Sustainability and the Environment - Essay Example

sustainability and the environment Name: Institution affiliated: Date of submission: Tutor: Introduction Today, the ability of any given organization to survive usually depends on how the organization plays a keen interest to the environment. Understanding the environment within which the organization operates will enable the survival of the organization. According to McHugh and Cao, (2005, p. 223) an organization’s environment could be defined as the different elements that exist both within and outside the business boundaries which have the possibility to influence the all or part of the activities of the organization. Change is increasingly becoming an integral part of the organization and it helps the organization to cope with the effects of globalization and competition within the market given the ever intensifying changes in such markets [McH05]. Organization’s environment Bessant and Tidd, (2009) argues that the organization environment comprises of both the internal and external environment. Threats and weaknesses are the major drawbacks to the organizations performance and profitability. The organization systems comprises of concepts that are in constant interaction with the environment. The major factors that affect the internal environment are the strengths and weaknesses in the organization while the factors that affect the external environment are the threats and opportunities [Bes09]. According to Phillip, (2010) factors like pricing product quality and reputation and experience in the market are the internal factors. The pricing of Company’s products should be lower than those of the competitor companies. It is so since the organizations should invest fully in the most advanced technology which allows them to improve the quality of their goods while at the same time reducing the costs of production. Research and development has also allows the organizations to produce better quality products than those made by the competitor companies. The pricing of products is vital in any market. The organizations should understand that consumer always go for the cheapest but most quality products, thus they should ensure that they reduce the prices set for the products while at the same time maintain quality [Phi10]. The number of years that a company has been in the market determines the reputation and experience of the organization. The products by a company that has not been properly established and few consumers understand the quality of their products as they are not fully in the market means that the reputation of the organization has not been achieved as argued out by Bessant and Tidd, (2009). Most consumers tend to prefer to use products from the already existing and established brands around the world. For this reason the organizations should ensure that they provide means through which they can grow and ensure that they have a good experience background for the activities of the organization [Bes09]. According to Anja, (2009) among the threats and opportunities that the organizations face include product development, innovation, competition, market development and the level of technology. There is an increase in new markets as the world continues to take a bold step to make it a global village. Many of the companies are trying to win over the loyalty of the consumers in the new markets. New products are increasing being produced that are more efficient in terms of the performance and the type of services that they produce. Product development provides for production flexibility both through the product flexibility and volume flexibility. The consumers’ needs and preferences are often changing and to keep an automobile company ahead of the others, then they have to be flexible in both the quality of product they provide and the types of product they offer. Product flexibility in the organization allows for the availability of the products to the consumers. The products in the organization should be differentiated in such a way that they provide satisfaction to the different classes of people. To allow for different classes of consumers to use the products of the organization, then they should ensure they are flexible in their production. Production flexibility affects the process designs as it allows for quick system changes from producing one product to another as per the demands of the consumers [Anj09] Bob & Douglas, (2009) argues that some areas in the World are never reached by some of the services that are offered by the large companies, yet such areas stand as potential markets for the products of such companies. Most companies have their operations in perfect competitive markets and thus their products are the same only that they are differentiated. Quality is another internal factor that the organizations should consider. The quality should be set to be the most advanced and should ensure that they outweigh the quality of the other competitor companies. The organization environment consists of a number of set relationships that usually control the organization. The business environment key players have a relation of either an agent or the principal relationship. The relationships should be properly defined by the organization to reduce instances of collusion between the different principals and agents in the organization. When the relationships are effectively harmonized, the organization can effectively attain its set objectives and be sustainable in its performances [Bob09].. Key changes in the organisation’s environment Organizations should undertake to try and improve the customer relationship with the employees and the management and maximise the revenues collected with regards to the type of information that is collected and delivered from the objectives of the business. Most organizations operate in industries that are very competitive and have a strong demand for new products and services that may not be currently available for the organization. They aim to try and achieve maximum performance by providing products and services to as many consumers as per the demands of the consumers [Lau111]. The organization should thus enhance their performance by ensuring that the demand and supply are at equilibrium or at least ensure that the supply exceeds the demand to reduce the risk of stock outs. Most organizations work in perfect competition type of markets and thus they have to ensure that they provide the cheapest prices for their products. The organizations should, therefore, embark on reinforcing the strategic operations using business intelligence that offers solutions using the objectives of the business. The objectives provide the business with targets and goals which the business uses to compare with its actual performance. The key changes in the organization environment are thus the use of the internet business intelligence to offer solutions to the operations of the organization and improve on its decision-making process. The technological advancement has also forces the organizations to adopt changes in the business that is pushed by the need to advance technologically. The organizations are usually forced to purchase new technology that offers better and efficient products and services to the consumers. The organizations should also have to provide an online platform for consumers to use for online booking and purchases and thus have their products and services to be provided to them without having to go to the offices of the company [Bob09]. All the environmental changes are initiated in the company to help bring the services that are offered by the company to the consumers to help increase the consumer loyalty. The impact of environmental changes has been the main reason that has led to the adoption of such changes in the business. There are two key drivers of the environmental changes that should be adopted by the different organizations namely technological advances and the changes in consumer tastes and preferences. Change in inevitable, and when it comes to technology and consumer preferences, companies must adopt changes as