Environmental Factors Essay Example for Free

Environmental Factors Essay(A) survival of the fittest of an Organization M/S GE TractorsM/s GE Tractors produces tractors, and dairy machines. Tractors are parcel out to the Michigan unit in view of its location in the natural market zone for tractors. To extension GE tractor production, a second tractor assembly line for 45 HP and 59 HP tractors has been in operation since 1985 at Michigan to meet the requirements of tractors in that area. It diversified its product range to provide blow for the cyclical variations in the market and position itself globally. Besides supplying its products all over USA it has make its position globally. It is exporting tractors and related dairy machines to Canada, Brazil, Mexico, Argentina, most of the European countries, Africa and Asian continent. A specific purpose of 7,000 tractors worth $50 million in the coming 1-3 years is targeted so that there is a preserve growth in volume say 5% per annum.(B)High-level domestic and global mi lieual factors that may mend the organization marketing decisionBusiness planning is basically concerned with the structuring of the relationship between a trading and its environment. The environment in which business operates has a greater influence on their successes or failures. thither is a strong link develop between the changing environment, the strategic response of the business to such changes and the performance. It is great to understand the forces of environment the way they influence this linkage. The environment which is dynamic and changing holds both opportunities and threats for the organizations. The organizations while attempting at strategic realignments, try to capture these opportunities and avoid the emerging threats. At the same time the changes in the environment affect the attractiveness or risk levels of various investments of the organizations or the investors.The environment in which the business operates by and large consist of the Political, Ethica l, Social, Cultural aspects, scientific and the Ecological related issues like pollution, sustainability etc. The Technological temper and its appear has been the key driver behind the major changes witnessed in the environment making it increasingly complex. These factors often point of intersection and the developments in one area may influence developments in other.Careful analysis of the above factors helps in identifying major trends for contrary industries. Changes in these away forces affect the changes in consumer demand for both industrial and consumer products and service. These external forces affect the above company i.e. M/s GE Tractors regarding the types of products produced, the nature of positioning them and market divider strategies, the types of services offered and choice of business. Therefore, it becomes important for the organizations to identify and evaluate environmental opportunities and threats so as to develop a clear mission, designing strategies t o achieve long-term objectives and develop policies to achieve short-term goals.(C) Technology impacts the organizations marketing decisionsTechnological factors re indue major opportunities and threats which must be taken into account while formulating strategies. Technological breakthroughs crowd out dramatically influence the organizations products, services markets, suppliers, distributors, competitors, customers, manufacturing processes, marketing practices and competitive position. M/s GE Tractors is investiture heavily in R D projects to bring out new models hence Technological advancements can open up new markets, change the relative position of an industry and render existing products and services obsolete. Technological changes can reduce or eliminate cost barriers between businesses, give shorter production runs, create shortages in technical skills and result in changing values and expectations of customers and employees.changingThe impact of information engineering ( IT) which combines fruits of both telecommunications and computers has been revolutionary in every field. Not only has it opened up new vistas of business but also has changed the way the businesses are done. IT has specifically brought in another dimension Speed which organizations sleep with as the additional source of competitive advantage beyond low cost and differentiation. Manufacturers, bankers and retailers have apply IT to carry out their traditional tasks at lower costs and deliver higher value added products and services.(D)Importance of well-disposed responsibility and ethics as related to organizations marketingSocial Demographic characteristics such as population, age distribution, literacy levels, inter-state migration, rural-urban mobility, income distribution etc. are the key indicators for understanding the demographic impact on environment. The growing government issue of senior citizens and their livelihood needs have been highlighted and the government is be ing forced to pay more attention in the form of social security benefits etc.Social attitudes, values, customs, beliefs, rituals and practices also influence business practices in a major way. Social values and beliefs are important as they affect the buying behavior.The cattle farm of consumerism, the rise of the middle class with high disposable income, the flashy lifestyles of people working in software, telecom, media and multinational companies seem to have changed the socio-cultural scenario and these needs to be understood deeply.Values in society also tally the work culture, approach towards stakeholders and the various responsibilities the organization thinks of owing to its stockholders and the society.Ethics Considering Literacy and the composition of literates in the country creates opportunities for peculiar(prenominal) type of industries and type of jobs. For example on one hand , the presence of multimillionaires in middle easternmost countries encouraged many s oftware giants to set up shops and on the other , the availability of cheap project ,those countries have become a destination of labor intensive projects. Large labor mobility across different occupations and regions has cut down wage differentials and this has an impact for business to take the proper course.Understanding of the environment in which an organization operates is the foremost pre-requisite towards strategy formulation. The six broad dimensions which the framework provides of the environment are capable of give a comprehensive overview of how things may be unfolding. The objective of the analysis should not only restrict to the present and past but the real focus should be on projecting the trends into future in position to get the real feel of the environment. This shall enable the firm to proactively strategize for future considering the environment it is going to face and the issues which go out be of importance.