Premium Essay

Impact of External Factors

In: Business and Management

Submitted By shifaza
Words 8995
Pages 36
Grading tips
Pass

p4

To gain a pass you will need to describe the functional activities and their interdependencies (how they fit together) in two organisations. Use the same two organisations that you have been looking at for your assignment work so far on this unit, and draw charts and diagrams which show their functional activities.
Explain in detail what each of the functions involves.
Show how the functions fit together, e.g. the relationship between marketing and customer service, or how the call centre fits into the overall structure of the organisation.
Draw a clear and well-labelled diagram of your organisation. Use lines and arrows to join up the various positions in the company. Then describe clearly what each of the functions involves and how they fit together.

Merit

m
2

To gain a merit you will need to compare the factors which influenced the development of the internal structures and functional activities of these organisations. Why do they have different structures?
How does the structure relate to the particular sector
(private/public/voluntary or charity) that the organisation is in?
You may want to evaluate how effective the organisational structure is (does it work well or could it be improved?). If the organisations do not already provide organisational charts themselves you could construct one of your own from research about the organisation on its website and in documents.
Perhaps you could write to the organisation asking them for a copy of an organisational chart.

1 .4 Impact of external factors in the business environment on organisations

There is a simple rhyme which goes:
Environment to each must be
All there is that isn’t me.
You can see therefore that the business environment consists of all those things outside the business.
The business needs to keep a watchful eye on the…...

Similar Documents

Premium Essay

Internal and External Factors Had an Impact on the Development of the Automotive Industry

...The case study includes plenty of reasons why internal and external factors had an impact on the development of the automotive industry. To figure out why that’s the fact we need to have a closer look on the textual information. In the beginning of the 70s American automotive companies had to face challenges. First of all there was the oil shock between 1973 and 1979, which increased the fuel price. Secondly they had to find ways out of internal challenges like troubled labor relations. Accordingly there was a decline in the demand for trucks as well as for minivans, which led to financial problems for the companies. To help the automotive industry not to get broke the US government exempted truck-based vehicles from fuel-economy regulations and as the oil price decreased again Detroit was making huge profits due to large sales. Unfortunately that did not last that long. As the oil price increased again in 2001 the fortune of the enterprises shrunk again and in 2007 they had to face an economic slowdown. On the basis, that many automotive companies weren´t able to cut their costs fast enough, there was a shedding of more than 100.000 jobs and the shout down of factories. The entities just couldn’t keep up with the steadily declining market for new cars and trucks. There was no demand for pick-ups, not from private households as well as not from home constructions. But not only changing requirements on the market stressed the automotive industry. There was also an......

Words: 860 - Pages: 4

Free Essay

How Internal and External Factors Impact the Planning Function of Management

...How Internal and External Factors Impact the Planning Function of Management within Dell Introduction This paper will discuss how internal and external factors impact the planning function of management within Dell Computer Corporation. These factors are rapid change, globalization, technology, e-business, innovation, diversity and ethics. All these factors have an affect on how the management at Dell plans for the future and reaches it’s ever changing goals. Rapid Change Dell was doing very well in sales. Demand for computers was at an all time high. In order for Dell to keep up with the demand, they needed to build a bigger and better plant. Assembly line workers were given more responsibility and more components. This enabled them to build more machines individually. Instead of adding a bolt here and a chip there, workers in very small teams would build the complete machine following precise order guidelines and by using components stored in the carefully indicated racks in front of them. In order to meet the demand for different machine options, Dell had to make a massive change in its continuous flow operation. They implemented a Pick-To Light system, which is an up-to-the-minute database that runs on an SCO Unix operating system platform and is tied to a stockroom system. By tying it to work-in-progress stockrooms, the order-level material checking......

Words: 2049 - Pages: 9

Premium Essay

Pestle Analysis

...and its external factors. PESTLE Analysis is normally used to help organisations identify and understand the external environment in which they operate and how it will operate in the future. I believe that a version of PESTLE Analysis can be used by the individual for personal development planning. Some people will argue that this is a use for which it was never designed and for which it may be inappropriate. My answer to that is to “try it, it does work for PDP”. The shorter version is a PEST Analysis – missing out Legal and Environmental factors. At the end of this document is an explanation of the use of PESTLE for organisational change. How PESTLE may be used for PDP For PDP purposes view yourself as being ‘the organisation’ – an organisation subject to external factors, and internal factors. 1 For each of the 6 PESTLE factors brainstorm and identify 5-10 things which, based on existing knowledge, may change or are likely to change over the short term, medium term and long term. 2 Then assess/evaluate their likely impact/affect/relevance/importance on/to/for you. · Then narrow these down and rank them for importance/priority – so that each factor has 3 most important or most likely changes. · Then select/choose the most important or most likely 3 changes from across all factors. You may need expert knowledge for this or need to use risk analysis and/or urgency vs importancy grid. 3 Then identify if a factor and/or its impact will be external or......

