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At a Glance

In today’s blog, we will learn about business variation, the types of changes a company has to adopt, such as social changes and technological changes, some terminologies like Business leadership and uplift of society.

The following block diagram shows you a road map that will help you to understand the blog completely.

leadership , uplift ,Mundus 2035 , mundus 2035, Business , society ,social changes , Technological changes.

Introduction to Business variation

I the previous blog, we saw how incremental substitutions are spread all across the systems. The thing that aids the spread is business.

The general understanding of business many people get comes from the names they see on TV. The flashy Business names making headlines make them believe that business is money-making machines. But in reality, more than 30% of the newly started business don’t last for more than two years. Next to 50% don’t last for four years, and next to 60% don’t last for more than ten years—the newly started but many businesses that have survived for more than centuries forced to close down. Many big names are not safe. However, This means these businesses which created to make money ended up losing money.

Only the successful business makes the headlines, and their success stories glorified are all over the place, making people believe that it is effortless to open and run a business. But if closely observed, the story is the other way around. Business owners have to adapt to the changes that are constantly happening. Business executives work more than all the employees and have a significant risk involved at their end. It looks easy to run the business from the outside. The companies that cannot adapt to the changes don’t survive, but the company that adapts to the changes become successful.

The types of changes that companies have to adopt are as follows.

Social changes
Technological changes

Social changes

When the television sets introduce to the market, no one knew how society would react. It was mainly brought to aid and improve the entertainment part of the society. Before the television sets, many companies use to sell newspapers in millions per day. There were many giants in the news industry newspaper of sale. The newspaper industry was so good that even many small companies did well. But people started watching the news on televisions, and the sale of the newspaper feel like a crashing plane. The companies selling millions of copies per day were now unable to achieve the exact sales figures even for a month.

The television made news circulation easier and less costly than printing them—the companies who saw the change adapted to it did not become bankrupt. If we roll the time a little forward, we see that the news circulated on social media apps. The television media houses are falling behind. Most of the information travels faster on these apps, and people prefer to use these platforms. The cost of working has also reduced drastically. Here we are not worried about the well-being of the companies. The critical part is the improvement of society. We saw the things happening for society in a much cheaper and efficient way, increasing the quality of life with the same or fewer resources.

Technological changes

To understand this, let’s take the example of Bosch Company, a powerhouse of the mechanical industry. The most important product of the company is fuel injectors, the one who started the company. The company has been dominating the sector for quite a long time. With the improvement in technology of electric cars, norms imposed by the government to save the environment, the struggle for the giant began.

The government has stopped using diesel engine cars in India, hence affecting the sale of fuel injectors. And with the introduction of electric vehicles, traveling in a car is much cheaper than in petrol and diesel cars. The company has already started considering its option. It is now focusing on new products like washing machines, utensils washers, etc. Employees removed, and a few plants are also being closed by the company. Such changes are occurring in all sectors. The adjusting or changing ones are the ones who survive.

Business leadership

Nokia was a giant in the mobile industry. But there came a time when the top management had to make some decisions due to changes in the operating systems, OS. The OS for smartphones had developed in the market, the old OS that Nokia was using had to be changed. In the beginning, the management of Nokia decided not to change the OS. But after some time looking at the improvements offered by the new OS, they decided to change. When they decided to change the OS, they had two OS options.

One was windows, and the other was android.

They went for windows OS. And another company named Samsung, which is a big company today, went for android OS. The Android OS was easy for users and was an open platform. The windows were not that open and easy to handle, and the ease was necessary as there would be a change.

Nokia management failed to understand this critical insight. Though many suggested they go for Android OS, but they haven’t done that. And the giants feel on its knee so fast that no one could believe it. Before closing the company in their last press conference, they cried while announcing the company’s situation.

Blackberry was also a giant. But it used to give keypad, which was very successful with their earlier phones. The new smartphones were giving touch screens. Samsung and all the other companies provided the touch screen. But the blackberry failed to understand it. They continued with keypads. When they finally decided to give a touchscreen, it was too late. Top management decisions can make or break the company.

The Uplift of society

We saw how the various factors affect the business. But here, we are not looking at the profit or loss of the business. We have to know that it was the uplifting of the society in every time that mattered. When giant companies like Bosch, Nokia, and blackberry fall, we see the competition was making something better or cheaper or both together than them, making society a better place. If we look across time, we can see many giants rise and fall.

For example, from 1920 to 1960, A&P Company was the retail king. Now it’s Walmart. In as simple as retail, we see the rise and fall of the business. The reason behind it is insights. Due to automobiles after 1960, people were ready to take more groceries home than earlier. And also refrigerators helped to store. Supermarkets gave many places to park the vehicles and allowed them to carry many goods at one go.

It was cheaper to make one 100$ bill than making ten 10$ bills. A&P was reluctant to change. Their stores were in a crowded city with no parking, which meant the customer could not carry large goods, making it costlier. But what is essential here the society got more goods at cheaper rates. Even such simple correct insights can be a big deal.

Knowledge is a rare resource. And right insights from that knowledge are even more occasional. No matter how powerful the competitor is, they are not powerful than the right insights. Many examples are present in history. The company fires its member to give the right insights, and the member goes on to make other companies or own companies super successful. But most importantly, these insights prevail, and society profits from them.

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