Discuss about the Literature Review On The Trends In The Global Business Environment.
As the economy prospers gradually at home the business procedure may look for the selling stuff internationally and thus to remain profitable. Before the market is examined, a manager has to look for the major changes that are taking place in the international market and take the advantage in the favour of the company. The international market is evolving rapidly and for that purpose, the business environment is also changing rapidly and this creates a niche for the concerned company. This study is based on a literature review on the trends in the global business environment.
Keywords: disruptive innovation, algorithm, Peter Drucker, automation.
It is important to note that the in order to identify the strategies of entering into the new international markets and in order to decide with whom the countries can do the business with. There are many firms that are unable to cope up with the complex situations and are thus falls short of the goals. Some part of the problem can be attributed to the emerging markets and the institutional voids. The emerging markets lack the contract-enforcing methods, regulatory systems and specialized intermediaries. These hindrances or the gaps have made it difficult for the multinationals to succeed especially in the developing countries. This is the reason that several companies have denied of investing in the developing nations. This can be considered as a big mistake for the western companies if they do not come up with new strategies to tap the emerging markets, this will ultimately result in being uncompetitive. There are several companies that have strategies based on the wrong reasons and they rely heavily on the behaviour of the rivals to the gut feeling of senior managers. The corporations also depend on the composite indexes for the purpose of making decisions. However, the decisions can be misleading sometimes and they do not take into account the important information and the weak infrastructure of the developing nations. A better strategy can be understanding the different types of variations that exist within the countries. The best way that can be done is by matching the strategies with respect to the scenarios of the country (Khanna et al. 2005).
In the present dynamic world, algorithms are vital as it is valued as a predictive tool, however, algorithms are of not much worth if not applied properly. An example can be cited with respect to a social media site, which has plenty of algorithms to control the ads and the links that will be shown to the users of the social. Even after putting a lot of effort on the framing of an efficient algorithm, very little effort is put on to the content of the website and this results in the low-quality content. When the clicks rise, the satisfaction of the customer falls. The major problem is not in the algorithms but how the managers deal with the glitches that are present in the article. The algorithms can be used to perform the mechanised tasks that do not the reveal much detail. Thus, algorithms cannot be used to predict the global trends in the business environment, as the algorithms will not be able to take into account the vital details. The rationale is that although the prediction can be made successfully, it won’t be able to reveal the cause of the event (Luca et al. 2016). The theory of disruptive innovation has been for around 20 years and this has played a major role in influencing the business circles. The theory has also played a predictive role for the industry entrants and whether the new entrants will succeed or not. However, it is important to note that the disruptive innovation term has been mistakenly considered as one which is disrupting the market of the old player in the market. It has been pointed out that considering the trends in the global business model, the tenets of the disruption theory if not put wellthen it might lead to common mistakes. The right strategic choices cannot be made if the nuances of the theory are not understood well. The theory has its limitations and thus but the researchers are confident that if continued research is perused, then the theory can show signs of improvement (Christensen et al. 2016).
The world today is constantly changing and this has led to the identification of the tasks by the managers, Peter Drucker proposed some of the responsibilities that will act as guiding principles and help in enduring the changing world. Drucker was not against the accumulation of wealth, and he was practical about the work of the society and the organizations. He held the idea that the role of the executives is to motivate and guide the actions of the others so that the job is done within the fixed timeline. He said that the pay structure of the executives must be based on the performance of the executive (Kanter 2009). the contributions of the Peter Drucker are that he is considered as one of the greatest management gurus. Going through the concept of a corporation that was published in the year 1946, he considered as a progressive science that includes the trade cut-offs and dilemmas. Drucker treated the companies as the humanitarian organizations and considered them more than the source of economic data. In the present dynamic business world, the Peter Drucker has said that the human organizations whether in the voluntary and the business sector. There is an obvious need for the hard measurements and the clear objectives so that the system stays efficient (Schumpeter 2009). Executives are looking at the future and are spending a year in a crisis mode. As the executives engage in strategic thinking, there is a need for the continuous assessment of the changing landscape, and this is how the executives are able to keep a close watch on the underlying forces. The companies must have a strategic behaviour and must be tied closely to the trajectories. For instance, considering present trends in globalization and an unstoppable trend has started and this has led to the reassessment of the business model. It is seen that the U.S has ceased to be a global engine of consumption. The business must be based on the countries like India and China which has the highest consumer spending. Within the mature markets, the emphasis is put on the remaining sweet spot of demand (Beinhocker et al. 2009).
