Transition of Business World

COMPARATIVE STUDY
BETWEEN PAST AND PRESENT
What what TO STUDY???????
Introduction
Global villege
Speed
PLC
Transparancy
Communication
IT
Information
Trade restrications
Innovation
Competition
Flexibility
Globalization
Introduction
This is the 21st century and the business
organisations have been turned up to a new
level. We can easily state that, the change is the
only thing which is constant in the current
senario.
The methods of business are changing. The styles
are changing. Those who refuse to change
remain behind and stop for ever. There are
number of factors in the business field, which are
continuously in the transition mode. These are
making impact on the success of the business.
Concept of Global village
The world is global village. The world has become
small. The rise of multinational and transnational
corporations demands new requirements on human
resources managers. They must ensure that the
appropriate mix of employees in terms of knowledge,
skills and cultural adaptability are available to handle
global assignment. All the nations have understood
that the progress is possible only in globalizing the
business operations. To meet this target, they must
train individuals to meet the challenges of the global
village.
SPEED
The speed of many aspects has increased many folds.
Electronic technology is being used in more and
more extent. Technological revolution has changed
the ways in which business could be carried.
Production machines have been developed which
produce faster goods with better quality.
Electronics has been making a great advancement in
the field of machinery for productions as well as
inspection. Movement of persons has been now
highly mobile due to speedy air travel. The data
required can be shifted in few seconds time. Rather
the speed of the development in IT is unimaginable.
We see that the product life cycle is becoming short.
This is demanding faster development of the new
products.
A product is introduced or launched into the market.
It gains more and more customers as it grows. Then
the market stabilizes and the product become
mature. After a period of time, the product is
overtaken by development and the introduction of
superior competitors, it goes into decline and
is eventually withdrawn. PLC length is reduced
considerably.
Transparency
It is observed that, sense of confidentiality is getting
obsolete. At all the levels in the company and outside
there is transparency with respect to the documents,
data and information. No one needs to hide anything.
The documents like drawings, process sheets and
quality checking instructions were considered as
confidential and were restricted to be seen by any one
in the company or outsider also. Now a days have
changed in such a way that outside vendors have not
only direct access to the drawings and process sheets,
but also they are directly involved in the discussion of
the design of products and processes.
Communication>>>>>>>>>>>>>
Methods of communication are coming in to
existance, which help to speed up the business
activities. Internet connectivity allows
teleconference possible making the availability of
the company personnel to come together even
though they are away at any place on the globe at
far off places. Business discussions for negotiations,
decisions, instructions have been easy. Media has
become powerful through the means of television
network, newspapers etc. The customer becomes
more knowledgeable about the product he is going
to buy.
IT
Developments like, use of credit card,
ATM, transfer of money through net
without giving cheque etc. are new
developments. These make the banking
system fast and easy. Computers,
internet, lan, wan etc have greatly shifted
the work culture. This has improved the
accuracy of the work and so the
decisions. In the businesses the real time
information is available for all the levels
of the persons.
Information
Yet another advantage is of all type of
information is available in hand. The
consumer education is improving
because of the same, which we already
have discussed.
The characteristics of the information is,
it keeps on chaning. Latest informatoin
gets highlighted quickly as never before.
Trade Restrictions
All the nations in the world have now clearly
understood that the economical progress is possible
only when they break the trade restrictions. They are
accepting the path of liberalization. Too many
restrictions for starting and running an enterprise is
one of the most important hurdles. The governemnt
officials have to give permission on and often for
issues in the company. It is impossible to run the
activities smoothly in such an environment. Due to
removal of red tapisum, there is freedom for
entrepreneurs to take anny appropriate step for their
business.
Great companies innovated at every phase of their
evolution. Companies should focus their energies on
innovation elsewhere, such as marketing and
operations. Innovation is simply a form of energy to
create competitive advantage. In the competitive
state you are trying to create is a high degree of
differentiation from your immediate competitors.
It encourages manufacturers and service
providers (such as workers) to be more
efficient, to better respond to the needs of
their customers.
Competition weeds out the failures, the
incompetent, the inefficient, the fat and slow
to respond to changing circumstances. So the
poorer the country, the less resources it has-
the more it is in need of competition.
Fl
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xi
bi
li
t
y
Flexibility of the organization,
machinery and people will be
giving impact on the future of the
company. Company will really
boom if the flexibility is there.
Matters like new product
development, shifting the product
line quickly, responding with fast
to the needs of services has to be
developed by the organization.
Globalization
Globalization means expansion of business
activities to cover the entire world. New
developments in the field of technology,
expansion of trade and interdependence of
countries helps in the process of globalization.
It leads to integration of economies of
different countries in a new global economic
order. In this order, large scale manufacturing
activities will be undertaken for meeting the
needs of local people and also for promoting
exports.
Globalization
Characteristics of Global Business
Large-scale production and marketing
Integration of economies of countries
Domination of developed countries and MNCs
Benefits to Participating countries
Keen competition among participants
Special role of science and technology
Brings interdependence at global level
Revolutionary changes in manufacturing and
marketing concepts
ASSIGNMENT
NEED FOR GLOBALIZATION
BENEFITS OF GLOBALIZATON
LOSS DUE TO GLOBALIZATION