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  • Part 1: For each of the two companies, describe the external environment of the company in terms of the level of uncertainty . Based on the level of uncertainty, suggest what type of organization design mechanistic or organic the company should follow

Essays on Part 1: For each of the two companies, describe the external environment of the company in terms of the level of uncertainty . Based on the level of uncertainty, suggest what type of organization design mechanistic or organic the company should follow Term Paper

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Apple and Boeing Company Insert Insert Many companies are affected by the external environmental changes that are unpredictable and dynamic. The rise of environmental dynamism and surrounding complexities in a business environment increases uncertainties that a company is exposed to. Boeing and Apple are some of these companies experiencing surprising changes in the external environment. They both face similar uncertainties in the external environment, which include customers, economy, competition, public opinion, lack of information, resources and knowledge in decision making. These dynamic changes are the major sources of threats facing the two companies today.

In respect to the introduction, the paper has a focus on Boeing and Apple as market leaders in their respective fields. Apple gross edge is one of the most astounding in the business because of their imaginative, progressive and one of kind items that are being dispatched yearly. Nevertheless, these advancements originate from an all-around based Research & Development (Njanja, 2012). The vast majority of apple gross edge backpedals to the organization contributed on R&D and on deals procedures with a specific end goal to infiltrate their items into additional into known markets the world over (Giovanni, 2012).

Customers are unpredictable, and they are the ones to determine the stability of the organization. Customers may vary according to the demographic changes that are the age, the gender, and social class. The type of products an organization will produce will determine their customers and the way to retain their customers. Customer, on the other hand, can have product preference changes, and this will determine the type of the products that they buy (Giovanni, 2012). If a customer decides to take an alternative product, it is a loss to the other company.

Hence, it becomes unstable. The customers preferences are uncertain, it cannot be predicted hence the reason why many companies become unstable. Boeing and Apple Company face this problem and the ways they handle it determine the stability of the company (Mason, 2013). For instance, Boeing handles its customers so well that today it has the greatest consumer products in the world to meet people has needs and networks constantly. The economy of a country is uncertain, and this uncertainty affects the performance of the organizations.

If a country’s economy drops, it will affect the company negatively hence it becomes unstable. Both Boeing and Apple Company will be affected negatively since if the economy is bad the sales of their products will reduce (Njanja, 2012). Hence, the company becomes unstable and vice versa for a good economy. If the economy tends to change frequently, it will make the organization unstable. Government policies determine the laws and regulations of a given country. A countries laws and regulations are amended from time to time, and that will determine the companies are working there.

If the conditions are not favorable, it will affect the organizations negatively. The rules of a country will determine the stability of the organization if the rules are favorable the organization will be stable (Verdin, 2006). If the government laws and regulations are changed from time to time, the environment will be dynamic. Hence, the organization will be unstable. Competition cannot be predicted by organization thought they come up with strategies to outsmart each other. Competition among organizations is healthy but at times, its bad if the competition is high.

For instance, if an organization has other related industries in the same countries it might be hard for them to do well especially if the other organization as a strong brand name (Giovanni, 2012). Getting customers to accept the new products may be hard since they may be having product loyalty. Boeings administration reasoning is communicated best by its vision, which has an insinuation that individuals cooperate as a worldwide undertaking for aviation authority. Boeing speaks to an alleged open and legitimate society, in which all representatives are obliged to impart insights and discernments keeping in mind the end goal to determine issues (Verdin, 2006).

In this workplace, administration listens to these concerns and does not strike back against the individuals who raise them. Apple Inc. contends in an exceedingly aggressive worldwide business sector, which is portrayed by forceful value cuts, bringing about a critical decrease in gross edges (Giovanni, 2012). The nonstop presentation of new items and the ceaseless change of items and costs as the fast appropriation of innovation and item progressions make a high competition very much clarified in the outside environment part of the task.

Global competition is another problem already established an organization with strong brand compete with upcoming with companies. For instance, a company with the strong brand name in its own country may become a threat to an upcoming company in its own country (Mason, 2013). Apple may face competition from other companies, which have already established in the market. The future of the organization cannot be certain in terms of the resources.

The availability of the resources can be a problem to the organization in the future. An organization will require finance, labor, and materials in order to run its activities smoothly (Garvin, 1993). The labor market can be unpredictable in the coming years there might be a shortage of labor, and this will lead to increase in the salaries that are paid hence affecting the company negatively (Garvin, 1993). Finances are also important in the smooth running of the business lack of finances will lead to uncertainty in the business.

An organization cannot be operated without materials since they are required to get the finished product, which will in turn increase the production of the company and the sale. Apple Company as finances and are able to get the resource necessary for their products but as time pass labor might reduce hence affecting the number of products produced (Njanja, 2012). This also applies to Boeing Company where it requires skilled labor to help in manufacturing new airplanes. The market is sensitive to quality, owing to the fact that planes are required to be safe, fast and economic in terms of fuelling and maintenance, expertise in their development is a concept adopted by Boeing. In Boeing Company, I suggest they use mechanistic structure since its external environment is stable and complex.

In this case, the decision made is from top to bottom its bureaucratic since it is huge and works as a federal government rather than a public corporation. The frequent disputes are arising make the organization bureaucratic (Verdin, 2006). In Apple Company, I would suggest the use of organic structures since the company makes many rapid changes making organization external environment unstable and dynamic.

Due to the rising competition, Apple will make rapid changes to cope with the rising stiff competition. Hence, the environment becomes dynamic and unstable (Mason, 2013). The organization should focus on learning rather than efficiency, the steady flow of ideas even if they are imported outside the organization is worth rather than focusing on the efficiency. Organization will become efficient if they learn and apply the ideas they get hence the organization will become efficient (Giovanni, 2012). Learning is very important to the organization since through the ability to know where the problem is hence correcting it, and the organization will perform better.

The inherent approaches of the two companies set them apart. More importantly, they are ahead of their game and lead the pack. It is for this reason that they are market leaders. Steve Jobs target in the business sector was to change the PC specialty centered organization into a less reliant of PC deals in light of 78% of incomes. These corporate level changes roll out displaying methodologies additionally improvement and adjust to another method.

Apple revamped the offices and made the centralization of obligations in all-inclusive gatherings for a transient change in correspondence and viability (Mason, 2013). Boeings initiative comprehension is communicated in an announcement, which confirms that Boeing intends to be an excellent pioneer in every part of the business. Hereunto group administration attitudes at each level might be created in the administration execution; in the method for configuration, development and adjusting the items, and in our monetary result. References Garvin, D. A. (1993).

Building a learning organization. Havard business, 65(3), 65-98. Giovanni, p. d. (2012). External environmental management contributes to the triple bottom line. International journal of operations & production management, 12(3), 343-367. Mason, r. b. (2013). The external environments effect on management and strategy. Journal of management history, 11(2), 23-45. Nyanja, M. o. (2012). The effects of the external environment on internal management strategies. international journal of business and management, 4(5), 34-56. Verdin, a. n. (2006). The external environment. New York: Oxford University.

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