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First, each organization has a distinct purpose. This purpose is typically expressed in terms of a goal or a set of goals that the organization hopes to accomplish. Second, each organization is composed of people. One person working alone is not an organization, and it takes people to perform the work that is necessary for the organization to achieve its goals. Third, all organizations develop some deliberate structure so that their members can do their work. That structure may be open and flexible, with no clear and precise delineations of job duties or strict adherence to any explicit job arrangements- in other words, it may be a simple network of loose relationship or the structure may be more traditional, with clearly defined rules, regulations, and job descriptions and some members identified as "bosses" who have authority over other members. But no matter what type of structural arrangement an organization uses I, it does require some deliberate structure so members work relationships are clarified. In summary, the term organization refers to an entity that ha a distinct purpose, includes people or members, and has some type of deliberate structure.
ORGNIZATION'S MARKETING ENVIRONMENT
The organization is formed for to fulfill the organization's objectives by satisfying the customer demands and this could only be possible by consistent organization's internal environment which would be formulated on the basis of micro environmental factors as well as of macro environmental factors. Marketing is the source through which the managers or the organizations can survey the market environment regarding product demand, price competition, place where the product could be supplied and promotions necessary for to meet the goals of the organization and the most important regarding the demands of the customer
An organization's marketing effort also shaped by internal forces that are controllable by management. These internal forces include a firm's production facilities, financial resources, human resources, research and development resources, company's image, location and personal activities. An organization's marketing is the need to coordinate marketing and no marketing activities. Sometimes this can be difficult because of conflicts in goals and executive personalities. Production people like to see long production runs of standardized items. However, marketing executive may want a variety of models, sizes and colors to satisfy different market segments. Financial executive typically want tighter credit and expense limits than the marketing people consider necessary to be competitive.
EXTERNAL MICRO ENVIRONMENT
External micro environment of the market is comprises on the market mix and market variables which affect the strategies formulate by the organization. That these factors are uncontrollable which could only be analyzed and information regarding the trend of them could be sum up for the formulation of the strategies to achieve the organizational goals by satisfying the consumers demands and market mix.
An organization's micro environment consists on the market environment, the organization works in and it also includes internal environmental aspects of the organization, which could effect in the process for the development of marketing strategies by relying on the information which is gathered from market audit. To get success in the market, an organization has to assess the trend of following factors of market environment such as suppliers, distributive network, consumers, competition and interest groups. Understanding the behavior of these elements or groups, the organization could formulate such marketing strategies which can encourage loyalty, obtain the interest of the suppliers, distributors and positively influence competitions and enhance the profitability by satisfying the consumers.
To sustain or capture the market an organizations has to audit the market regarding to sum up information regarding the number, size and bargaining strength of their suppliers and it has to establish its ability to guarantee regular supplies, stable prices and quality in the market. The distributive network will often impose constraints on an organization because of consumer knowledge of existing distributors and the degree of market power held by the distribution network. The basic element which is vital when developing a marketing strategy understands consumers because consumers' satisfaction is the ultimate goal and leads to enhanced the profitability. To overcome the market, enhance the profitability and to procure the satisfaction of the consumer, an organization has to establish a competitive advantage and must understand its competitors, their strengths, weaknesses and the essence of their strategic approach.
Any analysis of the market environment must include the role of interest groups also known as 'public'. These are groups whose opinions and attitudes may affect the success of an organization. An understanding of the attitudes of these groups enables the organization to consider how best to present itself to them. The internal environment is where the organization can exercise greatest control. The appropriate internal environment will depend largely on the corporate culture- the attitudes and beliefs of personnel at all levels. Organizations with a culture orientated towards rapid innovation and risk-taking will require a more flexible internal environment than a company which sees itself as a low risk market follower with a reliable product range. Internal structures may change to reflect the increased pressures of competitive market place.
EXTERNAL MACRO ENVIRONMENT
The external macro environment is concerned with the forces which considerably influence on any organization's marketing opportunities and activities and these forces are uncontrollable and could not be controlled by the management of the organization. These forces are known as PEST external macro environmental forces which are Demographics, Economic Conditions, Competition, social and Cultural Forces, Political and Legal Forces and Technological Forces. The PEST forces are the basic forces of macro environment because without getting information and research about these forces an organization could never formulate its strategies regarding the management and marketing to achieve its goals and the objectives of the organization could never be fulfilled.
