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The United States economy is riding high on a great wave of prosperity that will more than likely continue will into this 21st century. A glance at a few statistics will illustrate the many benefits that these good times are bringing into peoples lives.
*Nearly 95% of the United States workers are employed. This is the highest level in almost a quarter of a century.
*Total output of goods and services is growing at the rate of almost 4% a year.
*Corportate profits are up, and the millions of people who own shares of stock, either directly or through their retirement accounts, are thrilled as the stock market continues to hit all time highs. (This and the fact that they can hit lows and regain is good for the people.)
*High employment and low inflation and growth in wages have resulted in a boost in consumer confidence in record levels. Because of this the sales of homes and durable goods are on a steady upward pace.
*In surveys that have been conducted, 90% of the executives are confident about the continued growth of the United States economy.
How does all of this optimism affect us? The economic growth opens the doors of opportunity for those who are prepared to put their ideas into action. In the 21st century, everyone will face new challenges that were brought about by the technological revolution that is changing the rules of business today. The power of telecommunications and computer technology is creating inexpensive, global networks that can transfer voice messages, text, and data within a matter of a few seconds. These technologies have helped to create new types of product and they also demand new approaches to the marketing of already existing products.
Innovative technologies are globalizing today's business world. Business can easily manufacture, buy, and sell across the borders. You can now get a Big Mac or a Coke almost anywhere in the world. Japan and Korean companies manufacture most of the electronic goods that consumers in the United State will buy. Mercedes Benz manufactures most of its sports utility vehicles in Alabama and General Motors cars are assembled in Canada.
This rapid change in business landscape compels business people to react quick to the consumers shift in taste. Success requires creativity and split-second decision making. Whether you decide to start your own business or work for a family run business, or go with a large corporation, your success will depend on your ability to keep up with the constant change in today's world.
As the world entered the 21st century, a significant change was taking place in the ways that companies will interact with its customers. Since the industrial revolution, most companies were just worried about promoting their products. They just hoped that enough people would buy them to cover the costs and earn them an acceptable profit. This way of doing business was called transaction management.
In the relationship era, many businesses are taking a different approach and trying to make a more long-term relationship with their customers. What they are trying to do is to find ways to manage every interaction and nurture customer loyalty. The feeling is that a company that retains customers over a long period of time will cut its advertising cost, as well as its sales costs and account initiation costs. Since customer spending seems to increase over time, this would also mean an increase in the companies total revenue.
One of the most talked about technological innovations over the past years has been the Internet. It is a worldwide network of interconnected computers that lets anyone with access to a personal computer send and receive images and data anywhere. The roots of this system began when the U.S. Department of Defense created a secure military communications system in the late 1960's. It was just a matter of time before other government agencies and business computer networks were also created and interlinked.
Today's customers want more than ordinary goods and services. Their demands go far beyond just low prices. The customer that feels that they have received a good value, positive benefits, at a fair price-are most likely going to be happy and maintain a good relationship with the company.
Many companies have found that customer value perceptions are many times tied to quality. The degree of excellence of a firms goods and services is important. Technically, the quality refers to the physical product traits such as the durability and the performance of the product. It also refers to customer satisfaction and the ability of the goods or services to meet and exceed the buyers expectations.
Businesses cannot any longer limit themselves to the opportunities that are found within their own borders. They must look to the world and its economies for increased independence. To remain a competitive company, they must constantly search for both more efficient ways of manufacturing and the best places to market the product.
Global economy is growing at a rate of approximately 4% a year. The United States alone exports about one-seventh of that. Behind us is Canada and Japan.
A knowledgeable and skilled workforce is critical for keeping up with the rate of change in today's business world. Employers will need to rely on good workers and strong customer ties. A world-class work force can be the foundation of a firm ability to succeed in the global market place.
In the new millennium companies are faced with several trends that will challenge their skills for managing and developing human resources. The trends include aging of the population, a decrease in the amount of people who are available to work, an increase in the number of people who are willing to move to get a better paying position, and a change in the way that work is being done.
Workers now come from many different ethnic, lifestyle, and age groups. Good business leaders will recognize the gain that they will receive from encouraging their employees to contribute their unique skills and experiences with the company. Blending people of different backgrounds (gender, cultures, religions, ages, and capabilities) will increase the companies chances for success. Many studies have shown that a diverse team of employees will perform a task better and develop better answers to problems than a group of people who have everything in common. This is because a variety of perspectives and experience will bring about more innovation and creativity.
As business comes into the 21st century, the new technologies and shrinking global barriers are changing at amazing rates. Businesses need to be ready for these ever present changes to keep up in the market place of today. The opportunities for people and companies who are willing to make changes are endless. It is easier than ever to start a new company and have it succeed than ever before. Take charge and step up to the economic plate. You are sure to take the ride of your life.
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