Contemporary Business Environment

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The nature of today’s business environment is a result of great transition over the course of time, shaping organisations and their management. According to Duin & Baer (2010), “Today’s leaders must change the structure, culture, and the strategy, to meet the dynamic environments they are in”. Because of unpredictabilities and perpetual changes brought upon by factors such as competitive pressure and an exponential advancement of technology over the past few decades, businesses have been required to embrace a more contemporary approach towards the management of an organisation. A contemporary organisation differs from a traditional organisation as it contains no proper hierarchy whereas a traditional organisation contains a hierarchical structure.…show more content…
One of the changes that has an impact on the manager’s work in a contemporary organisation is the increasing dominance of customers. Customers play an extremely essential role as the backbone of any corporation. Therefore, customer satisfaction is vital to the development of a business and hence, remains as a top priority of managers in contemporary organisations. In the past, there were less choices of output in the market and customers were less vocal, therefore the power of a market belonged to the organisation. A rapid increase of start-up businesses in the modern day has resulted in a rise of market competitiveness. Furthermore, because these customers determine a corporation’s success or failure, the relationship between a customer and an organisation is extremely vital. Katz’s Theory on managerial skills stresses that human skills are necessary for most leadership roles (Katz, 1974). This skill is much needed by managers in this day and age in an effort to combat the changes and challenges caused by customers. This…show more content…
The rise of social media has largely altered the way society connects with one another and has proven to affect a manager’s work as organisations must now discover new ways to tend to the demands of customers through social media. In the business sector, social media provides as a platform for customers to easily connect with organisations and it also has the ability to breach the distance between customer and organisation. Svatošová (2012) has stated that “Without the existence of this virtual world, today’s society would compete to establish its stability. The nature of the business environment is changing rapidly as society enters into the information age which creates hyper-competitive markets (Svatošová, 2012). One form of social media that has tremendously impacted organisations all over the world is Facebook. It is extremely common for many organisations to use Facebook as a platform to market their product. By incorporating social media into their existing work structure, managers are able to efficiently connect with customers from all around the globe. Customers are able to conveniently search up companies and organisations on Facebook and receive a more in depth understanding towards the company. Because of this, managers must constantly keep up with the latest social media trends in order to keep the interest of customers

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