Term Paper on Current Business Problem
In this era of technology, businesses are facing tons of challenges in the
market to survive, business men are ready to capture other businesses,
customer are well aware with the products or services and always looking for
better and enhanced, employees are looking for better wages or salaries and
are well trained and equipped with latest technology, and owners are looking
to get maximum profits. This scenario can create lots of problem in daily
businesses, organization’s management are facing that sort of things daily
and immensely due to cutthroat competition. There is no business exist which
is free from all types of problem, if we are running business then the
occurrence of business problem is obvious. The point is how management of
the organization can come out from it and what ways or options they selected
in that situation. First we look over what is basically business problem,
its types and how we can come out from it.
The Business Problem
A situation in which the existing differs significantly from the desired or
preferred situation is known as “Problem”. Generally, a problem occurs when
the current situation does not measure up to the expected situation in
achieving organizational goals.
Problem Classifications It can be classified in three categories: crisis
problems, noncrisis problems, and opportunity problems. On the problem
continuum, crisis problems are the most urgent, and opportunity problems are
the least urgent.
Crisis Problems
A crisis problem is a critical situation that demands an immediate
managerial decision. When manager face crisis problem they must consider the
threat to the organization and make a decision that will defuse that threat
are quickly and effectively as possible.
Noncrisis Problems
When managers confront a noncrisis problem, they are dealing with a
situation that must be resolved but without the urgency and immediacy of a
crisis problem. Most of the problems that manager faces are noncrisis
problems, even when they have potentially significant ramifications.
Opportunity Problems
An opportunity problem is a situation that can be addressed in a way that
gains the organization some significant advantages. When dealing with an
opportunity problem, managers are trying to defuse a difficult situation.
Instead, they are looking for a creative solution that will have a positive
impact on organizational performance. The development of new technology or
the sudden availability of new resources often creates an opportunity
problem. Although opportunity problems are usually involves less time
pressure than a noncrisis or crisis problem, an opportunity may occasionally
escalates into a crisis if left unaddressed.
To come out from any of the problems management required to take decision(s).
Decisions are the choice made from among the available alternatives that is
expected to lead to a favorable solution to a problem.
It requires the process which is known as decision making, this process of
recognition a problem, generating and weighing the alternatives, coming to a
decision, taking action, and assessing the results.
Current Problems in Businesses
According to research approximately one million businesses are started in
United States per year, but around 80% of them are fail within 5 years.
We have as infinite businesses, hence we have infinite business problems and
they varies according the business type and similarly their solution can
also vary according to the situation, you cannot make decision once and
apply this over all the problems, even though they are occurring in the same
industry or business line.
Below are the few common problems facing by almost all the businesses:
Customer Relations
Creating new customer and sustaining them is the lifeblood of any
organization either they are providing services or customers.
In this we have to consider and handle the following important factors:
• Targeting the right prospects
• Recognizing existing customers within prospect lists
• Integrating acquisition files from multiple sources
• Creating accurate revenue and lifetime value models
• Implementing an effective welcoming strategy
• Building an ongoing acquisition system
Government Foreign Policies
Now these days after September 11 attack, some favorable and unfavorable
government policies has also significant impact and can also become the
problem for some nation’s businesses.
Consumer Satisfaction
In this era consumers are now quite prudent and well aware with the pros and
cons of the products/services which they are going to utilize, now days it
is not easy to deceive them by providing low quality stuff, people might be
able to deceive once but in response you have to be ready for loosing the
loyal customer. Consumer satisfaction is very essential in all type of
businesses, and it can only be possible by providing excellent services with
consistency and quality. Customize services are now globally offered for
providing this, businesses people should have to make a track record or
maintain data base of their customers by using latest technologies, which
can help greatly to record customer needs and demands.
Maximizing Customer Relationship
“Improving customer relationships has become a main focus in today's
consumer-driven marketplace. Companies are struggling to personalize
customer service and offerings. Businesses cannot improve customer
relationships and personalization efforts without being able to answer these
questions:
Who are my customers?
What are their relationships with my company?
What do they need?
Accurate, complete customer data helps deepen customer relationships. The
challenge lies in obtaining, enhancing and integrating raw data from across
an organization to form a single, comprehensive view of each individual
customer. Integrating all the fragmented, disparate and often outdated
information is an extremely complicated, seemingly impossible process.
Customer Data Integration (CDI) expertise is vital to giving customers the
attention they deserve, at every point of contact in an
organization—website, retail, outlet, catalog, customer service or billing”.
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Use of Information Technology
More than 90% of the businesses are small, so that their resources are also
limited and they are not able to use latest Information Technology as well
as big organizations are using to enhance their products or services.
Without using this, it is very difficult to survive surely in upcoming era.
Scarcity of Experts
This problem is not new and not arrived only in today’s business, it is from
the beginning of the early business age. We always face scarcity of good
quality workers and experts, this is also one of the problem facing by
current businesses. To resolve this problem Information Technology can
starts play its role, software engineers are start designing software such
as expert system which can store expert’s knowledge up to great extent and
can easily be use in the absence of the expert, though they are not the
exact replacement of the expert but they are quite healthy in this regard.
Terrorism Problem
We can also say this a problem, this problem can arrived in the late 19
century, it does not effects directly to the businesses but their impact
should come over the businesses. September 11 attack over world trade center
is one of the biggest example of it, which can rapidly change the whole
world business scenario.
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