Organizations are institutions which are full of peculiarities each, some have a certain size, referring to the number of personnel they manage, likewise each one is dedicated to a specific sector which generates a great classification of them, On the other hand, there are organizations that possess certain advanced technology and others which, despite dedicating themselves to the same, do not possess it, which is why we can say that there are no equal organizations despite dedicating themselves to the same; all organizations are unique.
But despite being different, there is something that involves them all equally and that is that each and every one has a micro environment and a macro environment. During this article we will talk about how the external environment affects organizations today, in the same way we will talk about the benefits that can be had if you know how to take advantage of the macro environment and the risks that organizations run by not knowing how to manage within of its macro environment.
The external environment of organizations is a topic of interest for all those involved in the administration of an organization and it is necessary to know the details of it in a timely manner in order to make appropriate decisions that take the organization on a good path and can yield better results.
Company and its environment
According to systems theory, the company can be considered as an open system which is itself a set of elements that are related to each other, constituting an inseparable and synergistic whole, oriented towards the achievement of specific objectives, in a given environment. Which through the exchange relationship with said environment and through a balance with it, manages to adapt, survive and develop in the environment, with this we can say that there is a fundamental relationship between the company and its environment.
According to (F. Sáez Vacas) the external environment is:
The environment can be defined as:
- Environmental conditions or forces that modify or influence, as a set of social and cultural conditions, such as customs, laws, language, religion, organization, politics and economics, that influences the life of an individual or organization.
So we can say that the external environment is all the factors that are outside the organization and that have weight and influence in decision making and business strategy and that the organization itself cannot control.
Environment levels
The strategies that an organization may have planned or in mind do not come out of the blue, they are due to the business environment in which the company is involved.
It should be clear that the company cannot control its external environment or its environment, it can influence it and even choose an environment which is favorable and useful to a certain extent, but it definitely cannot have control over its environment.
There are different classifications of what the environment is, for this article we will talk about two levels that have: micro environment and macro environment. The microenvironment is made up of all those factors or variables that the company can influence, such as, for example, the suppliers it requires, its customers, its human resources and its organization system.
On the other hand, we have the macro environment, in which the organization influences primarily through its services and products, and being a socially responsible company, it is aimed at multiple relationships with other organizations that leave their mark on the community to which they belong. In turn, the external environment affects the work of the organization with the information that is available in the market, the supply of inputs, the preferences that emerge, and new changes in organization and management.
Create an organization aware of its environment.
Organizations have as a requirement to be constantly analyzing the different factors that affect the operation of the same organizations. There are important processes for the analysis of the organization's environment, these processes are the following:
- Exploration of the environment: It is about having constant supervision of the organization's environment, with the idea of detecting and predicting future changes as well as those that are still on the way, seeking to detect trends and critical events before it is a problem. for the organization and also before the competition detects and applies them, as this would make the organization reactive instead of being a proactive organization that is always at the forefront. Monitoring the environment: The organization may find trends that have not been taken into account and only by monitoring it can achieve it. Competitive intelligence: At this point the organization benefits from knowing and understanding its sector, knowing this is acquiring relevant information and data,Likewise, observe the strengths and weaknesses of your competitors so that based on all this, you can make decisions in a better way regarding your future. Forecast the environment: the three previous points provide a lot of information to the company and help the decision of decisions with the particularity that the information must be the most precise to direct the organization towards the desired direction, in the forecast of the environment what is sought is to visualize the future of the organization, of the environment itself, ask yourself What paths should be taken to the organization? What will be the next technology that will come out? What is sought is to visualize trends.Forecasting the environment: the three previous points provide a lot of information to the company and help decision-making with the particularity that the information must be as accurate as possible to guide the organization in the desired direction, in forecasting the environment What is sought is to visualize the future of the organization, of the environment itself, to ask: which paths should the organization take? About What will be the next technology that will come out? What is sought is to visualize trends.Forecasting the environment: the three previous points provide a lot of information to the company and help decision-making with the particularity that the information must be as accurate as possible to guide the organization in the desired direction, in forecasting the environment What is sought is to visualize the future of the organization, of the environment itself, to ask: which paths should the organization take? About What will be the next technology that will come out? What is sought is to visualize trends.wondering what paths should be taken to the organization ?, on What will be the next technology that will come out ?, what is sought is to visualize trends.wondering what paths should be taken to the organization ?, on What will be the next technology that will come out ?, what is sought is to visualize trends.
The five levels of the environment.
First level.
It is made up of the same organization, it has the organization as its central agent and its categorization is progressively expanding to the global level.
Second level.
It includes the first step, the sector is studied from the perspective of the competitive forces that comprise it. During the analysis of the sector, the boundary of the sector must be delimited on said border, we will find its limitations, its mission and the company's objectives and with its capacity to negotiate.
Third level.
It is made up of the chain of business activities which in turn is made up of several centers of organizational activities, these are the following:
- Main activity chain - Support activities - Complementary supply activities - Equipment activities
Fourth level.
It is the area in which the organization is located, the geographical point or nation where it is located.
Fifth level.
The global environment brings together all the previous levels, it is an intense dimension since within this level the following must be taken into account:
- The general conditions of the economy. Technology. Politics, thought and society. Nature and fortuitous events. Business activity in other areas.
