Today companies change at an accelerated rate, in terms of their management, but in many cases they do not take the time to analyze and deepen the impacts of these changes, which together with the speed they occur are one of the the most important and least understood factors by companies. This analysis is important to analyze what has led to their origin, the causes that originated it, and its consequences. In this way it is possible to be prepared to make future decisions with better support.
Development
Taking as such the concept of business management, is to define the way in which the activities of organizations achieve increased productivity and competitiveness, and meet the established objectives, this through the application of the four phases of the administrative process: Planning, organization, direction and control. Currently the focus of companies must be directed towards understanding the following constantly changing factors:
- Any type of strategy formulated and established in the past, in situations other than the current one, cannot be adapted or detrimental to the current situation. Strategies that are formulated in the present cannot be formulated in the same way in the future since they cannot changes in the business environment of the present are considered. Over time the acceleration of change increases in companies. It is wrong to try to predict the future, but if it is possible to be alert to it. Traditional methods that are used today do not They are suitable for the future, they must be updated and be aware of changes.
The main changes that business management has undergone can be grouped into three aspects which are:
- Evolution of business management theories due to maturation of theories, knowledge and various contributions of knowledge. The type of orientation to which it is focused, in this aspect it is towards the client, previously it was focused towards production. It can be said that the most important thing is the client and it serves as a strategic stone for the company. The various changes in the external environment in which the company is located.
That is why companies must unite these three aspects for a rethinking of management in which there is a convergence of knowledge and consider the company as an open system that is in relation to its external environment.
Evolution of business management theories
In ancient times in Mesopotamian culture the first documents are provided on the evolution of the individual to directive action.
In Chinese culture, advice was presented on the way in which human institutions should be run, examples of this are Lao-Tzu, guardian of the imperial archives, and Confucius who made various contributions.
For example, the Roman culture developed knowledge about the management of organizations, which have been the inspiration of various authors.
Returning to the twentieth century, various schools and different business directorates are already classified in what is known as the five groups.
- Traditional classical, this comprises the scientific organization of work which was established by Taylor, Gantt and Gilbreth; the administrative school founded by Fayol and Urwick and finally the bureaucratic model by Max Weber. Human relations by Elton Mayo. Behavioral sciences by Douglas Mc Gregor, Maslow, Argyris and Likert. Management science (mathematical school). Integrative movements the which was based on an approach based on systems theory.
Orientation towards the market and customer satisfaction
For the second half of the 20th century, one of the main problems in companies is simply producing. Currently the type of market is changing and not everything that is produced is sold, so companies are facing a new panorama. Now companies must adapt their product to customer needs, quality and compliance with deadlines and times, something that was not previously contemplated, since they only thought about producing, and the company's vision was to improve efficiency and the productivity.
To solve this situation, companies use the scientific organization of work, and solve all problems by significantly increasing production.
When consulting companies were asked for support, their studies were focused on improving plant distribution methods, production organization, incentives and job evaluation. In other words, Taylor's ideas were implemented.
Speaking in terms of organizational culture, it was likewise oriented towards production, which is currently inefficient; since the excess of offer, the competition and greater demands of the clients have modified the scene and the rules of the game.
Currently the main business management problems are much more complex and leadership styles difficult. Therefore, the company must be able to establish its value chain taking into consideration its client and their activities. This is being able to establish a value chain that is unique for both of you and that is sustainable over time in a way that attracts and keeps your customer.
In these terms, it can be said that customer satisfaction and loyalty is something that cannot be put aside, and the key to business success. It is concluded that:
- A dissatisfied customer uses the term "word of mouth" at least 11 people comment on the dislike of a certain product or service. It costs 5 times more to attract a new customer than to keep the one you already have. Reducing customers by 5% They are no longer clients (they cease to be customers), profits increase between 70% and 30%. The term innovation is fundamental for the company. Today the life cycle of products has been reduced, which is known as the stage of maturity and decline are now very short, so the products or services begin to make a profit quickly.
In order to formulate a correct business strategy, the customer must be taken as a fundamental piece. Since most of the companies orient their strategy towards the market in a global way but not to the sufficient knowledge of the client's needs, in which the appropriate way to focus the damage could be adapted.
Another barrier is the distribution channels, since in many cases they prevent direct contact with the customer. This type of problem is very common when companies have standardization in the distribution processes since the knowledge of the specific needs of the client is not studied.
