The organizations of the most complex institutions that man has created, and are currently in constant change and over the years are expected to evolve even more, organizations vary both in size and organizational structure and technology that They manage to carry out their processes, no organization is equal to the other and this leads to their being very complex.
All organizations develop within an environment. When we talk about the environment, we refer to everything that surrounds the company and it is understood as the set of elements that significantly influence the daily operations of the company and that They can be divided into two:
Macroenvironment and Microenvironment.
The macroenvironment is made up of all the conditions involved in the external environment of an organization and these are: economic, political, social, legal, environmental and technological
On the other hand, the microenvironment is made up of the organizations and people with whom the company is related. The main ones include: customers, suppliers, regulators and competitors.
The interaction of both the macroenvironment and the microenvironment produces diverse effects within the organization and knowing how to face them is part of the challenges they face today.
The external environment of organizations
Organizations are undoubtedly one of the most complex institutions that man has created, and are currently in constant change and over the years are expected to evolve further, organizations vary both in size and organizational structure and in the technology they use to carry out their processes, no organization is the same as the other and this means that they are very complex.
An organization can be considered as an open system since it is in continuous interaction with the environment and acquires a balance while carrying out its daily processes such as the input of raw material and inputs, the transformation of them to give them value and the outputs of finished products.
When speaking of environment, reference is made to everything that surrounds the company and is the context in which it lives; it is, therefore, the set of elements that significantly influence the day-to-day operations of the company and that can be divided into two:
Macroenvironment and Microenvironment. (Chiavenato, 2011)
Macroenvironment and Microenvironment
On the one hand, the macroenvironment is formed by all the conditions involved in the external environment of an organization. In this part of the environment, a general context is formed to help management decision-making. The main factors of the external environment are listed below:
- Economic Conditions: economic conditions refer to the current state of the economy and are related to inflation, income, GDP, unemployment, etc.
- Socio-cultural conditions: it refers to the general state of social values such as: human rights, the natural environment, orientations in education and the social institutions related to it, as well as demographic patterns, etc.
- Political-legal conditions: refers to the general state politically speaking and the objectives established by the party that is in the governorship, in addition to the government laws and regulations that have entered into force
- Technological conditions: these are related to the general state of development and availability of technology in the environment, including scientific advances that influence the environment.
- Ecological conditions: they refer to the natural or physical environment and to nature and the ways of safeguarding them.
"These factors make up a dynamic field of intrinsic forces that intersect, collide, come together, oppose, multiply, cancel each other and potentiate themselves, causing actions, reactions, instability, change and therefore also uncertainty and complexity" (Chiavenato, 2011)
On the other hand, the microenvironment is made up of the organizations and people with whom the company is related. The main ones include:
- Clients: it is made up of the people or institutions that buy the goods or services that the organization provides.
- Suppliers: the specific suppliers of the company, of information and financing, are considered as the raw material that the company needs to operate.
- Competition: refers to specific companies that offer goods and services that are the same or similar to the same groups of consumers or clients.
- Regulators: are government agencies and representatives, at the local, state, and national levels, that enact laws and regulations that affect the operations of the company within a given country (San, 2008).
The external environment and marketing of the company
The external environment of a company involves all the factors that are outside of it and that affect its abilities to function, some of these elements can be manipulated by the company's advertising while others require the company to adjust to they.
These factors are detailed below:
Clients: Clients are the external elements that companies must try to influence. This can be achieved through marketing or strategic launches, but what is really important is to influence them to acquire the company's products.
Currently, the market study is used to analyze how effective the marketing campaigns that a company launches and determine that it could be improved in future campaigns to increase sales.
Government: The regulations carried out by the government on developed products, used packaging and distribution methods have a major impact on companies, more than anything else, on business costs and their ability to penetrate new markets.
If the government establishes new regulations on how to pack products for distribution, this could increase costs per unit and affect profit margins. In addition to the above, it should be borne in mind that many countries establish laws that must be followed in order to products in their markets.
Economy: As with most external factors of the organization, a company must monitor the economy and learn how it can react to it.
The economy influences how many products are sold in the market, how much money an organization spends to grow its business, and what kind of target market it must pursue.
Competition
Competition determines how companies conduct their business activities and also how they run their target markets, in addition to this they can choose markets where their competition is not active or compete directly against it in the same market.
The success or failure in which the competition is involved also determines the marketing plans that the company must follow in addition if in a given case a renowned competitor decides not to continue in a specific market due to declines in income, then competing companies need to adjust their ways of proceeding to take advantage of this.
Public opinion: Each scandal in which the company may be involved is lousy for its image and can make it lose important sales or a good image can also generate high profits. The company can influence the public's perception of it through of public relations professionals that bring to light strategic information, however, public opinion must be constantly monitored in order to be able to put out rumors that are being generated before they are harmful to the company. (Root, 2016).
SWOT analysis as a strategy for the company
This analysis refers to a strategic analysis that aims to establish the strengths, weaknesses, opportunities and threats of an organization. It is made up of a double analysis: internal (strengths and weaknesses) and external (threats and opportunities).
Strengths and weaknesses are important because they can help understand a company's competitive position in a specific business environment.
The weaknesses of a company are the internal aspects that are perceived as a comparative disadvantage compared to competing companies.
The strong points are those positive internal aspects of the company that translate into a competitive advantage against external companies.
Opportunities and Threats are always seen as aspects that depend on the evolution of the environment, which determine the viability of the business and set a trend for the coming years.
Threats, on the other hand, are environmental situations that, if not confronted, can lead the company to fall into worse situations and be less competitive.
Finally, opportunities are situations in the environment that taking advantage of them can improve the competitive situation of the company.
Inside the SWOT matrix 4 quadrants are established that reflect the possible strategies to be adopted by the company:
SWOT matrix
| Strengths (F) | Weaknesses (D) | |
| Opportunities
(OR) |
Offensive strategies | Reorientation strategies |
| Threats
(TO) |
Defensive strategies | Survival strategies |
The Strengths and Opportunities (FO) strategies: for this strategy the internal strengths of the company are used to take advantage of external opportunities.
Strategies of Weaknesses and Opportunities (DO): It is intended to overcome internal weaknesses by taking advantage of External opportunities.
Strengths and Threats (AF) Strategies: Internal strengths are used to avoid or reduce external Threats.
Weakness and Threat Strategies (DA): We try to reduce internal weaknesses and avoid external threats. (Montellano, 2006)
conclusion
Organizations interact within an environmental system that is governed by different internal and external factors and that affects the company indirectly or directly, knowing these factors and knowing how to deal with them is vital for the proper functioning of an organization since Only by being interested in the micro and macro environment of a company can you be prepared and have clear strategies of what direction to take in any circumstance and thus create business programs to achieve success.
Bibliographic references
- Chiavenato, I. (2011). Human resources management. McGraw Hill.Montellano, AQ (2006). Economics and Business Administration for Engineers: THE COMPANY AND ITS ENVIRONMENT. University of Cantabria.Root, GN (2016). smallbusiness. Obtained from smallbusiness: http: //smallbusiness.chron.com/five-components-organizations-externalenvironment-17634.htmlSan, l. (2008). Agricultural business administration issues. Obtained from Topics of administration of agricultural companies:
Gross domestic product
Weaknesses, Threats, Strengths, Opportunities
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