Question

17th Century British poet John Donne famously coined the phrase "No man is an island" in the same way that companies\organizations do not "operate in a vacuum" as they are both impacted by and try to impact the general environment they operate in. Briefly introduce a model you would use to analyze the general environment (be very brief). Now, identify one potential approach\tactic an organization may use to INFLUENCE the environment it​ operates in. please give refrences

Answer 1

The model I would use to analyze the general-environment for a business would be the PESTEl model. Under this model, the businessman would analyze the political, environmental, social, technological ecological, and legal factors that would influence the business.

Under the political environment, the businessman would analyze the political conditions for a country, ideologies of the political parties and constitution, and political relations with other countries.

Under economic factors, the businessman considers economic conditions and the growth rate of a country.

Under the social environment, the businessman analyses the lifestyles and habits of the society, the religions, and society's education level.

Under the technological environment, the businessman analyses the technological advances and innovations in the environment.

Under the ecological environment, the businessman considers various factors, such as natural resources and pollution levels in an environment.

Under the legal environment, the businessman would analyze various laws or any acts passed in the parliament, which would affect his operations.

One tactic that the the the business can adopt to influence the environment it operates in is innovation. The organization can innovate various products which might be environment friendly, which would cause less pollution. Moreover, the organization can also innovate and produce products that would set the trends in the environment, affecting the organization's social environment.

Answer 2

 

I would use the PESTEL model analysis of the external environment in which a company operates.Here PESTEL stands for Political, Economic, Social,Technological, Environmental and Legal factors that affect the external environment. These are the macro environment factors that a company is exposed to.

One potential approach a company might use to influence external environment is hiring a Personal Relations (PR) agency that has competence in managing issues arising due to changes in external environment. For example TATA Communications belonging to the TATA group of India had hired "Vaishnavi Communications" a PR firm run by Nira Radia who had strong political and media connections and also lobbied for her clients with the government. Similarly Reliance Industries has hired "Reputare" a PR firm managed by Ashwani Singla for managing the reputation and external environment.