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In this global era of the 21st century, business organizations sector has undergone a transformation in order to break through because of the stiff nature of competition brought about by globalization and economic liberalization. Globalization and free trade has opened up boundaries for international trade and exchange of goods and services. Besides, the concept of free trade and globalization is important for the growth and development of industries through mobility of essential factors of production, including labor and capital (Spitzer, 2012). Through the global economic liberalization, the quality of goods and services produced in the economy has significantly improved in order to increase the competitiveness of these products. However, the success of an organization heavily depends on how the resources at the disposal of the organization are managed. Not only is the management at the helm of the success, but all the stakeholders of an organization, too. The stakeholders of an organization that have a role to play in it include managers, customers and consumers, owners, and the community (Carroll, & Buchholtz, 2010). Therefore, the varied difference in the demands and expectations of these groups must be fulfilled by an organization. This is because all the stakeholders of an organization have a role to play in its success. Besides, all the stakeholders of a firm must draw benefits from the organization for pledging their loyalty and service. For instance, shareholders and firm owners benefit from their investment into an organization through wealth maximization, while customers are paid for loyalty through quality and affordable products. Therefore, the success of a business organization depends on the ability of an organization to satisfactorily meet the needs and expectations of the key stakeholders.
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The future of an organization goes beyond the capacity to meet the demands of its stakeholders with direct involvement in it. In order to succeed and be at the top amid competition from other industries or firms operating in the same industry, it is important for an organization to take responsibility for its activities both negatively and positively. This is measured by the ability of an organization to give back to the community and society as a whole through the concept of being socially responsible. Corporate social responsibility (CSR) is one of the modern approaches to building a positive image of the organization among the consumers (Nakamura, 2004). This implies that socially responsible organizations have a strong positive reputation among the consumers. Corporate social responsibility is the way organizations give back to the community by compensating for the negative externalities that result from the uncontrollable side effects of the production process such as pollution. CSR takes the form of financing the cost of environmental cleaning, funding other social activities of the community such as sports; meeting the educational costs for the most deserving students in the community and providing other sponsorship programs for the benefit of the entire community (Weis, & Andrews, 2009).
The success of a firm is also measured by its sustainability. This concept refers to the ability of a firm to succeed beyond today. A successful business organization must be in a position to remain in operation beyond tomorrow. It therefore implies the policies enacted by an organization must prioritize those employees with the potential and ability to see the organization succeed and remain sustainable in future. To be sustainable, an organization must remain popular among customers and realize market dominance. One way of being sustainable is by considering increasing its market share through globalization (UCLA, 2004). Globalization is important in increasing the customer base of an organization by expanding its operations to cover international markets. Globalization would not only be beneficial to an organization but to the customers, too, through the increase in the product range and quality. However, the major challenge that comes with globalization is embracing technology in the production. The use of modern technology in order to reduce the cost of production and improve on the quality of output is prone to technological risks owing to the fact that technology keeps changing with the old techniques becoming obsolete and irrelevant (Nakamura, 2004). For this reason, an organization with a vision for success must be ready to spend resources on modern technology. Finally, the success of an organization depends on the ethical factors in it. It is the corporate ethical concern that governs the operations of a corporation and links it to the public. A successful organization/firm must be ethically responsible about its operation and activities to the entire generation.
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