Organizational and its internal environment. Internal and external environment of the enterprise (organization)
Internal situational factors in an organization form its internal environment. These factors usually include goals, structures, objectives, technologies and people working in the organization.
Goals. Organization can be seen as a means of collectively achieving goals that cannot be achieved by individuals individually. A goal is a specific end state or desired result that a group seeks to achieve by working together. In the planning process, management formulates goals and communicates them to members of the organization. This process is a coordination mechanism as it enables the members of the organization to know what they should be striving for.
Today's organizations are characterized by a variety of goals. Commercial organizations create goods and services in the context of the need for profit and cost limitation. Their goals are related to profitability and productivity. Government bodies, non-profit organizations do not seek to make a profit, but control costs. Their goals are to provide specific services within certain budgetary constraints. However, in modern conditions ethical standards and a sense of social responsibility affect the goals of any organization.
The variety of goals is also related to the fact that large organizations have many purposes. For example, in order to make a profit, it is necessary to formulate goals in such areas as market share, new product development, quality of services, training and selection of leaders, social responsibility.
The objectives of the divisions. Within departments, as well as throughout the organization, it is necessary to develop goals. For example, the goal of the finance department might be to reduce some credit losses in some way. The marketing arm of the same organization may have a goal of reducing consumer complaints by 20% in the next year. The goals of functionally similar divisions in different organizations are closer to each other than the goals of divisions engaged in different activities in the same organization.
Structure. Organizations consist of several levels of management and divisions. Departments can be defined as functional areas. They should not be confused with management functions. The term "functional area" refers to the work performed by the department, for example, marketing, manufacturing, personnel training, accounting, planning.
The structure of the organization should be consistent with levels of management and functional areas in a form that effectively achieves the organization's objectives. Structural variables will be discussed in more detail when discussing the organization's functioning.
Division of labor. Characteristic feature modern organizations is a specialized division of labor, the assignment of this work to specialists - those who are able to perform it best of all, from the point of view of the organization as a whole, .. whole. An example is the division of managerial labor between marketing, finance, and manufacturing specialists. Dividing the work of manufacturing an automobile into numerous small operations, such as installing headlights, can also be seen as a specific specialization of labor.
In all but the smallest organizations, there is a horizontal division of labor along specialized lines. If an organization is large enough, professionals are usually grouped together within a functional area. The division of labor in an organization is one of the most significant management decisions. The choice of functional areas determines the basic structure of the organization and the possibilities for its success. The effectiveness and feasibility of methods of horizontal and vertical division of labor in many cases determines how productive an organization can be in comparison with competitors.
Control scope. The vertical division of labor - the separation of coordination work from the immediate execution of tasks - is essential for successful group work.
The deliberate vertical division of labor in an organization results in the hierarchy of management levels already described. The main characteristic this hierarchy is the formal subordination of individuals at each level. A person at the highest level of management may have in his subordination several middle managers representing different functional areas. These middle managers may, in turn, have several subordinate line managers. For example, a production manager may have up to ten supervisors in his subordination, including managers of shifts and various functional services. Hierarchy permeates the entire organization, descending to the level of ordinary workers.
The leader's sphere of control is the persons subordinate to him. The sphere of control is an important aspect of the organizational structure. If a large number of people report to one leader, then there is a wide sphere of control, which results in a flat management structure. With a narrow sphere of control, few people are subordinate to each leader, which leads to a multi-level structure. Large, flat organizations have fewer levels of management than organizations of comparable size with tiered structures.
However, there are no universal approaches to determining the optimal scope of control. It can be influenced by many factors within the organization itself and in the external environment. Neither the scope of control nor the number of levels of the management hierarchy is even a function of the size of the organization. A huge corporation may have fewer levels of hierarchy than an army regiment.
The need for coordination becomes imperative when work is clearly divided both horizontally and vertically. Without formal coordination mechanisms in place, people will not be able to do work together. Without appropriate formal coordination, different levels, functional areas and individuals can easily focus on pursuing their own interests. The formulation and communication of the goals of the organization as a whole and of each of its divisions is only one of many coordination mechanisms.
Tasks are prescribed work, a series of work, or a piece of work that must be completed in a predetermined manner within a predetermined time frame. Tasks are assigned not to the employee, but to his position. Based on management decisions about the structure, each position is designed to perform a number of tasks that are considered to be a necessary contribution to the achievement of the organization's goals. It is believed that if the task is completed in this way and within the time frame prescribed, then the organization will operate successfully.
Characteristics of tasks. The tasks of the organization are traditionally divided into three categories - work with people and objects (machines, raw materials, tools), energy, information. For example, on a factory assembly line, the work of people consists of working with objects. The task of the master is mainly in working with people. An accountant's tasks are related to information.
