The evolution of a company and its environment

Extract

[...] For example, the delivery of certain consumer goods could be counted in years but today the delivery of a property can be done in less than a year. The major problem was that production capacity was far from meeting the demand, because potential customers had an average of purchasing power which was relatively high. In this situation, the company had the sole objective of increasing its production, and the client was not a player that the company would take into account in their choices. [...]

[...] The purpose here is to present the mechanisms that lead to the complexity of the business and its environment The company of the 19th century: A simple model In the 19th century the economic landscape was composed of companies whose operation seemed rather simplistic today. In this era, it is virtually reduced to the vision of the plant that must be produced to exist. The purpose of this enterprise is in some respects that of the modern corporation, but the constraints are not necessarily comparable. [...]

[...] The leader is accountable to shareholders and to comply with a financial framework which is increasingly restrictive over time. It is no longer free to make whatever decision it deems best for the company, if they are not approved by the Board and their consequences are not harmful to the image of the company and the financial markets. The company previously was not maintaining a privileged relationship with its suppliers and its customers and it was reflected in a much more complex manner because a dimension had been added. [...]

[...] They cared so little about the desires of their customers and technological research was not a priority The recession of the 70s The seventy years have ushered in a new era for business; oil shocks have influenced significantly the demand and competition has been felt most keenly. Companies have had to change the approach they had in the market and they had to put the customer at the heart of their problems. They were no longer trying to satisfy a demand for higher capacity, but were trying to adjust to a weak demand by anticipating the reactions of the competitors. [...]

[...] If the way we work is affected by these new theories, the organization of the company itself changes very slightly. Its structure is simple and its context is assigned to the first signs of accelerating and technological change. The corporate environment knows, however, some changes due to the internationalization of economies trends to create conditions of competition in the modern sense. Indeed, regional markets in which firms expand until they are evolved through the development of transport that can import and export easier and cheaper goods Finance as a driver of complexity. [...]