1 EXTERNAL MANAGEMENT CRISIS Executive summary The purpose of this report is to analyze the eternal factor in an organization which affects the operations of the organization. It determines the factors affecting business of General Mill. It analyses the factors of increase and competition and advancement in technology and determines the positive and negative outcomes of the factors affecting the business. Further it provides recommendations to take advantage of these factors and the recommendations to overcome the external factors.
3 EXTERNAL MANAGEMENT CRISIS Introduction According to Afsal, (2017), external management crisis is defined as the process by which the organization deals which different external environmental factors that directly or indirectly affects the organizational activities. The way of dealing with these external factors and unexpected events is known as crisis management in an organization. The objective of this report is to identify the external factors affecting business and determine the positive and negative implications of these factors. Discussion Economic: According to Afsal, (2017), the consumer confidence has seen reduced in the past 15 years. The customers are losing their confidence on the company. Due to the various factors like decrease in the customer satisfaction and lacking quality in products and services, the company is losing their customers. Political: The government can limit the imports to 25% on all the products. This negatively impacts the organizations operations. However, the company to avoid these threats can depend on their own production and reduce the dependence on imports, also the company needs to implement necessary changes and reduce the sugar content in the production(Babatunde, & Adebisi, 2014). Demographic:
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4 EXTERNAL MANAGEMENT CRISIS The people working in the organization of 65 plus, have a huge disposable income and do not have any technical skills. As the people have no technical skills, the productivity of the people goes down along with the organization.Moreover, there are increasing number of baby boomers who are highly health conscious than the previous generations (Gupta, 2013). Social: The teenagers of the society in spending the power is increasing, there focus is different and are often distracted. This negatively impacts the smooth functioning of the organization. Also, due to increase in the population growth, targeting the customers is becoming difficult for the company. Competition: As described byBabatunde, & Adebisi,(2014), the market place of Canada is highly dominated by the large US retailers which threats general mill. They offer huge discounts to the customers and therefore it takes away the potential customers of general mill. Technological changes According toGupta, (2013), rapid growth and continuous improvement in the technology has both positive and negative outcome in the business. Advancement in technology has improved the communication in the organization both internally and externally. It has improved the business strategy of the organization. Recommendations of action plan
5 EXTERNAL MANAGEMENT CRISIS Since customers are losing confidence, General mills need to increase in quality of its products.The customer service needs to be satisfactory. There must be improvements and enhancement of the consumer service. The company needs to ensure effective performance of the employees. Since there is restriction in the imports, it must plan to substitute its import products. The company needs to bring necessary changes to compliment with the changing needs and requirements of the consumers. There is a growing need for healthy products; therefore the company needs to take initiatives to produce healthier products. To overcome the negative social aspect, the targeting and segmentation of the organization should be highly focused on (Gupta, 2013). In order to face the fierce competition in the market, General mills need to set the correct pricingforitscustomers.Thecompanymusttakefulladvantageofthechangesand improvement in the technology. Sufficient capital needs to be gathered by the organization to implement the advantaged technology. Conclusion There are both positive and negative outcomes for the external environment affecting the business. However, the business must take the advantage of these factors or take necessary steps to overcome the external factors which pose threat to the organization. The report has provided recommendation of the action plan which ensures to effectively deal with them.
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