Business Today
Business in the world today is ever changing. Not only has it transformed at an indescribable pace from the turn of the last century, but it has become more global and interconnected. No longer can one walk through a small town and only have the choice of stopping at a couple mom and pop shops or the only supermarket around. Business is everywhere. From Super Targets and Best Buys to stay at home mothers working off their computers. The business climate is fast paced and intense.
Trends are common in all aspects of life, and for that reason, businesses are affected by multiple angles in society. For example, some of the social trends today come from families and their lifestyles, society, age, demographics and population. Families in the U.S. are diverse but continue to want their children to succeed. Many families however, do not have the same strong emphasis on good education that has been present in the past. This can and is causing problems when it comes to having a well prepared and competent workforce. Women are also more present in the workforce and in the consumers market than ever before. With the baby-boomers starting to retire, there is going to be a smaller skilled (or seasoned) workforce, and a greater demand for certain industries such as travel, recration and services. With the computer age, many fields are dominated by young technologically minded employees mixed with more seasoned management professionals. Not to mention the diversity of ethnicity, religion and background. All these social factors and trends (among others), help to shape the current business climate and add new challenges and opportunities in the business world.
Other trends that are having a major effect on the current business climate today are rooted in the economy. Whether it be global or nationalized, the economy directly affects how, where, and when businesses do business. For the last couple years the world (including the U.S.) has been facing tough economic times. Recession and out of control personal and national debt has bogged down most businesses and created a climate much different than a few years ago. Unemployment has been at record highs due to companies trying to stay profitable, and also being apprehensive about the future. This has caused major chllenges for families which without jobs, won't have the means to keep buying which is what fuels the economy.
With the introduction of the internet, and with rapidly developed technology, businesses are always in a crucial position. Some businesses, especially smaller or older ones see all this new technology as more of a challenge due to lack of knowledge or resources to take advantage of what web based and other technologies have to offer. However, technology has totally opened up the world to be able to participate in the business world. People don't have to leave their houses to go shopping or even to apply for a job if they don't want to. Consumers can now compare prices and services on the internet and choose which one will suit them best. Companies can easily cross boarders and establish themselves either online or physically in different locations. This has opened wide opportunities for many nations and their citizens. With information and resources at our fingertips, many more people can and already have taken advantage of starting their own companies. Things like social networking have not only connected people, but have helped businesses find clients, partners, and other resources. Even with the economic downturn some companies have been able to avoid major disaster due to technological advances, especially in the internet.
Another affect caused in part by technology has been the onslaught of new competitors from all over the world who have jumped on the scene. These competetive forces have drastically changed the business climate forever. Have you ever called a help hotline and been connected to a person from another country? Or noticed how many countries have participated in building parts for a singe computer or vehicle? Although competition can make things fierce and more difficult for companies, it causes the companies that survive to focus on quality and pricing if they want to stay on top. This not only is good news for the consumer, but also helps push the barriers of science and technology to keep advancing.
Unfortunately, there are still hinderances in business. Although some government presence is desired for protection against unethical behavior and scandal, it also many times places regulations and restrictions on what a business can or cannot do that disrupt things from running smoothly. Whether it be work visa restrictions or trade regulations, many companies cannot perform or progress as efficiently as possible with a government always trying to control their activity. Bills passed such as the new Healthcare Bill have caused many employers to panic due to the burden placed on them to spend even more on healthcare. This has caused businesses and organizations to cut back on coverage or even scrap it all together. Many businesses also will hold off on hiring when they are pegged with more taxes and/or restrictions because they can't afford to spend more money if they want to stay profitable. The key is finding a healthy balance between the legal and regulatory forces and what is actually needed to keep things profitable.
Trends are common in all aspects of life, and for that reason, businesses are affected by multiple angles in society. For example, some of the social trends today come from families and their lifestyles, society, age, demographics and population. Families in the U.S. are diverse but continue to want their children to succeed. Many families however, do not have the same strong emphasis on good education that has been present in the past. This can and is causing problems when it comes to having a well prepared and competent workforce. Women are also more present in the workforce and in the consumers market than ever before. With the baby-boomers starting to retire, there is going to be a smaller skilled (or seasoned) workforce, and a greater demand for certain industries such as travel, recration and services. With the computer age, many fields are dominated by young technologically minded employees mixed with more seasoned management professionals. Not to mention the diversity of ethnicity, religion and background. All these social factors and trends (among others), help to shape the current business climate and add new challenges and opportunities in the business world.
