General and Specific External Environment That Impact an Organization - Assignment Example

Management Name Student Number Course Date 1. Components of the general environment that impact an organization These are the components that exist outside the organization, but they have a significant influence on the organization’s growth and survival. These components are; a. economic b. Legal c. Political d. Socio-Cultural e. Technical forces. 2. Assess the impact components of general external environment on the organization These components determine the environment the organization operates in. Economic components are those factors that determine the economic performance that affects a company directly and has long term effects on a company for example an inflation in the country of operation or the great recession. Political components refers to the extent a given government can affect the operations of any organization. Some governments may impose strict taxes or trade tariffs which may affect the ultimate price of the product. Social factors help an organization understand vital environment determinants like cultural trends and demographics. Technical components pertain to the technology used in organizations which influence innovations and thus may affect the operations of the organization. The technical awareness of the company is paramount if it has to survive. Legal components affect the business environment in countries of operation. Thus for organizations to survive the external environment they have to adhere to consumer laws and safety standards 3. Specific external environment which impact on an organization These are the components which fall under general external environment which are more specific in nature a) Competitors b) Customers c) Labor environment d) Owners e) Suppliers and partners f) Regulators 4. Assess the Impact of specific external environment on an organization Though this components have an indirect impact on the organization’s wellbeing but are fundamental if an organization has to survive. Assessing the impact of these components gives an organization insight on the factors that give opportunities to the organization while acting as threats to an organization Competition comprises of the organizations that produce the same range of products and offer services similar to your organization. By assessing competition, an organization is able to determine competitors, the size and ability of the organization, their employees and skill pools, their competitive advantages and strategies they use to market their products. Competition can also be in a global scale and therefore it’s important for organizations to be keen on competition from multinationals and overseas organizations that offer similar services having that most global companies offer quality products at cheaper prices thus understanding how they are able to offer quality products at cheaper prices will help an organization be competitive and maintain its market share. Customers are vital to the wellbeing of an organization having that they are the consumers of an organizations end products. Assessing customers enables the organization to understand consumer behavior, the customer’s preference changes, and trends. Therefore assessing customers is imperative in anticipating changes in user’s product requirements and technologies that can change how they use products. Assessing customers gives an insight on the demographical changes like the social, economic and cultural changes. This will help an organization understand the age, ethnicity and economic class of the customers having that they directly affect a customer’s preference and mass markets trends. Organizations rely on resources for its operations and productivity, and an effective assessment of the organizations resources will help it determine the skill set of their employees, available raw materials. Finances that an organization uses for its operations. The available technology that is fundamental in the production, the laws, and regulations. Organizations rely on raw material for its operations and any changes in the price of the raw materials, changes in supply or disruption of the supply chain will prove detrimental to the organizations operations. For an organization to function at optimal level an organization should constantly recruit skilled employees and any once the availability of those skills drop then an organizations is adversely affected having that it requires a lot of time to train new employees to match the skill sets of the other employees therefore assessing employees will help an organization determine when it the right time to revamp its man power to avoid challenges that may arise from a lack of skilled employees. Finances provide operational support and an assessment on the available finances of an organization helps in having the ability to fund new ventures, productions of new products and even conduct research to ascertain what the needs of the customers are. Technology involves the science and technology required for the production and manufacturing of products. Technology has made it possible to keep in touch with customers and produce high-tech products, and technology is vital to any organization’s operations. Laws and regulations can affect an organizations operations having that most organizations are required to abide by specific rules and regulations. These laws are always as a result of political and social changes, and they have a direct impact on an organization in that they can influence the prices of the products due to high taxes and legal fees. 5. Identify the opportunities and threats an organization faces Opportunities provide means and ways of improving an organizations performance and competitive advantage a) Franchising or outsourcing in new markets b) Constant developments and renovations due to rapid changes in technology c) Horizontal integration provides an organization with an opportunity to acquire competitors and limit competition d) Untapped markets in countries overseas, this can help a company develop more markets Threats comprise of anything that can affect an organization’s performance or achievement a) New technologies that may make an organizations products obsolete or worthless i.e. Demand for speedier innovation b) Unstable political and legal systems in foreign markets c) Economic downturns d) High level of substitutes e) Lack of legal precedents to protect intellectual property f) Consumers’ expectations on socially responsible working conditions 6. Components of an organizations internal environment a) Organization mission statement b) An organizations culture c) Organization structure and leadership d) Employees of the organization 7. Analyze and assess the general organizations environments to identify its weaknesses and strengths. An analysis on an organizations internal environments seek to identify their strengths and capitalize on them while weaknesses gives an insight on the specific areas where an organization needs to improve or avoid as they pose a threat to the operations of an organization. Strengths Customer service: any organization that wants to succeed in business must have an effective customer service department to manage and handle employee complaints. DGL international is a manufacturer of refinery equipment thus it should constantly do innovation to keep up with the changing trends in the marketplace