Business and Networking essay
A business network is social network which helps businesses exchange information. It involves both the social and the economic aspect. Business networking describes the activity of businesses interlinking to share business ideas or cooperating in business activities. There are several Business Networks designed to help business minded individuals and organizations establish new relationships with others for economic benefits.
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Every firm in operation must be associated to one or more business networks to sustain its operation. Many business networks have been establish to stimulate economic integration in the world. This then means there are benefits that a firm can derive from business networking. This paper examines how business networking is established and discusses the benefits and the risks involved in business networking.
Online business networking involves the use of the internet to link up businesses. Good examples include EBay and other potential marketing websites. These companies give information different products offered by other companies. Business networking is vital for operation of any organization. This is because there is no single firm that can produce its products with requiring supply of inputs or equipments sold by another company. For example, a company involved in the processing of tea will require manufacturing equipments which it may not be in a position to manufacture on its own. The company must look for these equipments for the market. On getting the right manufacturer, the company enters a business network with the manufacturer who may supply the company with future equipments if required. The company also needs to partner with other potential distributors who may assist in distributing its tea to potential markets. The tea must also be packaged using containers produced and sold by other companies. This constitutes a business network. There are several forms of business networks which the company can enter to facilitate its operation. Therefore, for effective functioning of a business, it must enter a business network.
Business networking enables companies to explore new opportunities by getting access to fresh information. Sharing of information between the company and potential supplier enables the company to determine the right suppliers to outsource their supplies from. It is encourages companies to take advantage of strategic information possessed by other firms in the industry. For instance; the company is notified of new technologies in the market to increase its effectiveness in performance. Management can also access information from the business networks which can be used by the firm for strategic alignment. Facebook and tweeter are examples of social sites which have changed by many firms and individuals to constitute business networks. There are also several publications for certain business networks for example; Wal-Mart business journals.
Conclusion
Business networking should be used as a tool for strategic change in the organization. Effective business networking requires survey to determine which networks to enter. They can be used to increase the firm’s effectiveness by providing better ideas for business practices. Information and communication technology have changed the nature of business networking. The internet is used to form several social sites in which business individuals can meet and discuss ideas. However, the company’s management should be careful to select only those business networks that will add value to the business. Personal interests using the company’s resources should not be encouraged by management.
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