Words: 669 - Pages: 3

Premium Essay

Hongkong and Shanghai Banking Corporation Analysis

...operates in more than 80 locations serving 58 million customers. (HSBC Group, 2013). External environment are the factors and forces outside the organisation which affect the organisation’s performance (Robbins, Bergman, Stagg, Coulter, 2009). The business environment is comprised of a set of relationships between agents or stakeholders in the environment – relationships that are changed by individual decisions taken (Mason, 2007). As HSBC operates internationally, its external environment is complex and due to the nature of the industry, the environment is turbulent and instable. The specific environment is the external factors that directly impact on manager’s decisions and relevant to the organisation. The general environment is the broader external factors that influence an organisation, but less influential and direct than specific environment (Robbins et al., 2009). To illustrate, macro factors are economic conditions and technological changes whereas operating factors are unions and competitors. It is important for managers to realize and react to these factors because they can be opportunities or threats to the organisation. Managers should accept the fact that the world is rapidly changing and they have to work towards these changes as there are direct impacts on their managerial roles. External Environment Analysis External environment refers to forces and institutions outside the organisation that can......

Words: 1451 - Pages: 6

Free Essay

External Environmental Factors Impacting Lithuanian Businesses

...2010 m. December 3 d. External Environmental Factors Impacting Lithuanian Businesses Introduction First of all, it is very important to mention that every business has its own external factors, that indicate whether the business is going to succeed or not. Then, it is up to the business if they try to study carefully or not these external factors. By doing so, they will try to understand what the social, legal, political, technological factors are, and how they impact the market and their products. These factors have significant impacts into the challenges of the businesses in any country in the world. In fact, forces in the external environment are so dynamic and interactive that the impact of one factor cannot be disassociated from the impact of other elements. My paper will analyze how three chosen factors will stimulate the businesses in Lithuania, based on empirical researches done and then in the end, it will give recommendation upon those factors. The three elements that I have chosen to analyze are: social, competitive and technological. Factors In order to find out how these factors influence the business life in Lithuania, then a good source for that is: Enterprise Surveys. The enterprise surveys focus on the many factors that shape the business environment. These factors can be both external and internal ones. As it is mentioned already above in the introduction these factors can be accommodating or constraining for firms and play a key role, in deciding...

Words: 1442 - Pages: 6

Premium Essay

Litrature Review Dbs

...environment on the company. ii) The role of organizational environment on company’s growth process. iii) Review the impact of change in organizational environment. 1.3 Research Rationale. Firstly, cross cultural management and managing change is becoming increasingly important in today’s world where company’s trying to expand globally are associating people, organization and countries together and this is where management across culture comes into play. The main concern for an organization is its environment as it exerts variety of pressures on organization and managers. This pressure’s would influence the organizations global strategy, organizational design, control and decision making process and organizational culture. A change in organizations environment could jeopardize and increase concerns about the company’s future. DBS is a multinational bank which airs it to different cultural interactions; this helps in determining the organizational environment and displays the management challenges etc. 2.0 Literature review. 2.1 Introduction. An organizations environment can be defined as all the elements existing outside the boundary of the organization and within the organization which have the potential to affect all or part of the organization (Daft, 1997). Organization operates in three types of environment namely the internal and external environment and the temporal environment. The Internal environment consists of the organizations global......

Words: 2107 - Pages: 9

Premium Essay

Organizational Structure

...Internal and External Factors Paper Internal and External Factors Paper When becoming a manager of an organization, regardless of the type of organization, there is quite a bit of information that needs to be required by the manager. Taking a look at an organization that I believe everyone is familiar with, fast food chains such as McDonalds; this is a fast paced environment and requires quick thinking and previous management skills. If a manager is hired onto McDonald’s work team and has not had any previous training or does not have any management skills, say for instance there is a small disaster within the establishment, this person is not going to know how to act or handle the disaster which could potentially spiral into an even larger problem. This is an example of how well the internal factors are within an establishment. It is very important for an establishment to have all four functions of management in place. “The major four function of management involve planning, controlling, organizing and leading. These functions can be affected by the internal and external factors in a business environment ("External and Internal Factors", n.d.).” “The internal and external factors which have influenced organizational functions in a lot of ways are ethics, diversity, innovation, technology and globalization, which have significant impact on laying out organizational functions, and can have a great impact on the organization's well. The four functions of the......

