External Environment and Organization's Strategy

2342 Words10 Pages
Introduction The world seems to be changing ever faster, with the innovation of technological, economic and political forces reverberating around the world everyday. In the 21st century, management is becoming one of the leading key words on most of search engines such as Google, Yahoo, Go.com, Business.com, WebCrawler…Times are turbulent, and for managers trying to successfully run their organizations, not only do they have to master the technical skills but also make precise decisions at the right times and build up the appropriate strategies to achieve organizational goals. That is to say strategy is undoubtedly crucial for organization’s success, so what is strategy? Strategy refers to the plan of action that prescribes resources…show more content…
These include political and legal factors, general economy, societal factors and technology. Take bike manufacturing industry for instance to consider, The only factor working against the industry is an environmental regulation that some state parks have put in place limiting the access to bike trails. Next, the general healthiness of the economy influences the industry. The sale of bikes is closely related to the amount of disposable income available to the public. If there is a downturn in the economy, consumers will put off purchasing bicycles. In addition, there are societal factors that are linked to an industry. For the bicycle industry, the public’s concern with fitness is the major societal factor at work. Last, technology plays a large role in the bicycle industry. During the 1980’s and 1990’s much of the growth increase can be attributed to new technologies, such as the use of new light weight materials in the frame of bicycles which greatly increased performance. These are some of the other external factors that have an influence on the bicycle industry. (Downscoping : How to Tame the Diversified Firm by Robert E. Hoskisson,

More about External Environment and Organization's Strategy

Get Access