Business Now: Change Is the Only Constant Essay

Review Questions What factors contribute to the rapid pace of change in business? Is the pace likely to accelerate or decrease over the next decade? Why? Financial Institutions got a bailout By President Obama in 2009, Mortgage values dropped, financial institutions begin to Feel the pressure especially firms such as Bear Stearns that specialized in trading Mortgage backed securities. There was $61.7bn in losses with AIG, strong economy Out of more jobs can accelerate the next decade, there be a budget deficit. AIG got A $180bn bailout; while Bank of America got $45bn as well as JP Morgan Chase $25bn, Goldman Sachs got $10bn. The Rapid pace of change in business is the Internet, Cellphones and exposure on television. What role does entrepreneurship play in the economy? Who stands to gain from the success of individual entrepreneurs? How do other parties benefit?People risk their Time, money and other resources to start and manage a business. But, They also Give hope to a better workforce. A lot of people; who are unemployed such as myself Right now will find jobs that are more flexible and challenging, working for big and Small business owners. When did American business begin to concentrate on customer needs? Why? Value of Certain Products begin to go up. High Gas Prices from $1.25 to $4.25, The Cost of a loaf Of Bread is $2.79, the cost of dishwashing liquid about a $1.00, Purchase of products, By Consumers. How do nonprofit organizations compare to businesses? What role do nonprofits play in The economy? How do they interact with businesses? Nonprofits help you learn and Grow. Other businesses turn profit on sales and smart-buying. Nonprofits being Organizations such those with Computers would be nonprofit. Consumer goods help the Community. What are the factors of production? How can economies grow when one or more of the factors is weak? Strong Communication, partnerships, Business Plan and Ethics. Some Businesses fall, because of greed or a scandal, based upon greed or otherwise, more so, Lack of Strong Communication, partnerships, no business plan, no Ethics. What are the 5 dimensions of the business environment? Discuss the key elements in each area as they relate to U.S.-based businesses. Dimension of Business Environment | Key Elements | The Economic | Jobs,Income, Inflation, Interest rates, Productivity, and Wealth that influence the buying behavior, of Consumers and institutions. | The Competitive The Workforce Advantage | A part of the Company’s External Environment Yield’s Tangible, bottom line results. Consisting of other firms Trying win customers in the same market. It is the Segment of the Industry that includes all immediate Rivals. | The Technological Environment | Includes any tools that business can use to become More efficient. Change in Technology can affect The Company. Any tools, be Computers, Telecommunications, and other digital products. Motivated Apple Employees help create satisfied Apple Customers. | The Global Environment | The U.S. Economy operates within the Context of the Global Environment, interacting continually with other Economies. | The Global Environment/ Ethics and Social Responsibility | In fact, over the last two decades, technology and free Trade have blurred the lines between individual Economies around the world. Technology has forged Unprecedented links among countries, making it cost Effective-even efficient to establish computer help Centers in Bombay to service customers in Boston, or To hire Programmers in Buenos Aires to make websites For Companies in Stockholm. Plus, Global Trade has Forged unprecedented links among nations such as Los Angeles, New York, London, Moscow and Tokyo. | What are some key strategies for developing a competitive edge in today’s competitive global market? How important is customer satisfaction? Plans for Globalization and Global Reach, Region-Specific Marketing to name a few strategies. How has the rise of the World Wide Web changed business practices? What are the benefits and drawbacks for business? For consumers? How has the definition of diversity changed over time? Can a diverse workforce help a company compete more effectively? How? How has the global free trade movement impacted business? Who benefits? Why? Who loses? Why? Application Questions Take a moment to jot down 5 things that you love to do. Think broadly (but keep it clean). Your list could include anything from posting pictures on Facebook to listening to your favorite music. Then brainstorm a list of business careers that could encompass two or more of your passions. A position in nightclub marketing, for instance, could include surfing on Facebook and listening to great music. What skills would you need to succeed in each position? Which skills do you have and which would you need to develop? Most successful businesses today actively develop loyal customers who buy their brands again and again. After all, getting current customers to buy more is much easier than constantly seeking new customers. Think of three brands that you buy on a regular basis. Why do you stick to these products? How could another company dislodge you? Entrepreneurship has