Demographics refer to the characteristics of populations, including such forces as size, distribution and growth. Because people constitute markets, demographics are of special interest to marketing executive.
A company's competitive environment obviously is a major influence on its marketing programs because competition on macro environment is vast in nature and to totally uncontrollable by the management of the organization. Normally an organization faces three kinds of competitions as Brand Competition, substitute products competition and the third is more general type of competition i.e. a rival for the customer limited buying power.
The task facing by an organization's marketing executive is becoming more complex because of our socio cultural patterns-lifestyles, values and beliefs are changing more quickly that they used to, therefore, market audit before formulation of marketing strategies should be considered for useful and considerable marketing strategy.
The political/legal environment is very much important force for the formulation of the strategies of an organization because it involves the interaction between organizations and government or regulatory bodies and it also includes legal restrictions imposed to regulate business and the les formal aspects of government relations with industry such as government attitudes towards the industry and the facilities provided by the government for the promotion of such industry to grow the industry and to meet the demands of the consumer by providing stable prices for the consumers and suitable environment for the industry.
To overcome the markets of developed economy and developing economy, an organization has to formulate different and effective policies or strategies which could be accepted as per the regulations of the economies to achieve the organizational goals by enhancing the profitability of the organization and this could only be possible by information and research regarding the economies and resultantly by implementing the strategies in the sense of their letters and spirits and the marketing executive formulate on basing the research and information. The important aspects of the economic environment include inflation, unemployment, economic growth, consumer income, interest rates and currency fluctuations.
The technological environment is the way in which technology (both the level and the rate of change) will affect the way an organization undertakes its business. The technological environment is basically the environment which makes an organization able to introduce itself by showing its potential and the way it will fulfill the demands of the consumers of the area and how it would be useful for the country in which it is going to start.
For to achieve the organizational goals, an organization has to consider the forces and factors relevant to organizational environment, external micro environment and external macro environment to for a useful and affective strategy which prevail in the market in the long run and defeat the all hindrances and problems and more specifically the competitors.
The individuals and groups who depend on the project to fulfill their own goals and on whom, in turn, the project depends on, are called stakeholders.
Stakeholders make or break a project, and often Project Managers do not spend the time to effectively manage the stakeholder relationship - to the project's disadvantage. To be successful, Project Managers need to learn how to leverage the stakeholder relationship and how to balance their competing needs.
Historically, the corporation was controlled by its owners - through direct control of the managers if not through direct management - for the pursuit of economic goals. But as shareholding became dispersed, owner control weakened; and as the corporation grew to very large size, its economic actions came to have increasing social consequences. The giant, widely held corporation came increasingly under the implicit control of its managers, and the concept of social responsibility - the voluntary consideration of public social goals alongside the private economic ones - arose to provide a basis of legitimacy for their actions.
The Concept of Stakeholder Management
Today, all players in business face the interest and the impact of different people and groupings. Especially larger corporations have to care not only for the needs of their direct owners, but also of various other groups, like employees, public interest groups like environmental organizations, strategic partners, journalists or public monitoring bodies. According to each company's individual situation, this list could easily be extended. Therefore, all businesses operate within a complex system of interests and influences. Management has to assess and evaluate these external forces in order to adjust them with corporate objectives. When it comes to important corporate decisions, it is necessary to know about the expectations of different stakeholders and to determine, to what extend they could and would exert an influence. Hence, the importance of stakeholder management is not limited on day-to-day business. On the contrary, it is primarily concerned with long-term strategic decisions. These are all those developments that affect at least particular stakeholders.
Identification of Stakeholders
When identifying stakeholders it is not enough to focus on the formal structure of the organization. Rather it is necessary to have a look at informal and indirect relationships too. A useful model for this purpose is to visualize the stakeholder environment as a set of inner and outer circles. The inner circles stand for the most important stakeholders who have the highest influence.
This exhibit serves to give a general overview on possible stakeholders and their impact. In general, the formation of stakeholder groups depends on the individual situation of each corporation. Although stakeholder analysis is sometimes used as a tool for industry analysis, its true value lies in the evaluation of particular problems for businesses and organizations. In this sense, it is also a tool for evaluating strategies. The reason is that individuals and groups may behave differently in different situations. For instance, environmental interest groups will have a low interest in staffing decisions; they could, however, have an extremely high impact when it comes to location decisions.
