In this essay I am going to discuss recent changes of production in a global environment, and based on these changes, explain how business leaders will have to change in order to thrive in the next four years.
Global production is the creation and assembly of components to make a finished product that will be exported to multiple different countries (Investopedia, 2016). The ability to adapt as a manager is crucial, as 21st century business leaders are currently working in a complex environment of constant change (Tamkin, 2016). Global production is always being innovated and developed to make it more efficient and to cut costs, therefore leaders of companies must always be up to date with current affairs. Offshoring is the relocation of different sectors of a company, relocating to less developed countries with lower …show more content…
One major political event that occurred this year is the UK leaving the European Union (EU), which will mean the UK will lose its access to the Single Market, significantly effecting production both in and out of the UK. By leaving the Single Market, the government have made it costlier for UK based companies to trade within Europe, which has indirectly encouraged leaders to leave the UK and relocate to other countries. For example, the children’s toy manufacturer Smiffys has decided to leave its Lincolnshire office and open its new headquarters in the Netherlands. This was a necessary move for the company, as the EU accounted for 40% of sales and the uncertainty of the situation had already caused them to sell less (Rodianova, 2016). Over the next four years leaders may need to relocate to other European countries to continue to thrive, as cost of sales may increase if they stay with the UK. There may also be benefits for staying, however due to the uncertainty of the situation, it is more likely large companies will thrive
Global production is the creation and assembly of components to make a finished product that will be exported to multiple different countries (Investopedia, 2016). The ability to adapt as a manager is crucial, as 21st century business leaders are currently working in a complex environment of constant change (Tamkin, 2016). Global production is always being innovated and developed to make it more efficient and to cut costs, therefore leaders of companies must always be up to date with current affairs. Offshoring is the relocation of different sectors of a company, relocating to less developed countries with lower …show more content…
One major political event that occurred this year is the UK leaving the European Union (EU), which will mean the UK will lose its access to the Single Market, significantly effecting production both in and out of the UK. By leaving the Single Market, the government have made it costlier for UK based companies to trade within Europe, which has indirectly encouraged leaders to leave the UK and relocate to other countries. For example, the children’s toy manufacturer Smiffys has decided to leave its Lincolnshire office and open its new headquarters in the Netherlands. This was a necessary move for the company, as the EU accounted for 40% of sales and the uncertainty of the situation had already caused them to sell less (Rodianova, 2016). Over the next four years leaders may need to relocate to other European countries to continue to thrive, as cost of sales may increase if they stay with the UK. There may also be benefits for staying, however due to the uncertainty of the situation, it is more likely large companies will thrive