Impact of Changes in the Business Environment, Research Paper Example

Abstract

The metamorphosis of most functions in an organization presents a major facet to organization in the competitive market place. Organizations those are able to tap into the advantages emanating from these advancements derive benefits from the improved efficiency. Thus, it is necessary for organization to find ways of assimilating the advantages in order to remain competitive and profitable.

Introduction

Each organization is subject to the environmental forces, the strongest and most influential of which is competition. The actions of competitors have significant consequences on success of the organizations strategic plans towards customer satisfaction owing to the fact that competitors target the same customers as the organization. Thus, the strategies of competitors are formulated on the basis as those of the organization. As a result, it is imperative for the organization to appreciate the strategies that the competitors have in order to find ways of countering the strategies or designing their strategies to attract the targeted market.

In order to remain competitive in the contemporary market, firms have to employ advertising tactics aimed at increasing awareness among the consumers. In regards to their products, there are numerous approaches of reaching the consumers, each of which has advantages and disadvantages. However, the part they play in solving crisis in the organization is undeniable in spite of the individual shortcomings.

Over the years, it has become easier to decipher competitor strategy owing to the amplified media through which information is disseminated to the public. Companies are able to target more customers through print, audio and audiovisual media thereby increasing their reach to consumers. However, this information is also free for perusal by competitors who are able to piece together the plans of the organization thus exposing the company to stiffer competition.

Product characteristics play a crucial role in attracting prospective customers. Most consumers are attracted to products because of the attractive design that could be functional or aesthetic. As a result, most organizations invest heavily on product design based on research into the needs of the market. The product is expected to take the market by storm and accrue huge returns to the company (MacRury, 2009). However, most competitors base their products on the characteristics of the existing products. The competitors may design products with similar characteristics or improve on the existing design to address the dynamic consumer needs.

Sutherland & Sylvester (2000) postulated that consumers are also able to access the information relating to the available products in the market. Armed with such information, satisfaction of needs has become an easier affair. As observed form most corners of the world, the information boom enables consumers to choose the most appropriate product according to the quality and price levels.

Such a move is common in the contemporary world where media plays a major role in advertising. Most of the products in the market have matching characteristics based on the earliest product to be launched, for example, computer operating system are based on the earlier inventions by Microsoft.

Investment in Capital Goods, New Products, Research and Development, Advertising

Financial records of each organization are normally printed in the media with profitability levels featuring as highlights in both print and audio media. This move is aimed at informing the investors of the characteristics of the organization. Similarly, it acts an advertisement stunt in order to woo potential investors and creditors who are willing to provide the much-needed funds for expansion programs.

The statutory annual financial records are published and distributed through media in order to abide by disclosure standards. Even though these financial records do not outline the detailed information that can be used by competitors, the information contained therein is sufficient to enlighten competitors on major changes to the organization’s for strategy the following year.

As outlined by Cappo (2003), information relating to expense levels in research and development, interest expense and capital investments relates to core operations of the company. As a result, competitors may decide to change their emphasis on certain characteristics owing to the realization that the company has invested heavily on functions that are geared towards market domination.

Customers are also able to evaluate the characteristics of products by comparing the characteristics. In the past, consumers were not at the disposal of such information and thus they relied on word of mouth or had to try out the products to discern the product that best addressed their needs. In spite of the numerous conflicting message displayed on media it is possible for consumer to digest the information and choose from the numerous substitutes (Richards et al, 2000). Owing to the introduction of television, text, audio and visual message are posted to the customer for decision-making. As a result, consumers are presented with models of the product thereby increasing the returns to investment for those companies who lay down resources to come up with satisfactory products.

The existence of contraband was a major factor affecting brand development owing to the existence of substandard versions of the product categories. The producers of these goods the existing brand names and product design to gain entry into the market according to Sutherland & Sylvester (2000). Owing to the cheap costs of producing the substandard goods, they were able to appeal to the unsuspecting consumers who were elated to acquire the goods at a cheap price. However, as is the case, it was too late when they realized that they paid a high price owing to the poor quality.

The inability to differentiate the authentic design from the fake products led to total boycott of our brands. However, print media and television has enabled us to diplay the implicit characteristics of our products as well as the tentative prices to the customer base (Tellis, 2004). Such enlightening information has improved customer satisfaction from our products, since they are able to realize maximum benefit.

Companies are able to present their products to the consumers in more detail than before. The unavailability of sound or visual component in advertising limited the ability of an advertiser to communicate the actual characteristics owing to technical limitations of the media as asserted by Richards et al (2000). Investors are now able to access information relating to their investment in a more appropriate way. As a result, most investors achieve growth of their investments since they are able to place heir money where there are favorable returns.

Regulatory institutions have also had to step in the information boom. The increased avenues for disseminating information are prone to misuse as companies target unsuspecting individuals. As a result, it is illegal to post information that is misleading in any way. As posited by MacRury (2009), misrepresentation includes offering information to win the favor of the targeted group with the knowledge that the information contained therein is false. Such information related to financial records, advertising and any other press releases.

The regulatory entities are formed to protect both consumers and the companies from exploitation from unscrupulous individuals. As a result, they have set compliance standards that map out the characteristics and components of message passed on to the public. Since the have reach on all corners of the territory, organization have no choice but to abide by such regulations.

Organizations Are Also Able to Access Information Relating to Demand and Supply Characteristics of Most Geographical Locations

Such information is vital when mapping out supply routes and channels as well as deciding on the production levels. By varying the production levels owing to the demand and supply characteristics, companies are able to reduce costs of storage and wastage of products since the market is ready and waiting (Cappo, 2003). This characteristic of information has fostered globalization owing to the availability of information. Consequently, consumers are able to source for goods on a global scale while producers can supply to the global market with precision.

In the past, it was a tiresome and complicated affair to appreciate and understand cultures of people from different corners of the globe. Since culture and social characteristics influence the needs and wants of most people, it was impossible to estimate the needs of people from different location and thus product design was based on hearsay. Most of the instances, the products were lacking in some aspects and were never fully satisfactory to the consumer. Previously, it is possible to access such information from the diverse and numerous literatures from both print and audio media destined for the public. The culture awareness has enabled our business to prosper owing to the ability to satisfy the needs of the consumers with every new product on launch.

Conclusion

Organizations stand to benefit from changes in changes in the environment. The only difference will be in the magnitude of the benefit. Organizations that are vigilant of any changes are able to achieve numerous benefits since they draw benefits before competition slides in share the benefits. As a result, it pays an organization to be aware of its environment and put measures in place to monitor the changes.

References

Cappo, J. (2003). The Future of Advertising: New Media, New Clients, New Consumers in the Post-Television Age. New York: McGraw-Hill Professional

MacRury, I. (2009). Advertising Routledge Introductions to Media and Communications. New York: Routledge

Richards, B., Botterill, J. & MacRury, I. (2000). The Dynamics of Advertising. New York: Routledge

Sutherland, M. & Sylvester, A. K. (2000). Advertising and the Mind of the Consumer: What Works, What Does not, and Why. NSW: Allen & Unwin

Tellis, G. J. (2004). Effective Advertising: Understanding When, How, And Why Advertising Works. London: SAGE