What Is Change?

Business is defined as the manufacturing or sale of a good or service in order to meet the needs of consumers and to produce profit. This definition is constant even though the marketplace, where business is carried out, changes as time goes on.

There are three main factors that will cause change to occur both in the domestic and international scene: New Technology New Processes New Attitudes

New Technology Change can sometimes occur due to new inventions or innovations that are introduced into the marketplace. Whether a product is an invention or an innovation, in general, new products are often introduced into the marketplace where they will displace existing products.

New Technology The business or individual who owns the technology can protect the invention by patent and use it exclusively. The inventor can then license the invention to others for a fee (percentage of sales). Therefore, licenses, copyrights, and patents are very valuable property that companies may purchase in order to protect their products from competition.

New Processes New processes are usually the result of technological changes and can occur in many areas.

New Processes Manufacturing Accounting changing how something is made usually makes that product faster, better, or less expensive. Accounting new systems and programs allow instantaneous reports for profit, inventory values, investment activity, and other financial data. This type of analysis can be used to make business decisions.

New Processes Distribution technology has allowed consumers and businesses to order goods or services directly from the seller. Word processing, e-mail, and Internet have helped businesses deal with their consumers directly. Many businesses have websites where consumers can visit and see what inventory is available. Companies like FedEX and UPS ensure products are delivered on time.

New Processes Inventory Control technology has allowed retailers and manufacturers to keep track of their inventories and raw materials on a perpetual basis. As an example, "just in time" (JIT) inventory systems control the amount of inventory (raw materials, supplies, parts, and merchandise) needed when it is needed. This is cheaper for the business.

New Processes Marketing market research now includes techniques such as data mining (connecting specific customer characteristics to their purchases). This technique can predict when a customer will run out of a particular product. Competing businesses can try to capitalize on this opportunity and attempt to sway a customer to purchase their product (say by sending a coupon in the mail).

New Attitudes Consumer’s attitudes and views change constantly. Over time, people’s values change causing changes to occur in the marketplace. Some changes are fads or trends and others are long term.