Two important characteristics- the frequency of repetition of the given task and the time required to complete it. A machine operation, for example, might involve performing a hole drilling task a thousand times a day. It only takes a few seconds to complete each operation. At the same time, the researcher performs various and complex tasks, and they may not be repeated even once during the day, week or year, he may spend
take months or years to solve them. Managerial work is non-monotonous, non-repetitive, and the time it takes to complete each type of work increases as you move from the lowest level to the highest level of the hierarchy.
Tasks s specialization. Since the beginning of industrialization, there has been a tendency to expand specialization and split all work into smaller operations. Technological innovations, the systemic combination of technology and the specialization of labor have made the specialization of tasks in-depth and very difficult.
TECHNOLOGIES
Technology, the fourth most important intrinsic factor, has much broader implications than is traditionally believed. Most people view technology as something related to machines, such as semiconductors and computers. We will consider technologies within the framework of definitions given by sociologists, for example, C. Perrow, who characterizes technology as a means of transforming "raw materials" - be it people, information or physical materials - into the desired products and services. Challenges and technology are closely related.
The accomplishment of the task involves the use of a particular technology as a means of converting the input material into the output form.Standardization, mechanization and automation. Standardization is the use of standard, interchangeable components in production, which significantly reduces the cost of manufacturing and repairs. The concept of standardization stimulated the development of specialization, opening up wide opportunities for the use of unskilled labor, and then mechanization and automation, which is the use of mechanisms and machines instead of people. It is on this that modern mass production of goods and services is based. Standardization is now widespread in manufacturing and services.
Continuous processes. Moving conveyor lines, including assembly lines, are used almost everywhere in the manufacture of the most complex products. They make production a continuous process. For their application, the operations, tasks performed by the workers, were extremely narrowly specialized. This made it possible to transfer the execution of operations to robots.
Technology has a profound impact on governance and organizational performance.
Technology classifications. The classification of technologies according to the degree of automation is widespread, but there are classifications according to other criteria.
Woodward classification. Studying manufacturing enterprises D. Woodward, a British management researcher, has divided manufacturing technologies into three categories:
1. Single, small-scale or individual production, where only one or a small series of identical products is produced at a time. Supercomputers, spaceships, custom-made furniture and clothing are examples of the use of such technologies.
2. Mass or large-scale production is used in the manufacture of a large number of products that are identical or similar to each other. This type of production is characterized by mechanization, the use of standard parts and assembly lines. Almost all consumer products are manufactured using these technologies.
3. Continuous production uses automated equipment, which produces a product of the same characteristics in large volumes around the clock. Examples of such production are oil refining and power plants.
Thompson classification of technology. Sociologist and theorist of organizations D. Thompson has developed a classification of technologies, divided into three categories:
1. Multilayer technologies are characterized by a series of interdependent tasks that must be performed sequentially. Mass production assembly lines are a typical example of this type of technology. Each vehicle assembly operation must be performed in a specific sequence.
2. Intermediary technologies are characterized by the meeting of groups of people, such as customers or customers, who are or want to be interdependent. For example, banking is an intermediary technology that links depositors and borrowers from a bank. Telephone companies act as intermediaries between people who want to call themselves and want to be called.
3. Intensive technology is characterized by the use of special techniques, skills or services in order to make certain changes in a specific material entering production. An example is film editing.
Multilayer technologies are in many ways equivalent to mass production technologies and some forms of continuous production, while intensive technologies are equivalent to individual technologies. The aim of the latter is to achieve maximum production flexibility. Intermediary technologies, to a certain extent, occupy an intermediate place between individual technologies and technologies of mass production. They are mainly used when at least some standard is possible and effective.
Dartization, but product release cannot be fully standardized. Intermediary technologies allow organizations to take advantage of the many variations in the needs of interlocutors. For example, some bank depositors want free and constant access to their deposits, while others, wanting to have a higher interest rate, are willing to wait.
STAFF
Individual personality characteristics. People are the main factor in any management model. In the situational approach to management, there are the following main aspects human factor: the behavior of individuals, the behavior of people in groups, the nature of the leader's behavior, the functioning of the manager as a leader and its influence on the behavior of individuals and groups. Human behavior in society and at work is the result of a complex combination of individual characteristics of the individual and the external environment.
Capabilities. People differ most clearly in their individual abilities, inherent qualities of a person. Some people have more aptitude for music and singing, others for computer programming, and still others for writing reports. Differences in intelligence and physicality are due in part to heredity and in part to learning and experience.
