1. Describe the FOUR (4) challenges that faced by business organisations today.

(12 marks)

Globalisation
- Nowadays, most organizations have been globalized across the world. - expand overseas
-This also means Market competition has been very fierce.
-Increased competition in the market might bring negative impacts to the local firms,
especially when highly competitive foreign firms enter the local market.
-This might increase company pressure in the aspects of improving company products in
order to be superior to the competitors and the pressure in employment, competition in
employing different backgrounds of talents by proposing attractive salaries and friendliness
working culture to them.
-Therefore, for a company to survive in such a market, companies need to observe and be
open-minded to learn from the competitors and understand the different national cultures to
ensure the products offered are acceptable in different markets. – localization

Technological change

-With the improvement of science and technology, the Internet has gradually become an
online marketplace that allows every business to promote their brand through social media
and sell their products online.
-It is definitely a golden opportunity for every business to save a great amount of costs
*Efficient to enter a new market.
-However, there will also be a new challenge for some existing businesses to learn how to use
the newest technology and software to manage their business. *4G - 5G network
-For example, businesses might need to know how to use the technology to develop a brand-
new product, how to sell their products online, and how to distribute their products while
receiving orders from their online store.

Knowledge Management
-Organizations need to keep finding, unlocking, sharing, and capitalizing on the most
precious intellectual resources of an organization, which is a worker’s expertise, skills,
wisdom and relationship.
-Most companies might have a lot of talented and knowledgeable workers that have great
expertise or proficient skills in certain areas,
-but how to discover their ability among the new and existing employees and how to locate
them into the right place is always one of the major challenges for every company.
-Additionally, managers should also need to give appropriate motivation and rewards such as
promotion or increase salary in order to retain the knowledge workers. * X carrot and stick
approach
-Which method is effective? - Face to face (feedback & nonverbal msgs)

Collaboration across Boundaries

-Collaboration can also be defined as the productive communications among different

departments and divisions. *Integration
-It is always important for companies to allocate every worker from different departments to
collaborate together in order to make sure every worker is able to walk into the right path to
achieve the same goals in a more effective and efficient way.
-Collaboration allows different knowledge workers to share different views of perspectives
and it can always facilitate brainstorming and generating new creative ideas from different
backgrounds of workers.
-Hence, a manager can regularly organize team building activities to facilitate communication
among every worker to build a strong team relationship or the manager can try to involve
different workers from different departments to accomplish a specific task or project together.
-Which firm practices this effectively? - Toyota