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The Contemporary Dynamic Business World

6 important questions on The Contemporary Dynamic Business World

What are 2 methods of competing?

1. Exceeding a customer's expectations: customer-driven, instead of management-driven. The customer's wishes and needs come first.
2. Empowerment; giving frontline workers the power to respond quickly to customer requests.

What are the consequences of empowering?

- Fewer managers are needed
- Lower employees need more education and they might ask for a higher salary.

What are changes in demography?

- Diversity and the advantages for business; diversity in needs grow
- Shift in age division in the population; the baby boom generation will retire soon.
- Increasing number of single parents; family/flextime, daycare

What did changes in the global business environment result in?

1. International competition between companies
2. Growth in free trade between nations -> globalisation
3. Development of efficient distribution systems
4. Advances in communication systems

What was the evolution of business?

Agriculture -> Manufacturing (industrialisation) -> Service -> Information-Based

What major factor cause people to move from farming to manufacturing and form manufacturing to the service industry?

Efficiencies in agriculture led to the reduction in farms and growth in industry that caused workers to leave the farm and come to the cities. The growth of efficiencies in production had the same effect as in agriculture. As factories became more efficient and technologically driven, workers migrated to the service sector.