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Unit 3.Organization environment, resources and business activity Text 1. Types of environment

No one existing organization can ignore the influence of the environment. A company is not an isolated economic unit which operates in the general economic system; the components of external and internal environment affect it. This influence one cannot overestimate. The firm lies at the heart of economics; there is a close interaction between the business system (a firm) and various factors (e.g., environmental components). These aspects are vital for the success and dynamic development; to create the efficient marketing offerings (in product and service) and efficient control a company should take them into account. In fact, any company’s activity is dependant on the external environmental factors; the most important of them are as follows:

Economics, Politics, Market, Technology, Social factor, International factor. Law and Nature.

There are two types of the external environment, which impact any company’s activity: direct-action environment and indirect-action environment

Direct-action environment: suppliers, consumers, unions, competitors. The direct-action environment represents the immediate firm’s environment and impacts its activities. The business environment and company’s activities interact and adapt one for another.

Indirect-action environment: law and government factors, economic conditions, political factors technology, socio-cultural factors, international factors.

The external environment is very complex, and it is the task of company management to take it into account and react to it. The external environment has its features: volatility; uncertainty; interrelatedness; complexity.

In fact, in today’s market, any company has to deal with the inflation, competitors, public values, government policy etc.

The internal environment of an organization bears a relation to the structure, objectives, business processes, technology and people.

Actually, a company produces goods and services, organizes sales and gets the profit. In other words, it realizes the aims of its activity by taking a responsible attitude towards the environmental changes. It is an important area for study and management because of problems all firms face in their activities.

The team of executives should take the both: the external and internal environment factors into consideration.

Moreover, the changes in the environment must lead to changes in a company

strategy, if a company wants to achieve its objectives and survive.

Text 2. Company resources and activities.

Generally, every company can be defined by variety of aspects:

- Name of a company.

- Type of proprietorship.

- Year of foundation.

- Years in business.

- Headquarters.

- Core product/service.

- Growth rate.

- Workforce.

- Turnover.

- Current and future projects.

Some firms include in a company description as well their pre-tax profits, market share, target market, strengths and weaknesses, opportunities and threats, image and business strategy, management style, recent and future developments.

However briefly, a company can present the information about its:

- Location

- MOS (mission, objectives, strategic priorities).

- Business strategy

- Business activity

- Markets

- Product range

- Turnover

- Workforce

Some managers consider an organization to be like a triangle.