Present day corporate scenario is dynamically advancing and changing and so are the problems and issues challenging the business enterprises in the contemporary setup. Companies are facing many business and management issues which are as follows:
The global economic turmoil of recent past has constructed a talent paradox. Even though the job market is in a slump and unemployment escalating, still companies are unable to find suitable candidates. Companies blame the education system which does not meet the industry expectations. Companies are experiencing better retention rates but it is due to lesser job opportunities and job slashes and is not a matter of gratification and companies need to still work upon the HR strategies as the poaching and headhunting activities are on a rise due to intensifying competition. For instance, Marriott Hotels have endearing HR practices (Deloitte, 2012).
Online trading is witnessing a phenomenal growth rate due to the improved infrastructure and easy accessibility to internet and electronic devices. Social networking, cloud computing and internet are chief boosters. E-commerce is expected to pose a serious challenge to the conventional “brick and mortar” retail format. Thus, companies are adopting online trade options concurrently and need to emphasize equally on their virtual business as it tends to escalate due to reach markets beyond geographical boundaries and constantly update their web portals and ensure service quality. E-commerce is for both B2B and B2C format. B2C registered sales nearly worth USD 1.25 Trillion (Frediksson, 2013). Internet have made the consumers more aware and learned and also provided them many more options. Thus, companies need to strive harder for product, brand and customer differentiation in both the retail formats which is a quite tedious task.
Managing innovation and change
To be competitive in the international marketplace, it is imperative for companies to foster more innovation in their offering portfolio and accommodate the changes happening in the industry. Companies are striving hard to innovative in a cost efficient manner. It is only through innovation that companies can ensure longevity. Companies need to establish infrastructure and culture to promote innovation and setup suitable processes and metrics to amalgamate innovation and change management into the overall organizational working and values. Amazon, Red Hat, Alexion Pharmaceuticals etc. are regarded as innovative companies globally (PwC, 2012).
Sustainability is gaining strategic relevance and emerging as a prioritized agenda for companies. Corporate social responsibility is just an aspect of sustainability which is being used strategically for marketing purposes and also sustainability is the chief source for attaining competitive advantage, nurture innovation and delivering actual bottom-line results. Thus, there is a rise in the demand for developing of systems, processes, controls and administering frameworks which can allow managers to assess and analyze sustainability metrics. This in itself is a challenge for the companies. Companies like Microsoft, Tata Group, Reliance Group have undertaken highly commendable sustainability initiatives (KPMG, 2011).
The work ethics of the employees have a direct influence on the employment contracts of the firm, risk-bearing capacity, growth potential and organizational well-being. Companies are constantly facing the challenge for managers and leaders are to have enduring economic returns through abiding by its sustainability initiatives. However, sustaining corporate ethics and imbibing them into company’s protocols and employees is one of the key challenges. American Express, General Electrics, Infosys are renowned internationally as companies with high ethical values (Freeman, York and Stewart, 2008).
Change is inevitable. Companies need to be proactively aware about the changes happening across all vertices of business and modify themselves accordingly. However, challenges are a part of the package and companies need to be better prepared for the same.
- Deloitte. (2012). Talent 2020: Surveying the Talent paradox from the Employee Perspective, Report, Deloitte Development LLC.
- Frediksson, T. (2013). E-commerce and Development, Key Trends and Issues, Workshop on E-commerce, Development and SMEs, 8-9 April 2013, WTO, Geneva
- Freeman, E., York, J. and Stewart, L. (2008). Environment, Ethics and Business, Charlottesville: Business Roundtable Institute for Corporate Ethics
- KPMG (2011). Corporate Sustainability, Progress Report, KPMG International Cooperative.
- PwC. (2012).How to drive innovation and business growth, leveraging emerging technology for sustainable growth, Report, Pricewaterhouse Coopers Limited.