Business How Forces in and Outside of Essay

Download this Essay in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from Essay:


How forces in and outside of business firms are changing the management task, altering business operations, and modifying stakeholder expectations?

Business, particularly those heavily emphasizing technology, are constantly changing. In many instances these changes are occurring due to a combination of internal and external factors. These factors often modify stakeholder expectation because the fundamental business itself has shifted. A very dynamic force that is changing the management task is that of globalization. Globalization is particularly contentious because it has no geographic limits. Competition can now come from anywhere at anytime. As such, management must be cognizant of the changing dynamics prevailing in their respective industries. The auto industry, for example, has directly felt the impact on globalization and stakeholder expectations. The auto industry prior to foreign competition was characterized by large fixed asset costs, hefty legacy and pension obligations, and slow innovation. However, through globalization the Japanese's were able to enter the market and product high quality lower cost cars to the market. Eventually it took a near bankruptcy event for the industry to finally change the manner it which it produces cars. Through this instance of the external global force, management tasks in the industry changed to a more nimble quality oriented focus. The business operations were altered to reflect the changing consumer demand for higher quality more fuel efficient vehicles. And stakeholder expectations were altered as the Japanese had now become a more viable competitor in the market place.

Internal forces are also just as dynamic as the external forces mentioned above. Internal sources are arguable more damaging because habits, customs and cultures become so entrenched within the organization. An internal force that could alter a business firm is a restructuring. Restructurings often occur due to external forces prevailing in the market. This could include price wars, an obsolete product, and the introduction of new products, a severe economic downturn and so forth. Restructurings change management tasks because the must undoubtedly terminate and lay off workers. This can be difficult as layoffs can result in key personnel leaving to the competition. It also lowers employee moral and cause angst and confusion amongst employees. It alters business operations as employees are not as productive. They are often more concerned with their personal jobs as they are about the work needed to be done. These same occurrences also arise when firms are also merged or acquired by competitors in the same industry.

How influential ideas in the business environment shape the business-government-society relationship?

Ideas are always shaping the relationship between business, government, and the rest of society. Capitalism in particular, is predicated on the notion of ideas that occur due to profit incentives. Ideas such as the internet, television and radio all influenced the manner in which business was conducted. Government's roles are to help establish and foster an equally competitive playing field within the capital markets. Government must ensure that everyone within the business industry is operating fairly and ethically in accordance with applicable law. This allows society overall to grow and flourish. Government organizations such as the FDA and CDC are designed primarily to protect the overall consumer for business practices that will ultimately harm society. Business, through operating within these laws can then begin to innovate and use ideas to compete in the overall marketplace.

Ideas influence the relationship mentioned above when new industries appear, or when unexpected occurrences arise. Influential ideas about the internet, internet security, and government's role in the application of that security are very recent example. The ideas centered on privacy and the role business and government play in protecting the privacy of society is a very contentious issue. To what extent should government honor privacy if national security issues are paramount? What should businesses do with private consumer information over the internet to adequately protect it from hackers? All three entities are tied to the application of these ideas. All three are also responsible for making the ideas fair for all parties involved. The ideas centered on this notion of privacy will alter how products are produced, how products are offered, and ultimately pricing of products. As such all three entities are correlated in many respects. If for example, governments require more rigorous security requirements, business may pass the increased cost on to consumers. Consumers will then end up paying for the security elements imposed by…[continue]

Cite This Essay:

"Business How Forces In And Outside Of" (2013, June 08) Retrieved December 10, 2016, from

"Business How Forces In And Outside Of" 08 June 2013. Web.10 December. 2016. <>

"Business How Forces In And Outside Of", 08 June 2013, Accessed.10 December. 2016,

Other Documents Pertaining To This Topic

  • Business Environment Interaction of the Business Environment

    Business Environment Interaction of the Business Environment The environment of a company is much like the natural world in that there are many layers to any single organization (Marques, 2007). Political forces are present because there are factions and beliefs within a company which cause different politics to be formed. The economics of running an organization are a different facet of the environment which many consider the most important part of the

  • Business Organizations Describe How Recent Technological Developments...

    Business Organizations," describe how recent technological developments are impacting the organizational structure of a 'software house'. The internal organizational structure of a business is one of the key elements in predicting if a new, particular venture made by the business will succeed or fail. However, in the computer software industry, another key component is thrown into the mix and the friction between the internal workings of an organization and the

  • Business Plan for Organic Fertilizer

    We can use this opportunity to establish loyalty among our existing customers, develop referrals among our customers to their colleagues, and establish our brand and credibility as local suppliers of organic fertilizer of high quality and at a good price to our market. With this in place, it will be difficult for any new market entrants to displace us in our local area as the main suppliers of organic

  • Business Plans Marketing Plan and Evaluation the

    Business Plans Marketing Plan and Evaluation The marketing plan should revolve around the marketing mix. The mix encompasses the four Ps of marketing, each of which will be addressed in turn in this business plan. The four Ps are product, price, place and promotion (NetMBA, 2010). With respect to product, the coffee shop will be a premium example of a coffee shop. Australia has an exceptional coffee culture, so good that it

  • Business Plan Idc Interiors Aims

    [2: ] The primary research of the Auckland market presents the following sectors for consideration for the new venture: The demographics in the target market include: college going and married women with children who either are working mothers or stay-at-home mothers; this makes the age group anywhere between 25 to 55; the overall annual income of the household is more than AUS $100,000; the property owned by the target individual

  • Business Lawsuits Summarize the Actions That Lead

    Business Lawsuits Summarize the actions that lead to the lawsuit. The actions that lead to the lawsuit are from an Ace Hardware franchisee alleging that they were defrauded by the company. What happened is Roy and Pattie Ewers are suing based on the fact that the company deceived them into buying a well-known hardware store in Northern Virginia (named Fisher Hardware). The basic idea is that the Ewers' would make an initial

  • Business Planned Activities the Current Performance Period

    Business Planned Activities The current performance period runs from late October through early December 2010. There are a number of expectations that will need to be met in order to facilitate the creation of an ongoing business entity. Weekly expectations include; 1) the distribution and return of at least 50 surveys that will assist in determining the need and desire for a new travel agency, 2) a completed cost analysis, 3) compilation

Read Full Essay
Copyright 2016 . All Rights Reserved