Google prosperity is connected to its effective organizational structure and hierarchical culture in supporting development. The structure of company is not regular as it changes and direct social connections inside the firm. According to some hypothesis the solid arrangement between company’s ethics and structure have higher chances of success. The result of this arrangement is now visible in the organization’s pace of growing.
Google has a cross- functional organizational structure. It has three major components- 1. Function-based definition 2. Product-based definition 3. Flatness
Function-based structure- Functional departmentalization allows greater operational efficiency because employees with shared skills and knowledge
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Various external factors can impact the ability of a business or investment to achieve its strategic goals and objectives. These external factors might include competition, social-cultural, technological changes, and the economic and political environment.
According to PEST analysis, Google’s external environment factors are-
Political-It includes the increase or decrease of tax. The main effects of political factor s on business are Impact on economy, changes in regulation, political stability, mitigation of risk. The development of Google was discouraged by the legislature of US and China. They saw Google as a group of business entities and demand specialist to screen its exercises(Google,2009). This allocation does not influence Google activities as Google reacted quickly to the clients by addressing its policies regarding lawful view points.
Social-cultural- Individuals are being more taught and efficient. The living standard of people and demands are evolving quickly. The firm needs to observe such changes to contend with its rivals by giving extra administration. People nowadays are additionally progressive as the usage of web have increased widely. Google came up by building their own operating system named android through which Google shall have better
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It helps to increase in-depth knowledge and skill development among the employees and helps Google to achieve the organizational goals. Thus, it increases the productivity as the specialization make the task quick and efficient.
Weakness-Communications in associations with the functional structure can be inflexible as the methods for activity and the high level of formalization. Horizontal cooperation within the company can be affected which results in lack of development and lowers the motivation of the employees of Google. Therefore, it mitigates the production level and make harder for the organization to achieve goals.
Product-based structure-
Strength-Product-based structure helps the employee to emphasize on market sector. In addition, it fulfills customer demands more effectively and widen the knowledge of the workers. Cooperation and performance within each division is increased as a result it encourages competition between each department.
Weakness-Resources in product-based structure are not shared adequately across the division. It is difficult for the firm to recognize the requirement to change or drop the product. It prohibits company to achieve its goals as each unit operators focus on its
The problem is, in Dynacorp, not only the amount of employees had significantly increased but the product scope had expanded as well. With thousands of employees working together under the same environment and several product lines on the market, at this point, with three divisions working toward different goals based on its own specific fields, Dynacorp had actually developed a boundary among the divisions. And this separation was deepened as the company expanded bigger. “Dynacorp’s current organization had serious shortcomings” (page1). The lack of integration between divisions is a result from the fact that the organizational structure did not meet the company’s expectation.
Increased Work Efficiency / Productivity A team that has good culture of teamwork and mutual motivation will make the members more productive and smarter. Such a team where seamless and effective relationships exist, members are poised to learn from one another, develop skills and leverage on such internally gained skills to expedite work processes thereby increasing overall efficiency, reducing downtimes and knowledge gaps. Collaboration among such team members will make members to perform at their best by working on what they do best.
In this segment we will discuss about the external forces of the company that are not controllable (Keegan and Keegan, 1989). PESTLE analysis will be an effective tool here to analyze the factors. 2.1.1 PESTLE Analysis PESTLE is a very effective macro environmental tool containing six important factor. Political Factors In India political factor is very vulnerable.
Political Forces: The political stability is very important for the business to grow and last, according to that if the business has been operated in a politically unstable area, or in a country that is under a threat of wars that will lead to a loss for the business. Politics and governmental interferes is an important issue that is facing businesses and became a barrier in many situations. GAP Inc.
Huawei, being a multinational company is affected by the external business environment. As such the impact of the external business environment factors on Huawei’s marketing strategy are explained by the PESTEL Model as follows: 1. Political Factors Political factors include laws and legislations which are of great importance due to the fact that they enclose many aspects of a company policy. Through regulatory bodies, the government implements policies that affect businesses in various ways (Vrontis and Pavlou, 2008).
