The Changing Environment for Business

American Business Environment

The business environment in the United States has changed drastically over a period. Still it never had a positive image in the minds of the people. Public has been critical towards events like questionable accounting practices, drug recalls, corporate scandals, CEO’s salaries, etc and the scrutiny has grown intense. These fraud practices have grabbed public attention towards businesses.

The creation of nation’s transcontinental rail system in 1860 created hazardous working conditions for steel workers. Industrial Revolution also contributed to harsh and dangerous working conditions for laborers and exploitation of women and children. In 1920, the sharp rise in the stock market resulted in economic instability. The stock market bubble finally busted in 1929, which led to the Great Depression. By the mid1940’s companies geared up for the Second World War. During 1960’s public trust towards the institutions started declining. From 1970 to 1980, American attitude towards business reached an all- time low. The decade that followed saw extremities in the stock market. In the new millennium, corporations face public allegations for their fraud business practices.

Role of Hollywood

Through the years, media and television has played a significant role in bringing to the common person the corporate news stories and messages. Many of the Hollywood movies like The China Syndrome, Wall Street, Erin Brockovich, etc can be related to the famous corporate scandals that have taken place over a period.

Global Village

Technological advancements have helped disintegrating national boundaries and uniting the world into one Global Village. Large corporations are dominating the economy of the world. As public is getting more and more involved with business, it is looking for companies to demonstrate genuine interest for the society.

How to Compete in a Changing Environment

Business today is all about surviving and growing in spite of cutthroat competition. Corporations need to adapt themselves in the changing business environment to survive in the market. Company managers need to scan the changing environment for the necessary threats and plan strategies to overcome them. Technology is ever changing. Companies need to update their technology for growth through innovation. Companies must adapt to changing environment without compromising their principles. The core values and beliefs are the strengths of an organization that lays its foundations. Companies should connect communication with its strategies through its structure. Managers are hesitant to hire specialist in communication. However, they fail to realize that corporate communication teams play a vital role in defining the mission and also communicating is to internal and external constituents. The success of business today depends on the way corporations adapt and modify themselves to the changing global environment.

References and links
“Changes in Business Cycles: Evidence and Explanations” - Christina D. Romer. http://www.nber.org/papers/w6948.pdf
“Why Good Communication is Good Business” – Marty Blalock
http://www.bus.wisc.edu/update/winter05/business_communication.asp

Experiences

•During my internship in reliance industry I had learnt about the way the company had evolved since its inception. Initially the employees were not provided with cell phones or internet to communicate with other departments of the company. But gradually with the help of information technology the company developed its own corporate intranet through which the employees can be in constant touch with each other and obtain necessary feedback regarding their work from their executives. The company also has a well designed website to communicate with the external constituencies. This proves that the company has adapted to the constant changing environment.

•The banks in India have become more accessible by customers through its communication network. Opening a bank account has become comparatively easier and the process is faster than it was earlier. Customers make use of ATM cards for cash withdrawals and other banking facilities. Transactions take place in a fraction of a second due to the advancements in information technology. Customer waiting time is almost nil. Internet banking is also gaining importance and the customers are getting accustomed to online transactions.