Changes That Affect Businesses - Essay Example

Changes that Affect Businesses Name Affiliation Introduction Australia business environment has been greatly affected by the changing trends that is depicted in its normal functioning. Both internal and external source changes affect the running of business in the country (Annan, 2012). The following are the sources of change that affects business in Australia. The changing nature of the market is one of the concepts retarding the implementation and development of business in Australia. Marketing change is the willingness and ability of a business organization to take control of all the external factors that affect the potentiality of businesses to have profitable exchanges. The new changes that have taken place in the way the market has made all this change is to create emphasis on the main functions of an effective marketing organization-acting and understanding the dynamic under-which the market is operating and concentrating on critical relationships is one of the new market changes that is affecting business in Australia since the businessmen/women are not aware of the modes and ways of handling this critical relationship with the clients/consumers. For example, the changes in the market has affected: potential and existing consumer preferences and perceptions, institutional and technological trends, competition in both the existing and potential end customers, and the relationship on the impacts of marketing effectiveness (Barnet, 2011). Due to global financial crisis the world economy is brought to a devastating situation most significantly to the business world. The development and growth of a business have indirect as well as direct links with the business. The many financial challenges and other impacts of business that arise during such financial crisis are devastating trend in the investment and interest of many businessmen/women. The changes in the economy have several impacts to both small and large businesses since it takes significantly bigger time for the economy to recover. For example, the changes in the economy affect businesses in the following ways: As the profits and revenue of the business fall during this economic time, the stock price of all the manufacturers falls, followed by decrease or loss of dividend shares (Berda, 2011). This scenario is common to large business during such economic depression. With the delays in customers paying off good that are on credit, affected companies will also pay their debts. In slow manner than on the original credit agreement. As a result such business will have a reduced valuation of the bonds, debts and their ability to get financial aid. After some times such companies will experience bankruptcy of what they owe will not be serviced. During economic downfalls most of the businesses in Australia have resorted to laying off their staffs so that they could keep up with the economy, but this activity has a negative impact to the functionality of the business since laying off of staff means that the remaining more work will have to be done by the existing employees (Clarke, 2008). This tampers with the quality of services and products being produced or offered. As a result of the cost cutting measures experienced during financial crisis the quality of services and goods offered by businesses are largely affected. This activity will lead to a reduction in the saleability of the products and services thus leading to repercussions like discontinuation of poor performing products and closing up of some of the manufacturing plants. In Australia today the changes that are experienced in the technology world is greatly affecting the nature and operations of businesses either larger or smaller businesses. The advances in technology the has been achieved in the past decades in Australia has brought revolution in the business arena since it has affected almost all sectors of working life. Individuals in the country can be able to reach each other faster as well as the cost of communication has reduced (Denver, 2013). Businesses do not need to reach its supply chain members physically instead they communicate with each other at a distance and in the most convenient way. With the penetration of technology in business, business managers in Australia have seen how vital it offers them access to quality information that they can use in making decisions as well as how it supports the day to day running and administration of businesses. Although businesses are attributed to increased demand of coping up with technology advancements the greatest fear is that this source of change calls for displacement of something personal that the labor act 210 of Australia prohibits. Changes in the technology such as the introduction of cloud computing and social networking has made many businesses either small or large to streamline its operations. The introduction of cloud computing in Australia’s businesses has made them able to transfer to more efficient models of information technologies making them to save money on energy and IT as a result of data centralization on servers that can be used with multiple businesses. For example, all the banks in Australia have a cloud that they share the information allowing them to administer businesses easily- the banks can be able to access loans service for its clients in reducing fraud (Wilson, 2007). The changes in the culture of the people of the people of Australia are one of the sources of change that affects businesses. Businesses range from tourism to shop keeping. The hospitality culture of the people of Australia has made the country to be one of the leading earners from tourism- a business that accounts for almost a half of the country's revenue. The changes in the business culture as well as human culture have led to positive growth of businesses in Australia. The culture of business and that of the people has been shaped by the prevailing laws of Australia that calls for animosity and paves way for innovations and inventions in business spheres (Annan, 2012). Conclusion The sources of changes in businesses in Australia should be diversified so that all the businesses could be able to fit well in the global economy. Positive changes should be accepted so that businesses could develop and grow. Business growth and development means that the country will be able to sustain its people as well as obtain enough revenue. References Annan, K. (2012). The Role of Business Environment in Australia. Journal of Business , 1-4. Barnet, T. (2011). Impacts of Social Changes in Business: Case Study of Australia. Management Journal , 1-24. Berda, M. (2011). Business Changes. Journal of Human Reource Management , 1-17. Clarke, G. R. (2008). Technological Impacts to Business: Case of Tuggerah. Journal of Economic , 2-56. Denver, T. (2013). Business Management and Development. Journal of Business Management , 1-78. Wilson, A. (2007). Management Competencies for Corporate Responsibility of Businesses. Journal of Management , 1-34. Read More