The Effect of Business Environment on the Effectiveness and Functioning of an Organization
To best answer the question of how different business environments affect the effectiveness of a business it is imperative that we first define what the business environment is and what all its factors are. The business environment perse' is: the environment in which a firm exists, this setting is a dynamic unity of everything inside and outside of the Company which adversely affects the activities of a firm either directly or indirectly. The idea that; "a firm does not exist in isolation and that it works within its overall environment"; just reinforces the importance of this environment to all business' and
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The factors which comprise the int. environment are: first, the customers, they comprise most of the firm's sales, income and later profits so they must always be satisfied or the company loses money. The second factor in the int. environment is the competition. The importance of which: is knowing and planning the most effective way to beat competitors; either with new ideas or cheaper products. Comprising the third factor of the internal are the employees these are the people who make the company operate and its progress is very much dependent on their work. The firm in turn must look after their well being and keep them happy so they will be motivated to work well. An unhappy labor force usually means an unproductive company. In any form of production it is hard to forget the suppliers; they are the firms who provide other firms with raw materials and tools needed in production. A firm with a good supplier is assured of high quality materials at good prices and on time. Thus making this factor an important consideration. Wrapping up the internal environment are 2 factors which work hand in hand. The first are the share holders, being investors the so called cash cows; these people can influence policies and procedures within the company. They also expect good dividends on their investment and if are not satisfied can withdraw their
First step in intervention is to identify meaningful situations or contexts to promote communication and social interaction with Aiden. Situations that are motivating for Aiden, provide chance for communication and that are appropriate for his development. Aiden is most likely to talk, interact, and learn if he is doing something he enjoys. Aiden will benefit most if the settings selected are a good fit for his interests, needs, and skills. As he becomes comfortable with this approach: Gradually we’ll add more and more contexts as opportunities for communication. Aiden will have many more opportunities with communication when he is older. At his early stages of development, it is easy to adapt activities so that they are age appropriate as well as developmentally appropriate. To ensure that Aiden has an effective means to communicate and participate in social interactions.
The environment where the company is operating is very dynamics and requires the understanding the controllable and uncontrollable factors. For the seafood business, on one side there are many competitors and on the other side, there are the environment affects very much. The tastes of the customers are directly linked with the environment. Moreover this is not just one side whereby it affects the performance of the organization, but there are other things like for the employees the inner environment of the restaurants might be suitable. In fact, each and everything is to be checked so that there could not be any problems at any stage. For the employees and the customers, the environment of the organization should be exceptional and friendly
The private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state. The public sector is the part of the economy concerned with providing various government services. The voluntary sector or community sector (also non-profit sector or "not-for-profit" sector) is the duty of social activity undertaken by organizations that are not for-profit and non-governmental.
These factors influence the internal environment of an organisation and they help in identifying the past and the present of the company, It also provides a frame work for reviewing strategy position and direction of the company.
It has a division organization structure in each industry that it operates viz. agriculture, construction, forestry, turf care, parts, power system, and financial services. Due to its expansion policy, it follows a global operating model wherein it has a global platform service organization structure at the broad level. This report discusses the advantages and disadvantages of the management structure, quality of the board members and the shareholder pattern followed by the organization. The human resource, which is the key element in the fast paced progress of the organization, suggest care and nurture of all the stakeholder viz. employees, suppliers, dealers, and business partners. The Company has a long standing in the industry and hence has a strong brand recognition that suggests reliability, approachability and efficiency in its products and services. The report analyses its value chain and uses Michael Porters five forces to understand its standing in the farm economy as well as in other heavy machinery industry. Finally, the Company has performed well even during recession in the past and current declining farm economy. Although it shows a fall in its net revenue, there has been considerable investment in the past year. Overall, it has impacted the farm economy and aided in the industrialization of many developing countries world over.
P5: Describe the influence of two contrasting economic environments on business activities within a selected organisation.
In this term of our discussion we’re talking about business environment. It’s like an overview of the whole business environment. Simply environment of a business means the external forces including the business decisions. They can be forces of economic, social, political and technological factors.
The aim of this document is to conduct a literature study on How the External Environment Impacts a Specific Business. In the following section, Micro Environment will be discussed under the following headings. Demographic environment is first discussed, followed by the Economic environment, Natural environment, Technological environment, Political environment, Cultural environment and lastly, Micro environment (Firm/Suppliers/intermediaries/Customers/Competitors /Customer/Competitors/Public) is discussed.
• Generation of external environment information is complex and it is one of the major problems which involve uncertainty to business organization.
The internal environment- particularly the business goals and culture. The focus may be on cost containment, growth, downsizing, improved customer service or quality, or other internal goals. The influences the demand specific skills now and in the future and will define the types of staff who will be a good fit for the organisational culture.
This report suggests discussing how a business is impacted by the external operating environment affecting business, in array to bring sustainable buyer value to consumers’ in the market. This sustainable buyer value is delivering in an effort to ensure the security of market share, plus increase the effectiveness and revenue of the existing business.
In today's world, no business operates in isolation without interacting with the environment where it operates. Irrespective of the nature of business whether public or private organization; manufacturing; service industry; local or international firm, its operations are inhibited by the environment in which it operates.
As the name suggests, “internal” business environment refers to internal factors and resources that affect the running of the business. This primarily includes the workforce where the employees play a vital role in affecting company’s performance. If a company has well trained or motivated employees, that company is likely to get good output from them. However, if the same company recruits unmotivated employees who do not perform well or dig in their heels when a new plan arrived, this will affect that company’s production levels and ultimately hinder its profitability. Another factor to consider is all the capabilities that a company possesses. The tool used to monitor them is the resource based