Future business background

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Future business background

Although local conflicts (on a global scale) occur for a while, changing basic trends, the future business environment will be characterized by an expansion and intensification of phenomena and processes such as.

internationalization and globalization 

 the internationalization of companies through their closer relations with foreign markets in “input” (supply) and “output” (sales), as well as being understood as business cooperation with foreign partners on other issues (development work, joint activities, processes) becomes a fact; Research shows that once taking action with a foreign partner results in the expansion of contacts, the transformation of companies into international and even global structures. This trend will increase when international markets open, but companies must be aware of tighter competition (through new entrances) and new instruments of competitive competition (new entrants, new competitive games in new fields); –

Integration into regional blocs to protect their own markets from competition (eg EU-US agreements) –

Their own market protection by groups of countries takes a broader dimension than before: individual blocs are combined (EU is in talks with Canada and the US, which together with Mexico created NAFTA or MERCOSUR) to concentrate the economic power of so-called developed countries that have long stood against new, richer, international players (China, India, “Asian tigers”); such an integration process will significantly change competition, and strengthen the parties who are integrated with external partners (related to grouping)

 the threat of an unknown new crisis, the scope and possibilities for coming out of this crisis (economic crisis, only financial crisis with economic effects, political crisis, economic consequences of natural disasters caused by natural disasters, and finally – the consequences of terrorism).

Crisis situations always force business entities to take new actions: defensive, but also long-term (new opportunities, innovation, progress), which on the one hand can bring down many market players, on the other – open new processes to create solutions, progress, change better, restructuring.

 – business defense against competition from “cheap-producing” countries Which means that producing countries that are highly technologically advanced and more expensive must take action in a defense strategy against “cheap entry”, either by using protectionist solutions, or by producing highly specific and technologically advanced production so that “Producing cheaply “cannot produce such products, or

 transfer production in whole or in part to cheap countries.

 Imbalance in the stability of the European Union as a result of the crisis of the euro currency and the countries in which this currency prevails, the emergence of dynamically growing groups of so-called Eurosceptics, also in EU institutions, which for business means “to call for “public assistance to companies, and to competition – competition inequalities caused by such assistance, even if in the end it turns out to be justified

 – the development of a network economy with all the consequences of new phenomena and processes in the field of high technology, including – new phenomena in communication (cloud, development of social networks, television available via cell phones, use of smartphones, iPads, tablets to run) business or online shopping, crowdsourcing, etc.)

– changes in the role of energy resources and energy capacity of each country as a result of changes in geopolitical conditions, namely the possibility of losing competitiveness by several countries due to the lack of opening of energy markets, diversification of energy prices, introduction of sanctions, and adoption of climate packages. Apart from the process mentioned above, which has a global scope, determinants of the future business environment are:

• the development of innovation and technical progress with the participation of nanotechnology.

 • development of business and research collaborations between different partners; • stricter environmental protection standards.

• IT development in various directions.

• changes in customer behavior. The elements that are mentioned briefly form the business environment require that companies that are prepared to operate in the future take effective steps to identify changes in the environment, give them appropriate characteristics and interpretations and, as a result, provide answers to questions: where looking for opportunities and where are the threats in the future, how to take advantage of opportunities and how to stay away from threats? The identification and analysis of opportunities and threats must be done early enough in the strategic management process so that the company can take appropriate preparatory and strategic steps after knowing:

• what are the opportunities

 • how can it be better used than competition.

 • what are the threats,

• what changes are expected in the environment in practice,

• how to stay away from threats, • what competitors will do. It must be remembered that all opportunities and threats come from changes in the environment and that each company is responsible for identifying and seeking opportunities and threats for itself, because each company is different.

There are no absolute opportunities and threats. Every company must be able to read changes in the environment and interpret them as profitable or unfavorable for themselves. A well-managed company must prepare not only one vision to function in a changing environment, but also create a “window of opportunity” to identify possibilities in various cases. Therefore, creating environmental scenarios and various company responses to change seem to be carried out.

The scenario method is recommended especially when the environment changes non-continuously, where there is a jump between the stages of formation phenomena over time

[1]. The preparation of change scenarios in the environment combines the approach of strategic thinking with systemic thinking, because companies must openly look to the future and make decisions about the future with the intention of allocating resources when making decisions to carry out future tasks and goals determined for certain situations; companies must make decisions about changes in the organization, about creating a coherent strategic system, which is able to achieve goals in the future.

Strategic thinking enables the preparation of effective strategies (business, marketing, investment, etc.)

 And systemic thinking leads to the assembly of various parts of the organization that function well into one body, and the openness of managers to the future allows alternative preparation for various situations in the corporate environment . From the point of view of the objectives of this study, however, it seems that the most important thing to remember is to analyze the competitive environment and create scenarios to defeat competition when building scenarios and interpreting changes in the environment towards determining opportunities and threats for the company. Analysis of the competition strategy is based on

[2]: – knowledge of the competitive game itself among the participants, namely on understanding the risks of industry in competition, examining barriers to mobility in the sector, determining the importance of strategic variables in competitive games; – understand the competitor’s strategy, e.g. the manner of delivery and the factors which determine the profitability of competitors

 – understand the competition topography, i.e. in what fields and in what places wins and can threaten our company.
 – instilling one’s own company in its competitive environment, defining the most appropriate areas of competition to achieve business strategy objectives for all competitive advantages that are formulated.

The choice of competitive strategy is made possible by a comprehensive environmental strategic analysis, identification of opportunities and threats, as well as a traditional strategic analysis of competition based on industry analysis according to Porter and added to the considerations cited above. In this way, the company is ready not only to formulate its own competition strategy, but also to flexibly choose the scope of the competition, choose the field of competition and adapt the game in the market to the place, market segment, features and nature of the offer. The above proves that the perception of the future environment as a decision maker for the future must be comprehensive, taking into account industry specificity, company capabilities, and above all, it must be remembered that strategic environmental analysis must answer the question: with whom companies face competition and what and how to done to win this competition

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