The new trends in business management are focused on developing customer value positions, in which this can be maintained for the company. This approach includes moving from standardized products to integrating products into the customer's value chain. In this way, new trends are focused on developing products plus service, in which costs are reduced to the customer, improve benefits and thus develop a competitive strategy for the company.
The new trend adopted by companies is the well-known "extended Enterprise", this is a group formed by the client, the company, the suppliers in which not only the company's value chain is considered, but the entire value system.
New trends as a consequence of the business environment
The vast majority of changes in the way companies are directed and organized are due to the external environment in which they are found. These changes include opportunity as well as the opposite for important companies. Since changes in the environment make those strategies that made the company successful in the past, today are a threat to it.
These changes to the strategies must be focused on the changes found in the environment, changes in desire and customer expectations, technological, competitive.
The theories that were previously valid for the organization and management of companies in the first half of the 20th century (Scientific Work Organization, Fayol Administrative School, Max Weber's bureaucratic model, the School of Human Relations), which they did not take into consideration of the external business environment as it was considered static; Because its focus was oriented towards improving efficiency and productivity through improvements to production methods, motivation, incentives, among others.
In order to achieve the success of companies in the face of the constant changes in which they live, they must see beyond, either planning new products to adapt them to current and future markets, in which opportunities can be detected, generate capacities essential that coincide with the critical success factors, establish competitive advantages that not only solve a particular situation but are functional to any activity in the value chain.
Companies must define the factors that define the environment of their company, since all the factors found in the external environment are the same for all companies. In order to establish a correct strategy, this must be those that it achieves, given the characteristics of its business environment and its strengths and weaknesses, to position it to have competitive advantages. (Agulló, 1999)
Technological changes
One of the threats with the greatest impact for companies today are the changes that are generated at high speed in technologies, be it the internet, telecommunications, TV, fax, computers, etc. An example of companies that have disappeared due to the lack of updating of their technologies is that of maritime transport for passengers traveling from Europe to America, currently it is carried out through air flights, instead this transport time became dedicated companies to tourism through cruises.
The use that companies give to technologies is very poor compared to the great diversity that exists, in order to implement technologies in companies they must consider certain aspects such as the appropriate culture for their adoption, development of new technologies, knowledge and capacity for the change. (Castro & Delgado, 1999)
Orientation towards corporate social responsibility models
Corporate social responsibility is awakening greater interest from the business sector; Since the end of the 90s, different concepts began to emerge about the rules, codes, initiatives that promote the behavior of companies in ethical and sustainable terms and in respect of society and the environment. Most of these terms are voluntary, which are aimed at enabling companies to develop strategies that incorporate these criteria, from a moral, economic and social perspective. (Cuesta, 2004)
EFQM model of excellence
For companies to achieve a high degree of performance and a competitive position, it is possible to achieve this through the model proposed by the European Foundation for Quality Management (EFQM). This model of excellence is based on the principles of total quality management and its development is based on the self-evaluation of organizations as the method of continuous improvement. This model proposes a review of all those aspects that can determine the final results in order to identify those areas that are potential and those in which improvement actions can be established. (Corma, 2012)
The application of this model to any organization is based on carrying out an evaluation of the various elements that comprise it such as: the values, the model of its management, the processes and the results) and in this way to be able to compare the results with a value Theoretical reference that is defined in the EFQM. Through this comparison, it is possible to identify the strengths and areas for improvement of the organization and buy against the excellence sustained by the model. (Madruelo, 2002)
Conclusion:
Companies are experiencing great changes in an accelerated manner that in many cases are not properly analyzed and result in their strategies and methodologies being invalid in this situation. It can be said that an indicator of future success and sustainability of the company is measured by the net flow of talent that it has, this is the difference between incoming knowledge and outgoing knowledge. Companies need to achieve changes from their organizational culture, know how global markets operate, improve transport and communications systems, establish alliances, improve the life cycles of their products or services and fundamentally greater interest in aspects of innovation as a growth factor;This together will allow the company to be prepared for changes in the environment.
References
- Agulló, C. (1999). Significant changes in the business world. Industrial Economics, 6 (330), 11-18 Castro, D., & Delgado, M. (1999). Technological innovation, corporate strategy and competitiveness in the Cuban industry. Direction and organization (22), 15-27.Corma, F. (2012). Practical applications of the EFQM model of excellence. Madrid, Spain: Diaz de Santos.Cuesta, M. (2004). The reason for corporate social responsibility. ICE Economic Bulletin (2813), 45-58, Madruelo, J. (2002). Total quality management. The EFQM model of excellence. Medifam, 12 (10), 1131-5768.
