Companies today are faced with a host of issues, which may cripple their functionality, or in some extreme cases render the organizations obsolete.
These challenges are dependent on the nature of operations of the company but broadly, there are common challenges, which are faced by a majority of organizations.
- Technological advancements today are on the increase more than in the previous century. For an organization to offer services, which are relevant, cost effective and compatible with society’s needs, modern technology has to be employed. The initial cost of acquiring it, maintaining and running operations using the acquired technology is inhibitive. This is worsened by the short lifespan of most technological innovation which imply that companies and or organizations have to reinvest in current technology frequently so as to sustain their relevance.
Considering that today’s environment consists of the people, who are the recipients of a firm’s services or goods, the fast changing nature of peoples likes, dislikes, preferences, opinions and lifestyles is thus a challenge facing organizations.
- Generational gaps have created a difficulty in determining consumer behaviors, yet most companies are investing heavily in customer behavior analysis to determine the most appropriate way of matching customers’ needs. Coupled with competition, (both fair and unfair) the challenge of making profit has been pushed to only the top notch large scale organizations.
- Unstable economies and currencies are another factor causing constant instability in the running of corporations. Though this has of late been caused by other external factors such as exchange rates, amount of exports and imports and political factors. There has been a relatively high incidence of economic instability in the recent past.
Albeit, national economies are recovering from a global economic meltdown today, most organizations have been negatively affected by the meltdown leading to massive layoffs.
- Frauds and cases of fraudulent or questionable business operations and agreements have been on the increase in the recent past. The custodians of an organizations policy are increasingly bending the organizations guidelines creating loopholes in various systems. This has led to heavier investments in more secure operational systems, to avoid loses created by those who are meant to safeguard it.
It is worthy to note that this has led to more stringent recruitment procedures, which attempt to assess the risk a company invites once it employs an individual. This trend is upcoming and most organizations are grappling with it today. In essence, factors both within and outside the corporation’s environment are continually impacting negatively on the success hence there is need for more efforts to be applied if organizations are to meet their aims.