Organizations almost always try to take advantage of differences in ability when deciding what job and job a particular employee will do. Choosing the person who is best able to do a particular job is a means of increasing the benefits of specialization.
Propensity, giftedness is a person's potential in relation to the performance of a specific job. As a result of a combination of innate qualities and acquired experience, giftedness becomes a talent that opens up in a specific area. Leaders, in particular, need to be able to assess the capabilities of people. Management propensity is very important when selecting candidates for management training.
Needs are an internal state of a psychological or physiological feeling of lack of something. The main ones are considered physiological needs for food, drink, warmth, as well as psychological needs - the needs of belonging, belonging to a society, a group of people. Many people have a need for power and influence, but this may not appear for a long time until their basic needs are met. The organization should
to create situations in which meeting the needs of the employee would lead to the achievement of the goals of the organization.
Expectations. People, based on past experience and assessment of the current situation, form expectations about the results of their behavior. Consciously or subconsciously, they decide how likely the accomplishment of something meaningful to them is. These expectations have a significant impact on behavior. If an employee expects his additional efforts to be rewarded, then they are likely to put them in. In the absence of such expectations, it is difficult to count on additional efforts on the part of the employee.
Perception significantly influences expectations and behavior. For practical purposes, perception can be defined as the intellectual awareness of stimuli received from sensations. People do not react to what is really happening in their environment, but to what they perceive as really happening. All events affect behavior only to the extent that they are perceived by the person himself. If management wants employees to strive to achieve the organization’s goal, it must prove to employees that the desired behavior will lead to the satisfaction of their individual needs.
Attitude can be defined as what you like and what you don't like, like dislike or attachment to objects, people, groups, or any manifestation of the environment. Relationships form a biased perception of the environment and thereby influence behavior. Examples include various prejudices. People who hold the view that women are incompetent as workers and inferior to men tend to exaggerate all the mistakes women make, and cannot appreciate and accept the evidence that they are as competent.
Values are shared beliefs, belief in what is good and what is bad, or what is indifferent. Value implies a subjective ranking in terms of importance, quality, or recognition of something as good. Examples of values in life include statements: "Stealing is bad", "Democracy is preferable to dictatorship", "Property rights should be in the hands of the state, not individuals." Values, like many other personality traits, are acquired through learning. They are taught in schools, they are raised in children by their parents, they are strengthened in other social contacts and even through means of entertainment and leisure. The specific values of leaders, especially those of senior management, are often reflected in the goals and policies of the organization.
Each organization consciously or unconsciously establishes its own value system. This system constitutes the organizational culture or moral character of the organization. The organization strives to have its own morals and customs.
EFFECTS OF THE ENVIRONMENT ON PERSONALITY AND BEHAVIOR
Personality and environment. Personality is a combination of stable characteristics of a person. According to the definitions of social psychologists, personality manifests itself through the characteristics of an individual and his behavior, which reflect the unique nature of the adaptation of a particular person to the environment.
Traditionally, psychologists have described the behavior of an individual in terms of individual personality traits, such as aggressiveness, honesty, self-confidence, openness or withdrawal, decisiveness or indecision. But now many psychologists argue that human behavior changes depending on the situation. For example, many are honest in some situations and dishonest in others. Personal factors and the external environment, acting together, determine the behavior of the individual, and often the situation still has a greater influence on this behavior than personality traits.
These findings are very significant because they point to the importance of creating a work environment that supports the type of behavior desired by the organization.
Leaders must improve their ability to direct employee behavior so as to achieve organizational goals by using people who have the traits that are desirable for the task, while at the same time creating a work environment that promotes those traits.
The working environment is a collection of all internal factors that are formed with the help of the management process in relation to the needs of the organization. These factors include the myriad potential variations of each, and all factors are interconnected and change over time, making the work environment in an organization extremely complex. Researchers in the field of management and psychology are still very far from fully explaining and trying to accurately predict the impact of the work environment on individual workers and their behavior.
Groups and management leadership. Groups can influence the behavior of specific people. Thanks to the many opportunities for social interaction, groups form spontaneously. The organization itself and its divisions, by definition, are also groups. Group members form the attitudes, values and expectations they share in matters related to the understanding of behavioral norms.
The norm refers to the standards of conduct that are accepted as acceptable in a given environment. The more a person values their belonging to a group, the more their behavior will coincide with group norms that can
promote or oppose the achievement of the formal goals of the organization. An example of a norm that contributes to the achievement of the goals of a formal organization is the high value of teamwork within a group if the goals of the group are directed towards the achievement of the goals of the organization.