management
As the business progresses the collaborations, teamwork, cross-functional and global has led to the organizational success. in several companies, people spend the majority of the time-solving queries and 80 percent of the time in the meetings. Demand for the load and collaboration falls upon a small number of people and this leads to burnout and bottleneck. The three types of the resources that help in the creation of the value chain through the collaboration are the informational resources, social resources and personal resources. The informational resources can be shared without depleting the resources of the collaborators. Leaders thus distribute the responsibilities based on the knowledge sharing and collaboration. The people that are at risk and due to the collaborative sharing of knowledge are identified (Cross et al. 2016). The present world reflects a stage of automation and the world is slowly progressing toward the automation. The progress in technology has led to the task automation and is a new trend in the global business environment. A large number of people are jobless due to the fact that the jobs are being taken away from them due to the automation of tasks. Previously it used to be humans and now they are substituted by the automated machines. Due to the joblessness the ill effects if it will spread and has increased the rates of unemployment and economic recession and this also includes the identity crisis. The researchers are working on things that will bring together the knowledge of the humans and the working ability of the machines. This will augment and assist both the entities. Steps are also taken at the higher levels of cognition so that both the humans and the machines can work together in coherence and this act to augment the effort of the humans (Davenport and Kirby 2015). The traditional approaches in the strategy say that the world is considered to be relatively stable and it is predictable. However, due to globalization, a greater amount of transparency, new technologies have led to a combined effect in the business environment. The present situation speaks of the uncertainty and the risks, a number of managers are increasingly taking it on a positive note. The competitive advantage gained due to the organizational capabilities has led to adaptation at a faster rate. The individuals that work upon the weak signals change has the capability to quickly read and act. Such people not only gained the knowledge to work with the products and the services but also work on the strategies, processes, and the business models. The managers have acquired the skills to effectively manage the multiple and complex stakeholders in the interconnected world (Reeves and Deimler 2011).
Conclusion
The business in today’s world takes place in a global environment and due to this reason, the needs of the consumers are constantly changing. And it is driven by the emerging economies of the India, Brazil and China. Staying ahead of the other companies requires an in-depth of the business trends and this can break or make the business. This highly depends on how the management seeks the strategies and how they plan to capitalize on them.
References
Beinhocker, E., Davis, I. and Mendonca, L., 2009. The 10 trends you have to watch. Harvard Business Review, 87(7/8), pp.55-60.
Christensen, C.M., Raynor, M.E. and McDonald, R., 2016. What is disruptive Innovation. The Encyclopedia of Human-Computer Interaction, 2.
Cross, R., Rebele, R. and Grant, A., 2016. Collaborative overload. Harvard Business Review, 94(1), p.16.
Davenport, T.H. and Kirby, J., 2015. Beyond automation. Harvard Business Review, 93(6), pp.59-65.
Kanter, R. (2009). What Would Peter Say?. [online] Harvard Business Review. Available at: https://hbr.org/2009/11/what-would-peter-say [Accessed 27 Apr. 2018].
Khanna, T., Palepu, K.G. and Sinha, J., 2005. Strategies that fit emerging markets. Harvard business review, 83(6), pp.4-19.
Luca, M., Kleinberg, J. and Mullainathan, S., 2016. Algorithms need managers, too. Harvard business review, 94(1), p.20.
Reeves, M. and Deimler, M., 2011. Adaptability: The new competitive advantage. Harvard Business Review, 89(7-8), pp.134-+.
Schumpeter (2009). Remembering Drucker. [online] The Economist. Available at: https://www.economist.com/node/14903040 [Accessed 27 Apr. 2018].
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