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Impact of Internal and external environmental factors on business Essay

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Updated: Apr 2nd, 2019

Internal and external environmental factors have almost equally relevant impact on any business. Marketers hold to the view that external environment influences the general performance of an organization whilst internal environment only impact on a few departments, this could be the case with Orangin Juice Squeezer.

Companies that specialize with product creation are in most cases affected with external environment. As an organization that deals specifically with orange juice squeezer, Orangin has to relate its decisions and operation systems to the external environment (Barrow, Barrow & Brown, 2012).

The changes in the environment will necessitate Orangin Juice Squeezer to come up with informed business strategies in order to survive and triumph in the market.

For instance, the corporation should carry out a thorough market research based on creating an information processing system that is at par with its competitor’s behaviors and technological innovations (Robert & Scott, 2009).

External environment factors comprises of competitors, technological advances and government policies. Orangin Juice Squeezer has to make witty decisions and lay informed strategies as an avenue to achieving their objectives.

The decisions are to be made after an intensive evaluation of the current market state and the strategies applied by their competitors for a success. This can be only achieved through a thorough research of a market which will reveal the market state and through it an analysis conducted for a planned strategy to be implemented.

Competitors pose as pace makers in the market, thus to adapt to the current changes Orangin Juice Squeezer has to be always conscious with the new strategies implemented by their competitors (Camp, 1989).

Another fine external environment aspect that Orangin Juice Squeezer has to consider is the ever advancing technology. Technology though, an external factor, has an impact on the internal environment.

Any new technology embraced by an organization influences the internal operations of the organization. An effective and systematic analysis of market research findings will guide Orangin Juice Squeezer Company on how to respond to the new technological changes in the market.

It will also reveal to them how other market players are responding to the new changes thus keeping them relevant with their decisions. To satisfy the vast variety of consumer needs the company will have to change to any technology that will improve production and quality of their juice (Hariolf & Shlomo, 2000).

Before responding to any environmental changes, Orangin Juice Squeezer has to evaluate the company’s general success with technology, and also watch the duration within which their competitors take to respond to the new market changes.

With all this done Orangin Juice Company will have gathered enough information to make critical decisions that will help them record a success. Different companies respond differently to new trends in the market, it all depends on the facilities available in the business.

Stable businesses tend to promptly respond to new changes unlike other unstable companies that slowly or partly migrate to the new changes.

For an effective and smooth transition in business changes Orangin Juice Company has to properly equip itself and impose a constructive competition in the market (Shaw, 2007).

The performance of Orangin Juice Squeezer Company will largely depend on the external environment due to the nature of its products.

External factors such as consumer demands dictate the way a company goes about with its products. Innovative technology and witty market strategies help an organization to meet its goals.

Other environmental factors that might affect Orangin Juice Squeezer Company include political factors, inflation, culture and demographics. Political factors comprise of government policies such as standardization of products and other laws that restricts business operations.

It will require Orangin Juice Squeezer to fully comply with the political environment as the law states for it to operate in pure space. Culture as an external environment comprises of the social life of consumers and current changes in the lifestyle of the customers.

As part of the business environment the juice company has to consider for cultural values of its consumers thus influencing its operation at a larger impact. Lack of complying with the cultural expectations of the surrounding community may lead to a clash with the community thus repelling potential customers.

Linking different products with certain individuals has always affected customer’s buying decisions. Some customers buy products not to satisfy themselves but to satisfy their loved ones.

For example, women’s decision to purchase different items has always been influenced by their need to gratify their family members (Stately, 2002).

However there are a couple of internal environmental factors that might impact on the general performance of Orangin Juice Squeezer as well. They include employees’ morale, organization of machinery and equipment, financial management, technological organizational, culture and management systems.

There very presence and capabilities in the organization determines the success of the business. Personnel output is often determined by the way in which they are treated in the company.

Workers that enjoy cordial relationships with their managers tend to enhance the general performance of an organization.

Other than conducting external marketing in the organization, the company should always conduct an internal marketing on regular basis to boost the morale of employees and achieve success as a result (Shaw, 2007).

The Orangin Juice Squeezer ought to have a proper management of their finances. Any business that fails to plan faces the risk of collapsing due to the mismanagement of funds. The corporation should learn to manage their finances appropriately.

They ought to have a budget that will be instrumental in guiding them to spend money for instance on purchasing items that are necessary in the company. Money also needs to be kept aside for the growth of the company.

For example, Orangin Juice Squeezer should, before conducting any marketing exercise that consumes substantial amount of money like market research or advertisement, ensure that the exercise will have significant benefits to their organizations.

The future plans of the company should guide the budgeting and spending habits of the company.

Virtually all organizations have management systems that guide them to achieve their goals and objectives. Such systems always have mixed impacts on the general performance of any business.

They are often employed to enable an organization to have unique policies and culture. Such dynamic policies and culture enable an organization to compete with its rivals and thrive in the market as a result.

For example, an organization’s culture may be such that they conduct a market research upon being faced with dangers like poor sales.

Consequently Orangin Juice Squeezer should regularly review their working policies to enable them to effectively compete with their rivals in the market. (Shaw, 2007).

The way in which a company organizes its machinery and equipments also influences their success. An organization may have sophisticated machinery and equipment but fails to match the agility of their competitors.

This is brought about by lack of adequate training for the staff especially in the usage of machinery. Proper training also ensures fewer accidents. It is very important the employees in any sound organization ought to have a general expertise of handling machineries and equipments otherwise they might fail to deliver at the expense of their rivals.

Subsequently before Orangin Juice Squeezer embarks on incorporating technology or new equipments, in their corporation they should ensure that their staffs have the expertise to handle them (Kreitner, 2005).

References

Barrow, C, Barrow, P & Brown, R 2012, The Business Plan Workbook, Kogan Page Publishers, London.

Camp, R 1989, Benchmarking: The search for the industry best practice that leads to Superior performance, ASQC Quality Press, Milwaukee.

Kreitner, R 2005, Foundations of management: basics and best practices, Houghton: Mifflin Company, New York.

Robert, G & Scott, J 2009, Product Innovation and Technology Strategy, Product Development Institute, Washington.

Shaw, S 2007, Marketing and management, Aldershot Publications, London.

Hariolf, G & Shlomo, M 2000, Managing a new product development and innovation: A macroeconomic toolbox, Edward Elgar Publication, London.

Stately, R 2002, The Definitive Business Plan: The Fast-Track to Intelligent Business Planning for Executives and Entrepreneurs, FT Press, New York.

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