Part B
Part B
Part B
3. External environment
External factors that affect an organization may be political, economic, social or
technological. The same internal factors that lead to an organization's success
inevitably characterize that organization's relationship to the external environment in
these broad areas.
An organization with a clear sense of mission, for example, can explain itself better to
the world and can align itself with the positive elements in each area.
Leaders who can learn and communicate what they've learned within their
organizations also can learn from the organization's external environment and
communicate successfully with it, resulting in an ongoing exchange of ideas to the
benefit of both the organization and its environment.
Amazon, a single company that is transforming the way goods are bought and sold all
over the world, has a reputation for communicating effectively with its suppliers and
customers. Amazon is a customer-driven idea machine that believes the customer is
always right. Determining what is right for each of its millions of customers and
creating and maintaining a fast-growing organization that responds effectively to what
each customer wants is Amazon's almost unprecedented triumph of 21st-century
organization.
Companies are also impacted by external changes throughout society, like the impact
of the #MeToo movement aimed at eliminating sexual harassment. Numerous firms
have seen high level executives leave the company after credible charges had been
leveled. Companies are also responding to gender equity issues by reviewing salaries
of male and female employees to make sure comparable jobs receive comparable pay
(P) political: The extent to which a government may influence the economy and
thereby impact organizations within a certain industry. This includes government
policy, political stability, and trade and tax policy.
(E) economic: How economic conditions shift supply and demand to directly affect a
company. This includes economic growth or decline, and changes in interest and
inflation rates.
(S) social: Changes in the sociocultural market environment that illustrate customer
needs and wants. This includes emerging trends, population analytics, and
demographics.
(T) technological: How innovation and development evolve a market or industry. This
includes automation, technology awareness and adoption rates, and new services or
products.
(E) environmental: The ecological and environmental aspects that affect a company’s
operations or consumer demand. This includes access to renewable resources, weather
or climate changes, and corporate responsibility initiatives.
(L) legal: The current legal allowances or requirements within countries or territories
in which an organization operates. This includes health and safety requirements, labor
laws, and consumer protection laws
5. Potential barriers
Lack of Employee Involvement
Providing relevant, sufficient resources to drive them towards change will be a
necessary thing to do, so that they are comfortable and ready to adjust to the new
development within the organization.
Lack of Effective Communication Strategy
CEOs should stop making announcement and introduce strategies. Employees do
not need to know about the change only. They need to know how the change will
affect them as well as how they will adapt to the change.
A Bad Culture Shift Planning
when focusing on critical thinking and objective analysis, it is important to
understand that taking the feelings of the employees into account is quite a great
way to overcome the barrier that usually hinder organizational changes.
Unknown Current State
Trying to introduce and implement change without conducting an assessment and
understanding the current blueprint of the organization is a common habit by
many entities.
Reference:
How To Identify External Factors That May Affect Your Strategic Plan
https://www.clearpointstrategy.com/external-factors-that-affect-a-business/
COFFEEVILLE
http://coffeeville.simulations.australiantrainingproducts.com.au/coffeeville.simulation
s.learn.com.au/uploads/8/5/8/8/85882182/coffeeville_business_plan.pdf
Café Barriers
http://displayhub.com.au/shop/cafe-barriers/