Does the External Environment Determine the Success or Failure of an Organization?

1418 WordsDec 4, 20126 Pages
Introduction The external environment can be defined as forces and factors outside the organization affecting the overall company’s performance directly or indirectly. It can be divided into two components including specific environment and general environment. Specific environment refers to the unique factors of each company that directly relevant to the achievement of goals and affect managers’ actions and decisions directly including suppliers, customers, pressure groups and competitors. General environment refers to the broad conditions that may affect the company, in which includes political or legal environment, economic environment, sociocultural environment, technological environment and demographic environment. Background…show more content…
Different types of ownership have different coffee shop culture. According to Nicole (2006), the experience of a group of patron coffee shop had called Campers. This means Campers patron always to enjoy a longer periods of time. Some Campers regarded coffee shop as living room. Starbucks also identify coffee shop Campers as two characteristics. One is the individual engaging in the activities. Other is the individual isolated from the other. Some coffee lover got involved in a wide range of activities including using a personal notebook computer, discuss a project with partner and reading a newspaper or book. If the number of coffee lovers increases to enjoy Starbucks environment, the performance of company can generate more revenues. Technological environment It refers to all systems about the knowledge to operate. Using technology can improve operational efficiencies. A favorable policy about developing high technology can influence the various kinds of coffee machines in the coffee shop. The technology of worker’s level and technology infrastructure can increase the efficiency of operations. Starbucks is always finding a ways to let customers having a better experience to enjoy coffee. With the technology improving, Starbucks had launch Starbucks Card. This card has greatly improved the efficiency of customer service. It also created the opportunity to
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