Environment of Firms Essay

Environment of Firms Introduction Business environment consist of all those factors that have a bearing on the business. The term â€Å"business environment† implies those external forces, factors and institutions that are beyond the control of individual business organizations and their management and affect the business enterprise. These forces are customer, creditors, competitors, government, socio-cultural organizations, political parties national and international organizations etc. some of those forces affect the business directly which some others have indirect effect on the business. Types of Environment 1Internal Environment The internal environment is the environment that has a direct impact on the business. Here there are some internal factors which are generally controllable because the company has control over these factors. It can alter or modify such factors as its personnel, physical facilities, and organization and functional means, like marketing, to suit the environment. A) VALUE SYSTEM The value system of the founders and those at the helm of affairs has important bearing on the choice of business, the mission and the objectives of the organization, business policies and practices. B) MISSION,VISION AND OBJECTIVES Vision means the ability to think about the future with imagination and wisdom. Vision is an important factor in achieving the objectives of the organization. The mission is the medium through which the objectives are achieved. C) Organizational Structure It includes the values and expectations of your firm’s stakeholders; its mission, goals and objectives; and its resources. These factors combined  determine what your organization is trying to accomplish and how successful it is likely to be. 5 basic parts of organization: Operating core, Strategic Apex, Middle line, Technostructure, and Support staff basic organization structure: a) Functional b) Divisional c) Hierarchical d) Line and Staff Structuree) Task Force The Need for Organizational Structure Organizations needs structuring so that lines of authority along with individual duties and responsibilities can be understood by every company member. f) Matrix Structure TRENDS IN ORGANIZATIONAL STRUCTURES The growth in retailing, both on-site and off-site, has required merchants to readdress their tables of organization so that they will better serve the needs of their customers and make their companies more profitable. Some of today’s trends in organizational structuring for the fashion-retailing arena are described in this section. Restructuring to Accommodate Multichannel Expansion When department stores in particular expanded their catalog operations, many initially opted to make this division part of their brick-and-mortar operations. Similarly, when retailers saw that the Internet had the potential to increase revenues, they changed their organizational structure to reflect this and to make the overall operation function more efficiently. Today, the trend is for the major multichannel retailers to adjust and expand their tables of organization and separate the three functions into separate channels. Macy’s, for example, is one of the giants in the industry  that has changed to that format. Consolidation of Divisions The acquisition of department stores by major retail groups has become a dominant trend. May Department Stores and Federated Department Stores, for example, are two companies that have expanded their operations by purchasing other retail companies. In their pursuit of maximizing profits, these groups have, in many cases, decided to merge the new acquisitions into some of their own stores. May, for example, purchased sixteen Wanamaker’s stores and three Woodward & Lothrop stores and merged some into their Hecht’s division and some into the Lord & Taylor group. Through this practice, fewer buyers and merchandisers were needed as were other executives who previously worked exclusively for one store. As this acquisition trend continues, this staff consolidation is likely to continue as well. Decentralization Much of the growth in large-scale retailing has come about by expansion into new trading areas. Although centralization was once the forte of the chain organization, this expansion has necessitated some decentralization of functions. Merchandise distribution, for example, has now been decentralized to include regional operations. When stores were so far from the single distribution center, the time it took for merchandise to reach many of the units was both inefficient and costly. SMALL STORE APPLICATIONS The manner in which small stores are organized is unlikely to change, because these operations require few employees to run them. The key roles are usually performed by the owner or partners with the remainder of the functions such as selling and stock keeping left to the sales associates. When there isn’t a store manager on site, as is often the case, a particular salesperson should be designated to take charge and assign tasks such as handling temporary changes in sales associates’ hours. When outside tasks, such as advertising and visual merchandising, are required, outside agencies should be hired to take care of them. The need for in-house specialists to perform these tasks is limited and is too costly for small businesses to afford. Strengths and Weaknesses Strength is any attribute or ability of the organization that may help it in accomplishing its mission and in fulfilling its vision Weakness is any attribute or ability of the organization that may hinder it in accomplishing its mission and in fulfilling its vision †¢For example factors relating to products, pricing, costs, profitability, performance, quality, people, skills, adaptability, brands, services, reputation, processes, infrastructures, etc †¢Factors tend to be in the present Starbucks SWOT analysis 2013 Strengths 1.Sound financial records 2.No. 1 brand in coffeehouse segment valued at $4 billion 3.Starbucks experience 4.Largest coffeehouse chain in the world 5.Employee management Weaknesses 1.Coffee beans price is the major influence over firm’s profits 2.Product pricing 3.Negative publicity Opportunities 1.Extend supplier range 2.Expansion to emerging economies 3.Increase product offerings 4.Expansion of retail operations Threats 1.Rising prices of coffee