Features of Contemporary Bussiness Environment
SHRM 404:
DISCUSS CONTEMPORARY DEVELOPMENTS IN THE BUSSINESS ENVIRONMENT
INTRODUCTION
The business environment is highly sensitive to the PESTLE environment. This is especially true concerning 21st Century organizations that are technology driven and constantly under pressure to be innovative as they are exposed to intense competition. A phone that was considered the best selling a year ago has been replaced by others that are even more advanced. Firms have thus resorted to short term planning as long term plans have become irrelevant. This presentation seeks to analyze contemporary developments in the business environment. The developments may be classified as follows: * Shift from Manufacturing to Service Industry * Increased uncertainty, Complexity and Risk Awareness * Restructuring of Rewards * Technology * Regulation * Information Overload * Pressure for Innovation/ Shorter Product Life Cycle * Increased Focus on Customer Satisfaction * Diversity
Shift from Manufacturing to Service Industry
This could be attributed to the fact that nowadays, engaging in mass production is risky, the product market has widened, consumers have more varieties to choose from. It thus may be concluded that in contemporary organizations, mass production has lost relevance leading to a decline in the manufacturing sector.
The growth of service sectors may be due to the fact that business leaders are increasingly focusing on the ‘customer is King’ principle, realizing that the more satisfied clients are, the higher the productivity.
Increased Uncertainty, Complexity and Risk Awareness
Ever noticed how phone shops in Zimbabwe died a natural death?
Or asked yourself why Bata Shoe Company in Masvingo is left with one branch from three since the emergence of Cross Country? What is the implication of meters installed by ZESA on energy consuming industries?
The above scenarios indicate that contemporary business environments are unpredictable. This has forced
DISCUSS CONTEMPORARY DEVELOPMENTS IN THE BUSSINESS ENVIRONMENT
INTRODUCTION
The business environment is highly sensitive to the PESTLE environment. This is especially true concerning 21st Century organizations that are technology driven and constantly under pressure to be innovative as they are exposed to intense competition. A phone that was considered the best selling a year ago has been replaced by others that are even more advanced. Firms have thus resorted to short term planning as long term plans have become irrelevant. This presentation seeks to analyze contemporary developments in the business environment. The developments may be classified as follows: * Shift from Manufacturing to Service Industry * Increased uncertainty, Complexity and Risk Awareness * Restructuring of Rewards * Technology * Regulation * Information Overload * Pressure for Innovation/ Shorter Product Life Cycle * Increased Focus on Customer Satisfaction * Diversity
Shift from Manufacturing to Service Industry
This could be attributed to the fact that nowadays, engaging in mass production is risky, the product market has widened, consumers have more varieties to choose from. It thus may be concluded that in contemporary organizations, mass production has lost relevance leading to a decline in the manufacturing sector.
The growth of service sectors may be due to the fact that business leaders are increasingly focusing on the ‘customer is King’ principle, realizing that the more satisfied clients are, the higher the productivity.
Increased Uncertainty, Complexity and Risk Awareness
Ever noticed how phone shops in Zimbabwe died a natural death?
Or asked yourself why Bata Shoe Company in Masvingo is left with one branch from three since the emergence of Cross Country? What is the implication of meters installed by ZESA on energy consuming industries?
The above scenarios indicate that contemporary business environments are unpredictable. This has forced