Verified Document

Business How Forces In And Outside Of Essay

Business How forces in and outside of business firms are changing the management task, altering business operations, and modifying stakeholder expectations?

Business, particularly those heavily emphasizing technology, are constantly changing. In many instances these changes are occurring due to a combination of internal and external factors. These factors often modify stakeholder expectation because the fundamental business itself has shifted. A very dynamic force that is changing the management task is that of globalization. Globalization is particularly contentious because it has no geographic limits. Competition can now come from anywhere at anytime. As such, management must be cognizant of the changing dynamics prevailing in their respective industries. The auto industry, for example, has directly felt the impact on globalization and stakeholder expectations. The auto industry prior to foreign competition was characterized by large fixed asset costs, hefty legacy and pension obligations, and slow innovation. However, through globalization the Japanese's were able to enter the market and product high quality lower cost cars to the market. Eventually it took a near bankruptcy event for the industry to finally change the manner it which it produces cars. Through this instance of the external global force, management tasks in the industry changed to a more nimble quality oriented focus. The business operations were altered to reflect the changing consumer demand for higher quality more fuel efficient vehicles. And stakeholder expectations were altered as the Japanese had now become a more viable competitor in the market place.

Internal forces are also just as dynamic as the external forces mentioned above. Internal sources are arguable more damaging because habits, customs and cultures become so entrenched within the organization. An internal force that could alter a business firm is a restructuring. Restructurings often occur due to external forces prevailing in the market. This could include price wars, an obsolete product, and the introduction of new products, a severe economic downturn and so forth. Restructurings change management tasks because the must undoubtedly terminate and lay off workers. This can be difficult as layoffs can result in key personnel leaving to the competition. It also lowers employee moral and cause angst and confusion amongst employees. It alters business operations as...

They are often more concerned with their personal jobs as they are about the work needed to be done. These same occurrences also arise when firms are also merged or acquired by competitors in the same industry.
How influential ideas in the business environment shape the business-government-society relationship?

Ideas are always shaping the relationship between business, government, and the rest of society. Capitalism in particular, is predicated on the notion of ideas that occur due to profit incentives. Ideas such as the internet, television and radio all influenced the manner in which business was conducted. Government's roles are to help establish and foster an equally competitive playing field within the capital markets. Government must ensure that everyone within the business industry is operating fairly and ethically in accordance with applicable law. This allows society overall to grow and flourish. Government organizations such as the FDA and CDC are designed primarily to protect the overall consumer for business practices that will ultimately harm society. Business, through operating within these laws can then begin to innovate and use ideas to compete in the overall marketplace.

Ideas influence the relationship mentioned above when new industries appear, or when unexpected occurrences arise. Influential ideas about the internet, internet security, and government's role in the application of that security are very recent example. The ideas centered on privacy and the role business and government play in protecting the privacy of society is a very contentious issue. To what extent should government honor privacy if national security issues are paramount? What should businesses do with private consumer information over the internet to adequately protect it from hackers? All three entities are tied to the application of these ideas. All three are also responsible for making the ideas fair for all parties involved. The ideas centered on this notion of privacy will alter how products are produced, how products are offered, and ultimately pricing of products. As such all three entities are correlated in many respects. If for example, governments require more rigorous security requirements, business may pass the increased cost on to consumers. Consumers will then end up paying for the security elements imposed by the government. As consumers pay more,…

Cite this Document:
Copy Bibliography Citation

Related Documents

Business Force Field Analysis
Words: 699 Length: 2 Document Type: Case Study

Force Field Analysis Among change management models, the Force Field Analysis Model is one of the most famous. Kurt Lewin originally developed it, and since that time it has continued to grow and be used in numerous organizations. In my current organization, there are several issues where the model has come into play. The most important one of those issues involves the support from top management. My organization is very good

Business Environment Interaction of the Business Environment
Words: 1288 Length: 5 Document Type: Essay

Business Environment Interaction of the Business Environment The environment of a company is much like the natural world in that there are many layers to any single organization (Marques, 2007). Political forces are present because there are factions and beliefs within a company which cause different politics to be formed. The economics of running an organization are a different facet of the environment which many consider the most important part of the

Business Plan for Organic Fertilizer
Words: 3068 Length: 8 Document Type: Business Plan

We can use this opportunity to establish loyalty among our existing customers, develop referrals among our customers to their colleagues, and establish our brand and credibility as local suppliers of organic fertilizer of high quality and at a good price to our market. With this in place, it will be difficult for any new market entrants to displace us in our local area as the main suppliers of organic

Business Plan: Bridal Salon Business Products and
Words: 3400 Length: 10 Document Type: Business Plan

Business Plan: Bridal Salon Business Products and services Keys to Success Company description Vision Statement Mission Statement Company background Products and Industry Product Description Industry Description The Market Market and Target Customer Market Segmentation Target Market Strategy Competition and Competitive Advantage Curbing Local Competition Curbing Regional Competition Marketing Strategy Overall Strategy Sales Plan Competitive Plan Research and Development (Growth Plan) The Organization Legal and Organization Structure Key Personnel Related Service Providers Location The Financials Critical Risks Income Statement Cash Flow Projection Balance Sheet Assumptions References Executive Summary Introduction Pace-setter is a bridal salon that rides on the theme of 'experience'. It creates an environment in which

Business Plan Idc Interiors Aims
Words: 3240 Length: 12 Document Type: Business Plan

[2: www.med.govt.nz/business/business.../structure-and-dynamics-2011.... ] The primary research of the Auckland market presents the following sectors for consideration for the new venture: The demographics in the target market include: college going and married women with children who either are working mothers or stay-at-home mothers; this makes the age group anywhere between 25 to 55; the overall annual income of the household is more than AUS $100,000; the property owned by the target individual

Business Plans Marketing Plan and Evaluation the
Words: 2749 Length: 9 Document Type: Business Plan

Business Plans Marketing Plan and Evaluation The marketing plan should revolve around the marketing mix. The mix encompasses the four Ps of marketing, each of which will be addressed in turn in this business plan. The four Ps are product, price, place and promotion (NetMBA, 2010). With respect to product, the coffee shop will be a premium example of a coffee shop. Australia has an exceptional coffee culture, so good that it

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now