Words: 1439 - Pages: 6

Premium Essay

Economy

...to be a flexible and easy to understand tool in the context of strategic planning. Like with all tools, the real value of the PEST analysis depends on the way it is used. Hence, the following article not only describes the content of this tool, it also provides advice for its practical application and interpretation. Content The PEST or PESTLE is a useful starting point for the analysis of an organizations external environment and the forces at work there. PESTLE stands for political, economical, socio-cultural, technological, legal and ecological factors. There are different opinions in literature about the inclusion of legal and ecological factors. Their importance doubtlessly differs from industry to industry. In case such factors are of high relevance to an industry, they should be analyzed separately. In industries that are less influenced by legal and ecological factors, they could be allocated to the other categories, e.g. legislation as a political factor or ecological awareness as a socio-cultural factor. In any case it is important to include only external factors which an organization cannot influence by itself. The following chart shows some examples for typical content of a PEST. These examples are not comprehensive; they should be modified according of the actual subject of analysis. Political Legislation (current and pending) Laws relating to the industry Tax laws Regulation of transfer for capital and labour Stability of the political system Membership in free...

Words: 1013 - Pages: 5

Premium Essay

Hr Practice

...shaped by internal and external factors. This unit is suitable for persons who:  are aspiring to, or embarking on, a career in HR/L&D  are working in the field of HR/L&D in a support role and wish to develop their knowledge and skills  have responsibility for HR/L&D activities and decisions within an organisation without a specialist function  are employees or independent consultants within the field of HR/L&D  wish to understand the role of HR/L&D in the wider, organisational and environmental context. Learning outcomes On completion of this unit, learners will: 1 Understand the purpose of an organisation and its operating environment. 2 Understand the structure, culture and functions of an organisation. 3 Understand how HR activities support an organisation. 1 Equivalents in Ireland = 5; Scotland = 6 CIPD unit 3HRC - Version 2 - 17.03.10 1 Unit content Indicative content is provided for each of the learning outcomes of the unit. The content is neither prescriptive nor exhaustive but should enable achievement of the learning outcomes. 1 Understand the purpose of an organisation and its operating environment. Organisation context, purpose, aims and objectives: mission and strategy; organisational values, goals, products and services, customers; business and financial objectives. Impact of internal and external factors: tools for assessing the organisation’s external and internal environment, for example the impact of the social,......

Words: 1846 - Pages: 8

Premium Essay

Dfhdfh

...be conducted in the future in order to provide the company with strategic recommendations for the future. The Environmental Analysis conducted consists of both an extensive analysis on the external environment and the internal environment. The external environment analysis is conducted in order to identify the nature of the environment Ryanair operates in and its impact on the strategic situation of the company. Through PESTEL, External factor and Industry analysis conducted, rejection of Aerlingus offer and rules and regulations imposed by governments etc. are recognized as the critical external environmental factor affecting Ryanair’s strategy. An analysis of the internal environment through Value Chain model and SWOT analysis reveals the key issues hindering the strategic success of the firm; poor customer service and human resource problems. While this initial environmental analysis is used to assist the strategic analysis that is to be conducted on Ryanair, the importance of taking necessary actions regarding the critical issues is highlighted, CONTENT EXECUTIVE SUMMARY 1 CONTENT 2 1INTRODUCTION 3 2 OVERVIEW OF RYANAIR 4 3 CRITICAL ISSUES 5 4 EXTERNAL ENVIRONMENT ANALYSIS 6 4.1 MACRO ENVIRONMENT ANALYSIS (Appendix 1) 6 4.2 INDUSTRY ANALYSIS (Appendix 2) 8 4.3 EXTERNAL FACTOR ANALYSIS (Appendix 3) 8 5 INTERNAL ENVIRONMENT ANALYSIS 9 5.1 VALUE CHAIN ANALYSIS 9 5.2 SWOT ANALYSIS 11 Strengths 12 Weaknesses 12 Opportunities 12 Threats 13 6......

Words: 2334 - Pages: 10

Free Essay

Pest Analysis

...Analysis? A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. For this reason, some say that "pest" is an appropriate term for these factors. However, changes in the external environment also create new opportunities and the letters sometimes are rearranged to construct the more optimistic term of STEP analysis. Many macro-environmental factors are country-specific and a PEST analysis will need to be performed for all countries of interest. The following are examples of some of the factors that might be considered in a PEST analysis. It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organization's marketing environment is made up from: 1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc. 2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc. 3. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural forces, and Technological forces. These are known as PEST factors. Political Factors The political arena has a huge......