beans and dairy products 2.Trademark infringements 3.Increased competition from local cafes and specialization of other coffeehouse chains 4.Saturated markets in the developed economies 5.Supply disruptions 2External Environment It refers to the environment that has an indirect influence on the business. The factors are uncontrollable by the business. Two types of external environment: Micro Environment The micro environment is also known as the task environment and operating environment because the micro environmental forces have a direct bearing on the operations of the firm. a) Suppliers An important force in the micro environment of a company is the suppliers, i.e., those who supply the inputs like raw materials and components to the company. b) Customer The major task of a business is to create and sustain customers. A business exists only because of its customers. c) Marketing Intermediaries The marketing intermediaries include middlemen such as agents and merchants that help the company find customers or close sales with them. d) Financers The financers are also important factors of internal environment. e) Public Public can be said as any group that has an actual or potential interest in or on an organization’s ability to achieve its interest. Public include media and citizens. Macro Environment Macro environment is also known as General environment and remote environment. Macro factors are generally more uncontrollable than micro environment factors. When the macro factors become uncontrollable, the success of company depends upon its adaptability to the environment. a) Economic Environment Economic environment refers to the aggregate of the nature of economic system of the country, business cycles, the socio-economic infrastructure etc. b) Social Environment The social dimension or environment of a nation determines the value system of the society which, in turn affects the functioning of the business. Sociological factors such as costs structure, customs and conventions, mobility of labor etc. have far-reaching impact on the business. c) Political Environment The political environment of a country is influenced by the political organizations such as philosophy of political parties, ideology of government or party in power, nature and extent of bureaucracy influence of primary groups etc. d) Legal Environment Legal environment includes flexibility and adaptability of law and other legal rules governing the business. It may include the exact rulings and decision of the courts. e) Technical Environment The business in a country is greatly influenced by the technological development. The technology adopted by the industries determines the type and quality of goods and services to be produced and the type and quality of plant and equipment to be used. Financial System of the Country and Selected Items of Monetary & Fiscal Policies The structure of the Philippine Financial system is dominated by a banking system. Bangko Sentral is the official central bank in the Philippines. The structure of the financial system allows the option to take debts and buy bonds or stocks. There are many private banks present for this purpose. Financial Institutions are the intermediaries that mobilize savings and facilitate the allocations of funds in an efficient manner Fiscal policy refers to the â€Å"measures employed by governments to stabilize the economy, specifically by manipulating the levels and allocations of taxes and government expenditures. Fiscal measures are frequently used in tandem with monetary policy to achieve certain goals.† In the Philippines, this is characterized by continuous and increasing levels of debt and budget deficits, though there have been improvements in the last few years. The Philippine government’s main sources of revenue are taxes, with some non-tax revenue also being collected. To finance fiscal deficit and debt, the Philippines rely on both domestic and  external sources. External Sources of Financing are: 1 Program and Project Loans – the government offers project loans to external bodies and uses the proceeds to fund domestic projects like infrastructure, agriculture, and other government projects. 2 Credit Facility Loans 3 Zero-coupon Treasury Bills 4 Global Bonds 5 Foreign Currencies Domestic Sources of Financing are: 1 Treasury Bonds 2 Facility loans 3 Treasury Bills 4 Bond Exchanges 5 Promissory Notes 6 Term Deposits In 2010, the total outstanding debt of the Philippines reached Php4.718 trillion: Php2.718 trillion from outstanding domestic sources and Php2 trillion from foreign sources. According to the Department of Finance, the country has recently reduced dependency on external sources to minimize the risks caused by changes in the global exchange rates. Efforts to reduce national debt include increasing tax efforts and decreasing government spending. Monetary policy is the monitoring and control of money supply by a central bank, such as the Federal Reserve Board in the United States of America, and the Bangko Sentral ng Pilipinas in the Philippines. This is used by the government to be able to control inflation, and stabilize currency. Monetary Policy is considered to be one of the two ways that the government can influence the economy – the other one being Fiscal Policy (which makes use of government spending, and taxes). Monetary Policy is generally the process by which the central bank, or government controls the supply and availability of money, the cost of money, and the rate of interest. The Philippines’ inflation target is measured through the Consumer Price Index (CPI). For 2009, inflation target has been set to be 3.5 percent, having a 1% tolerance level, and 4.5 percent for 2010, also having  1% tolerance. Also, the Monetary Board of the Philippines announced a target of around 4 ±1 percent from 2012 to 2014. Opportunities and Threats Opportunities are any issue, event or trend that may help the organization in accomplishing its mission and in fulfilling its vision Threats are any issue, event or trend that may hinder the organization in accomplishing its mission and in fulfilling its vision †¢for example, factors relating to markets, audience, fashion, seasonality, trends, competition, economics, politics, society, culture, technology, environmental, media, law etc †¢factors tend to be in the future

