Question

In: Economics

How do outside factors change a company's structure (e.g. wikihow)

How do outside factors change a company's structure (e.g. wikihow)

Solutions

Expert Solution

Outside factors affect company's own goals, objectives, vision and its own way of working that forces the company to change its structure. It means that outside factors make company change in a way that company becomes adaptable to the new scenarios and business environment. It helps company become realigned its strategies to achieve its vision driven goals and objectives. For example, one outside factor is government policy, that keeps changing in the globalization era. Due to this reason, company has to change its structure so that it becomes more lean, evolving and able to compete as per the new government policies. The second factor is the knowledge and or innovation, present in open source such as web portals like Wikihow, that provides important inputs to bring improvement upon the technological solutions presently used. As a result, company can restructure its hierarchy, modify its organizational culture and reestablish a balance between people, process and technology.

As far as company like wikihow is concerned, then it is web driven protal based company that is affected from technological shift and internet based technologies. So, change in technologies, making mandatory for the companies like Wikihow to change in a way that it has to create, mobile app, web app along with website and integrate all these platforms so that one unified information is shared to the customers. It changes the structure of operations at the company. Further, different types of web presence such as social media, You-Tube and other channels will also be linked to the integrated platform. It will make company structure to be more in cohesion and it is due to the impact of internet and other technologies as outside factors.


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