Understanding of Future Trends in Management of Businesses

An understanding of future trends is critical when it comes to the management of businesses and organisations operating in an international context. Having learned to understand and determine the direction of the trend, the company will be able to predict price fluctuations and make a decision about opening or closing a deal. In addition, understanding future trends will allow businesses to be better prepared to the changes that are impacting the way they operate.

As a matter of fact, trade has become an incredibly important part of not only organisations operating in an international context, but also transition country economies (Mrak, 2000). A trend is the general direction of a market, which was formed within a certain time period. As a result, “trends have partially become a strategic tool for new product planning” (Ayudhya, Boonla-or, & Piromyam, n.d., p. 2). Often, the term “trend” is used as a synonym for this concept, which can be formulated as the most likely direction of price movement in the future, determined on the basis of its previous and current state. In both cases, the key element is directionality patterns, which are the most important aspect of forecasting price movements and trade in general. Their purpose is to make a profit based on the change in the value of the asset in a pre-selected direction. One of the fundamental laws of technical analysis states that the price movement is directional and subject to trends. Contrary to the opinion of many people who are not engaged in trade, the market is not as chaotic as it may seem. And this is exactly what is approved by the law above. Due to the directionality of price movements, it becomes possible to analyze, predict and make successful trading decisions. If the market were really so chaotic, then there would not be a lot of successful traders who could methodically make a profit for a long period of time. Understanding and competent use of such a basic concept as a trend is the first condition for the formation of a holistic vision of the market. As a result, incorporating trends into products and services is becoming more and more essential during the last few years. In this regard, Ayudhya, Boonla-or and Piromyam (n.d.) admit that “the condition of post capitalistic markets, with global competition, market saturation and fast product obsolescence has given new importance to customers or users and their needs as a source for construction of product” (p. 2).

A huge number of indicators, trading strategies or graphical models are all based on fundamental concepts, knowledge of which is extremely important in order to fully utilize the potential of the above instruments.

It is possible to distinguish the following trend categories:

  1. Ascending – may also be referred to as upward or bullish – indicates a situation where the market is growing.
  2. Descending – can also be called downward or bearish – indicates the fall of the market;
  3. Horizontal – you can hear such concepts as flat or side – in this case, the vertical movement is not observed as there is a change only in the horizontal range.

In addition, it is possible to draw attention to the fact that both long-term and short-term trends do not end unexpectedly. This question is very important, because most of the trends are developing in a specific pattern, which consists of three major phases:

The first phase is cumulative and is referred to as the nucleation phase. During this period, investors and participants actively buy and sell financial assets. Such actions create false breakdowns on the chart, imitating flat. This situation is provoked by increasing volumes. At the moment when a single decision will be made between the seller and the consumer, satisfying everyone, there is a breakthrough in the trading range and the formation of the second phase. The second phase is the distribution and is called the phase of development. Everything happens at the moment of an active downtrend or in a period of ascending. An increasing number of participants are beginning to act actively, with the result that short corrective and long-term impulsive actions appear on the chart. Some participants of the exchange fix their own positions, others act oppositely. However, the trend continues to grow, because this volume is not enough. The third phase – the completion phase means that the price has reached the highest index and the major participants fix positions and withdraw funds.

Logical thinking alone is not enough for successful advancement in life. From time to time it is necessary to include critical thinking, which allows us to assess the accuracy of the information received. A person with well-developed critical thinking cannot be manipulated, since he or she is able to assess any situation and think purposefully and objectively.

Today, critical thinking technologies have become a trend. States, companies, workers with their help increase their competitiveness. Citizens are protected from information wars and manipulations by politicians and advertisers. Critical thinking is characterized by the search for negative problems, difficulties in solving various challenges, evaluating phenomena with negative consequences, sometimes exaggerated attention to shortcomings. This type of thinking is often inherent in managers, because it contributes to the establishment of contradictions, the recognition of problems. In general, science begins with healthy skepticism, with a lack of confidence in absolute knowledge, an indisputable position. But at the same time, skepticism is also the “cheapest” kind of mind. It is not difficult to deny, it is more difficult to assert. Sometimes it is easier to see problems than to find means and ways to solve them. In this connection, French and Tracey state that critical thinking is a person’s ability to “establish clear and logical connections between beginning premises, relevant facts, and warranted conclusions” (as cited in Kunsch, Schnarr, & Tyle van, 2014, p. 404).

