Environmental Influences An Organization Face

Good Essays
Describe three of the environmental influences an organization faces. Provide one example of each and describe how an organization is impacted, either positively or negatively, by each: There are five main external environment forces which can influence an organization (Ashim gupta, 2009). They are technology, competition, resources, consumers, and laws and regulations. I am going to discuss consumers, competition, and resources. The first environmental influence is customers. A customer refers to anyone who purchases and utilizes a company's products and services. Customers can be an immense concern for some companies due to customers changing their minds frequently along with other factors. Companies must understand the needs of its consumers…show more content…
Competition is when two companies sell similar or identical products or services and adjust their prices to gain customers business. This can be in local competition or global. Competition can affect a company positively by forcing them to think outside the box in order for their products to stand out. They have to make their products better to get the consumers attention. Competition can also affect a company negatively when one company has a competitive edge. If one company has a more innovative product or service or provides better customer service, it will result in lower consumer loyalty for the competitor. This could result in the company going out of business if they do not step up and stand out over their competition. This can be said for companies in the business world who do not adjust to the market. If a company does not offer the same services as a competitor, it will likely fail, but if they both offer the same services, and develop a similar reputation, they will enhance each other due to competition. An example of this was seen in several retail stores recently. Amazon is a domination force that all other retailers have to compete with and they will only get better. When they began to dominate the market, some retailers followed suit and increase their online presence like Walmart and EBay. They even began to lower their prices to compete with Amazon. This resulted in several other retailers, who did not…show more content…
Resources could be anything from raw materials, skilled workers, or capital to finance the company. A clothing manufacturer cannot produce products if it does not receive the materials to make the clothing, skilled workers to run the machines, or the finances to pay the workers. These can have a positive or a negative influence on a company because these things are required for the success of the company. Another negative impact could result from the high demand for skilled workers because there will be more competition to attract those workers. Describe four steps involved when setting up an employee training program for a specific job: The needs analysis is the starting point for setting up an employee training program. By determining the needs of the company, you will determine what specific knowledge, skills, and attributes are needed to improve the performance of the trainee in accordance with the company’s standards. The next step would be to create a detailed training outline covering all training program steps from start to finish. (Gary Dessler, 2008) This assists with the development of appropriate job descriptions and identifies the skills necessary to find the right people for the job or to train the existing
Get Access