External Environment

In: Business and Management

Submitted By slider5000
Words 2830
Pages 12
Table of Contents

Introduction 2

External Environment: laying the foundations 2

Task Environment 3

General Environment 4

Non-Profit vs. For-Profit: perspectives on competition 5

Environment Characteristics 6

Opportunity or Threat? 8

Conclusion 8

References 10

Introduction
“No organization can exist in a vacuum” (“Key forces in the external environment, Chapter 3”, n.d.).
To a certain extent all types of organisations; whether private or public services, governmental bodies or charitable groups, are subject to and influenced by specific environmental factors.

In this day and age with many existing classes of organisations utilising different approaches to management, there is a feasible assumption that a common change in the organisational environment may likely affect two separate organisations diversely.
This response will identify how the environment directly impacts organisations, in relation to leadership roles and organisational performance. For the purpose of comparison, the point of focus will revolve around two major classes of organisations namely; ‘profitable’ verses ‘not-for-profit’ groups.

The primary aim of this paper is to construct a foundational view of the external environment from a manager’s perspective. Theoretical key principles discussed will attempt to identify with the following statement - “In comparison to profitable groups; not-for-profit groups possess a different degree of vulnerability to the external environment”.

The External Environment: laying the foundations

In the world of leaders and business, the external environment comprises a comprehensive array of forces which encompass the organisation. Leaders or managers may view these existing forces as “conditions, entities, events, and factors surrounding an organization which influence its…...

Similar Documents

External and Internal Environment Analysis

...Running head: EXTERNAL AND INTERNAL ENVIRONEMNT External and Internal Environment Analysis Bharti Gupta University of Phoenix External and Internal Environment Analysis: Mayo Clinic The purpose of this paper is to analyze the External and Internal environmental factors of Mayo Clinic (MC). Mayo Clinic is a nonprofit worldwide leader in medical care, research and education for people from all walks of life (Mayo Clinic, 2011). Various types of external and internal factors affect the smooth flow of business at Mayo Clinic. External environment analysis is important in determining the strategy that should be adopted by a business and internal environment analysis is critical to identify the core competences of the business. External Environment External environment (EE) can be broadly classified into three types: Remote, Industry and Operating. Remote environment (sometimes called as macro environment) consists of the forces at work in the general business environment which will shape the industries and markets in which an organization competes (Stonehouse, Campbell, Prudie & Hamill, 2008). Industry environment (sometimes called as micro environment) is the competitive environment facing a business. It consists of the industries and markets in which the organization conducts its business competes (Stonehouse, Campbell, Prudie & Hamill, 2008). Operating environment also called the competitive or task environment comprises factors in the competitive......

Words: 1436 - Pages: 6

External Environment

...External Environment Table of Contents Introduction 2 External Environment: laying the foundations 2 Task Environment 3 General Environment 4 Non-Profit vs. For-Profit: perspectives on competition 5 Environment Characteristics 6 Opportunity or Threat? 8 Conclusion 8 References 10 Introduction “No organization can exist in a vacuum” (“Key forces in the external environment, Chapter 3”, n.d.). To a certain extent all types of organisations; whether private or public services, governmental bodies or charitable groups, are subject to and influenced by specific environmental factors. In this day and age with many existing classes of organisations utilising different approaches to management, there is a feasible assumption that a common change in the organisational environment may likely affect two separate organisations diversely. This response will identify how the environment directly impacts organisations, in relation to leadership roles and organisational performance. For the purpose of comparison, the point of focus will revolve around two major classes of organisations namely; ‘profitable’ verses ‘not-for-profit’ groups. The primary aim of this paper is to construct a foundational view of the external environment from a manager’s perspective. Theoretical key principles discussed will attempt to identify with the following statement - “In comparison to profitable groups; not-for-profit groups possess a different degree of......

