Question

Explain how environment and the Five M's can affect processes used in the following:

a) a hospital

b) a factory

c) a new-car dealership

Answer 1

a) Hospitals. In a hospital setting the environment plays a very critical role in shaping the operations of the organization. The numbers of customers who visits the hospital is determined by the environment in which the firm operates in. The internal operations as well as the quality of the goods and services offered by the firm is greatly determined by the five M`s which includes the manpower, materials, machines, methods and money. These factors have a lot of influence on the operations of a hospital hence making them to be able to perform well in the industry.

b) Factory. In a factory, the location and surroundings determines the productivity of the firm. If the factory is located close to its raw material, then the productivity will be high. This greatly boosts the performance of the business firm. The five M`s also have a lot of influence on the performance of the firm as they determine the quality of the goods and services offered by the business enterprise. This greatly boosts the performance of the business enterprise in the market.

c) New car-dealership. The environment in which the firm is located determines the demand for the cars in the market hence environment has a lot of influence on the performance of the company. The five M`s on the other hand has a lot of influence in the operations of the company as it determines the quality of the cars offered in the market and consequently the demand for them.