External Business Environment May Challenge Business Essay


Political factors defines that government regulations play a significant role in the competitiveness of an organization. The law of a country determine the labour laws, environment protection laws and industry relations legislation. For example, The government of New Zealand increase the minimum wage from $13 to $13.5 in April 2012 (Garrett-Walker, 2012), which directly increase the cost of companies.

Organizations, such as LOGICA, need to spend a lot of time and money to reduce the influences by the changes of government policies. The UK government's public sector budget cuts and university fees increase hit the number of potential employees with the skills and competencies that Logica requires. In order to address the changes in the educational sector, LOGICA reviewed its workforce planning and operated Apprenticeships programme and enhanced Graduate Scheme. LOGICA cooperated with government and involved in the government's new Cycle Hire Scheme when government initiated on climate change and emission reduction. Obviously, LOGICA spent a lot of time and money to address the changes of government policies. :

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Economy plays an important role in the success of a company. The economic growth, inflation, consumer purchasing power and interests determine the success of a business. Economic factors affect how an organization market their products and how much money an organization can spend on their business growth

The global recession affected the entire world economy. Many organizations are forced to look for ways of saving cost and reducing waste. This made the demand of outsource services increases as those LOGICA offers. LOGICA faced more challenges when benefited from the demand growth of their products. LOGICA has to ensure has enough workers with right skills and introduce changes and new ideas to meet the needs of different customers.

The social and cultural factors of an organization's environment include societal values, beliefs, norms, customs, taste and demographics.  For example, if New Zealand people are becoming more health conscious, a business that sells junk food will lose revenue.

The society is more diverse in UK and people with different cultures and backgrounds work together. A diverse workforce is a challenge which that LOGICA cannot ignore. Logica intends to improve its competitiveness and bring different strengths by increasing the number of female workers.

Technological factor means that the technological advancements potentially affect t the competitiveness of an organization. To retain the competitiveness, an organization should not only keep a pace with the changing technologies, but also keep its processes and systems with innovation and creativity. Logica should provide the most advanced technology and services to its customers and maintain its competitiveness, including 'Cloud' technology and Police National Database

The external environment challenges cannot be controlled by organizations. But they can take effective measures to minimise the adverse effect on the organization's competitiveness as what Logica has did.

Question 2

The internal environment factors are the factors that have a direct impact on the business and are generally under the control of the organization.

Employee is one of the internal environments which affect the success of a company. Employees' emotions and motivation affect an organization's ability to compete their goals. LOGICA has many customers including companies and governments. They have various services offered to their customers. If Logica's employees are highly motivated and proactive, they will do their best to achieve the organizational goals and provide best customer services when they providing IT services to customers.

Other internal factor like organizational culture has a vital and measurable impact on the organisation's ability to deliver on its strategy. Today's society is made up with people from different backgrounds and cultures. LOGICA aims to provide a diverse workforce that brings people with different skills and culture work together. An open culture encourages employees' innovation. LOGICA is an innovative IT services organization. Only constant innovation can make Logica IT services keep ahead of its competitors and satisfy various customers'' need. Therefore, Logica should align organizational culture with its strategy to ensure the company attain its goal.

The availability of resources is another internal environment factors that have a direct effect on a business. Organizational resources consist of labour, information, facilities and finances. A shortage of labour would make a company lose customers because they do not have enough resources to produce products. For example, Logica have many customers and offer a wide range of products to customers. The company should make sure that they have sufficient skilled workers when the demand for their IT services increases.

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Mission and objectives are involved in the internal environment that directly affects a business. The mission and objectives explain the purpose of the organization Customers. Logica's services aim to add value for clients through improving efficiency and productivity or reducing waste. This alerts Logica's managers and employees to ensure their plans and actions aligned with the organizational objectives.

Therefore, organizations must take a good control of the internal environment in order to ensure the success of a business.

Question 3

Strategic plans are designed by top-level managers who paint a picture of a clear long-term and company-wide goal in order to meet the challenges in the business environment, such as the desired changes in productivity, product innovation. The goal of LOGICA is to increase the number of highly talented female in its IT workforce. The top-level managers set a company-wide goal which is to achieve a 10% of the highly talented female workers. So middle level and lower level managers have a clear mind of the goal and can create compatible plans aligned with the goal.

The next level of planning is tactical planning. In the process of tactical plan, middle managers interpret targets set by top management and develop detailed and narrow scopes of goals within their individual departments. And then they develop tactical plans for their departments that can be accomplished within the prescribed time. The middle-level managers of LOGICA learn about the strategic plan for increase the female workers and begin to think about possible tactical plans to achieve the goal. Tactical plans for middle-level managers may include developing "Talented Scheme" and sponsored programmes to attract the high talented female workers. LOGICA has supported the Women's Empowerment Principles and IT clubs in local schools to driving equality with the workforce. After that, Middle-level manager s needs to create a set of calculated actions and allocate tasks to low-level mangers.

Operational plans are made by low-level managers who determine the short-term activities and target to ensure that the tactical plans set by the middle-level managers are met. Operational plans focus on the specific procedures and processes within the lowest levels of the organization. Operational planning activities for low-level managers in LOGICA would include things like scheduling employees each week and creating a monthly budget for their talent programmes for attracting high talented female workers. Mangers can use either single-use or Standing Plans. Single-use plans are usually only be used once including both programs and projects. Standing plans can be repeated such as rules and procedures.

Question 4

The first challenge is inability to plan. Some managers are lack of ability to plan because they do not have enough experience, knowledge and education. If LOGICA have this type of managers, they cannot conduct a success planning process of increasing the number of female workers. If the LOGICA employed a new CEO

The second challenge is lack of commitment and information to the planning process. Mangers may make less effort to the planning process because they are fear of failure and taking the responsibility. The plan will probably fail if the plan is based on the information Facts that are poor quality or insufficient.

The third challenge is over reliance on the planning department. The planning department are responsible for making researches and studies, predict results, but they are not the people who implement plans. Many companies have a planning department or a planning and development team. These departments conduct studies, do research, build models, and project probable results, but they do not implement plans. Planning department results are aids in planning and should be used only as such. Formulating the plan is still the manager's responsibility.

Question 5

The Feedforward Control is used in the input stage of the process, which allows management prevent anticipated problems before they arise. For example, LOGICA has a recruitment system. LOGICA should often arrange technicians to monitor whether the system is operating well, in order to ensure that LOGICA will not miss any talent they need.

The concurrent control is the process that corrects problems as they happened. When mangers working around the offices, they can monitor employee's performance and correct their mistakes. The concurrent control also can be applied to technical equipment. For instance, LOGICA aims to improve the competencies of its workforce. The management made goals and plans. Employees participate into the process of implementing of plans. Managers are responsible for monitoring their workers, in order to ensure that managers discover employees' mistakes in time and correct them.

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The Feedback Control relies on feedback and is used after a situation has occurred. If LOGICA