Contemporary Developments in Business and Management: Doc
Added on 2020-10-04
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Contemporary Developmentsin Business and Management
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3Overview of primary external influences to the organisation and its importance......................3TASK 2............................................................................................................................................7I) Globalisation influencing policies and decision making in an industry sector.......................7ii) Evaluate the effectiveness of the organization’s response.....................................................8iii) Areas of improvements in Globalisation.............................................................................11CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTIONIn business and management there are various developments can be seen which caninfluence the organisation. External business environmental factors can affect the business of acompany. In this assignment chosen organisation is Rolls-Royce Motor car Limited. It is aBritish luxury auto-mobile maker which is established in 1998. The aim of this report is to assessthe external business environmental factors on the organisation and evaluate the organisation'sposition and responses. This report cover the following topics like- primary external influence inthe organisation and its importance, how globalization & guarded globalization can influencespolicies and decision making and areas of improvement in the response of the company. Apartfrom this it also discuss about effectiveness of these factors as response to the organisation. TASK 1Overview of primary external influences to the organisation and its importance`An organisation can be influences by the external factors which can affect theperformance of the company. It is important to the Rolls-Royce Motor car Limited to determineits emergence. A company have to perform various activities on day to day basis on effectivemanner. It can control its internal activities in the business but it is very difficult to control andmanage the external business environment factors. These factors can be changed over a period oftime on the basis on changes in technology, taste, habit and preference. It can hamper the overallperformance of the company and it can affect its business and growth (Ehnert and Harry, 2012).These factors are operated outside the organisation and have a indirect impact on the business ofRolls-Royce Motor car Limited. External factors include micro factors and macro factors. Microfactors are consists of following factors which are such as follows:Suppliers:Suppliers are those who provides the inputs like raw material and other components tothe company. In context to Rolls-Royce Motor car Limited, suppliers can affect businessenvironment of the organisation by increasing the prices of raw material which are used in carmanufacturing. Shortage of input components and material can also influence the externalenvironment of the company and it can hamper the production capacity of the organisation. Ifproduction will decrease then profitability will also reduce. So it important for the Rolls-Royce
Motor car Limited to effectively maintain its suppliers so that it can not hamper the performanceof it. Customers:Customers can influence the external environment of the organisation. Success of thecompany is depend on the consumers demand, taste, habit and preference. In context to Rolls-Royce Motor car Limited, if it is not able to produce its products according to expectations ofconsumers then it can not sell its cars in the market. It can reduces the sales as well as the profitsof the organisation. So it is important for the company to satisfy the wants and needs of personsso it does not much affected from the external business environment.Competitors:Competitors can influence the external environment of the organisation. For anorganisation it it necessary to satisfy the needs and wants of its customers (Eskerod andHuemann, 2013). In context to Rolls-Royce Motor car Limited, it is important to introducesomething unique to satisfy the consumers. Bring innovation which is not easily copied by thecompetitors so that company can capture big market share and earn above average profit. It isimportant for the company to beat its competitors so that it an make it extra ordinary reputationin the market. Market intermediaries:Market intermediaries are those who help the company to provide its goods and servicesto the consumers. In context to Rolls-Royce Motor car Limited, it can distributes itsmanufactured products to the final customers with the help of market intermediaries. It includes-marketing service agencies and middlemen. It helps the organisation to increase its marketreach. It is important for the company to take help these market intermediaries so that it canincrease its market share and profitability.Shareholders:Shareholders can influence the external environment of the organisation because they areowners of the company. In context to Rolls-Royce Motor car Limited, if shareholders does notwant to purchase the shares of the company then it does not able to generates money from thepublic. If it has not sufficient funds to invest then it does not able to expand its business and earnmore profits. It is important for the company to analyse all the external environment factors so
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