A Short Note On The Open Systems Model Essay

Despite this India is still a complicated place for foreign investors. A weak parliamentary government has very little purview over the provincial and local ministers who were elected entirely separate from federal elections. The fragmented nature of the country’s political system has and will continue to prevent major

The substantial part of the article concentrates on the way companies and their managers should embrace contemporary multinational market. The author claims: “Adaptation strategies are better suited to opportunities opened by the shift in the locus of teh global growth. (..)Western markets must compete in big emerging markets like China and India. But they can;t forcé their way in.” That is why, it is critical to pay careful attention to political, economic, or cultural diversity. Ghemawat is skilled in giving pieces of advice to those who underestimate the importance of countries differences and similarities. He also says: “I propose that every MBA gradúate – and presumably every global manager – have a mínimum body of globalization related knowledge, including (..)an understading of how differences between countries can influence cross-border interactions; awareness of the benefits of teh additional cross-border integration’.

When manipulating a business’s strategy, it is important to focus on the external factors in the environment. An external analysis is where a business conducts environmental scanning that present a company with the key external forces influencing the organization. The facets of external forces examined are the business environment, remote environment, or the competitive environment. A business environment is all of the external factors in the general environment that a firm cannot control, but can affect their strategy. The remote environment is the forces that affect most firms. Lastly, a competitive environment is the firm’s specific industry and its entirety. The external analysis is pertinent to a company called Dick’s Drive- In; without it, Dick’s would not be a thriving popular business today.

An organization’s external environment is terribly important and must be studied and understood for the organization to truly succeed. Through such study and understanding, a manager would be able “mitigate threats and leverage opportunities” that are caused by the six segments identified as macro-level external forces: (1) political, (2) economic, (3) sociocultural, (4) technological, (5) ecological, and (6) legal (Rothaermel, 2013, pp. 56-57). Since the manager’s decisions, or firm effects, have a greater impact than those external forces mentioned only when the manager accounts for them and builds a strategy around them, the manager must be aware of and understand these forces to be

India has become a global conduit for business as they have liberalized their economic policies over the past 20 years. Companies are flocking to India because of many factors, including, less expensive labor costs, increasing growth rate, and an abundance of a highly skilled workforce. These factors in addition to other advantages have substantially increased the number of United States businesses looking to grow beyond the U. S borders into the county of India. Dunlop Software Consultant’s goal is to also expand its operations internationally and believes that India has the business environment to meet our goal of expansion globally.

However, this lack of governance is not just seen as disadvantage for India. India is amongst the top 40 nations to have been involved in the highest number of business regulation reforms in the last five years (Innovasjonnorge, n.d.). Reform has eased business operations in India as the mainly concern the introduction of new technology. These technological improvements have led India to be highly industrialised, rather than agriculturally based like in the past. For instance, India is now the world’s biggest manufacturer of small cars (Innovasjonnorge, n.d.).

It is very critical for organization to understand the importance of external environment, which includes remote, operating and industrial environments before developing its future objective. Each environment bases on different factors, therefore the analysis of external environment will help the company seeks for new opportunity in many areas as well as discovering challenges that might have direct impact to the organization in the future. The remote environment consists of the study of the economic trend such as the level of disposable income, inflation rate and prime rate, the study of social factors such as life style of consumers. The political factor also plays an important role in external environment. Political factor focuses

Since Canada and the United States share a border sometimes the advertisements from America are viewed on Canadian television. Canadian heavy viewers of U.S.-produced television seemed particularly unconscious of Canadian culture and of television's potential harm to inter-personal relations. These viewers may be either consciously attempting to become more "American" through their viewing habits; or, they may be exhibiting the subconscious acculturating effects of U.S. television viewing. From the perspective of an open-systems model (DeFleur & Ball-Rokeach, 1982) and the implications from the literature, U.S. media domination may be one of the acculturating agents, along with similar social forces; social contacts and other interpersonal

I believe that an open system is the most democratic because part of being a democracy the the consent of the people and the idea of popular sovereignty, meaning rule by the people. If there are open primaries and caucuses, everyone is able to vote for whoever they choose to vote for without having to be tied to a certain party and this is the most democratic because people get the freedom to choose who they want to vote for without having restrictions on who can vote.

It is a more complex job for managers to operate a company based on the global business environment, but it can be also treat as a challenging for them, because it is a more open environment – organisations are free to buy goods and services from all over the world easily and convenient. The following paragraph will discuss how Myer managers operate the company in the global environment in 3 specific area, supplier, customer and competitor.

A firms external environment is divided into two composites: the general environment and the industry environment. Fahey (1999) states that the general environment encompasses the broader society that influences an industry and the firms within it. The industry environment is the set of factors that directly influences a firm and its competitive actions and responses (Chen et al. 2010). Identifying opportunities and threats is an important objective of studying the general environment. Opportunities help companies achieve strategic competitiveness whilst threats may hinder a company's efforts to achieve strategic competitiveness (Gilad 2011). A firm will scan, monitor, forecast and assess the seven segments of the general environment to determine their effects on the firm. Firms identify early signals, detect meaning,develop projections, and determine the timing and importance of environmental changes and trends for firms' strategies and their management.

The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.

As trade increases hyper-competition grows forcing organizations to go global. By a company going global it requires them to rethink strategy and reform (Ananthram and Pearson, 2008). Global organizational structure is the way a company aims to merge local preferences with global strategy. The definition of global strategy is “strategic choices that have the characteristics of being globally uniform or integrated,” (Yip et al., 1997) such as standardization of products, uniform marketing, and competitive moves, but all globally (Townsend et al., 2004; Zou and Cavusgil, 2002; Bayraktar and Ndubisi, 2014). Global strategic strategy is a way to adjust to globalization. Globalization is “the economic and social process by which economies and communities grow inextricably interdependent “(Jhirad et al., 2009). The recent financial crisis (Das, 2010), large amount of poverty, and climate change are all problems that show how the world is globally connected because all countries impact each other (Jhirad et al., 2009).

Organizations are open systems and must relate to their environments. They must acquire the resources and information needed to function; they must deliver products or services that are valued by customers. An organization 's strategy--how it acquires resources and delivers outputs--is shaped by particular aspects, and features of the environment. Thus, organizations can devise a number of responses for managing environmental interfaces, from internal administrative responses, such as creating special units to scan the environment, to external ,collective responses, such as forming strategic alliances with other organizations.

Moving away from “Mechanistic” metaphor originated from the bureaucratic organizational theories in the early 1920s. Morgan (2006) presents a more biological view of the organization. Described as a living system the “Organism” metaphor is dependent on wider environment and functions. Such organizations are open systems and more inclined to adapt, grow, survive and to meet the needs of organizations to operate more efficiently. The flexibility to change to the best-suited structure also introduced. As organizations tend to appear and thrive in certain environments, the functions are adjusted to establish more orderly and stable environments. In line with Morgan’s “Organism” metaphor (Morgan. 2010), if they do not adapt, organizations become week and die when those needs not met.