Leadership. To be an effective manager, you need to be an effective leader. Leadership is a means by which a leader influences people's behavior, forcing them to behave in a certain way. In an organization, leadership style is important, a leadership style that reflects the values and views of the manager, his attitude towards subordinates, self-esteem and personality. The effectiveness of a particular style depends on the situation, determined by the content of the work and the individual characteristics of subordinates.
The systemic model of internal factors is a model of the relationship of internal factors: goals, structure, tasks, technology and people.
Sociotechnical subsystems in aggregate and interaction constitute the internal environment of the organization. Internal factors are usually called sociotechnical subsystems because they have a social component - people and a technical component - other internal factors. When preparing management decisions, it is necessary to consider and take into account the social structure simultaneously with the technical structure, as well as take into account individual and group behavior; this is the only way to achieve the set goals.
EXTERNAL ENVIRONMENT OF THE ORGANIZATION
The value of the external environment. In 1974, on the eve of the world economic crisis, the American economist E. Elbing wrote: “The external environment of the organization is increasingly becoming a source of problems for modern leaders. In fact, leaders of the most important organizations in society - business, educational, government - are forced to focus on a rapidly changing environment and its impact on internal structure organizations ".
This is very relevant for Russian organizations operating in a crisis. Managers must identify significant factors in the environment, find ways to respond to external influences. Organizations must adapt to their environment in order to operate effectively.
External environment. J. Bell defines it as follows: “The external environment of the organization includes such elements as customers, competitors, government agencies, suppliers, financial institutions and sources labor resources».
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Environment of direct impact and environment of indirect impact 1. It is necessary to distinguish between the forces of direct and indirect influence on the organization from the outside. The direct impact environment includes factors that directly affect the operations of an organization and are directly affected by the operations of the organization. These factors include suppliers, labor, laws and regulatory agencies, consumers and competitors.
The indirect impact environment refers to factors that may not have a direct immediate impact on operations, but nevertheless affect them. These include the state of the economy, scientific and technological progress, sociocultural and political changes, the influence of group interests and events significant for the organization in other countries.
EXTERNAL SPECIFICATIONS
": The interconnectedness of environmental factors is the forces with which some factors affect other factors. Just as a change in any internal variable can affect others, a change in one environmental factor can cause changes in others. Interconnection is especially important for the world market in connection with its It should be remembered that today out of every ruble spent by a Moscow resident on food, 60 kopecks are imported.
Leaders can no longer look at external factors in isolation. They must understand that these factors are interconnected and change rapidly, and this leads to irreversible overall changes.
The complexity of the external environment is the multiplicity of factors to which the organization is obliged to respond, as well as the high level of variability of each factor. External factors that the organization is forced to respond to include pressure from government regulations, interest groups, numerous competitors, and accelerated technological change. Organizations that use many types of inputs, different professionals, and do business with many businesses around the world operate in a more complex environment than organizations that have different parameters. In a more complex environment, rapidly growing organizations operate using a variety of technologies.
The fluidity of the environment is the speed with which changes occur in the organization's environment. Research indicates
1 Marketers, for marketing management purposes, divide the organization's environment differently - into a microenvironment that can and should be managed, and a macroenvironment, the influence of which should be taken into account. See: L.E. Basovsky. Marketing. M .: INFRA-M, 1999.S. 32-42.
that the environment of all modern organizations is changing at an accelerating rate. But there are organizations whose external environment is especially mobile. For example, the rate of change in technologies and parameters of competition in the aviation industry, computer manufacturing, biotechnology and telecommunications, pharmaceutical, chemical and electronic industries is higher than in the confectionery and tobacco industries. In addition, the mobility of the external environment may be higher for some organizational units and lower for others. The mobility of the environment determines the need to rely on a variety of information to make effective decisions.
The uncertainty of the external environment is a function of the amount of information that the organization has about a particular factor, and the function of confidence in this information. If there is little information or doubts about its accuracy, the environment becomes more uncertain than in a situation where adequate, accurate and reliable information is available. The more uncertain the external environment, the more difficult it is to make effective decisions.
DIRECT EXPOSURE ENVIRONMENT
Suppliers. From the standpoint systems approach organization is a mechanism for converting inputs to outputs. The main types of inputs are labor, materials, equipment, energy, capital. The relationship between the organization and the suppliers providing the input of the specified resources is a prime example of the direct impact of the environment on the organization's operations. The variability in the quality and prices of resources creates problems for the organization.