In the face of constant change, limited time and ever-increasing information, the ability to think critically is a vital necessity. In this regard, this skill becomes a key factor among employees. Critical thinking skills are basic and without them it is impossible to get a good education or, especially, a job. As it is stated “critical thinking skills are vital in the move from industrial society to increasingly complex decision making in work as well as coping with the pace and scale of change in technology and work” (Critchley, 2011, pp. 5-6).

In order to make effective decisions in business, it is necessary to possess not only concrete means and methods of solving problems, but also to understand everything you do and why, that is, to develop critical thinking. As a result, critical thinking plays a significant role when it comes to utilizing the information on future trends for management purposes. This type of data can help managers expand their capabilities in negotiating, concluding deals and promoting sales.

In addition, critical thinking techniques can be helpful when it comes to dealing with the direction for the development of staff competencies and better understanding of the competitive advantages of organizations, which form critical thinking skills among employees. The more companies in their arsenal have the tools for personnel management, the more effectively they can move towards their intended goals. And one of such tools in business can be critical thinking.

In accordance with the methodology of critical thinking, a person should thoughtfully read all the materials related to a particular topic, and then analyze the data obtained. The method of developing critical thinking is based on three stages of material processing: challenge, understanding and reflection. At the first stage, a person collects all the knowledge that was obtained earlier, looks for flaws in them and determines whether additional information is necessary. At the stage of understanding, analytical work with the text takes place. This can be helped by the compilation of tables and diaries, in which one can note the level of understanding of the information received and specific facts. At the stage of reflection, knowledge reaches a new level and is applied in practice.

At this point, the person can already form his attitude to the text and discuss it with others during the discussion.

This includes not only written materials, but also speech, video and audio recordings.

As a matter of fact, “teaching critical thinking skills through argument mapping applied to management cases can be successful in a business context” (Kunsch, Schnarr, & Tyle van, 2014, p. 409).

Critical thinking in professional and everyday life contributes to more accurate work, helps to separate the important from the secondary and effectively and quickly solve problems. In addition, with the help of critical thinking, it is easier to find a common language with other people, not to succumb to provocations in disputes and to avoid other unpleasant situations in dealing with others. Also among the obvious advantages of developed critical thinking is attention to detail and observation, the ability to think analytically in all situations of life. A person who possesses critical thinking automatically acquires other important skills. In particular, he or she is able to logically convey his or her thoughts, be persuasive in reasoning, correctly interpret data, make the most effective decisions, and so on. In the modern world, developing critical thinking is especially important. It helps to filter the numerous information that we receive daily from the media, advertising, social networks and in person. To better navigate the information flow, it is easy to distinguish truth from falsehood, you need to compare and critically evaluate data from different sources. This does not mean that it is necessary to question everything, to doubt everything. However, thanks to critical thinking, a person is able to form his own point of view, alternative and independent. He or she can look at the situation as a whole, understand where he is mistaken, and change his position based on arguments or facts.

Now let us talk about the advantages of critical thinking:

1) Improves language and presentation skills – it is no secret that the modern world and business are obsessed with new ideas. There are so many of them that it’s hard to guess which ones will work. But one thing we know for sure: a competent presentation is capable of selling an idea. When you think clearly and systematically, the level of speech, and hence the level of presentation skills, increases: the ability to systematize a huge amount of information and express it in several meaningful sentences; 2) promotes creative thinking – good quality is not even inventing several solutions to a problem, but choosing the best one. You weigh the pros and cons, analyze the likely consequences, based on the available information and suggestions, and then stop at the best option; 3) allows you to make the right decisions. Economists and marketers have long realized that man is a non-rational being. And with might and main enjoy it. When you learn to think critically, you will make the adoption of many household decisions more conscious. Whatever it is concerned – buying a new smartphone or food; 4) it is critical for self-reflection – a person lives in accordance with his values, priorities, goals and decisions. All this allows in any situation to act deliberately and not to react automatically to the first stimulus. Critical thinking can form the right self-esteem. You will not go to extremes, but rather assess your strengths and weaknesses adequately; and 5) increases communication skills – sometimes it is important to prove one’s point of view or question the argument or criticism of another person. If you fall under the action of emotions, you can talk nonsense that will spoil the reputation. The ability to think critically should protect against this. Even when you decide to stop using logical reasons and communicate with empathy, this is your rational and balanced conclusion that can be applied both in oral and written communication (Critchley, 2011).

