Introduction
In the past as Albrecht & Sack (2010) point out businesses have relied institutional information like accounting to make choices pertaining the growth of a business organization. Traditionally, information would be compiled and analyzed to make a report that would form a basis for decision making. Before the decision was concluded and implemented the business organization consulted expertise for accurate translation of the reports.
This procedure was cumbersome and costly. Besides challenges with the cost and time, obtaining information was difficult for shareholders. The businesses also had to keep up with the competition posed by other players (p. 5).
Ferguson in the first episode Dreams of Avarice of the video series The Ascent of Money reveals that the historical events that have taken place in relation to money are of relevance to understanding the global business environment in the future. He highlights practices that have been used in the past, and are being used and those likely to be used in the future.
Practices such as borrowing and lending of finances, how it grew from shylocks and borrowing to bank loans which led to the credit cards. This essay will discuss the future of global business environment using the first episode dreams of avarice.
The future of the global business environment
The future of global business environment is changing to technological advancement. Information storage and retrieval are advantages that come with the use computerized systems in banking.
The information is also made easily accessible for processing of information and there are fewer error experienced as would have been with paperwork. The cost is remarkably low. It relieves the shareholders of large sums that would be used obtain data.
Information exchange in business
Exchange of information has become easy as digitalized devices have been made affordable to citizens. In addition there are computer programs designed specifically to meet the needs of banking and therefore data presentation as well as transmission is conducted in a straightforward manner.
The use of credit facilities by citizens is an example. The credit cards are used to pay for services or goods on credit. The card bears information about the client’s bank details. During the transaction, information is exchanged, the card is authenticated and then the client is able to purchase goods and services.
The future of the global business environment is universal as Albrecht & Sack (2010 p. 5) indicates. The inaccessible parts of the world are slowly being made reachable through the developments in infrastructure. Roads are being built.
In the past the wars that took place in the world cause major damages to infrastructure and crippled businesses. As a result banking institutions were closed. This is revealed in the dreams of avarice because as it portrays, every war that happened in the world has affected the finances of institutions. Some gain while others loose.
Universalism and Developments and business environment
Developments and universalism has made it possible for people to access both imported and locally produced goods in localities. People can pay overseas products recognized universal credit cards.
Into the bargain, developments in transport system have contributed to the completion of companies to sell their product to possible consumers. The competition is going to be more advanced because recent developments make availability of information accessible to those who need it and those who do not.
Financial institutions and business environment
The banking system is not immune to this competition and the free flow of information. The financial institution whether private or state owned will fight to dominate the consumer market as evident in Ferguson dreams of avarice.
Competitors have information about other financial institution such that the slightest changes would be detected immediately and measures of correcting the alteration be employed within the shortest period possible.
The global business environment is dominated by the power that also controls the economy. The dream of avarice shows them that power is concentrated among few financial institutions that set the pace for the rest. To improve the financial income, an institution can borrow and expand its range of services to improve on the income. Borrowing is therefore seen as an inevitable to realize the dream of being a millionaire.
The powerful financial institutions set the ladder for competition so high so that they maintain their superiority. The borrowing firm must conform to the laid down instructions of the company that lends as it has always been. The powerful institutions led to gain more revenue as the get interests from the lending.
The client’s needs are taken as the priority in organization. The goals and objectives of the company major on customer satisfaction. In order to make huge profits, the organizations must meet the client’s needs adequately, efficiently and effectively. For instance, client’s instant solutions and the credit card are widely used.
They can purchase utilities and pay for them later. In this case, the client will use their credit card to purchase goods and services on credit and pay later. The credit is given without collateral. Credits are given on the assumption that the client will pay. The process involved in paperwork on borrowing and time are eliminated as the credit card brings a lot of convenience.
The future of the globalised business environment will have fewer people trained in the financial accounting as new software being used has replaced them. Thus there is going to be few experts whose main task will be to invent computer software that can be used to for accounting and financing.
Using their expertise they can make large sums of money after they establish their business. The dreams of having a lot of money is the driving force of many and therefore people are determined to make money at the slightest opportunity.
Share holders will invest only in the dominant institution as they are assured of making revenue if they invest in organizations that have the power. This is because over time business theories that have been used in the past have become outdated and investors would wish to make millions by investing with those who dictate the market (Albrecht & Sack, 2010, p. 7).
In future, the banking industry is likely to modify its strategy in order to make use of short term opportunities. These opportunities last within a specific period favored by certain conditions and the organizations can make a lot of money. This environment requires administrators who make accurate choices within the shortest period possible. Decisions made consider the option that will lead to maximum benefits in order to gain the millions.
It is possible for other financial institutions to emerge. They bring with them new innovative of ideas making the competition steeper. The new companies meet the wants of the customer as they use available information as well as research to come up with the new ideas.
The existing companies modify their services not to lose clients. The main purpose of creating other institutions is to make services available to consumers and get revenue in the competition. Competition benefits the client because they receive quality goods and services. For instance credit facilities enable clients to expand their businesses.
The future global business environment will require experts who are conversant with the modern systems of business. Accordingly, new careers will emerge. They will be capable of working in a dynamic and changing world that is full of contest. For this reason, they will be responsible of helping the organization survive from unpredictable market trends. These risks will require specialized business deals like contracts.
In future technology will be much advanced. New software’s that are created after a short period are likely to be more superior. As already observed, technology has reduced the bulkiness that was experienced during storage of data. In the days to come, data will be stored in storage devices that are small in size offered by banks become outdated within a short time (Albrecht & Sack, 2010, p. 9).
Employees will be recruited for shorter contract in the future global business environment. The competition in the markets make product last for a short time. Workers thereby live with job insecurities because projects taken on contracts can only be extended only if they are relevant in the time and bring income.
According to Albrecht & Sack (2010) risks in the globalised business environment can be a used in a business to be successful. The important thing is to be able to manage the risk. The risks are evident in contracts that are made without certainties of returns as well as the credit facilities given to clients (p. 9).
The future global business environment will have different mechanisms of administration and strict controls in the finances. The traditional budgeting process and the procedures used making future plans will be abandoned. This is due to the nature of the market which is constantly changing.
To be able to maximize on profits, the organization must make the arrangement for raising capital for a new project flexible. This is because delays in allocation of resources of a certain service might lead to loss of clients and loss of profit.
Products such as bank statements have been replaced by technology and financial institutions must quickly change to the use of technology to give statements online like other banks.
Consequently, the bureaucracy in organizations will be faced out as devolution in management is being adopted in the global environment. Therefore decision making and implementing changes will be made in time. Furthermore, management information will be available to more employees.
Conclusion
The dreams of avarice have always guided the economic actions of financial institutions. Over time people have formed revolutions and even gone to war with a motive to accumulate wealth. As an initiative to develop institutions and individuals have borrowed money to expand and increase their wealth. In the modern global business environment there are changes that will lead a global economy.
The future will be dominated by the use of technology to make it possible to acquire money easily. There are also short term contracts that capitalize on opportunities in the dynamic environment to make profits. Consequently, experts with understanding about the dynamic environment will be used to make quick and accurate decisions.
Reference List
Albrecht, W. S & Sack, R. J. (2010). Accounting education series. Accounting Education: Charting the course through a perilous future, 16 chapters 2. Retrieved from: <http://aaahq.org/>