Assignment One Essay Example | Topics and Well Written Essays - 1500 words

Assignment One - Essay Example As the utilization of ICT increases with the creation of new applications, the governments continue to adopt these services. The implementation of the ICT technologies by governments matches the millennium development goals (MDG’s) that focus on digitizing government services. Although embracing some of the ICT technologies strains the financial budgets of countries, all governmental stakeholders agree that it is immensely critical in facilitating public services. Evidently, there has been an evolution of modern communication methods. The methods through which citizens interact with the government have changed remarkably from counter transactions to digital channels, for example, government websites. Rwanda is one of the countries that are currently incorporating ICT technologies in their governance structures (Watkins, 2008). This entails public sector services such as healthcare, license acquisition, taxation and education. Due to this, the government will be able to provide better services. The adoption of ICT solutions by various countries is in coherence with the globalization objective of computerizing administration procedures. The digitization processes are within the millennium development goals (MDG’s) of developing counties. ICT enhancement addresses Rwanda’s MDGs. The Rwandan government acknowledges the rising utilization of ICT in daily lives of its citizens. Consequently, the enhancement of government services through the ICT will be highly beneficial. It will assist the governance process in achieving exemplary echelons of performance. Furthermore, ICT adoption will increase the interaction of the authorities and citizens, further enhancing responsiveness of Rwanda’s government to their citizens’ concerns. For example, the Rwandan health ministry can create websites that focus on the needs of the citizens (Watkins, 2008). This means the citizens can apply health services online and share information. Additionally, the

Prime Ministers can never behave like Presidents. Therefore, the Essay - 1

Prime Ministers can never behave like Presidents. Therefore, the presidentialisation of parliamentary democracies thesis is misguided. Discuss - Essay Example 2010). This mounting discontent in several parliamentary democracies is taking place against the backdrop of a popular movement toward individual headship by the chief executive. This has not been complemented by new machineries that would enable the electorate to make their leaders, instead of the parliamentarians and parties, responsible (Mughan 2000). The case of Britain, and existing pre-election movement, reveals these conflicts well. Tony Blair pleases voters on the basis of his reputation, but the electorate cannot reprimand or reward the prime minister directly. Their sole power is to support or oppose his/her party, whose control on its leader is usually viewed as restricted (Flinders, Gamble, Hay & Kenny 2009). This disparity in accountability has broadened over the recent decades. Although political leadership strategies and electoral appeals in Britain throughout the past three decades have become ever more presidential and individualised, the system stays decisively party and parliamentary based (Gunther, Montero & Puhle 2007). The emergence of this ‘individualisation’ of political leadership has been traced by the author of The British Presidency, Michael Foley (2000). He claimed that it is, partly, the politicians’ reaction to the media environment. Policymakers resent the media’s focus on exposing personality conflicts and the manipulative mechanisms of contemporary politics, disregarding policy and ideas, making political issues emergency headlines. There are, basically, similarities and differences between presidential chief executives and prime ministers, but both necessitate two major power machineries to work successfully: control over the parliament, and power within the executive (Samuels & Shugart 2010). In general, the United States, the most prominent case of presidentialism, has an executive which certainly holds the first power source, but