Taking the above-mentioned information into consideration, it is possible to draw a conclusion that the eternal dream of any trader comes down to knowing what will happen to the market in the future. All this is for the sake of one single goal – to look into the future and make the right choice now. Graphic analysis with its rich history has not receded into the background, has not lost its relevance in the age of total prevalence of computer technology and mathematical sophistication. Its availability and simplicity encourage some to say that all this has not worked for a long time, that this method of analysis has outlived its own and should give way to more modern, fresh methods. But the classic graphical analysis still brings profit to traders all over the world, while its opponents invent another formula, analyze data arrays and try to create something perfect by trial and error. Understanding of trend movements, independent building of interconnections, analysis and decision making based on one’s own thoughts and not the result of mathematical calculations – all this has a soul, no matter how silly or pathetic it may sound. Maybe all this is really a thing of the past, and soon more advanced trading methods will be found in order. But what really needs to be done is to start your journey with working more closely with the trend, while gaining the precious experience of observing all the difficulties of the market.

The formation of critical thinking is a natural process, but at the same time each person can influence it. The need to develop critical thinking confronts a modern person especially acutely. A large flow of information, the development of communication links, active cognitive processes today require special skills and mental activity as well. The effectiveness and success of an activity largely depends on the ability to analyze information and apply it individually by including it in personal potential and accumulated life experience.

All in all, critical thinking plays a significant role when it comes to future trends for management purposes. This type of data can help managers develop their capabilities in negotiating, concluding deals and promoting sales. Critical thinking techniques can be helpful with regard to improving the working methods and dealing with the direction for the development of staff competencies and better understanding of the competitive advantages of organizations in an international context.

References

Aburdene, P. (2007). Megatrends 2010: The Rise of Conscious Capitalism. Charlottesville, (VA): Hampton Roads.

Anand, M., & Deepa, N. (2013). Understanding trends and changes in media coverage of Nanotechnology in India. Journal of Scientometric Research, 2(1), 70-73. 

Ayudhya, P. I., Boonla-or, N., & Piromya, P. (n.d.). Emerging Trends in Trend Research. Retrieved from https://www.sd.polyu.edu.hk/iasdr/proceeding/papers/Emerging%20Trends%20in%20Trend%20Research.pdf

Boland, G. W., Thrall, J. H., Duszak, R. (2015). Business Intelligence, Data Mining, and Future Trends. J Am Coll Radiol, 12(1), 9-11.

Critchley, B. (2011). Critical Thinking in Business Education.  Investigations in University Teaching And Learning, 7, 5-15.

Goldsmith, A. E. (2004). Current and Future Trends in Marketing and Their Implications for the Discipline. Journal of Marketing Theory and Practice, 12(4), 10-17.

Kunscha, D. W., Schnarrb, K., & Tyle van, R. (2014). The Use of Argument Mapping to Enhance Critical Thinking Skills in Business Education. Journal of Education for Business, 89(8), 403-410. 

Lin, E. (2011). The Practice of Radiology: Current and Future Trends. American Journal of Roentgenology, 197(4), 773-774.

Mrak, M. (2000). Globalization: Trends, Challenges and Opportunities for Countries in Transition. Retrieved from https://www.unido.org/sites/default/files/2006-10/mrak_0.pdf

Sheoran, M., Kumar, D., Kumar, V., & Verma, D. (2018). Understanding the trends of marketing research and its future directions: a citation analysis. The Bottom Line, 31(3/4), 191-207.

Sweeney, E. (2013). Supply Chain “Mega-Trends”: Current Status and Future Trends. Journal of the Chartered Institute of Logistics and Transport (CILT) in Ireland, 31-34.

Teitzel, G. (2018). 25 Years of Trends in Microbiology: Window to the Past and Future. Editorialspecial Issue: Broad Concepts in Microbiology, 26(4). doi:https://doi.org/10.1016/j.tim.2018.02.005

The terms offer and acceptance. (2016, May 17). Retrieved from

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[Accessed: April 19, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: April 19, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: April 19, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: April 19, 2021]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: April 19, 2021]
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