Indirect forces in the macro environment.
They are all those factors that the organization is not capable of controlling by itself, according to (losrecursoshumanos.com, 2016) said factors are the following:
Political and legislative factors: the legal and legal framework. This includes all laws and legal regulations and the political framework regarding political power and business.
Economic factors: They directly affect the organization of business and have to do with interest rates, inflation, fiscal policy, etc.
Technological factors: With the new technologies productivity is reached quickly, creating new products. Technological developments, advances are factors of the external environment.
Likewise we can add:
Sociocultural factors: They refer to the characteristics of the society in which the organization operates, such as demography, the educational level of the population or the age of the population. This factor has a great impact on the purchasing and consumption habits of society since, for example, as there are more women working equally than men, there is more income in families today, thus increasing the consumption of products. Having a higher education also generates a change, since with a better educational level we seek to have better products of better quality.
Environmental factors. The environment has become something of utmost importance worldwide, since there has been a lot of damage that has been caused to the planet through deforestation or uncontrolled contamination at some point, which is why each organization must take into account The environment counts when it intends to do something, since society today is becoming increasingly aware of the damage that companies cause by their products that are not biodegradable or by chemicals that can damage the water or the ozone layer This is why the environment must be a determining factor when making an organization's decisions. It cannot afford to look bad in society for not being a socially responsible company.
International Factors: The globalization of the economy has opened the doors of the borders of organizations today, the organizations are currently seeking to increase their profits by exporting their products even though not only that is sought, it is also sought in some way to get out of the saturated local market or reduce leisure capacity, however it is important to emphasize that if an organization is going to venture into another country it must take into account what it entails such as the economy of the country where it is going to enter, its current policy or legislation, the culture and the customs of that country, the language, the values that they may have, their religious beliefs, including symbols, attitudes or motivations that they may have in that country.
The specific environment.
According to (fundamentosdeadmon.wordpress.com, 2013) the specific environment is made up of the following points.
Customers: An organization must meet the needs of the customers who use its products. Customers represent some uncertainty for an organization because their tastes may change or they may be dissatisfied with the organization's products or services.
Suppliers: Managers seek to ensure a stable flow of necessary resources (supplies) at the lowest possible price. Suppliers also provide financial and labor resources. For example, the lack of qualified nurses continues to be a serious problem for health professionals, which affects their ability to meet demand and maintain high levels of service.
Competitors: All organizations have a large number of competitors. Managers simply cannot afford to ignore the competition. For example, the three main communication networks in the United States (ABC, CBS and NBC) used to control what was seen on their television. Now they face the competition of digital cable (NETFLIX, YOUTUBE), satellite, DVDs and the Internet, and all kinds of smart devices, which offer customers a much wider range.
The general environment: The broad economic, political-legal, sociocultural, demographic, technological and global conditions that affect an organization are included in the general environment. Although these external factors do not affect organizations to the degree that changes in their specific environment do, managers must consider them when planning, organizing, directing, and controlling.
Economic conditions: Interest rates, inflation, changes in disposable income, fluctuations in the market, and the state of the general business cycle are some economic factors that can affect an organization's management practices.
When consumers' incomes drop or their confidence in their job security declines, they will postpone any unnecessary purchases.
Now, after having seen the previous extract, you will have realized that there are many external factors that can affect an organization and therefore the achievement of its previously established objectives, therefore the importance of being prepared for any type of contingency to nullify or reduce the impact that a change in the external environment may bring.
Porter's 5 forces model.
conclusion
We can say that the external environment of the organizations assumes a critical place in each of the decisions that the company is going to make, also from the beginning when you want to start an organization you must take it into account, since such a decision can be part of its success or failure, if you start your company in a place where the way you work does not agree with society, you will have problems to survive, if you do not consider environmental issues, social responsibility, the purchasing power of the population or the country where you settle, you will find problems to stay in the market,that is why this decision, despite not being manageable for the managers of the organization, must be a factor in which they can fit in the best way to be able to simply adapt to the needs that arise from the same external environment.
The external environment is like a great template in which one as an organization looks for the best place to settle, the one that generates the greatest competitive and economic advantages, however we must keep in mind that the place does not belong to us if we cannot do what we want, we must adapt to the requirements (political, social, legislative, technological, cultural, environmental, among many others) in order to remain within the global market, it is like thinking that the template or the place where we are is going to take its toll and we must be prepared to be able to pay that right to stay.
Thesis proposal. Benefits of choosing a suitable external environment for the organization.
General objectives. Determine how the good choice of an external environment benefits an organization by collecting historical information and facts.
Thanks.
I thank my mother who will always be present for me first of all because she has driven me to arrive and she does it day by day, I also thank the institution Instituto Tecnológico de Orizaba which is allowing me to continue my development within this Master of Engineering Administrative, to my teachers who give me the knowledge and dedicate their time to the training of each and every one of us, to Doctor Fernando Aguirre Y Hernández who encourages us day by day that we can improve ourselves and be more, in the same way to CONACYT who He gives us his support to continue our studies and who has us under the concept of suitable people for his program.
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