Final answer:
Technological advances and globalization have shifted business focus from just departmental goals to overall value creation, necessitating firms to be flexible and adapt to global competition.
Step-by-step explanation:
Changes in the business environment, specifically technology and globalization, help shift the focus of functional goals in the finance, marketing, and other departments of a business towards total value creation for the enterprise. These shifts have interconnected effects on the markets.
Technological advancements like the internet have broadened the reach of consumers, allowing them to make purchases globally. Consequently, this increases competition among local retail businesses, which face challenges from international players. Furthermore, globalization amplifies this effect, particularly in business supply markets, where 'business-to-business' platforms provide opportunities for buyers and suppliers to connect globally.
Companies are compelled to adapt by either expanding or reducing production, setting prices, opening or closing factories or sales facilities, hiring or laying off workers, and introducing or discontinuing products to stay competitive.