Materials. Some organizations depend on a continuous flow of materials. Examples include engineering, trade enterprises. Failure to ensure supplies in the required volumes can create great difficulties for such organizations. The Japanese are considered the creators of inventory control methods, in which enterprises need to deliver materials and parts on a "just-in-time" basis for the next stage of the production process. Such a supply chain requires close cooperation between the manufacturer and the suppliers. It is not uncommon to prefer looking for alternative suppliers or maintaining a significant amount of inventory. This is ineffective, as stocks tie up cash.
Capital. An enterprise needs capital “suppliers” to grow and thrive. Potential investors include, for example, banks, investment and loan programs of the federal government and local authorities, shareholders, individuals who buy bonds of joint stock companies.
Labor resources. Adequate staffing necessary specialties and qualifications are necessary for the implementation of tasks related to the achievement of the goals. People who can effectively use sophisticated technology, capital and materials - the main resource that ensures the efficiency and effectiveness of the organization.
The main concern of the modern organization has become the selection and support of talented managers. Leaders of successful businesses find it even more important to attract high-quality senior managers and train capable leaders than making a profit, attracting customers and paying acceptable dividends to shareholders.
Laws and government. Each organization has a certain legal status, being a private enterprise, business partnership or non-profit organization, and this determines how the organization can conduct its business and what taxes it must pay. The state of legislation is often characterized not only by its complexity, but also by its variability. In the Russian Federation, many laws are adopted that directly affect organizations that regulate their activities.
Government bodies. Organizations are obliged to comply not only with federal and regional laws, but also with the requirements of state regulatory bodies. These bodies ensure the enforcement of laws in their respective areas of their competence, as well as introduce their own requirements, often also having the force of law. The ministries and departments of the government, the central bank, departments, departments and divisions of local authorities are engaged in control and licensing of activities in various areas.
Lawmaking of regional and municipal authorities. The regulatory decisions of the constituent entities of the Russian Federation and local authorities additionally complicate matters. Each subject, each municipality requires enterprises to acquire licenses, restrict the choice of a place for doing business, impose taxes on enterprises, establish or participate in setting prices in the energy sector and communication systems. Their laws change or strengthen federal regulations.
Consumers. Many economists agree with the famous management theorist P. Drucker, who believes that the real goal entrepreneurial activity- create a consumer. The existence of an organization depends on its ability to find a customer and satisfy his needs. The value of consumers to entrepreneurship is clear. But non-profit and government organizations also have consumers in the general sense of the word. The Russian government exists only to serve the needs of Russian citizens. The fact that citizens are
consumers and deserve to be treated appropriately, unfortunately, it is not obvious in everyday encounters with the state bureaucracy. However, during election periods, the use of advertisements and face-to-face meetings with voters indicates that candidates view citizens as consumers who must “buy their product”.
Competitors are the most important external factor. The management of each enterprise understands that if the needs of consumers are not met as effectively as competitors, then the enterprise will not last long. It is important to understand that consumers are not the only competition between organizations. Enterprises compete for labor, materials, capital and the right to use certain technical innovations. Internal factors such as working conditions, wages and the nature of the relationship between managers and subordinates depend on the reaction to competition.
In the modern world, relationships with competitors are increasingly acquiring the character of cooperation. For example, 1 in 1979 the American company General Motors gave a huge loan to its old rival Chrysler Corporation. General Motors helped Chrysler prevent foreign automakers from making great strides in the American market. If Chrysler went bankrupt, some foreign company could take control of its developed distribution network and thereby ensure its accelerated development.
INDIRECT EXTERNAL ENVIRONMENT
Technology2 is both an internal variable and an external factor of great importance. Technological innovations affect the efficiency of production and sale of products, the rate of product obsolescence, how information is collected, stored and distributed, and what kind of services and new products consumers expect from an organization.
The rate of change in technology is growing rapidly, and this trend will continue in the future. One of the reasons for this phenomenon is that in our time there are more scientists on earth than there were in the world in the entire history of civilization. Some recent major innovations that have deeply affected organizations and society are computer, laser, microwave, semi-
"Mescon M.H., Albert M., Hedouri F. Fundamentals of Management. P. 124.
wire technology, integrated communication lines, robotics, satellite communications, nuclear power, production of synthetic fuels and foodstuffs, genetic engineering, universal miniaturization, which is developing rapidly.
Obviously, all organizations, especially those dealing directly with high-level technology, knowledge-intensive enterprises, must be able to quickly respond to new developments and propose innovations themselves.
The state of the economy. Management should be able to assess how general changes in the state of the economy will affect the operations of the organization. The state of the global economy affects the value of all resources and the ability of consumers to buy certain goods and services. If, for example, inflation is forecast, management may find it desirable to increase the supply of resources to the organization and negotiate fixed wages with workers in order to contain cost increases in the near future. It may also decide to increase borrowing, as the money will be cheaper when the payments are due and thus will partially offset the interest losses.