and with engineers innovation should be their number one priority. DGL being an international company relies heavily on a strong distribution network to distribute its products to the ultimate consumers another strength is the competency level of their employees. DGL international main strength lies in their employees and that why they decided to hire Terrill so that he could manage the engineering department and deliver the much-needed results. Weakness From the case study, DGL international has a poor leadership structure and due to this the engineering department is the least productive in the organization. On the arrival of a new manager he was able discuss with his employees on the main cause of the problem and he was able to determine that the major problem was top management interference on the operations in the engineering department and lack of respect of an employee’s duties and responsibilities. Lack of elaborate organization structures was the main reason as to why the engineering department was less productive. DGL international had a weakness with its production strategies thus the engineers were constantly doing work that wasn’t in their job description, with effective production strategies the engineering department could be involved in the research and development of the company in order to come up with new products so as to meet their customer’s needs. Another weakness lay with their organization’s culture, from the case study Terrill was able to expose a weakness in their technical reports having that the respective departments in the organizations needed technical reports but never bothered in reading them thus the culture of wasting time on preparing reports which were not being led or analyzed was time consuming and was a major hindrance to the general performance of the engineering department who spent a lot of time preparing reports instead of concentrating on innovations. 8. How do identify the people, group or work units may be affected by the proposed changes or environments Internal and external forces help bring change and improvements to any organization. Terrill’s proposed changes will affect the organizations culture in that technical reports shall be limited to once a month. Technological changes will be effects so that the engineers can concentrate on product innovation and production. DGL’s strategies will have to be changed to incorporate the new changes thus the top management will be affected in this case having that they will need to come up with new strategies to conform to the changes. The human resource department will be affected having that they will need to employees subordinates who can handle the report writing having that the engineering department and other departments will be solely concentrating on their roles as described in their job descriptions. Assessment 1 a) For an employee to be an asset to Jobline and Robert’s team, he or she should have qualities that conform to the organizations culture and principles. Having employees with these qualities and characteristics will help serve Jobline’s clients and help him or her work effectively other employees. A. Good communication qualities: in Jobline, communication is key and having that they deal with a lot of clients from different backgrounds it's good for any employee who works at Jobline to be a good communicator. B. Self-motivated: Jobline has clients of different demographic and thus a self-motivated employee will willingly and tirelessly serve others and therefore being motivated is a characteristic that an employee who within a set that serves people with disabilities and different ethnic cultures requires in order to work effectively and efficiently C. Adaptive: for an employee to effectively work with Robert’s team he or she should know how to adjust and learn quickly from the new environment having that Jobline deals with different and diverse clients every day. Having that it is a recruiting agency an adaptive employee will learn quickly and keep up with the likes of Robert who have stayed in the organization for over 8 years. D. Ethical: Jobline deals with clients and employees from different cultural backgrounds. An employee who has ethical qualities has morals ad it will be imperative for any employee who joins Jobline to follow their policies and inspire others to do so. E. Team player: this an imperative quality if an employee is to succeed in Jobline and help in motivating job seekers and fellow employees. From the case study we see Robert working with a team hence a team player will be an ideal candidate who can contribute to the general success of Jobline b) Ten tips 1). Creating processes to make people who are different feel welcomed and included in the organization. Jobline deals with a number of clients and by helping unemployed youths get jobs, managing people with disabilities helps make them feel part and parcel of the organization 2). Mentoring people from different ethnic and cultural backgrounds. Jobline uses this to help their staff grow and make their clients feel more comfortable 3). Incorporate ideas from other culture, this help organizations like Jobline can use this to solve problems and come up with ways of being more innovative 4). Using available resources available and researching what other organizations have done in order to be successful. Jobline gives advice to clients and employers, provides links to VET and TAFEs and other private training providers in order to serve their clients and employees well 5). Providing cross-cultural training, this helps staff work well and serve the clients more effectively. Jobline employees individual who are multi-talented, and they have policies to deal with their client population that is so diverse e.g. they have employed individuals who have knowledge on more than four cultures. 6). Surveying and interviewing staff across demographics, this help organizations come up with strategies to improve retention and increase recruitment. Jobline supports long-term employment through trainings 7). Examining your organization’s definition of leadership qualities, this helps improve communication styles that can be used to lead. This will help an organization recruiting individuals with consensus style having that they can be effective leaders. 8). Conducting of exit interviews and identification of patterns and themes if they exist. This helps organizations be flexible enough to accommodate new ideas. Jobline is excellent in dealing with ideas that can help it serve its customers better thus we see Robert and his team come up with ways of having easy to use tips for the new employees. 9). Being aware of your own biasness and stereotypes and their subsequent impact on the environment. Jobline is involved in high-level diversity training in order to overcome any challenges that may come as a result of conflict in cultures 10). Always use a recruiting team who have been trained on diversity and inclusion awareness. From Roberts’s team, we can see that Jobline has groups comprised of the best employees in their respective fields like Gino. c) LEGISLATIVE Anti-discrimination and equal employment opportunity. This seeks to eliminate discrimination based on race, disability, and cultures. In Jobline, staff are required to serve clients with a diverse range of cultural backgrounds and also manage clients with social needs and physical disabilities. Read More