Typical Project Organization Structure
Sponsor Project Steering Committee
Stakeholders Business Leader Technical Leader
Subject Matter Technical Experts
IMPACT OF STAKEHOLDERS
In a stakeholder analysis, impact or power of a stakeholder is defined as the extent to which they are able to persuade, induce, or coerce others into following certain courses of action. There are sever always to exert such power, for instance by direct authority, lobbying or exerting a dominant market position. The power of stakeholders can base on various sources:
The power of stakeholders can grow from different sources. Therefore, it might be helpful to look out for visible signs of power. These can be some of the following indicators:
e.g. position in hierarchy, salary level, bonuses
e.g. speed of corporate reaction on requests
e.g. budget, number of staff in department -
especially in relation to other departments or the
total volume of resources
e.g. percentage of equity stakes, credit volume,
buying or purchasing volume, mutual
organizational linkages ïƒ ï€ switching costs for the
Representation in powerful organizations / bodies,
e.g. membership in important project teams and
e.g. fixed standard prices vs. individual price
e.g. own secretary, company car, position and
equipment of office
e.g. invitations to business events, direct access
to top management
No single indicator is likely to uncover the power and position of a particular stakeholder within in relation to the company. The combined evaluation of all sources and indicators of power, however, will improve general understanding of stakeholders.
Analysis of Interest and Power
Besides the analysis of stakeholder power in terms of their ability to influence people and developments, it is also necessary to evaluate, to which extent the stakeholders will exert their power. Local authorities, for instance, can have a high impact on an organization. If the corporation plans to move their headquarter, local authorities would probably try to influence this decision. However, they will only be interested to know about other important business developments, e.g. introduction of new product lines or new marketing campaign, without taking any action.
In the result, the power/interest matrix provides valuable information on how to handle particular stakeholders and groups. It can also indicate, if certain decisions will receive support or resistance, and which groups have to become included in the decision process.
LEVEL OF INTEREST
Stakeholders in sector A neither do not have a high own interest in corporate plans nor do they have to power to exert much impact. Organizations should keep these groups informed in the necessary extent, but should not invest too much effort into them.
Stakeholders in Sector B do have a high interest in the corporation and its actions. However, they have limited means to influence things. Despite their low power, such stakeholders could be valuable allies in important decisions. Therefore, Ii is advisable to keep them informed about the issues they are interested in.
The relationship with stakeholders in sector C could be difficult. In this group, we often find institutional investors or legislative bodies. They behave passively most of the time and show a low interest in corporate affairs. Despite that they can exert an enormous impact on the organization, e.g. when it comes to investments. It is therefore necessary to analyze potential intentions and reactions of these groups in all major developments, and to involve them according to their interests.
The most important stakeholders are those with high interests and high power, to be found in sector D. They have to be involved in all relevant developments.
All identified stakeholders should be grouped in this matrix. This can reveal the following insights:
Recommendations for relationships to particular stakeholders
Identification of supporters and opponents of a project.
Necessary repositioning of stakeholders. (e.g. reduction of power of a major opponent - from D to B; increase of interest of a powerful supporter - from c to D)
Measures to keep stakeholders in favorable positions. (e.g. fulfillment of information needs in sector C)
To support such tactics, organizations can compare the actual stakeholder map with a more favorable one. This allows revealing deviations. It is the basis to find ways on how to reposition particular stakeholders. For instance, it is possible to influence the opinion of an important customer by involving him in early planning stages in order to find a solution that meets the needs of both parties. The power of a supportive department could be increased by inviting representatives from this department into project teams and planning committees.
Moreover, this type of analysis can provide insights, if it is necessary to sub-divide larger stakeholder groups into smaller groups. These sub-groups could be treated differently in order to meet their individual needs and to get their support. Such a strategy allows to form new alliances and to shift power. Nevertheless, every influencing of stakeholders should be done within ethical and legal limits.
Risk management is a central part of any organization's strategic management. It is the process whereby organizations methodically address the risks attaching to their activities with the goal of achieving sustained benefit within each activity and across the portfolio of all activities. The focus of good risk management is the identification and treatment of these risks. Its objective is to add maximum sustainable value to all the activities of the organization. It marshals the understanding of the potential upside and downside of all those factors which can affect the organization. It increases the probability of success, and reduces both the probability of failure and the uncertainty of achieving the organization's overall objectives. Risk management should be a continuous and developing process which runs throughout the organization's strategy and the implementation of that strategy. It should address methodically all the risks surrounding the organization's activities past, present and in particular, future. It must be integrated into the culture of the organization with an effective policy and a programmed led by the most senior management. It must translate the strategy into tactical and operational objectives, assigning responsibility throughout the organization with each manager and employee responsible for the management of risk as part of their job description. It supports accountability, performance measurement and reward, thus promoting operational efficiency at all levels.
