It is agreed that the economic structure is the basic foundation on which every nation blossoms. Combating the 3 market forces that impact business can be more than merely attention-demanding as we can efficiently try and defeat it in order to keep particularly the survival of businesses, and the financial market in general term, afloat.
While there are factors that facilitate business growth, there are also forces that are bent on ruining the process of growth, if man by any chance fails to pay attention. Thus, we can define these market forces as the forces that determine the prices of goods and services and the functioning of consumers and producers in the market. It can be said that it explains how market economies work.
There are many forces that can be identified here in this content, but one of the major ones is the free market force of supply and demand. Government intervention and other factors like social, demographic, cultural, economic, technological, political, and legal forces regulate an economy’s supply and demand.
In this case, the weather can impact the supply of a product. For instance, agricultural loss due to extreme weather might cause the supply curve to move to the left. It explains why prices of vegetables and substitutes rise during such circumstances.
It causes short-term and long-term fluctuations in the market. It explains the increase or decrease in the price in reaction to the changes in supply and demand and other factors in the market. It is a naturally occurring phenomenon, given the nation follows a free market economic system.
3 Market Forces that Impact Business
Apart from the concepts shared above, the 3 major forces that impact business or that affect the gridlock in the world of business are not merely simple as many of them are dangerous and as so have rendered the financial field prone to weaknesses of any kind:
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Customer Responsiveness
Quickness in anticipating and responding to customer demands will continue to be an important ingredient of competitive advantage. Similarly, in many organizations, front-line service delivery employees are still not allowed to make decisions or approve certain transactions that will enable them to resolve and satisfy the customer’s issue on the spot (if in person) or on first contact (if on the phone).
Instead, these organizations choose to continue to irritate customers by requiring them to work their way through multiple reviews and decision-makers in order to get a resolution. Addressing this market force goes well beyond service management training.
Increasing emphasis on customer responsiveness requires that an organization’s structure and operating practices evolve so that quick response, variety, convenience, proactive identification and understanding of customer requirements, and flexibility are enabled throughout the organization.
The ability to remain competitive will depend on its ability to capture and deploy customer-, market- and industry-specific information to targeted points in its workforce.
Read Also: 5 FACTORS THAT AFFECT THE LABOR MARKET
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Information Demands
Although CLOs do not always have a strategic leadership role in selecting the technology required to support the organization’s performance needs, it is critical that CLOs take an active leadership role to help identify and define the information needs of employees so they can perform effectively on the job.
This includes defining not only what information may be needed, but also when it’s required and how information should be gathered from employees and fed into the organization’s knowledge management information base.
Increasing emphasis on information demand requires that leaders at all levels help expand information and communication technology capabilities, as well as ensure that information is made available to those who need it on a timely basis. With an increased understanding of information needs, CLOs also will be able to define the competencies required at all levels to improve performance on the job.
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Cost Pressure
As a wider variety of global competitors continue to flood the marketplace, the pressures to remain cost-competitive will place even greater demands on organizations and their employees to work smarter and faster. CLOs are challenged to partner with and convince the executive leadership team to not reduce investments in human resource development even during cost-containment periods.
Increasing emphasis on cost pressure also requires that leaders identify and sponsor targeted global transformation and process improvement efforts to help enhance efficiency and productivity. This will require a great deal of partnering with senior leaders across the organization, helping them incorporate these priorities into their development and operating plans.
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