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Analysis of the external environment of an organization

Table of contents:

Anonim

Introduction

Currently, in the organization it is vitally important to have information and knowledge of what exists inside and outside the organization, to carry out an analysis in order to realize that we need to grow organizationally, and that we can exploit to maintain ourselves. in the market, achieving some leadership. Next we will see a little about what is the organizational analysis, regarding the environment of the company, we will see the business environment and various important factors, and we will analyze a basic tool for the analysis of the external and internal environment of the company.

1. The environment of the company

The company has interaction with its environment all the time, that is to say, it is an open system, on this interaction the maintenance and growth within the market depends entirely on it. The environment is everything found outside the limits of the company, or it can also be understood as a set of elements independent of the organization that are of importance for its modification. There are different types of environments, these can be proposed according to the economic and social order.

1.1. Open, competitive environment

In this aspect, the company has to integrate and carry out competition with other companies that offer similar products or services in order to solve society's problems. The success of the company will depend on whether it chooses those environments, markets, and those products / services in which it has advantages over its competitors in terms of positive differences. Given this, the success of the company depends on the degree of adaptation it has to those markets and environments.

1.2. Economic and social aspect

This can also be configured in a closed way, in which the company does not integrate the environments, but the specific environment is assumed by that company, this can be due to planning, legal concessions or monopolistic practices. This is a stable environment and with external instances with which prices are set, something close to the concept of the managing company, which generates a bureaucratic-administrative organization. (Echeverria, 1994)

Environment and company

Figure 1.1. shows the characteristics of the configuration of the closed and open environments. The reality of the environment drives and generates different business institutions.

1.3. External environment of the company

This is the set of environmental conditions or social, cultural, customary, legal, political, technological, economic conditions, etc., that a company or organization modifies, or influences. Likewise, it can be added, according to Mintzberg (1979), that environment is everything that is foreign to the company as an organization but can include it.

Thus. Every company or organization has a general environment defined by various variables, these variables influence the configuration of specific and operational circumstances, exert force on the origin, operation and development of the company and constitute threats, challenges or competitive opportunities. In conclusion, every company in terms of human and social system is influenced and conditioned by various environments, as described below.

1.3.1. Social environment

These are the media, sociocultural activities and support for social initiatives. Communication that responds to the social environment covers the forms of action, and has as its stage the living culture of its real and potential clients. The social environment configures and expresses the relationship of the company with the structure of the supra social system.

1.3.2. Institutional environment

They are the groups linked to the power of decision and representation. The ability of the company to react to the institutional environment is enhanced by those who pass on their perceptions in interests to the Government, the authorities, the legislative branch, and political and social groups. Likewise, this facilitates and enriches a specialized dialogue and they work to anticipate high-level decisions that concern them. The action of business and professional associations responds to the same objective.

1.3.3. Financial environment

This is made up of shareholders, the stock market, financial institutions and investment advisers. Intelligent management of internal and external communication contributes to a positive reaction of the company against the financial environment, creating a good image, based on credibility and reliability policies.

1.3.4. Commercial environment

Made up of actual and potential clients, target audiences, competing companies and clients and, in general, social audiences. A company is definitely not what your publics and audiences think of it. The commercial environment is configured by the "exits" of the business system (its products, goods and services).

1.3.5. Provider environment

This part is made up of suppliers of raw materials, products and services, auxiliary external services, security companies, couriers, professional training centers, in general, this is the main environment to be aware of, since which are the direct entrances to the company. (Jimenez, 2004)

1.3.6. Analysis of the organizational environment

A simple analysis to carry out and that allows a quick appreciation of the situation of the internal and external environment of an organization, is the SWOT analysis, which by its initials means: Strengths, Opportunities, Weaknesses and Threats. (Boland, 2007)

1.3.6.1. Analysis of the external environment

Within the organization it is vital to carry out continuous and in-depth analysis to visualize in advance the opportunities and threats that may arise in the future. This must be analyzed in time, in order to be able to provide an efficient solution.

  • Opportunities. Future actions of the actors that are part of the environment, which could provide a benefit for the organization if they are detected in time and taken advantage of in a timely manner. Threats. They are the potential actions of the actors in the environment whose effect could be detrimental to the normal performance of the organization.

1.3.6.2. Analysis of the internal environment

SWOT analysis likewise allows an internal analysis to be carried out in order to detect the organization's strengths and weaknesses in relation to the competition.

  • Strengths. Those aspects of the organization that give you an advantage because they offer greater benefits compared to your competition. Weaknesses. Characteristics of the organization that represent a disadvantage in relation to the competition.

conclusion

Currently, to have knowledge about our environment it is important to carry out an analysis on it, in order to obtain information about the place where we are located, for this it is important to take into account certain future objectives, that is, where we want to arrive within a certain time, the strategy that we will use to achieve that, with originality and achieving a certain competitiveness, this in order to find our place in the market, successfully achieving some leadership.

Bibliography

  • Boland, L. (2007). Organizational environment analysis. In L. Boland, Functions of the administration (Page 202). Argentina: REUN.Echeverria, SG (1994). Business environment. In SG Echeverria, Introduction to business economics (p. 357). Madrid: Díaz de Santos, Jiménez, JG (2004). Internal communication and company environments. In JG Jiménez, The internal communication (Page 361). Madrid: Díaz de Santos.
Analysis of the external environment of an organization