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Changes in the Business Environment in 2003

Business Environment. low angle photo of city high rise buildings during daytime
Business Environment. Although this topic may seem repetitive, it cannot be ignored because of its importance in the European marketplace. I am referring to changes in the way companies buy and deal with their suppliers, as well as a new approach to commercial dealings with customers.

To this end, it would be necessary to start with some basic starting points, as a complement to the requirements necessary to compete successfully in rapidly changing markets.

We must never forget:

It is the customer who pays.
We must have the necessary focus to satisfy our customers.
Knowing how to coordinate the commercial movements within a company so that a salesperson has the necessary margin for decision making, which implies a certain degree of flexibility in any organization.

For this it is necessary, and essential, to a level of training at all levels. The whole team of a company must know what to do, how to do it, and in which area to move.

For this it is necessary to make an analysis of the current situation, with this we will know the characteristics that our commercial team must have and act in accordance with the situation and the environment that surrounds us; ENVIRONMENT, MARKET, DECISION MAKING, CONSUMERS.

Next, we will analyze these points of interest.


We find ourselves more and more in an aggressive and growing market, only the best is sold, customers are more and more demanding, and quality is forced to be a necessity. All of this is the result of rapid advances in processes and management, as well as technological improvements. This leads us to greater specialization in those segments that require a greater sharpening in their environment.


Market segmentation is clear. This does not mean that the current market is smaller, on the contrary, it is becoming larger, more specialized, more diversified, with greater purchasing power, more choices, and more regulated, where above all it must be taken into account that USER SATISFACTION is a priority.


The decision-making process must take into account that the customer is not only buying a product but also a company and a human team. The purchase decision is a combination of decision makers such as the prescriber, the buyer, the decision maker, and, increasingly, the consumer.


This point, which used to be neglected, is increasingly the result of analysis and study. Consumers have changed in their social and consumption habits and, above all, in their buying habits. Education determines a more sophisticated demand and lifestyles condition new values.

As a result of these changes in the business environment, we can conclude that today it is necessary to give an important turn to the commercial strategy of companies. This means

To have a more flexible organization, less compartmentalized, with higher levels of responsibility, better prepared and informed, but above all in search of quality. This should not be a goal, but an attitude that reflects the spirit of the human team behind each person.
A structure that is not rigid, that allows adapting quickly and flexibly to changes, with a less formal definition of personnel, but with a greater weight in the responsibilities assigned, to a system of low salaries and high incentives.
Changing the concept of the product to total product price, i.e. service.

In future articles, we will analyze in detail how to carry out all these processes successfully.

To change a sales organization, it is necessary to correctly define and take into account the working methods, characteristics and functions of different sales teams:

The direct cost per salesperson increases due to the decrease in the number of visits per day, salary increase and less working time.

There is a need for greater decision-making capacity in the team. The growing problem of profitability and a changing environment make it necessary to move towards more decentralized management rules and methods, always within limits and without neglecting the company’s mechanisms.

For this reason, Sales Teams tend to have greater commercial autonomy, which implies greater technical preparation.

For all these reasons, Sales Teams need continuous training and professionalization, taking into account the following points
a.- Management techniques.
b.- Product and company knowledge.
c.- Personal attitude.
From the above, we can see the need to transform the characteristics and management methods of sales teams based on
a.- Structure
b.- Functions
c.- Profiles
d.- Working methods
e.- Sales techniques
f.- Sales management evaluation

All this analysis will influence the need to make the whole company aware of the need to provide customer service, both INTERNALLY (employees) and EXTERNALLY (consumers).

In creating more decentralized, simple, flexible, and operational organizations.

In changing organizations without rigid structures, where the whole company is involved, SPECIALIZING in smaller and operational groups.

In a structure with internal marketing focused on the employee and another increasingly focused on the CUSTOMER.

In an increase of promotions instead of advertising elements. In a migration to transfer the marketing philosophy to the sales department.

From what has been said in previous issues, we can summarize:

* That we are in a period of profound and constant change.

* That it is possible that change is frightening, but that it is necessary to take action rather than being passive spectators.

* That it is important to be aware that companies are made up of people, and if they do not change, nothing will change.

Structures that are not improved are immovable and therefore invalid. Competition, distribution and, above all, consumer habits are changing, so distribution structures must change.

This means that in order to adapt to the dynamics of the market, they must

– Decentralize.

– Be simpler and more flexible.

– Be more agile to be more operational and efficient.

The strategy of the future must focus on the relationship with customers and with the company’s own employees, through a more direct involvement in strategic and organizational tasks, which implies a greater orientation towards the customer.

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