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External Environment Essay Sample

External Environment Pages
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Introduction:
Each organization has their own organization structure and strategy to help them get their organization’s goals. Therefore managers of organization should to design and choose the structure and strategy that fit for different types of organization to get the goals. However managers should according to the external environment to make decision for the organization. The external environment will influence the organization’s choose, if the manager do not consider the external environment and choose the structure and strategy can not fit for organization will lead the organization cannot effective to get goals. Hence we will discus different external environment how to affect organization to achieve goals and managers how to design and change organization structure according to impacts of the external environment. The External Environment

The external environment including two types environment, one is the task environment and another one is general environment. The task environment always directly affects organization to get goals and this environment also has four parts for: typically the “industry” and market sectors, raw materials, human resources and international environment. The general environment might not have a direct impact on the daily operations of a firm; it contains government sector, sociocultural sector, economic conditions, technology sector and financial resources. We will find these external environments how to affect development in the organization structure and strategy. Now we discuses that the relationship between the task environment and organization. And human resource is the important element affect organization structure. The different size of organization has different human resource system. If there is a large organization, it will have complexity human resource manage. The company will have many department and they have their own duty. The manger of human resource will accord each person’s ability to allocation their work and department.

They also make sure every employee know their work. The managers also on the basis of the different department and size of employee design organization strategy. The managers wish employees work hard for company, they should let them can get equal reward for their work. Therefore the large organization can offer higher wages and comfortable workplace for their worker. Many employees prefer to choose enter the large company and wish get high wage. The large organization also can attract more high ability employee and let them work effective. Some mangers also give more reward for get goals employees and encourage them work more hard. In this way, the employees of organization want to get more reward and have high enthusiasm for their work. The organization sometimes in order to improve the ability of their employees, they will offer some chances for employees to study and train and make them work effective. However the smaller organization have not these capacity and capital, they cannot adopt that strategy to achieve the organization’s goal.

They have simple department and few workers; sometimes they maybe do more work and have nor high education so they cannot entry the big company. And the small company want attract and retain more high ability employees, they should offer better position for them. There is a good example of this fact of Coca Cola Company. Coca Cola according to their human resource feature, they think the teamwork is very important. They emphasize everyone is the leader and to encourage the staff to work as a career. And this organization classifies as three kinds that leader of leaders, leader of others and leader of self. This strategy emphasize everyone is the owner of the organization and wish all staffs can display their biggest ability. And every year, the company requires each staff offer their plan and idea for the manager, help them make strategy decisions for organization. Coca Cola also pay attention to train for leader and according to different levels of leader let them attend to different train classes.

Coca Cola Company through this human resources manage change their organization strategy to achieve the organization’ goals. The task environment is the directly fact for organization structure and strategy and the general environment is the indirectly impact on the daily operations of the company. Although there are five sectors in this part, the technology is the most important fact of all. With the development of technology, more and more organization pay attention on improve the ability of staff and prefer to profession technology employees. Technology sector can make organization become simpler and effective. In this information age, many organizations will purchase computers for their staff and each department can through сompany’s data base to find their want information.

Therefore technology will change the organization structure and can reduce some departments that do not need, it makes company work more effective. However technology not only change the departments in the organization also change the relationship between organization and customers. The company can get the information of customers quickly and reduce the time for waiting. However in many organizations, reduce the number of the staff in the company, it requires staff can improve the education and ability because it not easy copy work. The machines replace that old workers and it only need few staff that can control and use these new technology. For this reason, the organization should train their staff at fixed period. And there is a example for this fact. The aviation industry has been under great pressure to change the business results of the reduced availability of defense fund. GE’s Aerospace

Division underwent a restructuring that was described by Phil Magrogan, a systems architect for GE, in saying “we’ve completely revolutionized our corporate structure, our management strategies, and the way we use technology”.(Vitiello, p.401) The technology change is in the form of new Sun Microsystems the workstations, networked cooperation and is equipped with computer aided design. Relationship between the external environment and organization structure Now we can through the Coca Cola Company to have deep understanding about relationship between external environment and organization structure. In the Coca Cola Company pay attention to team work, they wish their staff can play collective strength and. The manger of company adopts Horizontal structure for this organization. The horizontal structure has some characteristics: this structure is created around cross-functional processes. And in this kind organization, the manager think team work is very important, not individuals are dominant players.

Employees on the team are given authority for decisions. It also can increase organization’s flexibility. I think the manager use this structure for Coca Cola Company can fit the external environment. When managers consider the task environment, the organization wishes staffs can work together and better cooperation. And this structure can fit human resources allocation, each staffs in the Coca Cola Company understand their duty in the work and they usually have party every month to share their ideas and plan for the organization. It also will require all employees can submit their thinking to their leaders help managers make decisions each year. According to the human resources, The Coca Cola Company should use Miles and Snow’s strategy typology, this strategy that matches the demands of the external environment. The company will choose the manager for the staffs and takes them to train classes. It is the prospector that including learning orientation, flexible, fluid, decentralized structure.

The horizontal structure can easy to use the new technology. The technology belongs to general environment, that not direct impact the organization. The Coca Cola Company is the large organization, there are many different departments if they use the new technology, they can control more easy and effective. It also makes each department can makes communication convenience and the number of the group can exchange thinking and idea usually. With the development of technology, more and more organization will choose entry international marketing so the international environment also can influence the organization structure. And this fact become more and more important, the all organizations face domestic and global uncertainty. Coca Cola Company has the group number, they can use the new technology such as computer, telephone, to chat with each other and transfer the information to their leader then through leaders offer these information for managers to make decisions.

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