In the ever changing business environment, there are both internal and external influences which affect the operations and management of a business. It is up to the business on how they deal with the effects of each influence and this will ultimately determine the success of the company. The internal influences are factors which the business has direct control over, one of these being the location. The location refers to the geographical situation of the business and has a high level of impact over how the business will function. It can become a make or break factor, depending on how well the business utilises and addresses the visibility, cost and their proximity to suppliers, customers and to support services.
Here is an example of trend of technological development in the industry involved. The biggest trend of all that is developing is cloud computing. The benefits of cloud computing are just endless and it is right now one of the biggest trend of technology development. With cloud computing, it enables companies to share, store and consume resources easier, at a lower cost and with greater flexibility. Not
The detailed analysis aims to find out the external factors that affect Apple, identify external factors that are subjected to change in the future and exploits the opportunities and defend against threats better than its competitors would. The P in PESTLE stands for the political factors, the E for the economic factors, the S for the social factors, the T for the technological factors, the E for the environmental factors, and lastly, the L for the legal factors. These are the six external factors that affect the Apple company. Looking at these six factors thoroughly and respectively, firstly, the political factors that affect Apple include the fact that more than half of the sales from their products originate from countries other than America and how Apple manufactures its products and various product parts from countries outside of America, for example, China, Korea, Ireland and the Czech Republic. Furthermore, the bad political relationship between America and other countries predict the bad outcome for the company.
IMPORTANCE OF EXTERNAL FACTORS AFFECTING BUSINESS Business of the organization is affected by many factors. There are some internal and external factors influencing the business. There are many internal and external factors affecting the business environment. Internal factors are related to the SWOT analysis whereas the PESTLE analysis is used to measure the external factors affecting the business. These factors includes • Political • Economical • Sociological • Technological • Legal • Environmental Political JLR has a choice to start a setup in the china; the political situation of china is quite stable, which is a good sign for a business.
PESTEL ANALYSIS Pestel is a strategic analysis tool used by organizations to scan the macro-environment in which they operates, helps to identify external factors that can affect the organization's business activities and performance (Gockeln 2014). Macro-environmental factors are those that affect clothing industry and the industry have no control over rather than adapting to it. By so doing, it gives ability to differentiate themselves from potential competitors and sustain performance. Table 2 depicted, (PESTEL) Political, Economic, Social/ Cultural, Technological, Environmental and Legal external factors. Political factors: these are examined from the political stability point of view, which covers government policy intervention in the economy, deregulation, taxation changes, as well as the attitude of political parties on the government policy.
Overall, it will increase productivity in the workplace due to clearer objectives and better skills learnt and the organisation can keep track of employee perfor-mance. 1.2 & 1.3 – Identify & analyse development opportunities for career and personal
POLITICAL Political factors can often give a big impact on the business of a company. Often this factor is not in the hand of the organization. Several aspects of government policies can make a huge difference. However, all firls are required to follow the law. It is the responsibility of the organization to find how upcoming legislations can affect their activities.
are all the economic factors. The ability of people or purchasing power of Apple products is targeted from medium to high class. Economic factors effect Apple Company’s business process as Apple is recognized internationally. The products components that the company gets from foreign suppliers play an important role because of the exchange rates and currency differences.
However, the PESTLE factors entails political, economic, social, technological, legal and environmental that are elaborated below: Political Political factor is an imperative factor that organisation considered at the time of expanding their business operations by assessing the political environment of the target market (Li, et al., 2014). Moreover, it is found that there is a strong competition among the sports retailers in all over the world that is why the margin of error is very low for the firms. It is imperative from the prospect of an organisation to evaluate
Vested interest 5. Desire to retain existing friendships Preferred Alternative with Rationale Every business organization is not exempted to change, as both employees and the environment is also changing. This case study clearly point out the change of perception of whole organization; which is integrating computer on their daily operation. It is true that some may be resistance to this change due to several factors hindering them to adapt change in a positive perspective.