Lesson 14 of 14 · free to read
Current trends—aging workforce, increasing diversity, global energy demands, and competitive strategies like relationship management and strategic alliances—are reshaping the business environment.
In 2017, millennials made up more than 40 percent of the U.S. workforce, and over 44 percent of them identify as something other than white. That shift is reshaping how companies hire, retain, and compete.
The idea
Aging workers, a more diverse workforce, rising global energy demand, and competitive strategies like relationship management and strategic alliances are reshaping the business environment.
The U.S. workforce now spans five generations, from recent college graduates to traditionalists in their 70s. Older workers bring experience, while younger workers tend to be experimental and open to risk.
Diversity and inclusion are becoming key corporate strategies. Women continue to make progress toward management, though fewer than 5 percent of Fortune 500 companies have female CEOs. The most successful organizations recognize diversity and inclusion as part of their ongoing strategy.
As standards of living improve worldwide, energy demand rises. Emerging economies such as China and India need energy to grow, and their demand pressures world supplies and prices.
Vocabulary· 2 terms
Relationship management includes supply chain management, which builds strong bonds with suppliers, and relationship marketing, which focuses on customers. Long-term customers buy more, take less of a company's time, are less sensitive to price, and bring in new customers.
Strategic alliances can take many forms. Some companies partner with suppliers who take over much of their production—Nike, the largest producer of athletic footwear, does not manufacture a single shoe. Others with complementary strengths team up, like Harry's Shave Club partnering with Target to boost sales and brand presence.
The competitive strategies companies use
Recap
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Adapted from Introduction to Business, © 2018 OpenStax, Rice University
Lawrence J. Gitman, Carl McDaniel, Amit Shah, Monique Reece, Linda Koffel, Bethann Talsma, and James C. Hyatt
Licensed under CC BY 4.0. This course is an adaptation, not the original work.
Access for free at openstax.org/details/books/introduction-business