Introduction Managers are responsible for the success of an organization and concerned about the effect that factors in the external environment have upon it. They cannot control the external environment but they need to identify, evaluate and react to those forces outside the organization which may affect them. The way in which managers attempt to achieve this is by means of a qualitative assessment of signals they receive which are relative to outside influences. There is therefore a need to carry out an analysis of these forces by means of methods we are going to discuss in details later, and this is called the environmental analysis. Managers are also concerned in the ways in which organizations can most clearly identify …show more content…
In turn, an organization can influence its environment, through such activities as advertising and marketing. Thus an organization can exert influence over its customers by making a product or service available, and thus establishing a demand for it which did not exist previously. This sometimes results in a leading organization creating a market larger than it alone can satisfy, thus creating business for following organizations. P- political/legal- all organization have to exist within the political and legal system wherever they operate. Politics can be national or local, and both can have a significant effect on the life and well-being of the organization. If the political party in power never changes, or if its policies never changed, then life would be very simple. But it does change frequently, and changes of government will often cause shifts in emphasis which might lead to disruption of business. Some political parties are prepared to spend money, others are not. Some will have free trade policies and encourage businesses to set up in different countries and export and import their goods and services. The worse type of country to deal with is the one with political instability, because you never know if the next group to come to power will favour you. laws- international law can sometimes have powerful influences on businesses,
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
Environmental healthcare addresses all the chemical, physical and biological factors that are external to an individual as well as the related factors impacting behaviors. It is comprised of assessment and control of those environmental hazards that can potentially affect health leading to disease and medical conditions such as asthma and cancer (Knight, 2006). These environmental hazards such as chemical wastes have devastating effects on the quality of air, water and soil of regions affected. In my area, Orlando, Florida, there are various environmental hazards that have affected the quality of water, air and soil. According to various analysis carried out in Orlando, Florida on the quality of its air, water and soil, most of them have shown that the quality has been affected. In comparison of the recent analysis with those of past years, the quality of this matter has been
If managers are not aware of these aspects of the environment that are external to their own firm, they may start to lose their competitive advantage if caught unawares.
P6: Describe how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders
States- Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri,Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
Franklin and Marshall College has a variety of ways to keep the campus and students environmentally friendly. However, there are various resources that can be utilized differently to make F&M an even more sustainable and green campus. Lighting fixtures; campus utility cars including: Pubic Safety, Facility Cars, Emergency Medical Service, nightly shuttle; minimal solar panels; heating water for uses like: showers, sinks, and the swimming pool; using disposable items; using excessive textbooks; heating and air conditioning are all ways in which Franklin and Marshall college can improve to make the college a more profound place for the environment.
(a) How long do we have to reverse the current trends affecting the environment? 10 years
An environmental analysis in plays an essential role in business management by providing possible opportunities or threats outside the company in its external environment. The purpose of an environmental analysis is to help to develop a plan by keeping decision-makers within an organization. The changes include exchanging of executive parties, increasing guidelines to decrease pollution, technological developments, and fluctuating demographics. An environment analysis helps the industries to improve the outline of their environment to find more opportunities or threats.
A business organization cannot survive in its industry if it does not keep an eye on what is happening in its internal and external business environment. The analysis of business sector or environment acquaints an organization with the issues, challenges, and external factors that have a direct or indirect impact on its business operations and profitability. On the basis of this analysis, the organization can formulate its future strategies and compete in the industry in a more effective and vigilant manner (Cadle, Paul & Turner 2010).
The political-legal environment is that which consists of government bodies, pressure groups and laws. It is pertinent for companies to keep abreast of and change in political environment because these changes can have dramatic effect. Change in political environment can see legislation introduced that will not make selling or providing a product feasible or somewhat difficult. There are many political factors and laws that can affect business. Pricing, competition, fair trade packaging, labelling, advertising, product safety and minimum wages can all affect business. The
Numerous issues but primarily the environment fall under the jurisdiction of the Environmental Protection Agency (EPA). According to their website, the EPA was established on December 2, 1970 in order to consolidate several areas of government control concerned with protecting the environment. (n.d.) One of the major topics the EPA has addressed was the impact of the automobile industry on the environment. In the 1970’s several hearings occurred that called Automobile manufacturers to give an account to the measures they were taking to reduce pollution from the emissions given off by their products. The administrator of the EPA, William D. Ruckelshaus did this due to the Clean Air Act of 1970 (n.d.) The Clean Air Act required auto manufacturers
The management environment consists of factors or forces which are beyond the boundaries of an organization and impacts or influences how an organization operates (Jones and George, 2016:158). These factors existing in the management environment which can have an impact on Brinker International are as follows:
Whatever the outcome at the end of the day, it is the manager who is responsible. This means that rather than forces or facts, it is people that manage; and the perception, commitment and accountability of managers are the determining factors of success of failure when it comes to management. Therefore, it can be deduced that managers act or execute plans but it is management that determines if goals are going to be achieved or not by bringing people and tasks together (Drucker, 2012). Management is what holds an institution together and makes it work (Drucker, 2012).
Managers are expected to do a multitude of things. A manager has to be a visionary and adaptive to meet the current demands of what is required of them at all level
Social Factors - The California Pizza Kitchen sells pizzas, pastas, salads, etc. and the ambience of the restaurants is quite informal and homely. Its primary key to its success has been that they were the first pizza restaurant that offered fresh and non-traditional ingredients for its pizzas. On a whole, the American consumer base is traditionally not very nutritional conscience when it comes to dining out. Regionally, the consumer preferences are suiting the business model of the company in most areas; however changes in the consumer