Case Analysis: Orange Organization
1. Elements of Orange’s Temporal and External Environments
The elements of the Orange’s external environments can be described using the PEST analysis. A PEST Analysis is a framework of strategy used to scan the external environment in which a firm needs to operate. The PEST analysis illustrated in Appendix A is useful to classify the different environmental factors into categories that may influence Orange. These factors include the following:
• Technological factors
• Socio-cultural factors
• Economic factors
• Political factors
Orange takes these environmental factors into consideration in becoming successful. The technological factors are important to consider in research and development of the innovation of technology. It can lower the barriers to entry, reduce efficient production levels, and influence outsourcing techniques. The socio-cultural factors include the demographics and cultural aspects of the external environment. These factors affect the customer needs and the size of the potential market of mobile communications. The economic factors include the purchasing power of potential customers and policies that assist in the operation of the organization. Lastly, the political factors include the government policies and legal issues under which the Orange must operate to become successful.
Through these environmental factors Orange has created a vision and commitment to the long-running potential of mobile communications and became successful. For example, Orange has created an image of ‘future is bright’ to their ultimate customers. Their purpose focuses on the mobile communications rather than selling the product. They wanted to embrace the fact that ‘the future is unknown’ and convey that their mobile communication technology will always fit the needs of the customers, i.e. mobile modification and innovation.
The temporal environment may affect change in Orange’s...