Factors Impacting Management and Decision Making in Business Environment

This document discusses the factors within the business environment that have an impact upon management and decision making by leaders and managers. It explores the micro environmental factors such as suppliers, competition, resellers, and customers, and how they influence operational management. The document also provides insights on strategic decision making to compete in the global market.

Management and
Operations
[COMPANY NAME]

Contents
5

P6 Assess the factors within the business environment that
has an impact upon management and decision making by
leaders and managers.
Business environment is directly linked with the organisation that why it is
important for every business to interact with its environment. The industry
has little influence on the internal environment and therefore it is necessary
for UBER to identify the factors which has an impact upon operational
management and decision making. Micro environmental factors are the
nearby forces which has strong impact upon operational management. They
are as follows -
The Suppliers – They are the individuals who are responsible for making the
business successful or unsuccessful. UBER manager should choose its
supplier carefully because if they supply poor quality services to the
company and it resale those goods and services to the user than the goodwill
of the firm affects badly. Thus, the manager of UBER should be aware of the
policies of the supplier and should deal with more than one supplier. With
this, the changes made in policy of one supplier does not affect the
production and operation management of the organisation.
4 1

Competition – Ola, Lyft, MyTaxi, Kabee are the competitors of UBER. Thus,
the manager should take some strategic decision for the organization to
compete in the global market. These rivalry companies use strategies such
licensing, that is, all drivers of Kabbee are licensed; Ola provides
commissions to drivers which results in high earnings with daily payments
etc. UBER manager should make rational decision such as facilities of 24/7
voice support, options of in app emergency features to share ride details in
urgency. It will provide safety to passengers and they will not switch to
other company. This amenity will help UBER to earn customer loyalty
which will help in attaining its long term targets and will be able to make
competitive advantage.
The Resellers – The main source of distribution are the resellers. They are
the intermediaries named as retailers or the wholesalers. The resellers help
UBER by distributing, promoting and selling the goods and services to the
final buyer. Manager of the organisation should maintain good relations with
reseller so that they can carry their activities without any hurdles. It is the
responsibility of manager to keep a check on the resellers working for them
because the intermediaries can affect the industry both in negative and
positive way.
2 3

The Customers – Consumers are the final buyers of all the goods and services
produced by the firm. Producers, retailers, government etc. are the customers
because of which the business exists. The success of the organization
depends on the demand and supply of goods and services by the users. The
manager of UBER should take an effective decision by considering the
demand and preferences of the customer before the production process.

REFERENCES
Books and Journals
Piercy, N. and Rich, N., 2015. The relationship between lean operations and
sustainable operations. International Journal of Operations & Production
Management. 35(2). pp.282-315.
Rios and et. al., 2016, September. NASA UAS traffic management national
campaign: Operations across Six UAS Test Sites. In 2016 IEEE/AIAA
35th Digital Avionics Systems Conference (DASC)(pp. 1-6). IEEE.
Schönsleben, P., 2016. Integrales Logistikmanagement: operations und supply
chain management innerhalb des Unternehmens und
unternehmensübergreifend. Springer-Verlag.