Case Study 1 Example | Topics and Well Written Essays - 1000 words

1 - Case Study Example 2. In order to fulfil the above mentioned mission for Kaiser, its operational strategy to reach a sustainable competitive advantage should be based on the notion of quick response (flexible or responsive). As noted, this is not-for-profit health maintenance organization serving 8.1 million people. The number is just high so it is imperative for the organization to adopt a flexible operational strategy which can allow it to quickly respond to the needs of different people it serves. This will help to show its total commitment to the cause of providing health care services to the people with special needs in the communities it operates in. The goal of the organization is to uplift the welfare of different people in the communities in which it operates. Therefore, it is imperative for the organization to implement strategies that are meant to ensure that the targeted people get the services they may require as when they may require them. This will help to create trust between the organization and the targeted people such that they will look no further than it for any service related to health care they may require. What is only important in this case is to offer satisfactory services to the targeted people so that they can come back again for the same services. When an organization is not operating for profit like Kaiser, then it should appeal to the interests of the targeted people so that they can develop positive identity with it. Goods and service design: Kaiser ought to define the goods and services it offers to the targeted people in different areas it operates. For instance, it should make it clear that it is not for profit organization and it offers freely health care related services to different people who belong to less privileged groups. It also ought to make it clear that it is committed to train other people so that they can also play a part in uplifting the welfare of the people in different communities. Quality: quality is a virtue in as far as

The influence of economic and political forces on environmental policy Assignment

The influence of economic and political forces on environmental policy development - Assignment Example s, scientists, farmers, ranchers, and climatologists agree that there is urgent need to avail enough water for the purposes of harnessing the agricultural potential of Texas. Even with the rains coming to Texas in the near future, the meteorological department warns that the process of desertification shall go on for more than a century into the future. This is a worrying trend given that Texas comes only second in agricultural production behind the state of California. There are several political and economic issues which should be addressed on this front. While this is a campaign plan, the issues are real and affect all Texans on equal measure. First of all, besides worrying about the conditions of their lawns and gardens, Texans should be aware of the fact that drought affects agriculture with far-reaching effects. The drought increases the cost of inputs of production translating to higher prices for products to the final consumer. The loss of agricultural productivity will not only affect Texans; the rest of the country will have to compensate for the slowing output through higher prices and raised taxes. Scientists have predicted that it is almost inevitable for drought conditions to manifest in Texas (Kelly, 2009). The rainfall models and history for this state and concluded that desertification is eminent. Producing over 50% of the cotton and over 30% of the wheat in the United States, Texas is an agricultural pillar that should not be left to wither. The year 2011 saw to a loss of $3.18 billion in the combined cotton, hay, wheat, sorghum, and corn. Ranchers in the same year had to transport cattle to water points, fetch water and transport it to the cattle, or lose their businesses entirely. In the livestock sector, a total loss of $2.06 billion was recorded. The agricultural sector in general lost at least $8.7 billion in 2011. These costs continue rising as the drought persists in its ravaging (Lauren & Scott, 2011). Another economic issue adversely

