Recognizing Business Trends and Challenges

Describe four major trends that affect U.S. business today.

     Business, the government, labor, and consumers are four countervailing powers that influence and are influenced by one another. Over the last two decades, the influence of labor has declined, while that of consumers has been on the rise. The U.S. business world has also experienced a shift from manufacturing to services, a geographic shift toward the Sunbelt, the advent of high technology, and increased merger activity.

Explain why the U.S. government sometimes regulates businesses and how business seeks to influence the government.

     Government regulates business in order to promote competition and to help achieve social goals. Recent years have seen a trend toward deregulation, but businesses continue to use lobbying, trade associations, advertising, and political action committees (PACs) to influence government.

Discuss changes in the U.S. labor pool and their effects on business.

     Changing demographics in the labor force have influenced how business managers deal with labor. The most notable of these changes are aging population, more working women, and increased ethnic and cultural diversity. In addition, the decline of labor unions has meant lower labor costs, fewer strikes, and fewer union&-demanded "work rules." More organizations are giving their workers increased responsibility and allowing them greater participation.

Describe changes in demographics and consumer rights and their impact on U.S. business.

     The same pattern of demographic changes that has affected management&-labor relations (see number 3 above) has also influenced business&-customer relations, particularly in terms of the goods and services that customers are demanding. Consumer rights activism has forced businesses to become more sensitive to consumer desires and complaints.

Identify and discuss four major challenges for U.S. business in the 1990s.

     Businesses face a variety of challenges in the 1990s. Foremost among these are the need to increase productivity, the need to regain a competitive edge in international trade and reduce the U.S. trade deficit, the need to control pollution, and the need to harness technology.