Explain any five ways in which managers have responded to changes in a business environment.
Answer: Following are the ways in which managers have responded to changes in the business environment:
i) Strategic alliance, mergers and consolidation of businesses: To achieve the objectives of market dominance, market entry, product ranges etc., the Indian business enterprises are also indulging in mergers, acquisitions, amalgamations and takeovers. Initiative for the same has naturally come from managers of such enterprises.
ii) Diversification spree: Managers are leading diversification of their companies into various fields. For example, Reliance is now also in the business of communications, retail chains etc. Likewise, they are bold enough to diversify into other nations too if the need arises.
iii) Consolidation of multinationals: Many multinational companies have entered India through new joint ventures. For example, General Motors' entry through a joint venture with Hindustan Motors.
iv) Brand Building: Companies are becoming more aggressive towards brand building. Their managers are spending huge amounts on the same. Focus is on securing prime positions for their brands, through creative media-mix, in the minds of consumers.
v) Labor: Managers are changing their behaviour towards labour. Labours have also benefitted through higher wages and other facilities like training to upgrade their skills and job enrichment
