W8 Discussion “Outlook For The Future”
Question 1
According to Trombini et al. (2018), the critical developments in the global environment of business during the next five years will be in shifting geographies, and business model innovations. By changing geographies, it means that continued globalization will create a more interconnected, interdependent, and complex business environment. The critical development in business model innovations will be attributed to constant advances in computing software and hardware, fundamental breakthroughs in communication and information technologies, and enhanced digitization of services and products.
Question 2
Firms from advanced industrialized countries will face several challenges. One, accelerated global integration will cause unprecedented vulnerability and fragility to global economic surprises. With the increased shift of consumer activity to the digital fields of social media, search, and advertising due to advanced business model innovation, firms will be faced with the challenge of uncertainty (Trombini et al., 2018). This is in regard to how their customers will react to the increased risks that will be associated with internet ubiquity.
Question 3
Firms will need to adopt policies which will facilitate job retraining, job search and mobility and broader unemployment support. This will provide the right balance between providing assistance and making sure that persons affected by trade can get back to their feet. Firms will have to do a better job positioning of their workforce to deal with technological change and globalization (Trombini et al., 2018). This will entail enhancements across a range of areas like infrastructure investment, business regulatory environment, education and training that could support greater worker mobility.
Question 4
The developments will have several implications on the firm’s organizational structure, leadership style, and management system. Firms will be required to undertake significant cultural changes on several levels. Trombini et al. (2018) point out that they may be compelled to reduce hierarchy and create provisional teams that will function autonomously. Also, they will have to run cross-functional, innovative, and market-driven projects as well as to hire new talents with competent skills that will complement the existing workforce. Besides, there will be a need to shift to more competent leadership styles, such as a transformational leadership style, to better adapt to the changing business environment.
References
Trombini, G., Wade, M., Monterde, S., Kuun, C., Garrity, J., & Buche, I. (2018). The Business World in 2025. Retrieved from https://www.imd.org/contentassets/4e4bc29693ab4f88aee960fc68f9d9c4/business-world-2025