Question

In management, what are the most important general environment factors to be considered for Better World Books and what is their effect, positive-negative-neutral?

Answer 1

The external forces which drives the change in organization are as follows –

1. Economics – The change in economic policies and economic factors drives the organization to adjust themselves according to the market or prevailing industry, Any economic reforms which effects the consumers of the product which organization is manufacturing can tighten the financial belts of the consumer, while change in strategies such as modifying the product line according to industrial standard can effect organization.
2. Technology –An essential and most important characteristics of technology is that it become obsolete in period of time thus it does not provide a guarantee that it remains at a constant level for the lifetime so it’s important for the organization to upgrade their technology time to time.
3. Competition –The performance of the organization depends at a large extent on the competitor in the industry, the competitors may attract the consumers in the market by providing lucrative offers by simply by price cutting method.
4. Political Factors –Political factors influence business in many ways like the ruling party may introduce any reform which may not be in the favours of the organization or vice versa, thus all the big organization try to please the government time to time so that market regulations are always in their favour.

The internal forces which rives the changes in the organization are as follows –

1. Change in management style in the organization effects the employees working scenario, employee’s takes time to adjust to the new working condition culture thus it effects the overall organizational performance.
2. The overall organizational objective defines how and where the organization will reach in coming years, thus to have a predefined and well set organizational goal is important.
3. Innovation and creativity in the organization among the employees are necessary, any organization whose employees are not innovative and creative may perform well in short term but will surely fail in the long run.