For any organisation to work, a number of stakeholders have to pool their efforts. Terry & Franklin (1994) define management as 'a distinct process consisting of activities of planning, organizing, actuating and controlling performed to determine and accomplish stated objectives with the use of human beings and other resources'…
Mullins (2005) contends that organisations comprise 'people, objectives, structures' and 'management'.
External: These are the factors which on which an organisation may not be able to exert much of its control. These include, the legal and political scene prevailing within the state/ country of its operations, number and types of competitors, suppliers in the market, terms and conditions from financial institutions, alternative products available in the market, newer technological innovations etc. Worthington (2006) places greater importance on political developments occurring at different levels - local, national and international.
Organisations resort to strategic planning to take care of these factors and. Organisations learn a lot from there environment and prevailing circumstances. But the strategic intent alone cannot be planned all in advance. It has to be a continuous evolutionary process depending upon the experiences. Henry Ford said, "Failure is the opportunity to begin again more intelligently"1
Environment Analysis: It involves studying and analyzing the surroundings to identify the competitors, the threats and opportunities. Maslow's hierarchy of needs argued that the driving force for human actions is the urge for satisfaction of one or the other need. These needs go on changing depending upon a number of factors. In fact the needs of consumer/ customer and those of the organization are inter-linked because organization too is an active component, so needs of the organization too keep changing. Similarly changing needs of the customer must drive an urge for change in the organization for it to succeed in the long run. Environment changes with;
The form of government i.e. whether democratic, parliamentary or not. The market forces depend a lot on the form of government.
Frequency of elections and leaning of the political party coming to power.
Existing trade facilitations/ barriers amongst the partner countries. For example EU is composed of 27 member states, which help businesses to prosper within the region. In addition regional trade associations like NAFTA, SAFTA etc also lessen the trade barriers and prove to be helpful in preparing strategies for the organisation.
Government's economic policies, taxation rates, rates of interests, currency convertibility, competition policy, employment policy, environment protection policies etc.
PESTEL analysis provides an important tool to take a comprehensive look at the external environment affecting an organisation. PESTEL determines the factors like Political, Economic, Social, Technological, Environmental, and Legal. Organisations are supposed to devise their strategies on the basis of this analysis. Environment analysis involves market analysis as well. In fact environment analysis tends to be unique to the strategists, because what may appear to be an opportunity to one organization may ...
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“Organisations and Thier Environment Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.net/miscellaneous/286648-organisations-and-thier-environment.
Understanding of the situation will help the company to cope the different dimensions which can act as threat in long run for the firm and it will also be able to continue its profitable position in the competitive environment (Society for Human Resource Management, U.S. 2006, p. 38).
Tesco manages to have the flexibility in its operations through offering its customers a wide range of commodities. Tesco also has a team that carries out research and creates new products (Seth & Randall, 2011, 234). They also employ new technologies fully, which has revolutionized Tesco’s operations.
An industry is the collection of firms making identical or similar products. Market structure is an important element and depends upon the nature of competition and number of firms competing within the industry. It is often characterised in terms of the strength of buyers and sellers, level of collusion, form of competition, degree of product differentiation, and also the ease of exit and entry into the market.
Recently it has changed its status to private limited company2 and hopes that it will generate more income. Stakeholders aim to be an independent entity that will generate income and make the owners rich is the most awarded inspiration of Karel Kupec who have made such a success from being an employee to owning and managing a total of three branches of his trading and wholesaling business.
In a struggle to outperform each other organisations do not only design a good strategy but also keep an eye on the strategies of their competitors. The saga of competition in the globalisation is like a language game that legitimises present exercise of organisations.
These sectors each have sub sectors which contribute to the emissions produced by each independent sector mentioned here. On analysis, we may decipher that majority of the GHG produced is a result of the emissions arising from energy sectors. It contributes to nearly
the prevailing external as well as internal environment, the changes taking place in the environment, the strategies adopted by the competitors and many such factors. Often after devising a strategy with the best interest in mind, it fails to achieve the desired goal and all the
The internal environment of an organization is made up of the elements that are in the organization. Internally an organization can be said to be a resource conversion machine that used inputs from the external
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