Words: 2813 - Pages: 12

External Environment

...growth YTD, suggesting the brand is set for a good year (its Shanghai flagship store reported 54% SSS growth during Golden Week vs. our assumed 15% top line growth for FY12). We think strong sales figures in 4Q can provide a near-term catalyst for the stock. Our forecasts are basically in line with consensus but could see upside if the weather does not end up unusually warm. Jamie Zhou, CFA +86 21 2412 9033 Jake Lynch +86 21 2412 9007 Valuations attractive We view the stock as a reasonable growth story at a very attractive valuation. We target a CY12 PER of 13x – in line with the current average multiples in the menswear sub-segment. We think the defensive nature of the business should hold up well even in a difficult economic environment next year. The Macquarie quant team consistently ranks dividend yield as a key factor for outperformance. jamie.zhou@macquarie.com jake.lynch@macquarie.com 28 October 2011 Macquarie Capital Securities Limited Please refer to the important disclosures and analyst certification on page 2 and the inside back cover of this document, or on our website www.macquarie.com.au/disclosures. Macquarie Research Bosideng International Inside A warm and cosy stock Valuation Bosideng: a household brand name Seeking new growth drivers in non-down Key investment risks Corporate structure and management Financials Appendices 13 15 18 20 28 3 5 7 PRC’s dominant down jacket brand Company profile PRC’s largest down jacket maker:......

Words: 7701 - Pages: 31

External and Internal Environments

...Assignment 2:   External and Internal Environments Business 499 Zavier Pyles Professor May January 30th, 2013 Vroom Vroom!   This is the welcomed sound that automobile owners and manufacturers like to hear.   It is the sound of completion, success, and satisfaction.   But what happens when this sound is drowned out by weakened profits, customer dissatisfaction, and industry weakness?   In comes the government bailout of the automobile industry.   In recent years, 2008-2010, Ford, GM, and Chrysler had to be saved from self-destruction and bankruptcy through government incentives, loans, and emergency funding.   In December of 2008 these 3 automakers asked the government for monetary assistance that totaled approximately 34 billion dollars (About, 2013).   Ford, GM, and Chrysler asked for these funds to avoid impending job layoffs in the millions and also to avoid further financial trouble for the economy during the recession (About, 2013).   All three of the car companies that had to be bailed out were American based and had for years been facing stiff competition from foreign car makers especially Honda, Hyundai, and Toyota.   During this time there was quite a bit of finger pointing and blame being placed surrounding the reason for the failure of the American car industry.   Was the failure based on external factors such technology, political/legal parties and organizations, or economic issues (Hitt, Ireland, Hoskisson, 2013)?   Or was the failure of this industry......

Words: 3134 - Pages: 13

External Environment

...An organisations performance and outcomes can be affected by outside forces known as the external environment. These forces can be divided into two components, the specific environment and the general environment (Robbins et.al 2012, p.86). The specific environment includes components that are directly involved with the organisation; customers, suppliers, pressure groups and competitors. In contrast, the external environment includes economic, political/legal, sociocultural, demographic, technological and global conditions (Robbins et al. 2012, pp.87-8).The purpose of this essay is to highlight an external environmental factor that has had a significant impact on Generic and discuss how this has been managed in accordance to relevant academic theory. In particular, the scope of this paper will be confined to legal conditions that have changed in the general environment. A discussion on how this has impacted Generic Health, the management approaches of understanding environmental uncertainty and environmental influence will be presented, following a review on the effectiveness of approached used to manage impacts of the external environment. is a manufacturing company that provides generic pharmaceuticals to over 5,200 pharmacies which has been impacted by legal conditions from the general external environmental. Legal conditions refer to regulations, policies and legislation set out by federal, state and local governments which influence what organisations can and cannot do......

