Managerial Problems in the Context of the External and Internal Environment of Business - Research Paper Example

Business Management Research Contents Business Management 4 Literature Review 4 Managerial Problem(s) 5 Research Objectives 5 Research Design 6 Data Needed to Conduct the Research 6 Anticipated Outcomes 7 Schedule 7 Critical Literature Review 8 Introduction 8 Main Body 8 Theory of Buyer’s Behaviour 9 Activists Theory 9 Systems Theory 10 Conclusion 10 References 12 Business Management Literature Review The review of literature indicates that the business organisations over the years have undergone transition in terms of workplace culture where the entrepreneurs and the leaders have been encouraged to integrate the workforce and drive the common goals of the business. The business output and the attainment of profits were always considered to be primary objective for the business. However, with the rise of industry competition and the advent of global markets, the complicacies of legislation in different regulatory environments in various countries, diversity in the workforce, and fluctuation of the economic and environmental conditions have led to an increasing concern of management with internal and external factors related to the business (Jenster,  Hayes and Smith, 2005, p.48). The managers realised that the sustainability in the output of the business could be obtained with the help of long term planning rather than embarking on the short term profits. This increased the managerial problems as the managers were required to maintain a balance between the short term goals of profit maximisation and long term goals of attaining business sustainability in the competitive market environment. The managerial problems included the aspect of setting up an organisational framework that encourages ethical code of conduct and the system of rewarding employees who worked for achieving the business goals (Massucato and the Open University, 2002, p.37). A review of the literatures suggests that the managers who have established the culture of team work, collaboration, openness in communication and resolved conflicts effectively have been able to manage the business effectively. The ethical and compliant business functions have also been able to avoid the legal penalties for non-conformance to government regulations. The successful managers have been able to develop strategic approaches to nullify the effects of economic fluctuation that has provided the business with financial stability. Although managers have faced difficulties in justifying the expenditures for corporate social responsibilities in the short term, the long term success has been influenced by these activities as it developed brand loyalty among the customers who have viewed this business initiative in a positive manner (Navarro, 2006, p.84). Managerial Problem(s) The managerial problems in the field of business management arise because of the lack of focus of the organisation in the management of the business process rather than focussing on the outputs of the business. The managers responsible for decision making and running business functions are often faced with the dilemma of long term planning against the urge to achieve the short term goals of the organisation. The decisions of the managers in setting ethical standards for code of conduct of the employees are important in consideration to the external and internal environment of the business. The managers also face difficulties in justifying the cost of social responsibilities of the business that does not provide short term benefits (Chakravarty and Eliashberg, 2005, p.73). The areas of difficulty for the managers in the context of the internal environment include the areas of conflict management between the internal stakeholders and employees, delegation of duties and responsibilities and openness in communication for meeting the common goals of the business. Research Objectives The objectives of this research are to determine the various managerial problems in the context of the external and internal environment of business. The research paper also aims to explore the various ways in which the managerial problems in the course of business management could be resolved in order to be effective for the establishment and the growth of business. The various measures of the success and the sustainability of the business lay in the competitive growth and financial consolidation of the business in the markets. The role of managerial effectiveness in the business growth is an essential topic that has been reviewed with the help of this research. Research Design The secondary research approach has been designed in order to meet the objectives of the research which is to identify the problems faced by the managers in balancing between the short term and long term goals of the business. In order to fulfil the research objectives, the literature review and the research question are followed by the collection of the data on the performance of managers in various multinational companies. The degree to which the managerial problems have been resolved with the effective code of governance in the organisation is reflected in the long term financial performance of the company. The analysis of the financial performance of the companies taking into account the workplace culture of the organisation would be able to provide the evidence on the extent to which resolution of managerial difficulties could help in effective business management. Data Needed to Conduct the Research The data required to conduct the research could be collected from the annual reports and the financial statements of high performing multinational companies. The corresponding study of the work place culture of these business houses would help to validate the literature on the role of managerial effectiveness in business management and sustainable performance of the company. Anticipated Outcomes The anticipated outcomes for the research are expected to show positive correlation between the managerial effectiveness and the business management performance. The extent to which the managerial difficulties have been resolved in the business would be the key for the business to establish an ethical and transparent code of conduct in the organisation. The long term planning of the business would help them to establish strong relationship with the suppliers, customers, creditors, etc. The compliance of the business functions would also lead to adherence to government regulation and thereby avoid penalties (Coade, 1997, p.69). The sustainable business houses in the industry are expected to show a balance in the manager’s initiatives for cost reduction and fostering healthy organisational culture. Schedule The schedule of the research work has been given below with the help of a Gantt chart. Sl. No. Research Activity Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 1 Framing of research question and objectives               2 Literature Review               3 Data Collection               4 Analysis and Findings               5 Recommendation and Conclusion               The review of literature, analysis and findings activity are expected to take the maximum time in the research process as shown above in the Gantt chart. Critical Literature Review Introduction The focus of the paper is to review the aspect of consumer behaviour and importance to