The state of the economy can significantly affect the ability of an organization to obtain capital for its needs. This is mainly due to the fact that the government often tries to smooth out the consequences of the worsening economic situation by regulating taxes, the central bank regulates the money supply and the interest rate. If this bank tightens the conditions for obtaining a loan and raises interest rates, commercial banks should do the same. As a result, it becomes more difficult to obtain loans and they cost the organization more. Likewise, tax cuts increase the mass of money that people can spend on non-essential purposes, which expands the marketing of goods and services.
Sociocultural factors, among which attitudes, life values and traditions prevail, also affect the organization. For example, giving a bribe to obtain a lucrative contract or political gain, or spreading rumors that defame a competitor are considered unethical and immoral in some countries, while in other countries this practice is considered normal and is widely used by enterprises. Research shows that attitudes, values and traditions of people change over time.
Changing attitudes directly affects what employees perceive as positive in the organization's performance. This is especially important for managers in relation to their function - motivating people, taking into account the goals of the organization. Sociocultural factors also affect the products or services that result from the activities of the enterprise, as they determine tastes.
consumers. Organizations must be able to predict and meet changing societal expectations more effectively than competitors.
Political factors are of particular importance to leaders. One of them is the mood of the authorities and administration, the judiciary in relation to entrepreneurship. Another element of the political environment is interest groups and lobbyists. All government regulatory agencies are targeted by lobbying groups representing organizations affected by the decisions of those agencies. Some groups, for example, the association of "soldiers' mothers" do not express the interests of enterprises, but of individuals.
The factor of political stability is of great importance for enterprises, since political changes can lead to restriction of property rights of foreigners and even to the nationalization of foreign property, to the establishment of special duties on imports. Policy may also change in a direction favorable to investors when there is a need for capital inflows from abroad.
Relations with the local population. For most organizations, community attitudes are paramount as an indirect impact environmental factor. Some cities have spared no effort to create incentives to attract industries to their city limits. Others, on the contrary, seek to keep industrial enterprises out of the city. In some areas, the political climate is conducive to entrepreneurship, which forms the basis of local budget inflows. Many organizations make a dedicated effort to maintain good relationship with the local population in whose environment they function. These efforts can take the form of school funding, philanthropy, or support for young talent.
INTERNATIONAL ENVIRONMENT
International environment. The environment in which organizations operate at the international level is the most complex. This is due to the unique set of factors that characterize each country. Economy, culture, quantity and quality of labor and material resources, laws, government institutions, political stability, level technological development v different countries are different. In exercising management functions, managers must take these differences into account.
When an organization starts doing business outside of its home country, the procedures need to be modified to suit the specific environmental factors. Factor analysis
the international environment is a difficult task, but it needs to be addressed. At times, executives may feel overconfident that they don't need to change their business practices abroad. In most cases, this leads to failure.
Types of international economic activity. Businesses can participate in international economic relations in different ways.
Exporting products is the easiest way to enter international markets. While the organization continues to manufacture all products in its home country, it may establish an independent trading company or intermediary service to coordinate exports to facilitate transactions with foreign buyers. With the expansion of exports, an organization can create an export department with an export manager at the middle level in the management hierarchy.
Licensing. An enterprise can sell a license to manufacture products to a foreign company or to the state. In this case, the enterprise grants a foreign company or state the right to use patents or technology, trade secrets. The foreign company or government, in turn, reimburses the enterprise's costs in the form of royalties and service fees.
Joint ventures are ventures created by two or more enterprises or states that invest in manufacturing facilities. The participants are equal partners in the business and profit depending on the share of the shareholding of each in the joint venture.
Direct investment. The most decisive step in international business is management's decision to launch its products overseas, establish a subsidiary there, and retain full control over production, marketing, finance and other functions.
Multinational companies own and operate businesses in other countries. This is the leading part of the economy of a developed country. Multinational companies operate primarily in the manufacturing and service sectors, opening up additional markets for domestic enterprises for their goods and services, and allowing them to benefit from favorable taxation and resource conditions.
Trends in international environment... In the commodity structure of international trade, the share of industrial products is growing - it has already exceeded 80% of the world trade, the share of cheaper raw materials is decreasing.
An increase in the share of industrial products, a decrease in the share of raw materials - main trend international economic relations. Equipment
Manufacturing — machine tools and vehicles — now account for more than half of the merchandise trade. Their exchange is growing very rapidly, by more than 15-20% per year.