Words: 1051 - Pages: 5

External Environment

...------------------------------------------------- Chapter 2—The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis TRUE/FALSE 1. The health-related concerns in the general environment facing Philip Morris International are part of the physical segment. ANS: F PTS: 1 DIF: Medium REF: 36 OBJ: 02-01 TYPE: comprehension NOT: AACSB: Ethical & Legal understanding | Management: Ethical Responsibilities | Dierdorff & Rubin: Managing the task environment 2. The external environment facing business stays relatively constant over time. ANS: F PTS: 1 DIF: Easy REF: 34-35 OBJ: 02-01 TYPE: comprehension NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence | Dierdorff & Rubin: Managing the task environment 3. Demographic, economic, political/legal, sociocultural, technological, global, and physical are the seven elements comprising the industry environment. ANS: F PTS: 1 DIF: Hard REF: 38 (Table 2.1) OBJ: 02-02 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence | Dierdorff & Rubin: Managing the task environment 4. Firms can directly control the elements of the seven segments of the general environment. ANS: F PTS: 1 DIF: Easy REF: 37 OBJ: 02-01 TYPE: comprehension NOT: AACSB: Business......

Words: 12939 - Pages: 52

Adapting to the External Environment

...Adapting to the External Environment: Recommendation to BlackBerry Ltd. 1. Introduction Blackberry had been popular around the world, especially in North America in 2000’s, and it represented a kind of fashion among young generation. It was one of the daily routines to see people using blackberry phones anytime and anywhere; for example, young people texted to each other by using unique keyboards, and business people used it for the internet, texts, address books, schedule management, and so on. Blackberry’s phones were stylish and revolutionary with high technologies and lots of tools in that period. However, there are few opportunities to see those who are using it recently. People shifted to iPhones or smartphones of other companies, such as, Samsung, LG, and Nokia. Then, why is not blackberry popular anymore? Are there any exact reasons or factors for that it failed in the market? These questions are important and necessary for the company to make the company stable and set it back to the market again. The reason why the sales of Blackberry declined greatly must not be only because of the change of the trends. It is essential to analyze the factors of sales decrease to survive in the competitive market. One of the important factors is adaption to the external environment which is necessary for all of the industries. Apple is one of the best examples that could adapt to the market pretty well. Steve Jobs placed emphasis on small devices, such as iPods......

Words: 3988 - Pages: 16

Proton External Environment Analysis

...Proton’s External Environment Analysis Contents Introduction 4 PART: 1 Proton Introduction 4 About Proton 4 PART: 2 Proton’s External Environment Analysis 5 2.1 PESTEL Analysis 6 2.1.1 Political and legal factors 7 2.1.2 Economic Factors 7 2.1.3 Social-Cultural Factors 8 2.1.4 Technological Factors 8 2.1.5 Environmental Factors 11 2.2 PROTON’s SWOT Analysis 12 2.3 Industry Analysis 12 Proton five forces model 13 2.3.1 Threat of New Entrants 13 2.3.2 Bargaining Power of Suppliers 13 2.3.3 Bargaining Power of Customers 14 2.3.4 Threats of Substitutes 14 2.3.5 Competitive Rivalry between Existing Players 14 2.4 Some other external factors 15 2.4.1 Change in Customer Demand 15 2.4.2 Globalization 16 PART: 3 17 Recommendation 17 3.1 How can we deal with the pressure of innovation? 17 3.2 Cost Control 19 3.4 Innovative feature’s pricing decision 20 3.4 Dealer knowledge in customers 20 Conclusion 20 References 22 Appendixes 25 Appendix-1 Supplier spending on R&D 25 Appendix-2 Changes in external force 25 Appendix-3 Critical industry skills 25 Appendix-4 Expected challenges of automotive industry 26 Introduction The report is going to conduct Proton external analysis and the report has been divided into main three parts. The first part will be discuss some background of the company. The secondary part complete external analysis through using PESTEL, SWOT and Porter five forces model. The third and last......

