Market-Oriented Approaches to Firms

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Market-Oriented Approaches to Firms As world markets become globalized, heightened competition and uncertain economic and social environments pose significant new challenges for firms. It is important for firms to develop management systems that have the capability to react quickly to change and that promote innovation. Competitive advantage lies with those firms that have adapted to become learning organizations with the capacity to constantly monitor external environments to swiftly respond to change (Kauppila et.al, 2011). Today's most successful firms favor information and knowledge, function under less hierarchy and value team production over the management systems of the past era of mass production (Calerio, 2008). Those systems relied on top-down direction, which greatly limited agility in decision making. Today, global markets demand greater flexibility and on-the-spot decision making. The answer then becomes access to relevant information the more knowledge the firm has, the more capable it becomes in regards to outpacing competitors. Firms today can benefit greatly from market-orientations. This allows for greater flexibility in generating and integrating crucial information into the business. Internal structures and systems that have the ability to process knowledge from external boundaries can positively influence internal responses to marketplace changes and requirements, dramatically improving the ability of the organization to learn and adapt (Malmgren,
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