The growth in the exchange of services is another leading trend. They currently account for over a third of all exchanges. The increase in the share of services in exchanges is associated with a sharp rise in investment income. The largest sources of income are financial and information services, tourism and transport. International investment in the service sector has already exceeded 50%.
The growth of intra-industry exchange is another important trend. Some types of machine tools are exchanged for others, spare parts - for assembled products or consumer goods of a similar nature - cars, clothing, differing in quality or according to consumer tastes.
The internationalization of companies and international trade is one of the most important trends. Around the world, multinational companies are building networks for the development, production, assembly and marketing of their products. For example, only its own multinational companies in the United States account for more than three-quarters of exports and half of imports. In the UK, multinational companies cover over 80% of exports.
The growth of intra-firm trade has led to the fact that now from 20 to 30% of trade developed countries is in-house. This type of trade is primarily focused on high-tech and complex goods such as cars and electronics.
Factors of the international environment. To adapt their operations to the international environment, leaders need to understand the factors of the international environment. The following factors are considered the most important.
Culture. Organizations must take into account the prevailing system of shared values, beliefs, customs and prevailing attitudes in society. Every society has its own culture, the influence of which affects the style of everyday life. Differences between cultures are expressed in language, discrepancies in attitudes about power, the meaning of work, the role of women in society, the degree of collectivism, and even color preferences.
Economy. Management should evaluate the impact of the general economic environment on the enterprise. Businesses operating in an international environment must analyze economic conditions and trends and observe the economies of the countries in which they do or intend to do business. This is necessary to ensure effective management.
Laws and government regulation. Just as domestic organizations are dependent on domestic laws, businesses operating in international markets are forced to reckon with many laws and regulations. It belongs
to taxation, patent law, labor relations, standards for finished products, pricing and reporting to government agencies.
Political situation. The market of any country is influenced by political events and decisions. Social tensions can disrupt production or restrict marketing if unrest is directed against a foreign-owned plant or product. At the very least, political action by the government or a sudden change of regime means increased uncertainty for the exporter or foreign investor. Political factors need to be assessed before investing capital or making marketing commitments. As new information becomes available and circumstances change, it is necessary to adjust the corresponding forecasts.
Internal environment - this is part common environment within the organization. It has a constant impact on the functioning of the organization.
The main variables of the internal environment:
· Purpose - a specific end state or desired result that the firm seeks to achieve;
· The structure of the organization is the logical relationship of the parts of the organization;
· Tasks are a prescribed work, a series of work or a part of work that must be performed in a predetermined manner and within a predetermined time frame;
· Technology is a means of converting materials, raw materials, energy and information into the desired final product;
· People are the personnel of the organization, they are the central factor in any management model.
External environment an organization is made up of individuals, groups, or institutions that provide resources to it and influence how decisions are made within the organization.
The external environment is divided into direct and indirect factors.
Direct exposure environment includes factors that directly affect the operations of the organization and are directly affected by the operations of the organization. These include:
· Consumers are direct buyers and clients of the company;
· Suppliers provide the resources needed to achieve the objectives. (raw materials, capital, labor);
· Competitors, as a rule, are those organizations that sell similar products in the same markets, to the same consumers;
· State and municipal organizations - the environment of the organization may include various municipal and federal organizations or authorities with which it directly interacts: administration, tax inspection, tax police, courts.
Indirect impact environment- these are factors that do not directly affect the operations of the organization, but still affect them indirectly. The indirect environment is usually more complex than the direct environment.
Factors of indirect impact include:
· Factors of the technological environment include scientific and technological innovations in a particular industry or in society as a whole, which allow an enterprise to modernize production and create new products, as well as improve and develop new technological processes;
The factors of the economic environment determine the general level of economic development, market relations and competition in the country or region in which the company operates. The main parameters of this group of factors include: the size of the gross national product, the rate of inflation, the size and structure of the budget, the level of taxation, the level of unemployment, the structure of foreign economic turnover, etc .;
· Sociocultural factors are manifested in social values and attitudes, priorities, national traditions that affect the activities of the organization. In each country there are ideas about ethical business practices, required service quality standards, acceptable levels of environmental impact;
· Political factors determine the general political situation in the country, the level of its stability and predictability. The high level of political risk leads to a slowdown in the scientific and technical renovation of production, the obsolescence of the structure, and a decrease in the competitiveness of national enterprises.
Demographic factors form the geographical distribution and density of the population, its birth rate, average duration life, level of education, migration, qualifications, etc.
Natural and climatic
· International
Characteristics of the external environment
1. The interconnectedness of environmental factors is the level of force with which a change in one factor affects others.
