Question

Environment pressure discusses to the force and institutions outside the organization that potentially affect the organization’s performance. The environment pressures outside forces that affect an organization in one war of another. Organization pressures pertains to internal factors that may disrupt and affect the organization’s operations and performance such as management change, change in organization’s structure etc. both environmental and organization pressure affect the performance. The external environmental pressures that affects contains specific and general environment; Specific environment refers is the environment directly relevant to achievement of an organization’s goals such as:

Competitors – they affect the organization through pricing strategies, new products and services, and incentives the competitors give to customers.

Pressure groups – these are groups around the organization and the management must recognize and meet their interests or else they may force the organization to slow operations and shut down

Suppliers -they provide input to business and managers must ensure they provide steady and reliable flow of inputs to meet organizational goals.

Customers - they absorb organization’s output, and represent uncertainty to organization because their tastes and preferences of products and services can change.

Management change, Organizational restructuring, and Entrepreneurship are all pressures that will affect an organization. Management change - new managers or CEOs can significantly affect corporate culture and understanding such risks is important Organizational restructuring - entails altering the existing organization structure to adopt to development of new strategic business units, new product lines or even global expansion and this means altering communication protocols, hierarchies and this impacts the business performance Entrepreneurship - an organizational pressure that involves new ideas from outside the organization, integrating the ideas, reallocation of resources etc. that will affect the general performance of the organization

QUESTION: What are some ways in which an organization can identify these pressures and head them off before they become a bigger problem? Why is it important to have a strategy to deal with these challenges?

Answer 1

Ways in which an organization can identify environmental pressures:

• The company can go in for market research to know the competitors and helps the company from staying backward compared to its competitors.

• The company can go in for SWOT analysis which will help in building strengths, minimizing the weakness, identify opportunities and counteract threats.

• Conduct customer research to know who are our end customers.

• The company must adopt tactics to retain its suppliers by maintaining good relationship with them so that they continue their supplies with us and don’t change hands with competitors.

• The company must also be aware of the price charged by the competitors for products and the price that customers will be willing to pay for a particular product.

• By demanding lower prices than retailers or demanding limitations on suppliers.

Importance of strategies to deal with these challenges:

• The strategy will help the company in facing challenges from everyone including customers, suppliers, competitors etc.

• It provides competitive advantage to the firms, ensure sustainable growth.

• Increased rates of profitability.

• Helps in better serving of customers when compared to its competitors.

• Helps in providing value to the stakeholders and other outsiders of the organization