Other trends that are having a major effect on the current business climate today are rooted in the economy. Whether it be global or nationalized, the economy directly affects how, where, and when businesses do business. For the last couple years the world (including the U.S.) has been facing tough economic times. Recession and out of control personal and national debt has bogged down most businesses and created a climate much different than a few years ago. Unemployment has been at record highs due to companies trying to stay profitable, and also being apprehensive about the future. This has caused major chllenges for families which without jobs, won't have the means to keep buying which is what fuels the economy.
With the introduction of the internet, and with rapidly developed technology, businesses are always in a crucial position. Some businesses, especially smaller or older ones see all this new technology as more of a challenge due to lack of knowledge or resources to take advantage of what web based and other technologies have to offer. However, technology has totally opened up the world to be able to participate in the business world. People don't have to leave their houses to go shopping or even to apply for a job if they don't want to. Consumers can now compare prices and services on the internet and choose which one will suit them best. Companies can easily cross boarders and establish themselves either online or physically in different locations. This has opened wide opportunities for many nations and their citizens. With information and resources at our fingertips, many more people can and already have taken advantage of starting their own companies. Things like social networking have not only connected people, but have helped businesses find clients, partners, and other resources. Even with the economic downturn some companies have been able to avoid major disaster due to technological advances, especially in the internet.
Another affect caused in part by technology has been the onslaught of new competitors from all over the world who have jumped on the scene. These competetive forces have drastically changed the business climate forever. Have you ever called a help hotline and been connected to a person from another country? Or noticed how many countries have participated in building parts for a singe computer or vehicle? Although competition can make things fierce and more difficult for companies, it causes the companies that survive to focus on quality and pricing if they want to stay on top. This not only is good news for the consumer, but also helps push the barriers of science and technology to keep advancing.
Unfortunately, there are still hinderances in business. Although some government presence is desired for protection against unethical behavior and scandal, it also many times places regulations and restrictions on what a business can or cannot do that disrupt things from running smoothly. Whether it be work visa restrictions or trade regulations, many companies cannot perform or progress as efficiently as possible with a government always trying to control their activity. Bills passed such as the new Healthcare Bill have caused many employers to panic due to the burden placed on them to spend even more on healthcare. This has caused businesses and organizations to cut back on coverage or even scrap it all together. Many businesses also will hold off on hiring when they are pegged with more taxes and/or restrictions because they can't afford to spend more money if they want to stay profitable. The key is finding a healthy balance between the legal and regulatory forces and what is actually needed to keep things profitable.
The Job Market
The job market today is a tricky one. It is easy for someone to look for a job in an era of internet searches and sites built for the soul purpose of finding jobs anywhere in the world. People can save time and money by posting resumes online for multiple employers to look over at once. Those seeking a career can also do research on any field imaginable, and if they don't find what they are looking for, they can start their own business! It is easier for those who are not or don't want to be employed to start their own venture with minimal capital depending on the field it is in. How long a new start-up business will last however is a different story. In todays market and economy, there are millions of people unemployed which means that there is competition for virtually every open position out there. However, there are a few industies that are always hiring, and many companies that need highly trained or skilled individuals to fill a specific position. This is where education and relative experience come in handy. The job market today is not full of shoe in positions. Education, experience and networking are crucial to finding good employment that will last. For the ambitious, the job climate can be great, so do everything you can to prepare yourself!
Key Business Terms
Markets - are physical or conceptual places where the influences of supply and demand are present. A market is where there are people making some form of transaction using money, goods or services, whether it be in person, online or by some other means.
Globalization - Integration of communication, trade, economy, finance and ways of life between different countries and regions
Emerging Markets - New market structures that are made possible through new technology, change in regulations, globalization or open standards that provide a new opportunity in business.
