Business Constant Development - Essay Example

Businesses cannot afford to stand still. The world and its population are constantly changing Business is surely something that cannot certainly survive without experiencing changes within it and if it gets successful in adapting to these changes, than there is a guaranteed success waiting for it. A change is actually determined on multiple factors. Sometimes it is the economic situation in the country, social instability or the usual rise in the population. These are the independent factors that cause the business to change its current picture and mend it to fit perfectly in that upcoming situation to survive in the market or less it may lose its place and give it to its competitors. The world around this business can never remain unchanged as every second, something happens. Every change, whether it is demographic or social, leaves a certain impact on the business and everything around it (Pride et al 2011 3). Demographic changes around the world has showcased that there has been an ever increasing change in the population that means more chances of economic growth and employment. These changes are actually reconstructing the labor market all around the world and are eventually changing the picture of many running businesses. There has been a decline in the birth rate which has resulted in an ageing population. Many businesses like the ones in Japan has adapted to this change by making many sensible decisions like investing in robotics for children care and the aged care (Schoemer 2001 21). Whereas in case of social changes, these are considered to be some short-lived fads or they bring some very permanent changes in the market. When a social trend makes its place, it means that it will be followed by some changes in supply and demand of a certain commodity/industry. This can leave both, good and bad, impact on the business. Business which follows yesterday’s trends will tend to suffer huge losses while some who successfully adapt to this change are the ones who continue manufacturing of their goods and services on the ascendency and gain a sufficient return to the business (Pride et al 2011 3). Permanent social changes in the society tend to bring some long term effects on the profit margins of the business. This is how these demographic and social changes appear, leave an impact and wait to see their effects on the businesses. Once adapted successfully results in a completely positive effect on the business’s future. It is now the responsibility of the business to respond to these changes and developments that occurs. And in order to perform this, CSR has been developed which stands for Corporate Social Responsibility. In this, business professionals make efforts to come up with numerous ways which can be used by the business to overcome all these changes and cope with this situation. This is one of the ways which has been found pretty successful for the business. If a business fails to manage to learn effectively with the ongoing change in the market, all the hard work and time it puts to make an attempt to adapt to change comes to drain. (Johnson and Turner 2003 334) Demographic changes bring a transformation in the workforce and the number of customers. Every country experiences different situations i.e. in some, birth rate keeps on increasing where as in some it declines, leading to ageing population. The latter situation is not at all favorable for any business as this means a decline in the number of people who can render their services. This means the supply of labor in the market will fall, leading to higher wage rate in the market in order to attract the workers, as business will be demanding more to carry on their production processes (Brindley 2008 43). A business can cope with this situation successfully if it implements some strategic clever plans like improving the mobility, quality of jobs, job creation, life-longing training and learning programs and managing change with diversity. A business can always overcome this issue by importing workforce from other countries where the wage rate is low and there is no need of training these workers as they will be already efficient and productive. In this way, labor costs of the company can get controlled and demographic changes will not leave much impact on the company. Demographic and Social changes both leave an impact on the types products being manufactured, along with the manner which is used to produce them. In case of social changes, approaches to the way products of the company are sold, promotional methods and different versions of the product i.e. color and type, get affected. Multiple responses to these changes around the world have helped many businesses to learn how to cope up with this problem. As population has been increasing with a proliferating rate of aged people, businesses have started providing many health services and housing schemes in order to meet the demands of the people which will automatically lead to more profits earned. Businesses are adopting those manufacturing methods which are environment friendly as now in many countries; business law is imposing some strict laws in many of those business activities which leave a negative impact like the use of plastic bags (Pantaleo and Pal 2008 24). Innovation is what makes a business more productive and efficient, and bringing changes to your current business activities is always for good. It is said: ‘Social change is the catalyst for improvements’. In order to have a positive impact of this specific form of change, businesses are successfully adapting to these changes by making adjustments to the business in order to match up with the new framework of the economy which is the reason to these social changes. In some countries, there is a rise in the implementation of their strong social and moral values in the society. Businesses have to bring these changes into consideration and renew their marketing, promotional and operational ways to keep their product in the market or else customers will fail to purchase it if it will be messing up with their social values. This is why; international businesses have made a smart move in not even trying to sell wine and other alcoholic products in the Islamic countries in order to prevent any failure and losses in these respective countries. This is how a business should think critically and adapt to these changes, without thinking of earning profits only (Schoemer 2001 21). In the nutshell, it has been explained that a business can never remain standstill. It has to go with the flow and adapt to multiple changes that appear in the society and the economy or else it may reach to the saturation point and at one point, in the decline stage. Variations in the business are important because nothing in the world remains the same as it was before. There has to be a rise in the population of a country, there has to be certain changes in the economic edifice of the country and businesses have to change accordingly (Jonker and Witte 2006 92). These global demographic trends are driving the businesses and bringing fluctuations in the global workforce and it has been found that in the coming years, the proportion of skilled workers will fall profoundly so businesses need to make pre-adjustments and start training programs to sustain the efficiency and productivity of their businesses processes or else they will be doomed. Businesses which don’t keep up with the changes are the ones facing instability, bringing the long term survivability under a question. References: Brindley, B. (2008) Business Studies Harlow: Pearson Education Jonker, J. and Witte, M.C. (2006). Management Models for Corporate Social Responsibility. London: Springer Johnson, D. and Turner, C. (2003). International Business: Themes and Issues in the Modern Global Economy. London: Routledge Pride, W., Hughes, R. and Kapoor, J. (2011). Business. London: Cengage Learning Pantaleo, D., Pal, N. (2008). From Strategy to Execution: Turning Accelerated Global Change into Opportunity. London: Springer Schoemer, K.G. (2001). Change is your Competitive Advantage.US: Adams Media. Read More