Topics: Formal organization, Organization, Management Pages: 5 (1189 words) Published: June 2, 2014
MM 203
Successful business owners keep track of all the factors that can have an impact on their business. They know when to sweat the small stuff without taking their eyes off the big picture, and they understand that all kinds of circumstances can change the all-important bottom line. Knowing the internal and external factors that affect an organization gives a small-business owner the intelligence he needs to sort out the company's priorities and make strategic plans for the future. Some of the forces impacting business are more challenging to master than others. The degree to which one can control them varies. At the same time one can improve the state of internal and external factors effecting his business; you can't make the economy grow, but you can encourage spending. Understanding the factors at work better equips you to prepare for them. A successful human resources strategy complements a company's mission and goals -- so what works for an industry giant won't necessarily be suitable for your small business. The factors influencing Human Resources activities aren't static: To maximize recruitment and retention, and to minimize employee issues, small business managers must continually monitor internal and external environmental factors and adjust HR strategy accordingly. To do that, it's important to know what the internal and external factors can consist of. In our analysis we will be making use of Bakery firm. INTERNAL FACTORS

Internal factors include the purpose of the organization, organizational structures, instruments and bodies of the bakery firm. We will look at how it is being influenced and also how it is run internally. PURPOSE OF THE ORGANIZATION:

1. Interest representation
The individual bakery business owners interests are brought together and introduced as a group interest through the political decision making process. Organized interest representation is therefore to be found on the same levels as general political decision making (local, regional, national). 2. Information / Education

This purpose is directed towards the individual members of the organization. Information, which is not available, or is difficult to find, is collected, adapted and distributed by the organization. Training courses and further education events may be directly organized by the co-operative body, or information on what is available distributed.

3. Economics:
Group activities to take advantage of economies of scale are a major purpose of bakery business owner organizations. Economies of scale can be found in input management, supply, production, marketing and cost management. a. supply

Bulk purchase by an organization on behalf of members can mean lower prices for equipment and materials. E.g. flour, Sugar etc. b. production/management
Another economic purpose for organizations is co-operation in production and management. Joint management activities can be more efficient and simpler for the individual member. With small bakery ownership units, management activities which cross property boundaries are also often necessary. For bakery business owners not living on the property, joint management with most activities being carried out by others often represents the only management option. c. marketing

Due to small amount of breads produced per property, joint marketing of products is often the only possibility to access larger markets. Joint marketing, in general, gives a stronger market position, with consequent higher revenues. ORGANIZATIONAL STRUCTURE AND INSTRUMENTS

The more appropriate a bakery organizational structure to the local situation and services it wishes to offer, the more efficient and effective it will be. DESCRIPTION OF THE INTERNAL FACTORS
1. Constitution
2. Centralization / Decentralization
3. Structure Type
4. Technological approach
5. Participation and delegation

1. Constitution

References: 1.
3. Principles of management by Ola et al.
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