Organization and Operating Environment Relationship Order Instructions: The key purpose of 21st-century business management is to ensure that the capabilities, resources, and structures of the firm are effective in meeting and exceeding the demands placed upon it by the contemporary operating environment.
Simultaneously, management ensures that those capabilities, resources, and structures are optimally positioned to ensure the sustainable development and growth of the firm in a future environment that is likely to be significantly different from that of today.
For this essay, you will reflect on the extent to which the management of your current employing firm, or an alternative firm with which you are familiar, is effective in achieving that purpose. In short, how well positioned is your organization to accurately anticipate and manage its future whilst simultaneously administering its present?
To prepare for this essay:
•Read the Required files which uploaded.
•Reflect on the ideas presented in the assigned journal articles, in light of your own practical experiences in the workplace.
•Analyse the relationship that exists between the organization and its operating environment.
•Provide an assessment of the extent to which your own employing firm, or another firm with which you are familiar, has been able to develop and sustain the abilities mentioned below. The post should include an identification of areas in which the firm is especially effective, areas in which improvement would be desirable, and a brief comment on specific actions that the firm could take that would assist in developing its capability profile.
o The ability to identify, interpret and respond quickly to environmental indications that change is necessary.
o The willingness to take risks by trying new things on a frequent and regular basis, with an associated understanding that a significant number of those experiments will prove to be unsuccessful.
o A strong level of competence in the adoption and application of new technologies.
o The ability to competently and ethically manage a complex, unpredictable and behaviourally inconsistent network of stakeholders.
o The ability to enthuse and inspire all of the people who work at all levels of the firm.
Organization and Operating Environment Relationship Sample Answer
The relationship between an Organization and Its Operating Environment
It is important to establish that an organizations environment consists of both external conditions and forces that have the capacity to influence its functions (Salleh, 2011, pp.120). Incomplete familiarization with the operating environment of Subway, it is essential to establish that its environment contains its rivals that include Kentucky Fried Chicken and McDonald’s, its customers, the social trends within the market that include a shift in the societies preferences as a result of healthy eating, and political entities.
In this case, it is important to establish that the strategic management approach of Subway forms a basis for its relationship within its environment. Strategy plays an integral role in establishing the manner in which an organization pursues its goals in consideration of the organization’s external environment (Cullen, & Parboteeah, 2012, pp.20). In this case, it is important to note that the environment of Subway plays a significant role in shaping its various strategic decisions as the company’s executives trying to lead the company to success. The environment places a considerable constraint on the goals of an organization, for instance
Sustaining Strategy in Subways Operating Environment
Over the past years, Subway arrived at a decision to increase its client’s base by 50%, as a result of the competition it’s experienced in the market. The company’s competitors such as McDonalds and Kentucky had devised new strategies in the market that incorporated different pricing for their products and product development that saw their products improve in quality (Cullen, & Parboteeah, 2012, pp.23). Subway consequently lost some of its potential customers to its rivals, an aspect that prompted the entity to develop a strategy aimed at increasing its client base by 50%. However, it is essential to note that the organization may find it a challenge in achieving this goal during the period of economic recession or in a case where there are several competitors, an aspect that would require the organization’s management to consider environmental factors in the execution of these goals.
The first step that Subway needs to consider in the initial stage of this process is establishing its operational environment through an assessment in order to effectively determine the conditions of the environment it must develop its strategy (Kirovska, Josifovska, & Kiselicki, 2016, pp.12). This, therefore, required the management of Subway to determine its competitors increased their customers, culture, consumer preferences, and trends. On the other hand, this would require Subway to determine the strengths and weaknesses of its rivals in the market, the economic capabilities and the buying habits of its customers.
At this point, the company is in a position to establish the relationship between its strategy and organizational structure. With a clear focus on what the company wants to achieve, the company proceeds into aligning its business structure and strategy in a manner that helps it in achieving its goal (Mukerjee, 2016, pp.30). The company remains in a position to allocate responsibilities in order to achieve optimal results, improve the quality of its products, create change within the organization, and develop advertising campaigns with the aim of winning customers.
The structure of the organization and its strategy will be helpful to the company in establishing its tone would be formal, informal or semi-formal, with all these decisions arrived at after the strategy of the organization is developed. It is imperative to establish that Subway had the capacity to interpret and respond to some of the environmental indicators that necessitated for change (Chien-Ming, Delmas, & Lieberman, 2015, pp.34). This can be established in the company’s approach to cut the salt in most of its sandwiches, an aspect that led to other fast-foods to review the amounts of salt that was contained in most of their food products. This clearly establishes that the environment plays a significant role in determining the functions of an organization.
Organization and Operating Environment Relationship References
Chien-Ming, C., Delmas, M. A., & Lieberman, M. B. (2015). Production Frontier Methodologies and Efficiency As A Performance Measure In Strategic Management Research. Strategic Management Journal, 36(1), 19-36. doi:10.1002/smj.2199. Retrived From; http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=102210783&site=ehost-live
Cullen, J. B., & Parboteeah, P. (2012). International Business: Strategy and the Multinational Company. New York: Routledge. Retrived From; http://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=289708&site=ehost-live
Kirovska, Z., Josifovska, A., & Kiselicki, M. (2016). Efficient Management Of Supply Chain In Achieving A Significant Competitive Advantage In The Market. Journal Of Sustainable Development (1857-8519), 5(14), 5-22. Retrived From: http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=114186093&site=ehost-live
Mukerjee, K. (2016). Factors That Contribute Towards Competitive Advantage: A Conceptual Analysis. IUP Journal of Business Strategy, 13(1), 26-39. Retrived From: http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=114243366&site=ehost-live
Salleh, A. (2011). Climate Strategy: Making the Choice between Ecological Modernization or Living Well. Journal of Australian Political Economy, (66), 118-143. Retrived From: http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=59374925&site=ehost-live
