The paper 'Efficiency and Equity at Work' is a great example of a Management Case Study. The research makes an in-depth analysis of the external business environment in Australia. In particular, the report focuses on Aldi Company which is a multinational organization operating in Australia’ s grocery industry. In the analysis of the external surroundings, the report considers two analysis models. One of the models is Porter’ s Five Force that helps organizations to determine the competition they face. The second model is the Macro-environment analysis that enables firms to identify the external factors affecting their performance.
In its conclusion, the report proposes a combination of strategic plans that favor the growth of the organization. The report recommends the formulation of a mission statement and specific objectives to guide the organization in attaining its goals. 1.0 IntroductionThe role of the external environment in any organization is paramount. Apart from internal factors that affect an organization from within, there are other external factors. The external factors emanate from other sources that are not within the organization. The external environment comprises of various parameters, which affect the operations of the business.
The impact that these factors have on an organization may either be positive or negative. As opposed to internal factors, it is difficult and sometimes impossible for any business to control its external environment. The external factors are basically beyond the control of an organization (Voiculet et al. , 2010)The impact of the external parameters on an organization may either be direct or indirect. Any move by an organization's rival in the market amounts to direct action. In most cases, any measures taken by a competitor affect the business negatively.
The direct impact occurs mostly in situations where organizations are dealing with similar products or services (Voiculet et al. , 2010). On the other hand, the indirect effect results from variations in the business environment. Business climate alterations may include changes in the market prices, demand and supply of goods, and the prevailing weather conditions. The indirect changes may affect the performance of an organization, either positively or negatively. A favorable weather condition would affect an organization dealing with agricultural products positively and vice versa (Andersson et al. , 2002)
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