Employee Engagement and Organizational Performance Research Paper

Employee Engagement and Organizational Performance - Research Paper Example Employee Engagement and Organizational Performance Employee engagement is one of the most important issues in HR. It plays a significant role in enhancing the overall performance of the employee and thus the productivity of the organization. It gives an individual a sense of importance and belongingness to the organization. Any absence of employee engagement could lead to stress on the part of employee. In this paper, we will discuss the importance of employee engagement and its impact on organizational performance as it has become one of the most important concerns for the HR of an organization. When employees are fully engaged and dedicated towards their work and organization, we say that employees are engaged. Employee’s engagement is usually a measurable form of concept, which assesses the positive and negative attachment of employee with job and organization. Engagement is a step forward than simple employee’s motivation and satisfaction as it also specifies the amount of involvement in organization tasks and decision making Schmidt in 1993 described employee engagement as a modernized version of job satisfaction and commitment with work. Various studies found employee engagement as a very important tool that could trigger positive outcomes for an organization.Employee retention is the most important benefit of employee engagement as it significantly reduces the cost of the organization and improves the productivity. ... In turn, it brings good results for organization and enhances the job performance of employees too. For example, such employees tries to give their extra input, spend extra time at work, resulting in increased customer satisfaction and improved services. This concept was initiated during the World War II, when the impact of unity between the army men was assessed. Studies were conducted in the world war to find the importance of motivation and engagement as scores were given to different attributes. In today’s world it has now become a major HR issue as the cost of replacing an old employee is very high (Arndt, 2000, pp. 44–48). According to the study conducted by Society of Human Resource Management, replacing an employee could cost $3500 at least, making it difficult for the organization to hire a new employee. As a result, organizations are trying to pay attention on this important issue so they could enhance organizational performance (Potosky, Bobko, 2004, pp. 1003 –34). Towers Perrin conducted a study in 2007-08 on 90,000 employees working in 18 different countries to gauge the importance of employee engagement. The study found that engaged employee had a 19% probability of increasing the operating income of the company. On the other hand, employee with lowest engagement had a 32% probability of reducing the operating income of the company. Tony Schwartz stated that more than 100 studies have proved strong relationship between employee engagement and organizational performance. Studies also show that out of the total workforce, only 20% of them are fully (Caruth, 2007, pp. 150-167). These studies show the importance of generating employee engagement that could result in

