The paper 'Effect of External Organizational Environment on New Zealand Business' is a perfect example of a Business Case Study. The external organizational environment is an influential element when running a business. The business management team should consider it and consider the factors that influence the external organizational environment. These factors include suppliers, customers, technological factors, legal factors, and competitors among others (De Cieri, 2003). These elements have the power to influence the business and they should be studied and understood to ensure that they are working for the success of the business and not against it.
For instance, the business needs to establish a good relationship with its suppliers to ensure good quality and timely deliveries. The technology that the business is using should be to date to ensure that they produce goods or offer services cost-effectively and of high quality. The paper discusses the external organizational environment of the New Zealand business in 2012 (Huang & Liu, 2006). It is introduced by establishing an explanation of the external organizational environment and its categorization into the task environment and general environment.
Business success requires both the individual and the environment. These factors are beyond the control of the individual business organization and have a huge impact on the operation of the business (Keleman, 2003). The business environment in New Zealand as well as in other countries is dynamic in that it keeps on changing in terms of the various elements. These changes include technological improvement, a shift in the preferences of the consumer, and changes in the competition in the market which can either be new entrants or exit from the industry. External Organizational Environment The external environment consists of institutions from outside the organization and forces which have an actual or potential impact or interest on the ability of the organization to achieve its pre-determined objectives (Kohli & Jaworski, 1990).
These external forces include competitive forces, technological forces, political forces, and legal forces among others. These factors have the potential to affect the organization and have an indirect influence on the business. External factors are categorized into the general environment and the task environment (Worthington & Britton, 2003). Task Environment The task environment is known as the microenvironment and operating environment as the forces in this category have a direct bearing on the running and operations of the business.
The task environment is closer to the business and has a direct influence on its basic organization and performance. The task environment consists of suppliers, customers, and competitors. The customer acquires goods and/or services from the business. They play a key role in the success of the business. The task environment factors do not have the same effect in different industries. The microenvironment factors are discussed below (Gomez-Mejia, 2004). Suppliers Suppliers provide resources and services used to produce outputs within the business.
Many businesses are using the strategy of using fewer suppliers and trying to have a good relationship with them. The business should have reliable sources of supply to ensure the smooth functioning of the business operations (Huang & Liu, 2006). Competitors Competitors refer to the other businesses in the industry which provide the same goods or services. The businesses in the industry are faced with the same competitive needs that are specific to each industry.
Competitors not only include those businesses which are producing the same products or offering the same services but also those firms which are competing for the income of the consumers. The primary task of the business is to compete with these other businesses is to deliver what the consumer wants to ensure that they choose the business’ s products over others (De Cieri, 2003).
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