear between the employee and the manager.

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References:

http://www.globrand.com/2007/04/05/20070405-9422-1.shtml

http://www.healthdirections.org/openspace.htm

http://www.youtube.com/watch?v=IThdNheGZkI

http://www-07.ibm.com/innovation/includes/pdf/ngdotcoms.pdf


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