and when they occur to ensure satisfaction of the consumers [Bob09]. The environmental changes for the organizations are permanent and thus continuous improvements need to adopt often to ensure that the consumers are satisfied with the services offered and that the technology in use is not rendered obsolete. Having identified the consumers as key players in the running of the business, the organizations should thus identify the change in consumer services as the most important change with regards to the objectives of the business [Lau111]. Theories for sustainability of organizational environments A number of theories have been developed regarding the environment of an organization and its effects to the sustainability of the organization. Among the theories developed include the system theory and the complexity theory. System theory The systems theory was first advanced in 1940 by Ludwig von Bertanlanffy. He was concerned about how the different systems operate and identified the processes and patterns that are available to the organization to help them achieve maximum sustainability from the environment that the organization operates. The theory is used to explore the principles and laws that may be specified across the various systems that an organization uses. Bausch, (2002) proposes that the system theory usually classifies the systems into nine levels with reference to the increasing complexity of the systems. He continues to argue that the nine levels are enlisted in the hierarchical approach that brings in new relationships with every increase in the hierarchy while at the same time maintaining the relationships in the previous system [Bau02]. The nine levels provided by the structure in increasing levels o complexity are static structure, simple dynamic structure, self regulated structure, open structure, genetic societal structure, animal structure, human system, social system and the transcendental structure which mostly encompasses the unknowns in the organization [Bau02]. Martinelli, (2001, pp. 77-78) argues that the systems theory in vital to an organization’s stability as it ensures that the patterns provided by the system are easily understood and that they ensure a positive interaction among themselves through their interdependence and consistency over time. Since the system theory considers both the output and the input in an organization, the structure, information, techniques and people in the organization should be cordinated and intergrated to maximize the value of the organization. The system usually determines the environmental uncertainities that exist in the organization. The uncertainities are usually reduces by the managerial system using the managerial system that varies along five basic dimensions namely concentration, stability, hostility supportiveness, resource scarcity and homogeneity. Stability refers to the rate ar which the environment is changing. Resource scarcity is a constant variable affecting all the organizations and thus they should work to determine the means through which they can make the resources available to the organization as and when required by the demand. The concentration refers to the degree in which the environmental components are interralated. Homogeneity refers to the number of different constituents that influence the organization and finally, the supportiveness to hostility is mainly the competition that the organization faces in its day to day activities [Mar01]. Complexity theory The complexity theory is viewed as a measure of the diversity that exists in the internal environmental factors. The complexity theory focuses on factors such as customers, suppliers, organization departments, technology and the socio-political factors within the organization. James and McKenzie, (2004, p. 35) identified ten major environmental factors that determine the sustainability of the organization. The factors identified are raw materials, financial resources, human resources, markets, the industry, the legal environment, country’s economy, socio-cultural and international factors. The raw materials should be readily available to the organization as and when they are demanded for to reduce time wastes and stock outs in the demand and supply chain. Without the raw materials the businesses would not be operational as the supply chain would not be complete. [Aes04] Human resource is a major determinant of the sustainability of the organization. It ensures the management of both the natural, financial and human resources. Human Resource Management entails balancing the resources of the corporation. The available resources are people and processes and the Human Resource Management working towards providing the optimal ratio to enhance the best achievements for goals and strategies in the organization. The Human Resource Management integrates the wide range of culture, ideas, and products with the human resources available to achieve maximum potential of the organization [Mic06]. According to McElroy, (2000, p. 198) the human resources are in this case the employees of the organization. The employees of any given organization have been identified to be the major determinants of performance of every division in the organization and for the organization as a whole. The rendering of services is mostly determined by how the employees interact with the consumers. A satisfied consumer will always go back to enjoy more of the services that are offered in the organization and in most cases are likely to bring more customers with them [McE00] Conclusion In conclusion, the organizations should strategically apply their strengths on the opportunities and threats that they face to ensure that they face. The management of the organization with reference to the BCG matrix should ensure that they turns their stars into cash cows with time as a reduction in the investments made would mean that there would be more returns and as a result an increase in profits. The extra funds realized from the turning of the star into cash cows would be used to improve on the products that are considered to be either on dogs or question marks. An action strategy should therefore be implemented by the organization to help safeguard the environment and ensure that the services they render to their consumers are of the least harm to the environment. With the competitive structure in the different organizations around the world, companies need to identify their competition both from within and from the external competitors. Competition can help a company increase its market share and move ahead to become a market leader. Competition, on the other hand, can make a company lose a grip of its previous market share and become a market follower. This depends on the competitiveness of each market player. The management should be encouraged to help understand each project that the company takes and its expected estimate sales and costs expected. With highly skilled personnel and the adoption of up to date technology, an organization in any given industry would work to manufacture unique products and services to help increase their market share. With the diversity of the consumers that the industry serves and the many manufacturing companies available, it may be hard to maintain a proper market share. For a project based organization, the management it tasked with the duty of constantly sourcing for new projects to suit the diverse needs of the consumers. Nevertheless, with a flexible management team, the organization is able to achieve new ideas for new projects and ensure proper resource management. The environment should be put into consideration as it is also a major determinant of the sustainability of the organization. REFERENCES McH05: , (McHugh & Cao, 2005, p. 223), Bes09: , (Bessant & Tidd, 2009), Phi10: , (Phillip, 2010), Anj09: , (Anja, 2009), Bob09: , (Bob & Douglas, 2009), Lau111: , (Laurie, 2011), Bau02: , (Bausch, 2002, p. 418), Bau02: , (Bausch, 2002), Mar01: , (Martinelli, 2001, pp. 77-78), Aes04: , (James & McKenzie, 2004, p. 35), Mic06: , (Michael, 2006), McE00: , (McElroy, 2000, p. 198), Read More