Organization Environment Essay

907 words - 4 pages

Organizations operate in a complex business environment where things can and cannot be controlled. Managers are skilled and trained to how analyze and improve the organization for it to survive, grow and improve in the changing world. The management system is divided into two levels. Internal factors in an organization can usually be managed and dealt with, like labor, money, materials and equipments. These inputs can be turned into useful products, goods or services and make it available to the consumer. On the other hand external factors are hard to manage. They consist of all outside institutions: competitors, customers, suppliers and economic, technological, political, cultural and ...view middle of the document...

In the 21st century businesses face some key challenges; the threat of international terrorism, the shift of global economy, the aging of population, shrinking the labor pool, changing nature of work, very diverse workplace, the need to improve product and customer service, and to enhance competitiveness of every countries workforce. Technology is certainly making a difference in the workplace. Technology is the business application of knowledge based on scientific discoveries, inventions, and innovations. New technologies allow businesses to provide new goods and services for consumers, also improve customer service. However technology is changing the shape of a company. It opens new questions about business ethics and social responsibility, computer crime, etc. Legal side is the relationship between the company and the government. Government has an influence on a business. They set rules and regulations of what they can and cannot do. The service industry has to deal with FDA. If there is an issue with an employee, then the manager has to deal with EDD, OSHA or SDI's rules and regulations. Businesses face obstacles in the global marketplace. Companies have to be sensitive to social, cultural differences such as languages, values and religions. Each country has its own law regulations. Trade restrictions and administrative barriers are also challenges in the international business.The task environment includes competitors, customers, suppliers, regulators and strategic partners. Competitors are organizations that compete with other organizations. Customers are people that will pay money to receive a company's goods and services. Organizations constantly compete with each...

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