In order for a company to be successful, it is not only necessary to be competitive and / or productive, but it must now be alert to the different changes that are taking place in the environment in which it is located. Since by anticipating these problems you will be able to know how to react to any problem without ceasing to be competitive
That is why in this article we will analyze what are the factors that directly or indirectly affect a company, according to the environment in which it is developing.
What is a company?
Companies are considered as an entity that integrates a set of organized and directed elements to achieve a series of objectives by carrying out a certain economic activity. Knowing this, we must keep in mind that companies are the basis of our economy, since they produce services or products that cover certain needs, in addition to providing paid work.
Company functions
• Value creation: they provide services or products that make our lives easier.
• Social function: they provide income to workers in order to support themselves.
Business objectives
• Maximum benefit: it is the difference between income and expenses, which will help the company to survive.
• Growth: increase your presence in the market, in order to position yourself better.
• Customer satisfaction: seek to ensure that customers are loyal to the brand through good service.
• Quality: an important point to be able to keep customers, since today it is a point where companies place a lot of emphasis.
• Social objectives: companies should also make it a goal to cover important needs for society, such as taking care of the environment.
What surrounds a company?
The company is always in constant interaction with everything that surrounds it, what is known as the business environment. In order to understand a company it is necessary to know what its environment is, since it has a lot to do with who provides the raw material, what support it has from the government, where it is located, etc. (Robbins, 2004)
Processes for environment analysis:
Exploration: At this stage, an exhaustive analysis of the environment is needed to be able to predict the changes that are coming to the company. Doing a good exploration of the environment anticipates changes and trends before they even appear in the competition.
Surveillance: at this stage, the changes that have been generated in the environment are tracked, since sometimes these changes are not analyzed in the
exploration.
Competitive intelligence: at this stage the characteristics of the competition, both its strengths and its weaknesses, will be defined and understood.
Forecast: in the previous stages, information is provided and collected to analyze the environment, however, they are not useful if they are not reliable. Forecasting refers to making projections to where the company is headed.
Environment levels
First level: at this level the company is located.
Second level: this level is defined by the sector, which proposes an analysis of competitiveness.
Third level: consists of business activities (main, support, supply, equipment)
Fourth level: refers to the geographical scope.
• Factor conditions: resources available in the area.
• Demand conditions: characteristic of the market.
• Related and support services: process of innovation and improvement.
• Strategy, structure and rivalry of companies: the degree of rivalry increases the competitive level.
Fifth level: refers to the global environment, where it should be taken into account:
• Economic conditions
• Technology
• Politics and society
• Acts of God
• Business activity in other areas
Types of environment
Specific environment
This type of environment is what is going to affect the company closely as it contains aspects that directly influence it. In addition to the analysis of this environment determines where the company will be located. (Cabanelas, 1997)
Main elements of the specific environment:
• Suppliers: are those people or companies that provide the tickets to carry out a process.
• Clients: those to whom the product or service that the company provides is aimed at.
• Competitors: they are those who can provide competition to the company either by creating a similar product or a different product in its entirety.
• Financial entities: they are those that will help to finance the company. The most common financial institution is banks.
• Public administrations: at this point they refer to the agreements they may have with the government, specifically with the city council where they will be established.
• Labor market: at this point two very important aspects interfere; Salary costs and qualification.
• Community: this point is very important check that it interferes with the social structure, care for the environment and the lifestyle they lead in it.
General environment
This type of environment is not so directly linked to the company, but it does have an important influence. For this reason this environment is very difficult to manipulate since the elements involved are beyond the reach of the company. (Cabanelas, 1997)
Main elements of the general environment:
• Economic: they are those that determine the expenses that the company will have.
• Technological: here we consider those technical advances that in some way will reduce costs due to the facilitation of work.
• Public / Legal: rules established by law which the company must comply with, such as taxes, contracts, etc.
• Demographic: they are those elements that are going to affect the location of the company according to the market that they are going to direct.
• Sociocultural: they are those that condition the way in which people are going to behave, which results in the way they direct their consumption.
• Environmental: this is where companies are concerned about the impact they can have on the environment, always trying not to create any harm.
Business culture
It is one that is formed by a group of values which must be backed by its members. (Ansoff, 1985)
Elements of corporate culture
• Mission: This refers to the raison d'être of the company, also known as the business philosophy.
• Values: these are characteristics that must be present in the company and that in some way intervene positively in each of its members.
• Policies: these are the guidelines that the company will take to create its own identity.
Corporate image
This is going to help in terms of how people are going to see the company. The way in which this will be transmitted will take two forms:
• Spontaneous: it is one that occurs naturally only by being present within a community.
• Intentional: is one that is given thanks to an advertising campaign.
This is where dissemination takes great value, since it does not matter if the company has a comprehensive image, if no one has heard of it it will not do any good.
How does the company influence its environment?
The relationship that the company has with its environment is going to have two approaches, the first refers to the way in which the company in the environment and another is how the environment will influence the company, since depending on the size of the company is going to be the effect it has within the environment. (Daft, 2005)
Social responsability
Nowadays, companies have been more concerned with the footprint they may leave in society, which is why they strive to know the importance and effect of social responsibility.
Stages of implementation:
• Compliance with the law: companies are concerned with complying with legal obligations.
• Reaction to the demands of society: companies strive to address the concerns and needs of their customers regarding social responsibility, as this will position them as a committed and responsible company.
• Social awareness: they introduce into their values and vision, everything related to social responsibility, in order to create a bond of conviction.
Environmental responsibility
As is well known, the vast majority of companies generate a certain level of damage to the environment, which is why companies have engaged in activities that promote environmental education, such as planting trees. This is becoming more important every day, as some government agencies have created laws in favor of the environment, thus promoting a green culture in companies.
Social balance
This is a business management tool which will help us to evaluate both qualitatively and quantitatively what are the benefits and social costs that the company generates. This type of technique is carried out on a voluntary basis and despite this, many companies have committed to carrying out this type of technique, since this brings with it a good image before society.
Social benefits Social costs
Job
creation Wealth creation
Donations to social projects
Business activities that reduce social costs Environmental pollution
Destruction of environmental resources
Occupational diseases
Difficulty reconciling work and family life
Conclusion
Without a doubt, companies must always be in close relationship with their environment, since the success they will have will depend on this.
As we could see, there are a large number of factors that can affect the development of a company. In the same way we saw how important it is to carry out an analysis of the conditions in which the company will be working.
A company that has a true knowledge of the environment in which it is located will have a great advantage over the competition, since it will be able to respond in the best way to adverse situations that arise.
Bibliography
• Daft, R. (2005). Organizational theory and design. Mexico: Thomson.
• Robbins, S. (2004). Organizational behavior. Mexico: Pearson Education.
• Cabanelas, J. (1997), Business Management: Bases in an open and dynamic environment. Mexico: Pyramid.
• Ansoff, H. (1985), The direction and his attitude towards the environment, Deusto,
Spain
Download the original file
