When mentioning external factors that conspire to affect an organization we can take into account environmental uncertainty, organizational size and structure, government, raw materials, human resources, markets, economic conditions of the country, financial resources, technology, and a few more that truly create a challenging and complex operating environment. And the real impact is that all of them affect organizational performance as well because if managers dont know how to respond in a right manner to these circumstances, the organization could start to fall apart and eventually, dissapear. There are plenty of ways to react and deal with this external changes, and those include changes in organizational strategies that could help to build a stronger structure within the organization. And here, managers need to coordinate the resources they’re working with very carefully to produce a variety of behaviors that can deal with environmental change. When an organization has not developed enough internal complexity to adapt to the environment it can’t survive, but, on the contrary, and organization with too much complexity would just waste resources and, perhaps, lose its ability to react to the environment.
A crucial point I would like to highlight is the leader’s perception of the strategy and situation of change because processes and changes actually occur because of this perception. Modern companies are characterized by having a complex adaptive system, as well as a complex, moving market which constantly switches the environment conditions and occurences in which the organization operates. And companies are complex because they are dynamic nets of interactions and they are adaptive because they have a collective behavior that vary and self-organizes responding to an event. All of this said, a business needs to reforce and strongly arm their internal complexity, focusing on having a high capability to quickly adapt. And this is accomplished by having a model or structural plan that is able to change anytime and respond to any market, law, crisis, etc. Meaning this to create something like a scheme of practices and principles mostly that are part of the company’s culture and trademark to determine rapid changes.
The Business plan on Managing Change in Complex Environment
History and Background Introduction The United States Postal Service (USPS) is an independent government organization that generates income through mail services. It is currently the second largest civilian employer in the United States. Its primary task is to deliver mail around the country, at a standard price, regardless of geographic location. Over the last two centuries, the USPS has evolved ...
Currently, in Colombia, exporting-oriented businesses are struggling with a external factor that is seriously affecting their productivity. And this is the devaluation of the United States’ currency, the dollar. Eventhough this factor benefits for sure the importing companies, it is making a harmful impact on the country’s whole economy because it reduces competitiveness and takes away tons of Jobs. The coffee industry stopped receiving last year more than 100,000 million in exports as a result of the cheap dollar. This represents a huge drop in income for the 550,000 families living in this industry. The flower sector was pretty affected as well, closing more than 60 companies last year. Also, the banana sector suffered with 3,000 lost Jobs and currently, 32 farms are about to close. It is the case of Supertex S.A, a colombian textile company that presented trouble to adapt to the market. They work under a quality culture base don their management system that aims to fulfill the quality requirements for the products, meet the needs and expectations of their customers, and promote the development of their human talent.
Supertex S.A has four business units at the Forefront in design that are their fashion line, full package line, industrial line and fabrics for matresses line. It is a huge and important manufacturing Enterprise but the free trade agreement, even if it gives them better options to export, wage labor costs and high taxes are holding back their competitiveness and access to these new markets. Supertex S.A as well as lots of other companies are in current talks with the government to remove some costs that they are obligated to pay. In the case of Supertex S.A, they have a Factory in El Salvador, and, over there, the minimun wage, including benefits is USD $280, while in Colombia it is USD$500, meaning almost double. And adding to it, some obligatory rate they have to pay to have apprentices in their factories, puts them in a difficult scenario regarding competitiveness compared to other countries.
The Essay on Top Companies in Indian Steel Industry
The performance of the Indian steel industry has been quite satisfactory over the last decade. Aided by the cutting-edge technology, the steel industry in Asia has made advancements in all areas of operation. There has been a substantial increase in demand for Indian steel products in the global market in the recent times. This has helped in the growth of Indian steel industry. The industry ...
Governments, to my view, take advantage most of the times of the industries, and play how is most convenient for them economically speaking. Even if they see their country falling apart, they establish and charge companies with taxes for reasons they make up, only to get richer. This only demonstrates how external factors play a major, if not the most relevant role in the productivity of a certain Company. And as it is happening in Colombia, it happens around the whole world and the challenge of developing adaptation is bigger day to day.
