Four external forces that affect an Organization Essay

Terms of referenceThis report was commissioned by the lecture of Management and presidential term conduct as individual assessment on quadruple external forces that can presently affect Organisation for these modules within the Bachelor of Business Degree in Management.IntroductionIn this assignment I pass on present a brief literature review of the main four external forces that can currently affect an organization (a business). First I will introduce global economical powers that influence the four external forces after that I will then introduce the four forces in more detail. globose perspectiveAs the world is emerging from the waters of deep economical crisis I think the exceed to start with are global influences that affect the main four forces. Each organization is direct strongly influenced by general laws of economicsEconomic growth is influenced by various factors such as development on stock markets, which is strongly influenced by political activities around the world, prices of raw materials (metals, oil etc.) just now too prices of energy and future of the economical development in general.Inflation increases cost of operations and price of products and reduces employment. provoke rank as many businesses operate with money borrowed from banks changing interest rates influence without delay interest expense, which influences the cost of operations and the cost of productPEST Macro analysisEach topical anesthetic business is based in a certain environment that directly influences its performance. The environment a confederacy exists in has a strong carry on on any aspect of the companys life. The sideline main four macro-economical external influences are interdependent.Political atmosphere each country has a peculiar(prenominal) political atmosphere, political culture. For instance countries of the EU would have very different atmosphere to North Korea. topical anesthetic political decisions shape the countries economical perspective and enable or disable, speed up or check down the development of local businesses. Political decisions directly influence law of the country (region) and some of them such as economic reforms make strong and long-lasting squeeze on local businesses. Even political decisions such as annual budget or introduction of income levyhave profound impact on business performance. However this would be more applicable in Adam Smyths time. presently we can soundless apply this influence of local politics on small or local businesses but the late seventies and eighties of the 20th century, started especially in the Euro-the Statesn civilization process of progressive tense economic liberalization that resulted in supra- state of matteral corporations that we know today. Many of these corporations are wealthier then countries they operate in and often dictate what the local political milieu will be. This route would eventually lead us to the promontory of monopolization and to the question of economic and political interests and their balance.Ultimately it is both world-wide and local law that that shape balance between these two areas.1 Great example of politics and law (even if enforced by the international public rather than by local corrupted politicians) impacting on businesses is from India, where supra-national companies producing clothing completely ignored wellness and safety regulations in order to produce more and cheaper. Unfortunately this lack of political ethic and duty resulted in tragedies and loss of many sounds.Social environment main characteristics of societal environment are social norms and cultural and even religious preferences. Max Weber sees the protestant idea of hard work as a result of original sin as the inspiration for development of hard-work and profit foc apply capitalism. 2 This idea of hard-work and profit focused capitalism combined in Europe and in the North of America with culturally well established dodge of banks adoption finance for interest resulted in todays macro economical models. Euro-American banking system is historically based in certain interpretation of oral Torah called Mishna that allows borrowing money for interest in return. It was in historical Europe traditionally allowed only to the Jewish nation as a form of discrimination and punishment.So the development of economy is we know it today would be very unlikely in many parts of the world simply for cultural and religious reasons as in some countries would be money coming from interest prohibited.3 Demographic profile of social environment is crucial for any business existing within that particular society. Gender, age, ethnicity, language, education, public opinion and norms influence every aspect of business. Gender norms define approach ofsociety towards male / feminine work.4 In many societies is female work traditionally under-rated therefore from the perspective of operations management it is cheaper for compani es to employ women in certain positions. bringing up of population leads us into the next factor that affects businessTechnological development is a result of the impact of education in the local social environment technological changes always initiated further development. The invention of tramp accelerated speed of movement of our ancestors, the invention of metals improved their farming instruments as well as weapons but here we are not talking about the long time gone past. Today we live in exciting times of technological changes, which are changing the face of businesses on daily basis. profit and electronic communication speeded up every aspect of business from operations, logistics to client services. Even the smallest local newsstand operator or grocery shop must keep up with the development of recent technologies.20 historic period ago it would be absolutely unthinkable to top up phone credit while gainful for grocery in a local shop. In fact there was no topping up c redit at all today. Today we would find it rather odd if our local newsagent (if we still buy newspapers) would not have a top up terminal. Purchasing a flight used to be in general one to one experience we used to go to travel-agents or flight-companies directly and purchased flights. Today we find normal to use the internet at home even to check in before our flight. A flight company that would not offer internet service to purchase a flight would not survive today. But all this technological progress would not be manageable without investments, without wealth.stinting environment wealth as a source of investment was based in times of Adam Smyth and his An Inquiry into the Nature and Causes of the Wealth of Nations in productive powers of Labour, in accumulation and employment of stock, in progress of opulence in different nations (which is the distribution of wealth between cities and countryside) and in a system of political economy.5 Today is material wealth accumulated not s o much in nations but more so in supra-national companies. Still effective investment is the fuel of business development. Economical environment and wealthdepends as we already mentioned on macro-economic factors of global economic growth, inflation and interest rates that directly influence local currency inflation and interest rates increase or decrease. orbicular economy fluctuates from booms to slumps. Most businesses gain in booms and loose in slumps.BibliographySwedberg, R. (2003). Principles of Economic Sociology, New Jersey Princeton University Press, 158-159Weber, M. (1920). The Protestant Ethic and the Spirit of Capitalism, Berlin Klaus Lichtblau and Johannes WeissWaterman A.M.C. (1999). Religion and Economics Normative Social Theory Boston 1999 Unwin Hyman, capital of the United Kingdom & Boston, 1930Dean, M., Waterman, A. (1999). Religion and Economics Normative Social Theory. Massachusetts Kluwer Academic Publishers.Swedberg, R. (2003). Principles of Economic Sociolog y, New Jersey Princeton University Press, 283-284.metalworker A. (1776). An inquiry into the nature and causes of the wealth of nations, London Adman Black and William Tait