Contemporary Management Issues 6 Running Head: Contemporary Management Issues
Added on 2021-04-17
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Running Head: Contemporary Management IssuesContemporaryManagement Issues
Contemporary Management Issues 1‘Review of key dynamic forces impacting on business and society and their impact ofdecision making.’The aim of this task is to provide a brief overview of the key dynamic forces affecting thestrategic decision making process of a company. The essay talks about a critical review of theliterature of the dynamic forces that impact the change in an organization. Further, it also talksabout the relationship between the decisions taken by the company and the dynamic forcesaffecting that. The latter part of the essay talks about the review of drivers of social change andinternational dimension. The business environment of an organization refers to the internal andexternal factors which affect the different activities organized in the company. The environmentincludes both internal and external factors that impact the growth of the organization (Srdjevic,Bajcetic, and Srdjevic 2012). The external dynamic factors that affect the decision makingprocess of an organization are determines through PESTEL Analysis. The analysis includespolitical, economic, social, technological, environmental and legal factors affecting the activitiesof the business. These factors create an impact in both positive and negative way in theenvironment of the organization. These macro environmental factors have direct impact on theactivities and decisions making process. According to Armstrong, Kotler, Harker, and Brennan, 2015 the initial factor which affect thebusiness environment is the political factor, the political factors refers to the activities of thepublic and non-public institutions that affect the environment of an organization. The publicinstitutions include government, government agencies, statutory bodies etc. and non-publicinstitutions include groups representing society, NGOs etc. Further, it should be noted that thisaspect includes the actions taken by the above mentioned bodies that reflect on the decisionmaking process of a company. The political factors is further segregated in macro and micropolitical factors; the macro factors includes activities like war results, change in the governmentand micro factors includes political risks such a taxation policy, regulations imposed by thegovernment on industries (Vecchiato, and Roveda 2010). The organizations present in businessenvironment monitor their activities so that they do not face political risk. Such risks might affectthe company in good or bad ways, in good ways like the government can provide subsidy tospecific industries which positively impact the growth of the company. And in negative wayslike, suddenly the government gets changed which can greatly affects ongoing contracts of the
Contemporary Management Issues 2organization with the governmental bodies. Along with political factors, in the view ofLawrence, and Weber, 2014 the economic factors that affect the business environment refer tothe factors related to the economies of the country like inflation, import, export etc. the economicfactors have a direct impact on the profit generation activities of the business. An organization’sday to day activities get affected with the economic factors of the country. Further it is alsosegregated into micro and macro-economic factors, the micro factors includes activities relatedto the people spending incomes and the macro factors includes demand and supply issues andgovernmental control on businesses and policies related to that. With respect to Tian, and Martin,2011, the social factors are also among the dynamic factors impact the activities andenvironment of business. It refers to the factors that involves shared belief and attitude ofpopulation towards the certain product or services which they provide in the market. Populationgrowth rate, unemployment rate, taste and preference etc. becomes a part of the social factors.Further the cultural factors that impact the activities of a business are also social factors. Thesefactors particularly talks about the interest of the people and how they impact on the productsand services served in the market. The social factors are one of the most influential factors as ittalks about the trend prevailing in the target market. Talking about the drivers of social ofchange, it should be noted that perception of people is the biggest driver of social change. Thisaspect influences changes in the organization which gives rise to social change. Further thetechnological factors have now emerged in a greater sense that affects the activities of a businessin long run. Technological factors refer to the technological changes present in the industry thatdirectly impacts on the growth of the company. If the organization is present in an industrywhere technical changes appear in every short span of time then it becomes difficult for them toattain that technology and use it in the production in order to be competent. Further,Koulopoulos, and Keldsen, 2016 said that use of technology makes an organization competentenough to lead the target market; but it can also harass the success attained through it as it is noteasily for all organizations to adapt hi-tech techniques in their business. Next comes theenvironmental factors that talks about the changes in the nature affecting the activities of anorganization. Now days, societies are getting more concerned towards the environment andnature and they want organizations to adhere their corporate social responsibility and initiateactivities for the sustainability of the nature. If activities are not fulfilled then the government ofthe country might impose penalties to the companies. Lastly, legal factors present in the
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