Business networking

Introduction

According to Ward (2010, p. 1), business networking is defined as “the process of establishing a mutually beneficial relationship with other business people and potential clients and/or customers.” There are many stakeholders in an organization and creating a good relationship with all people and organizations affected by activities of a business is very important. A business organization exists in an environment where there are different parties. Mutual benefits are generated between a business and stakeholders to the organization. Poor networking systems in a business can lead to inefficiencies and failure in business strategies.

Importance of business networking at the workplace

Business networking is important because is creates awareness about the needs of all stakeholders and provides skills of working with and through people to achieve goals. Opportunities in business can be identified by working with other people. It’s through networking that an entrepreneur identifies important and profitable business ventures in the market. Business revenue is increased by establishing many networks with customers.

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A business is able to identify potential business links as well as creating a good relationship with customers. Potential customers can be identified through appropriate networking and the existing customers can be retained by constant communication and interaction.

New skills are learnt from other individuals and it is through networking that managers are able to identify them. Technology is important in the modern business environment and it can only be acquired from different stakeholders. Integrating new skills in business requires using appropriate technologies and coming up with innovative ideas.

Innovation is an important aspect in the business arena today since competition has intensified and there is need to establish competitive products.

Communication within an organization is effective when there are appropriate networks among all the concerned parties. Communication refers to exchange of ideas and understanding between and among different individuals. As people communicate, they are able to create strong networks and this is of great benefit to the business. There is need to have support from different stakeholders when performing business and effective communication should be enhanced through networking to create understanding with all support centers.

As competition intensifies in the modern market, there is need to come up with products which capture the demand of the costumers. This can be achieved through communication and establishing good networks with the consumers. Businesses working in a cultural diversified environment can operate effectively when they create an effective network with all stakeholders. In the modern business environments, there are different cultures involved in the activities of an organization and there is need to learn the cultural practices of all groups for successful business operation.

Globalization has created an environment where different people from different backgrounds are involved in business activities. Business networking is an important tool that can be used to achieve success in understanding the needs of all cultural groups. Since there are mutual benefits derived from working with people, business networking provides knowledge about dealing with different people.

The negative consequences in the workplace when business networking is not handled correctly

Poor communication in an organization leads to lack of trust between the business and its stakeholders. Trust is obtained when all parties understand all the activities of the organization and this enhances trust among all the concerned parties. As people communicate, they exchange ideas and understanding and hence improve the level of trust. If not properly handled, communication can cause mistrust and lead to failure of many strategies of an organization.

Matching the needs of customers is required in a business in order to have products which have high demand. Establishing good relationships with customers provides with knowledge about the needs of customers and helps design products which are relevant in the market (Hunter, p.1).

Mishandling of business networking leads to creation of products which do not match the needs of the customers. It is important that businesses create products which reflect the needs of their consumers. When there is poor communication with customers, the business may be unable to design products which will attractive high demand in the market (Hunter, p.1).

Implementation of strategies in an organization cannot be achieved without appropriate communication channels. Strategies refer to policies that an organization intends to achieve within a given period of time. Poor networking channels can lead to poor understanding of the goals of an organization. The vision of an organization provides with the direction in which managers intend to take its business.  Strategies to achieve the vision are implemented by networking with all concerned parties. Cultural conflicts are experienced when a business fails to establish a system of interaction. Cultural conflicts can only be solved by establishing networks with all stakeholders especially when working in a multicultural environment.

An example describing negative or positive experience in the workplace regarding business networking

Lisa runs a hair dressing business in the nearby town and she serves many clients. She started operating the business a few years ago and has achieved a great number of customers through networking. She has improved her customer service after establishing networks with different stakeholders in the market. She has diversified her products to match the needs of her customers. This has been enhanced through networking with different customers and other related business enterprises. Lisa has been successful in networking with all classes of people and has segmented her market according to the characteristics of each class of customers.

The experience from making this project/research

The experience generated from making this project is that relationships in business are very essential and that effective communication is of great importance in any organization. As a business expands its operations, it requires exchanging ideas with different stakeholders in order to have success in operating its activities. Interaction with customers and other stakeholders is achieved through communication and a business manager should establish appropriate communication channels. Understanding the needs of consumers is of great importance and the manager should create networks by interacting with consumer groups to identify their needs. Trust within an organization is built when effective communication is enhanced (Hunter, p.1).

Conclusion

Business networking is a very important tool in the modern business environment. All stakeholders to a business are connected to each other through networks. Communication provides understanding in an organization. Business opportunities can be identified through appropriate networks. Business networking should be established on the basis of gaining mutual benefits among all the stakeholders.

Business managers build trust through communication with all stakeholders. Business networking enhances understanding among all stakeholders in an organization. Working in a cultural diversified environment requires understanding the needs of each group and incorporating. Business networking helps understanding the cultural diversity in a business environment and eliminates conflicts between different stakeholders.

Works cited

Hunter, M. (2010). 22 Tips to Use at Your Next Networking Event. 2010. Retrieved 14 August 2010 from;

<http://sbinfocanada.about.com/od/networking/a/networkingtipmh.htm>

Ward, Susan. Business Networking. About.com Guide, 2010. Retrieved 14 August 2010 from;

<http://sbinfocanada.about.com/cs/marketing/g/busnetworking.htm.>