Summary of Thoughts Essay Example for Free

Summary of Thoughts Essay The purpose of tourism planning Tourism has grown through the years to become the single largest industry in the world. Tourism may not be considered as a discipline or an industry considering that it is multidimensional and leverages on several disciples in satisfying functional, aesthetic and financial needs of individuals, communities, businesses and government at different levels. In this vein, it is essential to create plans and planning tools that integrate the interest of these various stakeholders without compromising the integrity of the limited resources and ensuring they are preserved for use of future generations. In carrying out tourism planning, it is essential to reconcile the various actors involved in creating plans for harnessing and use of environmental resources in the development process. These are the business sector which primary aim for planning is profit and returns; public sector with a joint aim of regulation, marketing and promotion towards economic improvement; the non-profit sector involved in creating plans that generate revenue not for investment returns but to be plowed-back for operational and capital costs; and last of all professional consultants a group that provides the most effective assistance in accomplishing better and unbiased tourism planning. Four goals which should guide the tourism development planning process in order to achieve an all-encompassing success are: the user-oriented planning policy aimed at provision of user (visitor) satisfaction; an environmental sustainability approach towards ensuring increased economic and business returns on investment; sustainable use of resources; integration of tourism into the social and economic life of communities. For successful tourism planning, plans at three scales of on site, destination zone and regional scale should be synchronised without any being considered in isolation from the others. The tourism planning process is incomplete in the absence of individual input as well as cooperation and collaboration from the affected communities. The economic benefit of tourism is very crucial especially as its development is often the bane of some destinations. However, policies on tourism development are made by a government in order to ensure a sense of control and coordination in the overall tourism development planning process as well as a sane implementation. All three players i.e. public, market and government need to cooperate, collaborate and coordinate to avoid haphazard development of the tourism planning process. The changing dimensions of tourism planning. Tourism has continued is not static and has responded to the dynamic environment and market forces due to evolving change in values, demands and challenges of the various stakeholders associated with the industry. These changes also have translated to problems in the planning of tourism, which has been associated with (but not limited to): Non-human factors (physical environmental responses), globalisation, political paradigm shift, social and planning changes, increase in knowledge and perceptive responses. The tourism policy agenda has also changed since the upward turn of growth post World War II, which resulted in reduced government control and deregulation of the process. This transformation can be captured through five distinct phases as follows: 1945-55 institutional dismantle and streamlining; 1 955-70 government involvement in economic tourism; 1970-85 government involvement in infrastructure and regional development; 1985-2000 continued government regional development and community/individual participation; and 2000- present cooperative and collaborative planning, environmental consciousness and resource orientation. The influence of the UNWTO cannot be overemphasised through some of these phases of change and evolution. Five broad approaches have been adopted through the evolution of tourism planning with each one having its distinct functional focus. These are: Boosterism – the seeming vastness of cultural and natural resources generated exploitation of the same for the sake of tourism development Economic/industry approach – characterised by economic growth, competition, market forces and returns in examination of social and environmental issues. Physical/spatial approach – emphasis on minimising the negative impacts of tourism on the physical environment Community oriented approach – partnership and local community participation in planning and decision making process and the process itself; a bottom-up form of planning. This approach has been identified as a difficult one in the face of government control and decisions being made for the communities without recourse to communal opinion or say so. Sustainable tourism approach – coordinative, iterative, integrative and strategic incorporation of economic, community and spatial approaches for sustainable development of tourism, while relying on government for regulation. Finally, to achieve sustainable tourism planning, five key mechanisms are expedient – cooperative and integrated control system; industry coordination; increased consumer awareness; increased producer awareness; and yielding of conventional planning to strategic planning. Ebenezer Howard’s Garden City Ebenezer Howard identified the need to carry out planning of cities considering the appalling state of the cities and urban areas in the late 1800s subsequent to the industrial revolution taking place across Europe. He recognised the importance of the preparing and implementing plans while giving much consideration to the influence of liberal democracy every step on the way i.e. the success of the planning process was very much dependent its reconciliation of the social and political ramifications within the target environment. Four democratic disjoints were identified and considered and a balance created between in his attempt at creating some semblance of structure in the urban development process of his garden cities. Inclusiveness vs decisiveness Central vs local control Rights vs utility Equality vs liberty In resolving the opposing inclusiveness and decisiveness, by portending that given the right conditions, a compromise will be reached towards making appropriate and timely decisions subsequent to the adoption of community and individual participation as well as cooperation in the planning process. Local interest although very essential in planning for and with members of the community, the need for concession to interests outside the immediate community and that of a central governing body is of critical importance for success to be achieved; thus bringing a balance between central and local control. A way towards reconciling between rights and utility, included adoption of collaboration between market utility, community utility and democratically established rights, at the local level. This involved upholding utility towards the ‘greater good’ of the community while not neglecting the importance of individual rights. Finally, Howard’s ideal required for individual interest and liberty to co-exist; such that personal freedom and collective responsibility were key factors in resolving the conflict between equality and liberty. Yet land was to be seen as a collective property demanding equality of ownership. Conclusion All three materials agree on imminent salient points in the planning process whether this is for a community, city, region and activities there within such as tourism. Howard’s idea of urban planning integrates social, economic and political (government) factors as essential towards a successful attainment of an ideal city while placing high importance on the need to involve members of the community in making decisions that concern the land around them. Tourism planning is not an end in itself, rather with adequate management it leads to the attainment of individual, community, corporate and governmental goals. In this vein, collective action by all stakeholders is imminent for the continued success of the process and survival of the resources on which tourism is based while yielding returns for continued growth of tourist destinations. REFERENCES March A. (2004). Democratic dilemmas, planning and Ebenezer Howard’s Garden city. Planning Perspectives. 19, 409-433. Gunn C. and Var T. (2002). Tourism planning: basics, concepts and cases. 4th ed. Routledge, New York. Hall C. M. and Lew A.A. (2009). Understanding and managing tourism impacts: an integrated approach. 1st ed. Routledge, New York Mason P. (2012). Tourism Impacts, planning and management. 1st ed. Routledge, New York The changing dimentions of tourism planning. Extract lecture note Fall 2012-2013 for course delivered by Dr. Habib Alipour