Environmental uncertainty in organization.

The Internet over the past few years has seen a huge increase in online businesses and consumers. Electronic-commerce is expected to generate $36 billion in revenue during 1999, up 140% from last year alone.[1] With such a huge amount of money to be made on the Internet it is becoming very appealing for small businesses and start-up companies to try and make their niche in e-commerce. The Internet is drastically affecting the way companies and people conduct business now. E-commerce encourages growth in existing as well as new businesses because of lower overhead costs, the huge consumer base and the freedom of information flow. However the online revolution has created a large

17. Environments exist when decision makers lack complete certainty regarding the outcomes of various courses of action, but they are aware of the probabilities associated with their occurrence

The importance of the analysis determines what outer factors that mold or influence management’s future strategic decisions. Accordingly, the general environment analysis incorporates several divisions, such as the economic circumstances, political/legal effects, socio-cultural powers, technological dynamics, and physical conditions (Gamble, Thompson, Peteraf, 2015). Most importantly, each segment will be centered on what significant areas that are correlated to the bed and mattress

31. Regarding the four organizational strategies in response to uncertainty, reactors make adjustments only when finally to do so by environmental pressures.

1. Economic Environment – An organisation needs to consider what money is available to spend and this will depend on the current climate at the

Environmental analysis is largely strategic thinking and strategic planning and consists of understanding the issues in the external environment to determine the implications of those issues for the organization (Ginter,2013). Strategic management does not replace traditional management activities such as budgeting, planning, monitoring, marketing, reporting, and controlling. Rather, it integrates them into a broader context, taking into account the external environment, internal organizational capabilities, and your organization's overall purpose and direction. With having a strategic plan and someone to administer the plan, the organization can flow

McDonough, EF, Leifer, R 1983, ‘Using Simultaneous Structures To Cope With Uncertainty’, Academy of Management Journal, vol 26, no 4, pg 727 – 735, retrieved 3rd September, (http://www.jstor.org/pss/2

There are two types of environments which can have an impact on the organisational objectives and strategic goals.

‘Organisations are open systems (like organisms) and must have an appropriate relationship with the environment if they are to survive’.

In continuation, Duncan’s framework for assessing environmental uncertainty, which examines the environment from environmental change and complexity perspective, will be used to further analyze the type of external environment and thus methods to overcome and adapt to it. All resources from external environment will be adopted to Fayol’s 4 management functions starting from planning, organizing, leading and controlling. The aftermath of this adoption would result in completing best performance for the organization and thus compete effectively. The model is shown at the figure below:

Business success is fairly uncertain but it helps when there is collaboration in the working environment. This means that inputs must come from all members of the organization because everyone has something to contribute. Inputs do not merely refer to raw materials but contributions of employees based on their opinions and suggestions about the company’s future or direction. Thus, the success of a business is not solely based on how raw materials are efficiently converted into outputs. This is because business processes can be automated. Automation of these processes can only add efficiency and lower costs but there are other aspects of a business that require decisions to be made. In fact, decisions are important to organizations and making the right ones – especially on important issues are crucial.

This study will prove that e-commerce has grown because it adds value to people’s lives. It will show that e-commerce will not disappear but evolve into something even greater than what it is right now.

This is the environment in which the organisation operates. This external environment is unable to be controlled by the organisation and is influenced by a number of factors. Levels of uncertainty, market competitiveness, political and legislative factors as well as economic factors are all considered within this factor. Findings such as “the more uncertain the external environment the more open and externally focused the MCS” (Chenhall 2003) and “the more hostile and turbulent the external environment the greater the reliance in formal controls and emphasis on traditional budgets” (Chenhall 2003) show that management control systems are tailored to the environmental context. Chenhall’s idea is that uncertainty pushes organisations towards tighter control systems with a strong focus on budgets and meeting targets, but with some flexibility so that figures can be manipulated (2003). In markets where the environment is less uncertain, there is a

Organizations conduct transaction on a global scale, and they must adapt to the advances in technology to compete and succeed. E-commerce will provide a platform to promote growth and

An organization is an open system; therefore it interacts with its environment. To manage the relationship with the environment, a large part of strategic planning is concerned. The environmental factors can be divided to 2 main categories, which is MACRO and MICRO .Macro environmental factors seriously affect an organization business practice, profitability and future progress. It can