The Organizational Environment As A Physical Place Business Essay

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What is the organizational environment? The organizational environment is a physical place. The physical place is the place for commercial and social entities for exchange of the goods and services environment. The organization environment have classified into external environment and internal environment.

External environment refers to outer environment of the business. The external environment affected by the factors of general environment. The factors of general environment have political factors, economic factors, social factors and technological factors. Political factors are how to and what to federal, state and local government control the organization can do and cannot do. The examples of influencing factors are tax policy, labour law, environmental law, trade restrictions, and tariffs. Economic factors are depends on economic systems of different countries or develop and developing countries. The examples of influencing factors are economic system used, economic growth, exchange rates and the inflation rate. Social factors are the social factors that concerns about the general attitudes, norms and behaviors. These factors affect the value and customer acceptance and preferences. Technological factors are the changing the ways to operating the organization or anything is changing in automation. For example: the industry use machines to produce the product and less using labor.

Internal environment is the normal conditions that exist internally an organization. The activities and choice of the organization influence by the conditions, events, entities and factors. After that, external and internal customers, suppliers and competitors directly related and affected to achievement of an organization's goal. External customers are the individual or users that purchase the goods and services of the organization. Internal customers are the employees who work in an organization. Suppliers are the individual that provides or supply the input or resources for an organization. Competitors are offers similar goods and services. They use cheaper prices and good services to retain the customers. And they motivation is to increase the profit.

Next, the important of environmental analysis is to identify the internal and external factors and performance of the organization. In addition, the environmental analysis can make organization receive the information that is deliberately for the organization strategic plan. Furthermore, the environmental analysis identifies the environmental forces of factors.

2.0 What is SWOT analysis?

SWOT analysis is a strategic tool and an important process to scan an internal and an external environment of organization. In addition, SWOT analysis is identifying the status of organization. SWOT stands for strengths, weaknesses, opportunity and threats. Moreover, SWOT analysis is the first stage of planning and helps organization to focus on key issues.

Strengths and weaknesses are the internal environment to the organization. After analysis of the strengths of competitors, a business can often adjusts their plans or the strategies for achieve the goals. The strengths of business have included pricing advantages, better term, free delivery and better service. The weaknesses of a business is the disadvantages and limitations appears so they that will influence the amount of business. The weaknesses of business have included poor customer service, poor delivery transit times and expensive pricing.

Opportunities and threats are external environment to the organization. After weaknesses found in competitors, that will be appears an opportunities exist on business. If there are new products to market who have holds many advantages of the business will be caught opportunity. In addition, the change of the business will also open new opportunity. Threats include weakness and the threat it can directly affect the business. If a business does not improve the weaknesses, the company will lose the competitors of sales and face more obstacles.

The business that writer have interviewed.

SOON BUILDING MATERIALS SDN.BHD was founded on 1974. Their company is a traditional company. In addition, our company sells all kinds of building materials such as manufacturers of all kinds of concrete cement bricks, pipes stabs & channels & dealers in building materials & metals. The company also offers building materials to developers. Moreover, we also provide a good service to customers such as delivery and consultation about how to use the material.


Analyzing the strong points of SOON BUILDING MATERIAL SDN.BND it is the price of products and best good service stand out from others competitors. The company has adjusted the prices of products according to the market price. So, the customers can buy products with fair price. The major sources of a company's revenue and profit is they sales the building materials. Therefore, the company can satisfy the needs and wants of customers.

Taking into consideration the weak points, a slow time of delivery is always complained by the customers. Besides that, the unmet needs of the company sales force are cannot meet the requirements of customers and some customers cannot accept positive feedback and explanation. The company also not really stands price pressure from competitors because price of the product is offered by the manufacturer. In addition, the company is losing out to competitors on the technology front because the company is traditional company their employees are conservative and lazy to learn new things.

Next, there is little chance of opportunities are appropriate for company. Because of economic downturn there are no emerging trends that suitable with the company's strengths. Moreover, no any change of product and service area that others have not yet covered. Furthermore, there are no any favorable circumstances good for company because economic downturn and the price of the product always increased. So, appear less consumption of consumers. And the company still cannot enter new markets because this company is the traditional construction company and employees still don't want learn new things. For example: use the network to do business and use new facilities.

Considering threats for the company is competitors opens many branches and shopping center also sells the small construction tools so influence the performance of business. In addition, the company also faces many obstacles. For example: they cannot see the performance of the business on the future due to the order is an uncertainty. Difficulties in recruiting employees and the employees are lazy to work. Others obstacles are the transportation always spoil. Moreover, the competitors often upgrade the products. For solve these problem the company want to employ professional employees to improve and enhance the specification of company, products and services. Therefore, their company can enter new markets.


In conclusion, the organizational environment is very important in every business. Understand the organizational environment can let us learn about the state of the economy and the market demand. From these we can try to come out the solution to solving the problem of current situation. For let us more understanding the current situation we can use the SWOT analysis. SWOT analysis can let us analysis the current situation of company. So, we can set an objective and followed the step to achieve the goal.

For countering the weaknesses of the company are arrangements for delivery time. The company can make improvement of terms for failing to meet required of customers and try to explain detail situation to customers. Then, the company still maintain a certain standard in terms of price. After that, the company can improve the company's work environment for employees feel more facilitated to perform their best. For example: the company offers training programmed and infrastructure inside the company. In addition, company cannot ignore that the company learning how to use technology to do the business with customers. For example: online business.

Next, for countering the threats of the company the company continue to maintain more reasonable prices and have enough products for supply to customers. After that, the company can employ a supervisor to monitor the working status of workers. The company also can do online business to make more orders. And company always need to have regular inspection and maintenance of transport. Besides that, the company can upgrade the products according to the market demand for satisfy customers needs. Furthermore, the company can employ professionals to change the specifications of products or services. Therefore, any company need to improve in any aspect for meet the requirement of customers, achieve the mission and to the international routes.

Based on the writer personal findings, the company must improve in all aspects to achieve the goal and become more international. For example: the company's overall environmental and technological techniques. Because our community has been constant progress and people personal's taste and demand constantly changing. Company must always understand the social dynamics, economic and market needs are in order to improve the products, image, value, management and belief of the company. In addition, the company need to have a good concept of time. It is because good concept of time can complete the tasks efficiency. And the company need to have positive thinking and attitude to face and solve the problem what is happening now. The company have to offers community activities to employees for changing their traditional thinking, social intercourse and experience. These will help them gain more knowledge. Grasp opportunity also very important, it can change current situation of the company to further performance. Therefore, there will be a positive way with good result.