Glanbia's Internal and External Environment

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The Organisational Domain and The External Environment

An organisation’s domain is its chosen environmental field of action. It is the territory that the organisation stakes out for itself with regard to products, services and markets served. This is also strongly affected by the organisation’s external environment. The external environment incorporates all the elements that exist outside the boundary of the organisation and have the potential to affect all or part of the organisation.

Task Environment:

The task environment includes external sectors with which the organisation interacts with directly and that have a direct impact on the organisation’s capability to accomplish its objectives. Some of these sectors include:

Industry Sector:
This sector comprises all of the company’s competitors and related industries, as well as taking into account the company’s own competitiveness and the industry size in which it operates. Glanbia has three key competitors, which are; Arla Foods, Groupe Danone and Kerry Group plc. Arla Foods is Europe’s largest dairy producer and supplies milk and cheese products to markets across the US, Asia and the UK. Groupe Danone is a global leader in cultured dairy products, including yoghurt and dairy desserts, and supplies dozens of regional brands worldwide. Kerry Group is one of the largest food companies in Europe. It offers some 10,000 products globally including fruit preparations, dairy-based ingredients, dairy products and juices. These three competitors are all continually expanding their product ranges and finding new and innovative ways to serve more markets worldwide. Glanbia is very sensitive to this issue and must respond by expanding their business and product lines too. Glanbia has many competencies that not only help in continuing to grow and develop the business but also set it apart from its main competitors. Some of its competencies include: world-class and proven manufacturing skills in a wide variety of dairy products and ingredients; strong technical and innovation skills, which are an important part of delivering applications for customers and driving new formats, products and services; excellent relationships and contacts in all key beverage, dairy food and food ingredients segments; and partnering with leading companies and organisations in high growth markets. They also have innovation centres in the US and Ireland and invest consistently in research and development in order to keep ahead of the competition.

Raw Materials Sector:
This includes all suppliers, manufacturers, real estate and services which directly affect Glanbia. Glanbia’s ability to fulfil the demand for its products is dependent on an efficient supply chain. Thus it must ensure that they work alongside reliable suppliers and manufacturers who comply with the highest health and safety standards.

Human Resources Sector:
This takes account of the labour market, employment agencies, universities and training schools, employees in other companies and also unionisation. Glanbia currently employs circa 4,900 employees. They are determined to attract highly skilled and high performing individuals and help them realise their full potential. Glanbia also believe that their ongoing success is dependent on attracting and retaining high quality management and staff and they have many incentives and processes in place to achieve this. Due to the current economic climate however, Glanbia have had to lay off around 260 jobs as part of their cost savings plan.

Market Sector:
This sector involves the effects of customers, clients and potential users of Glanbia’s products and services on the organisation. Glanbia must keep an especially close watch on their market sector. They must recognise their customers’ ever changing needs and demands and supply them with the right products, at the right prices, to fulfil these demands.

General Environment

The general environment includes those sectors...
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