the business in achieving sustainability in the long term. In order to undertake a review of literature on the topic of management research on consumer behaviour, a theoretical structure has been followed in the paper which includes the views of the various schools of thought on consumer behaviour. The issues that have been addressed in the paper include the factors like the needs and demands of the customers, the protection of rights of the buyers, etc. The areas that need to be considered by the business in their product and service offering in order to satisfy the needs of the customers have been explored in this work. Main Body The consumer behaviour is an important aspect in the business of an organisation that has been the area of discussion since 1950. The behaviour of the consumers determines the changing trends in the market and the demand of the customers. Considering the competition among the market players, the consumers are said to have a higher bargaining power for selecting the products and services offered to the market. For this reason, business houses for several years have been paying significant focus to the aspect of consumer behaviour is order to adapt to the market demands in the delivery of products and services (Joseph and Hutchinson, 1987, p.412). The aspect of consumer behaviour could be better explained with the help of three theories, namely the Behavioural theory, Activist Theory and the Systems Theory. Theory of Buyer’s Behaviour According to this theory, the behaviour of the buyers towards engaging in economic transactions are influenced by factors like need of the buyer, ability of the product and service offered by the business to satisfy the need, the identification of the need satisfying features in the product offered by the business, the expertise of the consumer to used the product to satisfy the needs (Morris and Hirschman, 1982, p.139). The research on the aspect of consumer behaviour under this school of thought indicates that the decision of purchase of the products and services by consumers depends on the knowledge of the customer in using the product, self analysis and explanation of the relative advantages of the use of the product in relation to the competitor products, recall of brands and product experience related to the purchase, etc (Biehal and Chakravorty, 1986, p.385). These issues have been addressed under the buyers’ behavioural school of thought that has been found to play a determining role in the decision making of purchase of the products and services. The businesses have offered products and service in the market that addressed these issues which helped them to increase market share and gain competitive advantage. Activists Theory According to this theory, the consumers are awarded a high degree of power with respect to the seller when there is an economic transaction between the two parties. This school of thought endorses the set of activities undertaken by the government, independent as well as non-profit organisations in order to protect the rights and interests of the consumers. These activities have supported the cause of consumerism which has been very effective in the markets like US, UK, etc. The theory refers to four set of movements starting from 1930 to the era of liberalisation. The issues of consumerism that have been addressed by the movements include the hike in the prices of consumer goods and drug scandals. In order to protect the interest of the consumers, the Pure Food and Drug Act was strengthened. The issues also include the safety of product and information to be provided to the customer for the economic transaction undertaken between the buyer and the seller. The increase in the power of the consumers has led the business managements to take initiatives of communicating necessary information on the product and service delivered (Gardner, 1985, p.21). The business houses have also developed a response system in order to resolves the complaints and grievances of the customers. Systems Theory According to this theory, the business management could be viewed as an integrated system of structure consisting of people, machines and equipments that offers the products and services in the market through the activities of value chain. The review of literature reveals that the organisations have allocated the right tasks to the right people in the business processes in order to meet the demands of the consumers. The Systems theory have been taken into consideration by the business houses to distinguish the roles and functions for producing quality products and service that meets the standards of quality, safety, cost effectiveness and more importantly provides value for money to the customers (Marks and Olson, 1981, p.146). The business includes a variety of functions including operations, quality, packaging, distribution, sales and service. All these business functions are bound by the common objective of meeting the common goal of the business in offering products and services that meet the demands of the consumers. Conclusion The paper focused on the aspect of consumer behaviour as an important consideration for the business over the years in the changing market scenario and ability to establish a sustainable business in the long term. As explained under various schools of thought, the behaviour of the consumers is influenced by their needs in the changing context of social lifestyle and social environment. The business houses take this into consideration to offer products and services that are able to satisfy the demands of the customers. The governments and the independent organisation have, however, undertaken measures to empower the customers in order to protect their right of consumerism. The business, therefore, has relooked into the aspects of quality, safety of the products offered and also emphasised on the customer services. This has been achieved with the help of an integrate system of various business functions that have strive to meet the goals of the business. References Biehal, G. and Chakravorty, D. 1986. Consumers’ Use of Memory and External Information in Choice: Macro and Micro Perspectives. Journal of Consumer Research. 12(1), pp.382-405. Chakravarty, A. K. and Eliashberg, J. 2005. Managing Business Interfaces: Marketing and Engineering Issues in the Supply Chain and Internet Domains. Springer; Germany. Coade, N. 1997. Managing International Business. Stamford: Cengage Learning. Gardner, M. P. 1985. Mood States and Consumer Behaviour: Critical Review. Journal of Consumer Research. 12(1), pp.17-21. Jenster, P. V.,  Hayes, H. M. and Smith, D. E. 2005. Managing Business Marketing & Sales: An International Perspective. Copenhagen: Copenhagen Business School Press. Joseph, A. and Hutchinson, W. 1987. Dimensions of Consumer Expertise. Journal of Consumer Research. 13(1), pp.411-454. Marks, L. J. and Olson, J. C. 1981. Toward a Cognitive Structure Conceptualization of Product Familiarity. Association for Consumer Research. 8(1), pp.145-50. Mazzucato, M. and The Open University. 2002. Strategy for Business: A Reader. London: SAGE. Morris, H. and Hirschman, E. C. 1982. The Experiential Aspect of Consumption: Consumer Fantasies, Feelings, and Fun. Journal of Consumer Research. 9(1), pp.132-140. Navarro, P. 2006. The Well-Timed Strategy: Managing the Business Cycle for Competitive Advantage. New York: Pearson Prentice Hall. Read More