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Businesses in the 21st century face new challenges- How should they react to this?

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Introduction

Name: Nicky Loreto Student Number: 14727447 Year: MBA 2005 Course: Communication for Business Essay Topic: Businesses in the 21st century face new challenges- How should they react to this? Lecturer: Dr Therese Fish Date: 10 January 2005 Table of Contents Page 1. Introduction .......................................................... 2 2. The changing world ................................................. 3 3. Managing business change ........................................ 4 3.1 Strategies business should consider when facing new challenges in the 21st century................................. 4 4. Conclusion............................................................. 8 5. Bibliography........................................................... 9 Businesses in the 21st century face new challenges - How should they react to this? 1. Introduction Demographic and technological trends are significantly changing the way companies relate to their competitors, suppliers, customers, shareholders and employees in the 21st century. As the 21st century approaches, powerful forces are transforming markets and dramatically changing ways of doing business. Increased movement of people, goods, and organizations across borders has resulted in the emergence of global market segments and the growth of globally integrated markets. As a result, firms need to adapt and rethink strategies to respond to these globalizing forces, charting direction for future growth. The following article is designed to identify critical issues and provoke thought as to how businesses can best prepare to compete in the 21st century. 2. The Changing world In the 21st century, everything will be a matter of time. ...read more.

Middle

Employees' capacity to constantly learn is linked to a company's success. Employees are motivated and engaged when a company operates with values and a noble purpose. 3.1.3 Decline in Employment The 20th century was the first time people started working for other people. The 21st century will witness a reversal of that trend. It's estimated that 80% of all job functions will be obsolete in 5 years. Telecommuting employees will grow from 30 million today to 100 million in ten years. The challenge for employers is to build a "virtual" culture and effectively manage these remote employees. 3.1.4 Employee loyalty will begin to erode The workforce will become more contingent, with the ability and desire to switch employers and vendor relationships very quickly. Tenure is decreasing among employees. Disloyalty will be the norm; loyalty will be special. Most employees approach their careers as "Me, Inc." Employers must learn how to create relationships and build mutual commitment with contingency staff. The only sustainable advantage in the 21st century will be relationships among company, employees, and customers. It's been proven that organizations that value human capital have higher margins than those who do not. Companies must identify their values and purpose and communicate it constantly with employees. 3.1.5 Businesses will become a network of partnerships. ...read more.

Conclusion

The key ingredients for successful leadership will be the ability to use different management styles, know when to control and trust, and choose appropriate action for each situation. Leaders will be judged not by how many followers they have, but by how many leaders they create. For virtually every market leader today, the answer always comes back to a people culture based on trusting relationships. Talent, knowledge, and creativity-"human capital"-is the critical factor in creating a competitive difference. Leading companies will put a premium on managers who can develop qualities of honesty, trust, and values-a shift from managerial requirements of the past. 4. Conclusion The possibilities are exciting and scary. Organizations have heard the mandate: innovate, change, grow or die. Organizations that are up to the challenge will survive and thrive. Those that can't or won't are in for difficult times. In order for a business to succeed in the 21st century, the business must be willing to follow these simple businesses strategies: � Inspiring innovation and speed � Sharing knowledge and information � Providing better, continuous learning and education � Managing a remote and diverse workforce � Exploring flexible staffing models � Developing a strong brand and identity � Building loyalty among employees and customers � Building a flexible, nimble organization For the foreseeable future the key for overcoming new challenges is to stay ahead of the game. In other words, in the 21st century, the meek shall not inherit the earth. Welcome to your future. 5. ...read more.

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