FUTURE CHALLENGES AFFECTING CORPORATE STRATEGIC PLANNING
Globalization introduces positive and negative forces into organization's external
Environment and their impacts represent sources of threats and opportunities for their businesses. Learning to deal with both threats and opportunities, according to Bertrand and Azevedo (2001) , is fundamental to enable corporations which are transforming themselves into global ones, to take full advantage of these changes, and neutralize threats to global corporate strategic management. Social and cultural questions, as well as geopolitical and economic conflicts, with the wars and terrorist acts caused by the lack of understanding between peoples and cultural and religious intolerance, also pose a challenge to corporations in their quest for new markets.
Challenges affecting the corporate sector are different in different countries because the economy of all the countries is not same and the living, culture, religion, economic demands, inflation, deflation, uncertainty due to government policies, terrorism, environment and so on are different from other countries therefore, the challenges of all the countries but out of which few are same just as international inflations and deflations, economic environment, terrorism and threats from other countries or rivals and etc. Globalization opens up countless opportunities for companies, such as access to multiple markets, new revenue, knowledge and technologies, thus enabling them to enhance their competitiveness. At the same time, however, their activities are under serious threat in an environment of increasing world instability caused by geopolitical and social conflicts, together with economic and financial risks. Furthermore, the solidification of an unbalanced global economic system is itself one of the main sources of conflicts and risks.
WHO ARE MANAGERS?
They are the organizational members who told others what to do and how to do it. It was easy to differentiate mangers from non managerial employees, the latter term described those organizational members who worked directly on a job or ask and had no one reporting to them. But it is not quite that simple any more! The changing nature of organizations and work has, in many organizations, blurred the clear lines of distinction between managers and non-managerial employees. Many traditional non-managerial jobs now include managerial activities.
HOW ORGANIZATION GO GLOBAL?
Most organizations proceed through three sates as they go global. Each successive stage requires more investment and thus entails more risks.
In stage 1, mangers make the first push toward going global merely by exporting the organization's product to other countries i.e. by making products at home and selling them overseas. In addition, an organization might choose initially to go global by importing products, selling products at home that are made overseas. Both exporting and importing are small steps toward being a global business and involve minimal investment and minimal risk. Most organizations start doing business globally this way. Many, especially small businesses, continue with exporting and importing as the way they do business globally.
In stage 2, managers make more of an investment by committing to sell products in foreign countries or to have them made in foreign factories, but with no physical presence of company employees outside the company's home country, what is typically done on the sales side is to send domestic employees on regular business trips to meet foreign customers or to hire foreign agents or brokers to represent the organization's product line. Or, on the manufacturing side, managers will contract with a foreign firm to produce the organizations' products.
Stage 3 represents the most serious commitment by mangers to pursue global markets. Managers can do this in different ways. Licensing and franchising are similar approaches since both involve an organization's giving another organization the right to use its brand name, technology, or product specifications in return for a lump sum payment or a fee usually based on sales. The only difference is that licensing is primarily used by manufacturing organizations and franchising is used by service organizations. For example the consumers can enjoy bob's Big Boy hamburgers, Filipinos can dine on Shakey's Pizza, all because franchises in these countries. Strategic alliances are partnerships between an organization and a foreign company in which both share resources and knowledge and in developing new products or building production facilities. The partners also share the risks and rewards of this alliance.
Manager of an organization is the key person who has to check and manage all the arrangements and control the all activities of the organization. If the organization is of the opinion to appear in the global market or any oversea market, the whole responsibility regarding the launching and marketing of the product referred to the said market lied upon the manager. If the organization wants to introduce its product line in the oversea market then the manager of the organization has to scrutinize the external macro environment of the market and has to observe the opportunities and weaknesses available to the organization and how the company can use its strengths in a strategic way to convert the threats into its strengths. Finally manager of the company who keep informed the director or the interested groups of the company aware of the facts and benefits if so and with the discretion of the other members formulate such strategies which hopefully in favour of the organization and helps the organization to achieve its goals.