Trade Policy - Rules, regulations or agreements that control the trading process of goods and services. Normally set in place by a countries government.
Comparative advantage - An economic term stating that a country should produce and export those goods or services that they can easily and efficiently produce. Allowing them to utilize the resources they already have.
Strategy - A plan or tactic used to accomplish a goal or overcome a problem.
Value Creation - Creating a value or worth for a product or shares in a company. Sometimes measured by the revenue or profit of a company. Also the image or presence of things like innovation, ideas or people.
Economics - Study or use of theories, models, and principles that deal with the market system. How wealth is created and distributed, along with allocation of recources among the population.
Monetary Policy - A strategy used by government to either expand or contract the countries money supply. Done by either: "(1) buying or selling national debt, (2) changing credit restrictions, and (3) changing the interest rates by changing reserve requirements." (businessdictionary.com)
Fiscal Policy - A policy used by government to help control the growth of a nations economy. Normally carried out in the form of taxation, depending on if the desired result is to slow or speed up economic growth.
Inflation - When general price levels increase rapidly for a long or continued amount of time.
Dow Jones Industrial Average - Average weighted price of 30 prominent U.S. industrial businesses that are traded on the New York Stock Exchange.
Weak dollar vs. Strong Dollar - Relative value or strength of the U.S. dollar verses other currencies. A strong dollar is simply when the dollar is worth more if traded against another currency. A weak dollar is when another currency is closer to being equal with, or even worth more than the U.S. dollar.
Globalization - Integration of communication, trade, economy, finance and ways of life between different countries and regions
Emerging Markets - New market structures that are made possible through new technology, change in regulations, globalization or open standards that provide a new opportunity in business.
Trade Policy - Rules, regulations or agreements that control the trading process of goods and services. Normally set in place by a countries government.
Comparative advantage - An economic term stating that a country should produce and export those goods or services that they can easily and efficiently produce. Allowing them to utilize the resources they already have.
Strategy - A plan or tactic used to accomplish a goal or overcome a problem.
Value Creation - Creating a value or worth for a product or shares in a company. Sometimes measured by the revenue or profit of a company. Also the image or presence of things like innovation, ideas or people.
Economics - Study or use of theories, models, and principles that deal with the market system. How wealth is created and distributed, along with allocation of recources among the population.
Monetary Policy - A strategy used by government to either expand or contract the countries money supply. Done by either: "(1) buying or selling national debt, (2) changing credit restrictions, and (3) changing the interest rates by changing reserve requirements." (businessdictionary.com)
Fiscal Policy - A policy used by government to help control the growth of a nations economy. Normally carried out in the form of taxation, depending on if the desired result is to slow or speed up economic growth.
Inflation - When general price levels increase rapidly for a long or continued amount of time.
Dow Jones Industrial Average - Average weighted price of 30 prominent U.S. industrial businesses that are traded on the New York Stock Exchange.
Weak dollar vs. Strong Dollar - Relative value or strength of the U.S. dollar verses other currencies. A strong dollar is simply when the dollar is worth more if traded against another currency. A weak dollar is when another currency is closer to being equal with, or even worth more than the U.S. dollar.
References:
http://www.powerhomebiz.com/vol15/socialtrends.htm
http://www.entrepreneurindicator.com/
http://www.entrepreneurindicator.com/wp-content/uploads/2010/12/Indicator-Global-High-Level-Summary-EP-FINAL_Oct2010.pdf
http://www.referenceforbusiness.com/management/Tr-Z/Value-Creation.html
http://www.investopedia.com/ask/answers/06/strongweakdollar.asp
www.businessdictionary.com
http://www.powerhomebiz.com/vol15/socialtrends.htm
http://www.entrepreneurindicator.com/
http://www.entrepreneurindicator.com/wp-content/uploads/2010/12/Indicator-Global-High-Level-Summary-EP-FINAL_Oct2010.pdf
http://www.referenceforbusiness.com/management/Tr-Z/Value-Creation.html
http://www.investopedia.com/ask/answers/06/strongweakdollar.asp
www.businessdictionary.com