Words: 1813 - Pages: 8

Premium Essay

Rahim Afrooz

...A PESTEL analysis is a framework or tool used by marketers to analyze and monitor the macro-environmental (external marketing environment) factors that have an impact on an organization. The result of which is used to identify threats and weaknesses which is used in a SWOT analysis. PESTLE analysis is in effect an audit of an organization's environmental influences with the purpose of using this information to guide strategic decision-making. The assumption is that if the organization is able to audit its current environment and assess potential changes, it will be better placed than its competitors to respond to changes. To help make decisions and to plan for future events, organizations need to understand the wider ‘micro-economic’ and ‘macro-economic’ environments in which they operate. (The micro-economic environment is the one in which we operate and have limited influence or impact, the macro-environment includes all factors that influence an organization but are out of its direct control). An organization on its own cannot affect these factors, nor can these factors directly affect the profitability of an organization. But by understanding these environments, it is possible to take the advantage to maximize the opportunities and minimize the threats to the organization. Conducting a strategic analysis entails scanning these economic environments to detect and understand the broad, long term trends. A PESTLE analysis is a useful tool for understanding the ‘big picture’......

Words: 2875 - Pages: 12

Premium Essay

Probation

...assessing the factors both internal and external that have an impact over the organization. in current business times organization use SWOTT to evaluate their market status with respect to market share, competitive edge and total feasibility (Stahl & Grigsby, 1997).SWOTT analysis provides an organization with improved knowledge about its obtained and attainable strengths and weaknesses, prospective opportunities, risks and threats and business developments (Wheelan & Hunger, 2004).the major factors of SWOTT analysis can be divided under the heads of internal and external factors (Stahl & Grigsby, 1997). This paper outlines a detailed assessment of factors external and internal that can have an impact over the business of Ace Gym. In view of this assessment management of Ace Gym can assess the major factors that can impact the feasibility, developing competitive advantage and stakeholders’ satisfaction for the organization (Wilson & Gilligan, 2005). External Environmental Analysis Many external factors can have an impact over Ace Gym’s capability to achieve its goals and objectives. To achieve success Ace Gym will have to find a suitable strategy that can maintain the business expectations within the actual conditions and also to maintain Ace Gym’s expectation with the provisions external environment can give. The external factors include: legal and regulatory factors, economic factors, technological factors, innovation factors, and socio-cultural......

Words: 2021 - Pages: 9

Premium Essay

Travel

...ANALYSIS SWOT and PEST analyses are similar both focus on environmental factors that may affect a company. Both types of analysis use group brainstorming to identifying environmental factors. However, there are several important differences between the analysis frameworks that must be understood before either can be used effectively. PURPOSE Both SWOT and PEST have become components of a good business plan and are key in evaluating environmental factors. In order to understand how these analysis frameworks are similar, it is important to fully understand each framework individually. FEATURES OF SWOT SWOT analysis is a simple framework for evaluating the internal and external environments affecting a company. These environmental factors can be divided into four categories, from which SWOT analysis derives its name. The categories are: strengths, weaknesses, opportunities and threats. Strengths and weaknesses represent the internal environment, whereas opportunities and threats represent the external environment. FEATURES OF PEST PEST is a type of analysis used in strategic management that takes into account Political, Economic, Social and Technological factors. PEST analysis is a useful tool for understanding market demand/decline, current business position and potential opportunities/obstacles. The factors it analyzes should not be solely at the company level. Rather, these external factors must be examined at a company, national and global......

Words: 444 - Pages: 2

Premium Essay

Department of Health and Human Services Design Analysis

...internal and external factors have defined and shaped the organization in terms of its size, organizational structure, and processes. Organizational characteristics, also known as internal factors such as the purpose of the organization and the organizational structure help to define how the HHS agency operates. According to the Forestry Department (2000), “External factors are those from the enabling environments which are not under the control of the organization but which affect its structure and development have also influenced the organization” (para. 2). These external factors include economic factors, socio-economic factors, and political-administrative factors. Because of the demand for more accountability within the organizational structure it has affected the behavior of the Department of Health and Human Services. This paper will explore how the internal and external factors have defined and shaped the Department of Health and Human Services in terms of its size, organizational structure, and processes as well as how the demand for more accountability has affected the behavior of the organization. “Internal factors are inner strengths and weaknesses that an organization exhibits”. “Internal factors can strongly affect how well a company meets its objectives, and they might be seen as strengths if they have a favorable impact on a business, but as weaknesses if they have a deleterious effect on the business” ("Internal factors," 2012). Internal factors such as the......

Words: 1341 - Pages: 6