Words: 3692 - Pages: 15

Internal and External Environment Scan

... Internal and External Environments Nokia and Facebook Student’s Name Professor’s Name Date Internal and External Environments of Nokia and Facebook Nokia Environmental Analysis Internal Environment Nokia being the most renowned name in the world has a very big network which is distributed across the world, and has large selling when it is compare to other phone company in the world. It is of very high quality and has user-friendly features. The company has strong financial base which enables it to make innovations with a lot of ease. Nokia has a high product range which makes it very attractive many customers. Nokia’s financial health is strong, which makes it very profitable. Essentially, the price of the product is actually the main issue, as some of the Nokia’s products are not friendly to the users, which fail to sail through in the market. The service centres in some countries are quite few quite often there or no quality after sales services. Most of these product models are quite heavy to carry and not easy to handle. External Environment The digital market is developing so fast. Hence, Nokia has the opportunity to improve its sales as well as its share n the market. Due to An increase in the income level of the people, the purchasing power also increases; therefore, Nokia has to strategically go for the right customer so as to be able to achieve a big gain out of this important situation (Nokia Company, Investor relations, 2015). Also, they would have the good......

Words: 1252 - Pages: 6

The External Environment

...Companies (New York: The Free Press, 1980); D.F. Jennings and J.R. Lumpkin, "Insights between Environmental Scanning Activities and Porter's Generic Strategies: An Empirical Analysis," Journal of Management 18 (1982): 791–803. 12 This section on competitive forces draws heavily on the pioneering work of Michael Porter. See M.E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors(New York: The Free Press, 1980): 1–33. 13 "Retail," Orlando Sentinel(February 1, 1996): C1. 14 W.P. Burgers, C.W.L. Hill, and W.C. Kim, "The Theory of Global Strategic Alliances: The Case of the Global Auto Industry," Strategic Management Journal14 (1993): 419–432; J.S. Harrison and C.H. St. John, "Managing and Partnering with External Stakeholders," Academy of Management Executive(May 1996): 50–60. 15 R.M. Kantar, "The New Managerial Work," Harvard Business Review (November/December 1989): 85–92. 16 F.R. Bleakley, "Some Companies Let Suppliers Work on Site and Even Place Orders," The Wall Street Journal, (January 13, 1995): A1, A6....

Words: 395 - Pages: 2

An Analysis of the External Environment

...An analysis of the external environment Introduction The external environment in a business set up consists of the factors outside the organization but still affect its smooth running either positively or negatively. External factors of the environment are divided into two parts namely: directly interactive forces and indirectly interactive forces. The directly interactive forces includes: owners, customers, suppliers, competitors, employees and employees union. The indirect interactive forces includes: socio cultural, political legal, technological, economic and global influences. External factors are the deep internal analysis of the environment. These factors are further grouped into two categories i.e. opportunities and threats. Opportunities are the chances that exist within the external environment and whether the organization wants to exploit them or not. The threats are four factors that threaten the smooth operation of the company. Current and Future External Factors Affecting Business Environment According to (Nebblet, p4), the external environment variables play a role in determining the opportunities and threats a firm faces are twofold. Variables originating beyond a single firm’s are operating situation and variables influencing a firm’s competitive situation. The two sets provide challenges faced by a particular firm in attempting to acquire or attract resources. These two variables are discussed below: • Economic: This reflects......

Words: 2972 - Pages: 12

External and Internal Environment

...External and Internal Environment Organizations normally operate in a network and are not entirely independent because of the several environments that influence their activities and actions. Some examples of internal and external factors are micro and macro environment that could influence Starbucks are; suppliers, competitors, customers, finances, economic, political, social, environmental, as well as legislation (Starbucks, 2010). Starbucks’ home market is based in the United States which is critical in understanding the internal and external surroundings that impact the organization and its growth. Statistics indicates that coffee sales has grown by 20% percent each year and 18% of it is contributed to the 18 billion dollar coffee market in the United States. At the end of 2011, coffee shops were expected to exceed well over $50,000 (e-importz.com, 2012). With that said, the growth of coffee consumption and potential maturity of the American coffee market may have influenced overcapacity and may have intensified the organizations growth plan. Tariffs and International Trade regulations has contributed to some of the environmental factors for Starbucks; due to high tariffs the company would be compromised, the ability to source quality coffee beans would affect Starbucks reputation, global sales, and competitiveness. Economical Influences pertains to the exchange rate, Starbucks import coffee, sugar, and milk; with a weaker currency the cost will eventually......