clearly transformed the world economy. Choose 3 successful entrepreneurs, and use research to compare and contrast their management styles and philosophies. While you can certainly use local entrepreneurs—or even family members—some higher profile (and rather colorful) entrepreneurs include: Jeff Bezos, founder of Amazon; Debbi Fields, founder of Mrs. Fields Cookies; Richard Branson, founder of the Virgin Group; Anita Roddick, founder of The Body Shop; and Vishal Gondal, founder of Indiagames. If you were an entrepreneur, what approach do you think would be most effective for you? Why? Brainstorm a list of industries that the Internet has transformed. What are the reasons behind the changes? How do you anticipate that technology will transform business in the future? Use research to develop a list of companies where you believe you would like to work. What qualities do these companies have in common? Does a great work environment lead to success, or does success create a great place to work? When employees enjoy the work environment is a company more likely to succeed? Why or why not? Team Project Companies that constantly innovate are clearly more likely to succeed in today’s hyper-competitive, global environment. Breakthrough ideas tend to come from business owners and employees who regularly exercise their creativity. This team project is meant to help you work with your classmates to flex your creative muscles. Break into groups of 3 to 5 people. Choose a product or service that you all buy on a regular basis. (Possibilities could include anything from a movie studio to a local pizza place.) Write a brief description of how the product is positioned in the marketplace relative to its competition. Then work together to figure out why you are loyal customers and how the competition could dislodge you over the next five years. Write a one page plan to solidify your position in the market place Consider changing everything from the product features to the advertising venues. Share your plan with the class and gather feedback about how well it might work. Case Connections Do the good guys really finish first? Unfortunately, at one time or another, pretty much everyone has experienced the energy-sucking downer of working for a mean boss, or playing on a team with a cranky coach, or even just hanging out with a friend or family member in a rotten mood. Research in the Harvard Business Review points out that moods are highly contagious and that moods that start at the top are the most â€Å"catching† of all because everyone watches the boss and tends to take their emotional cues from him or her. In fact, research shows that work teams across diverse industries end up sharing moods – both good and bad – within two hours. Interestingly, genuine cheerfulness and warmth spread most quickly, irritability more slowly, and depression most slowly. While few can argue that working for an upbeat, inspirational, optimistic boss is more fun, positive experience, there is less agreement about whether the boss’s mood impacts the organization’s bottom line. The key arguments: The boss’s mood matters: The Harvard Business Review reports that â€Å"A cranky and ruthless boss creates a toxic organization filled with negative underachievers who ignores opportunities; an inspirational, inclusive leader spawns acolytes for whom any challenge is surmountable. The final link in the chain is performance: profit or loss. Earlier research conducted at Cornell found that an upbeat environment fosters mental efficiency, making people better at taking in and understanding information, at using decision rules in complex judgments and at being flexible in their thinking. Sometimes it takes a kick in the pants†¦ Some people argue that a more â€Å"rough and tumble† leader scares people out of complacency and into a high performance zone that they might not otherwise reach. Oft-cited examples: Bill Gates, one of the richest, most successful people in the world, was widely known for his harsh (practically abusive) management style at Microsoft, but no one can deny the extraordinary dominance of Microsoft products over the course of decades. Steve Jobs, the creative genius behind Apple, is reputed to have been a nightmarish boss. According to Stanford management professor Robert Sutton, â€Å"The degree to which people in Silicon Valley are afraid of Jobs is unbelievable. He made people feel terrible; he made people cry.† You decide: After reading both set of arguments, which do you find most compelling? Why? Knowing that at the very least, an upbeat, inspirational, optimistic boss is more pleasant, what concrete steps can a grumpy manager take to change his or her temperament? Solicit feedback on your temperament from your friends, family, classmates, peers, and co-workers, analyze the feedback and develop an action plan to make any changes that you believe might be helpful to you in your career. Sources: Primal Leadership: The Hidden Driver of Great Performance by Daniel Goleman, Rihard Boyatizis and Annie McKee, Breakthrough Leadership, Harvard Business Review, pages 42 – 51. December 2001; The Trouble with Steve Jobs, by Romain Moisesoct, allaboutstevejobs.com, accessed August 17, 2010.