Business Management - Factors Affecting Organisations

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Firstly, the point of employing a manager is to ensure that there is a reliable and knowledgeable person to oversee the work of other employees, hence achieving organizational goals. In order to gain knowledge and prove that the manager is able to accomplish his goals and tasks, he definitely has to be able to comprehend who and how the external are forces acting on the organization. This is vital as failure to comprehend could very well result in the dismissal of the manager or collapse of the organization. BODY

The external environment is made up of forces and factors that affect the organization performance, be it positively or negatively. To explain in greater detail, the external environment consists of two categories, the specific environment and the general environment. I shall use the Soup Restaurant Group Limited as an example. Specific environment comprise of four factors: customers, suppliers, competitors and public pressure groups. These factors directly affect or impact the organization and they influence the managerial decision, the organizational goals, structure and targeted groups of customers. Customers are people who generate profits for or fulfill the purpose of the existence of the organization. Customers are an important factor as they can help to promote or create awareness of an organization by word of mouth. Hence this equals to free publicity resulting in more profits but no extra dollar spent. The Soup Restaurant thus has to maintain standard of hygiene, improve food quality and service efficiency to generate good publicity. The company is also affected if there is a change in customer’s preference. Suppliers refer to people or organizations providing funds or labor. Managers need to understand this as a dearth or delay in such supply or inputs can adversely affect the organization. A regular and reliable stream of supplies/suppliers results in meeting demands, hitting targets and...
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