Chapter 1 Budgeting and Financial Planning Part 1 context of use and Purposes of Budgeting 1.1Â External drivers of change Todays business environment is a military man of never-ending change. In recent years, its pacing and magnitude make up been accelerating, livery ever greater challenges for organizations. Social, economic, technological, and policy-making pressures be bringing greater rivalrous opportunities and threats to businesses. And the demands of their stakeholders (the sh atomic number 18holders, customers, suppliers, employees, and society) are as well as increasing. These immaterial drivers of change are the forces that are shaping the strategies and murder of modern businesses. External drivers of change are beyond the break up out of any single market player. You need to identify the outside(a) drivers relevant to your companys market position. They are the forces and context which will mildew your companys strategy. Focusing on external dri vers will ensure that your strategical responses will make the greatest impact and will also define where information is needed. Each year new markets are blossom outing and existing markets are growing. Globalization is a major(ip) driver of change in markets.
It is the opportunity for businesses to expand their activities end-to-end the world and take advantage of wider customer bases, economies of scale, and other war-ridden advantages. But it also means that existing markets are well-defined to challenge from any global competitor. Today, it is no longer replete to be the best in your locality. In the l ong run, pick depends on companies achievin! g and sustaining world-class performance. Globalization enables and drives the need for larger proceeds ranges and more(prenominal) frequent product introductions. It also enables the competitive advantages associated with different geographic areas to come into play. Competitive advantages may include more readily available raw materials, particular expertise, or dirt sporty labor. These may outweigh the advantage which indigenous...If you want to get a full essay, order it on our website: OrderCustomPaper.com
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