Pressure in Business Environment
Organizations face more challenges due to the pressure they face in the current market. The pressures faced by the organization are different in various circumstances. In this article the discussion is done on two types of pressure. The pressures considered are the market pressure and the technological pressure.
Market Pressure is generally regarded as a financial term that have a substantial effect on the market forces of the organization. Market pressure also known as margin pressure reduces the net earnings with the rise of cost and fall of revenue. Market pressure arises with the entry of a new competitor within the business and increasing the offer of the products. It also increases with rise in commodity costs and increase in the regulatory controls on the business.
The increase in market pressure is also due to the global economy as well as strong competition. The market pressure also increases due to the change in workforce and powerful customers now a day’s who have all the updates about the products (Smith, 2014).
Mangers have to be careful when they are dealing with the margin pressure. The best mitigation method is following the matrix of Strategic Price Reaction. The first dimension of the matrix says about the attracting offer of the business to the organization. The second dimension is the measuring the profitability of the customers (Bhojraj & Libby, 2015). If these two dimension are been followed by the managers then it could help in solving the problem. The other market pressure like change in workforce could be managed by employing the suitable people to the right job. Women should be not be employed for the site based job and the workforce. The introvert people should not be given the jobs of marketing. This change in the workforce should be followed by the managers. The managers should know everything about the product and thus it will help in enhancing the knowledge of the products and handling the powerful customers would be busy.
The other pressure is the technological pressure. Technology innovation as well as obsolescence is the cause of the pressure within the organization. Innovative technologies yield in creating the substitutes of the products as well as quality of the alternative service. These needed the business in keeping up with the demand of the customers. The information gats overloaded in the data registry (Tongur & Engwall, 2014). Therefore implementing the technology helps in keeping track of the information and getting the data as soon it is required by the users. Search engine, data mining are important functions of the technology. Moreover providing security to the technology is also important. The most pressurized work is implementing the right technology at the right place. Technologies like ERP is too costly and implementing this technology can help in gaining competitive advantages in the business but failure of appropriate implementation may led to the total failure of the technology.
The manager before selecting the technology of ERP has to select the right vendor providing the technology and the right place of implementing it. This procedure is very much necessary for implementing the technology (Nguyen, Newby & Macaulay, 2015). The managers should also provide the necessity security required for providing privacy to the data. They also need to hire the skilled IT professionals who can maintain the technology safety in the organization.
Bhojraj, S., & Libby, R. (2015). Retraction: Capital Market Pressure, Disclosure Frequency-Induced Earnings/Cash Flow Conflict, and Managerial Myopia. The Accounting Review, 90(4), 1715-1715.
Nguyen, T. H., Newby, M., & Macaulay, M. J. (2015). Information technology adoption in small business: Confirmation of a proposed framework. Journal of Small Business Management, 53(1), 207-227.
Smith, N. C. (2014). Morality and the Market (Routledge Revivals): Consumer Pressure for Corporate Accountability. Routledge.
Tongur, S., & Engwall, M. (2014). The business model dilemma of technology shifts. Technovation, 34(9), 525-535.