Contemporary business - Essay Example

In addition, the report will include examples on Coca Cola, Toyota and leadership style of Bill Gates to support all the discussions. Finally, a conclusion will be provided to summarise all research findings and mentioned business management issues / problems. Before critically analysing the functions and management issues in a global business to identify ways to reduce risk and improve organisational effectiveness, I first would like to throw light over what we mean by efficiency and effectiveness.

Organisational efficiency refers to the capability of a business enterprise to produce maximum output with the help of same available sources. In other words, it could be defined as an ability to produce same level of output with fewer sources. The world has become a global village after the contemporary developments and advancements in information technology and communication networks. These recent advancements and improvements in media networks and advertising have greatly affected the attitudes, beliefs, behaviours, lifestyles and perceptions.

At the same time, this has also created many business opportunities for enterprises. In fact, many businesses have gone global and have become transnational, multinational or supranational corporations with operations all across the world. Companies today are expanding their operations all across the globe to target a large group of potential customers who are heavily exposed to media, and who now have relatively similar lifestyles (inclination towards a white collar job, brands, facilities, luxuries etc).

On the other hand, customers have also become very demanding, since they seek value and are inclined towards new and innovative products. In short, it could be said that businesses have to deal with a large diverse group of customers who have both willingness and ability towards different innovative and existing products. Businesses usually have many different international market entry