Words: 258 - Pages: 2

External Environment

...with a higher institutional ownership structure. But findings also show that the negative relationship is weaker if the firm has a higher proportion of independent non- executive directors. Introduction Ownership Structure is a mechanism that aligns the interest of Shareholders and Managers. Corporate governace is the capstone of the activities that can reduce agency costs. Corporate mangers disclosure policies are influenced by firm’s ownership and governance on the level of various types of information disclosure. This is a summary of literature review on ownership structure and corporate disclosure. Studies have shown that ownership structure can be state, legal, managerial and block holder depending on the countries and cultural environment. Blockholder ownership is the percentage of shares held by substancial shareholders( that is shareholdings of 5% or more). Jensen and Meckling (1976) argue that substancial shareholders are expected to have both greater power and incentives to monitor management, as their wealth is tied to the form’s financial performance. Managerial ownership is the proportion of ordinary shares held by senior managers, including directors and supervisors. The extent of managers shareholdings can reduce agency costs as it serves to align the interests of management with those of other shareholders(Jensen and Meckling 1976). Legal person ownership with respect to legal person ownership, the holders of these shares have more resources and expertise......

Words: 1450 - Pages: 6

External Environment

...Purpose of External Environmental Analysis Organizations are affected by conditions in the environment Managers need to be aware of these conditions in order to – Take advantage of opportunities that can lead to higher profits – Reduce the impact of threats that can harm the organization’s future The external environment is made up of: 1. Macro environment 2. Industry environment 3. Competitive environment So if a company wants to analyse its external environment it must analyse the macro, industry and competitive environment. MACRO ENVIRONMENT: Influence the industry and firms inside it. These factors indirectly affect the organization but cannot be controlled by it. There are a number of common approaches how the external factors can be identified and examined. One approach could be the PESTEL analysis. PESTEL stands for political, economic, social, technological, the environmental and legal factor. The segmentation of the macro environment according to the six presented factors of the PESTEL analysis is the starting point of the global environmental analysis. Political factors • Taxation Policy • Trade regulations • Governmental stability • Unemployment Policy etc. Economical factors • Inflation rate • Growth in spending power • Rate of people in a pensionable age • Recession or Boom • Customer liquidations Socio-cultural • age distribution. • education levels. • income level. • consumerism. • diet &......

Words: 681 - Pages: 3

External Environments

...The external or outside environment are the influences outside of the business that will affect the main internal functions and in many cases the objectives and strategies of the business (External Environment: Introduction to the external environment, n.d.). This facet of business has been ever present; however, as of recently it is even more crucial and beneficial to the success of any business. It mainly addresses the degree of competition such as with fast food giant McDonalds and Burger King. Some factors found in this aspect of business include: • Social environment – the attitudes of consumers towards health, their beliefs and attitudes. Where Burger King was once the hamburger giant, McDonalds has stepped in and took over the market by listening to its consumers and providing broader menus will healthier choices, opening more franchises across the US and in foreign countries. Competitively, McDonalds also expanded to extra value meals in competition with Taco Bells (Stewart, 2003). • Technological environment – technology has been ever changing. It is obvious of the changes that have taken place over the past decades at minimum. To compete technologically, McDonalds has revealed its intentions to test electronic terminals/kiosks that may allow customers to personally select their meals and possibly collect at another location or to be delivered to their tables. External environment are always changing due to the change of markets. External environments and markets......

Words: 642 - Pages: 3

Dankichi-jima no Olympic Taikai | Space Guardians 2 | Actual Window Manager 8 13 3 + Crack