2. Complexity: The number and variety of factors that significantly affect the organization.
3. Mobility of the environment is the speed with which changes occur in the environment of the organization.
4. Uncertainty of the external environment is a function of the amount of information that an organization (or a person) has about a specific factor, as well as a function of confidence in this information.
Practical tasks
Task 5. Conduct an analysis of the impact of the external environment on any organization of your choice, according to the following scheme:
| Competitors |
| Suppliers |
| State organs |
| Organization |
Figure 1 - Organization environment
Task 6. Read the situation and answer the questions.
A large firm owned a good hotel in a pleasant, prosperous city. During the week, all 40 bedrooms were usually occupied, mostly by businessmen, so the restaurant and hotel bars were always full of people.
And so a proposal was made: to increase the number of hotel rooms by twenty and equip each new room with a bathroom, shower and toilet. Calculations have been made that show that in order to justify the investment and make a profit of the usual order, each of the new rooms should be occupied on average at least every other night. It meant that in winter, due to sluggish trade during the weekends, ten or more more guests will stay on each night during the week than before.
The question was whether a good profit could be expected with confidence from the construction of the new rooms. Survey studies have shown that people liked the hotel and found the prices reasonable. The only competitor was another hotel of the same size but located on the outskirts of town (prices are lower).
The Managing Director put the question like this: “If we start construction now, the new rooms will be ready in three years. Will the demand for bed stay then be so high that each room will be busy for 3-4 nights a week, or even more often? " No one could answer this question, because no one knew how to predict the future, but the hotel manager said: "In recent years, demand has been growing, and I see no reason why this growth would suddenly stop." To this the chief accountant, who did not like it when money was spent, said: "And I can give half a dozen reasons why the growth in demand may stop."
1. Can you give reasons for a possible cessation of the growth in demand for hotel accommodation?
2. Can you, based on the above example or your own examples, determine which areas of the external environment affect the business in each case?
Management functions
The management cycle is a completed sequence of repetitive active actions aimed at achieving the set goals. The management cycle begins with an understanding of the task or problem and ends with the achievement of a certain result. After that, the control cycle is repeated.
Management functions are integral parts of any management process, regardless of the characteristics (size, purpose, form of ownership, etc.) of an organization. The management (management) process has five interrelated functions, namely:
1. Planning. Realizing this function, the manager, on the basis of a deep and comprehensive analysis of the situation in which the company is currently located, formulates the goals and objectives it faces, develops an action strategy, draws up the necessary plans and programs.
2. Organization - the task of this function is to form the structure of the organization, as well as to provide everything necessary for its work - personnel, materials, equipment, buildings, funds, etc.
3. Motivation is an activity aimed at activating the people working in the organization and encouraging them to work effectively to achieve the goals set in the plans.
4. Monitoring is the process of comparing actual results achieved against planned goals, norms and standards. Control ensures that the objectives of the organization are achieved.
5. Coordination its task is to achieve consistency in the work of all parts of the organization by establishing rational links (communications) between them
Practical tasks
Task 7. Correlate management functions and decisions made. To do this, indicate in the table within which management function the specified decision is made: planning, organization, motivation or control.
Table 2 - Management functions and decisions made at the firm level
| Solution | Control function |
| Changes in the structure of the enterprise due to changes in the external environment | |
| Determining the purpose of the enterprise | |
| Study of changes in the external environment and their impact on the prospects for the development of the enterprise | |
| Organizational management structure design | |
| Study of the needs of subordinates and the expected reward for their work | |
| Identifying the reasons for the failure to meet the goals of the enterprise and making adjustments to the management system | |
| Identifying the causes of dissatisfaction with work and developing ways to eliminate them | |
| Development of ways to measure work results | |
| Implementation of remuneration for work | |
| Choosing a strategy and tactics to achieve your goals | |
| Distribution of responsibilities between managers at different levels of management | |
| Evaluation of work results for the implementation of remuneration of performers | |
| Defining the mission and nature of the business | |
| Confirmation of results in achieving the goals of the enterprise | |
| Study of the degree of satisfaction of the needs of subordinates in the course of activities aimed at achieving the goals of the enterprise |
Organization planning
Planning- one of the management functions, which is the process of choosing the goals of the organization and ways to achieve them, that is, the function associated with determining the goals and objectives of the organization, as well as the resources necessary to achieve these goals.
A plan is an official document that reflects: forecasts for the development of an organization in the future; intermediate, final goals and tasks facing it and its departments. The essence of planning is to develop an optimal plan of activities to achieve the goal.
Planning principles:
Necessity (mandatory in any kind of activity)
Unity of plans (general or master plan of the organization)
Continuity (interconnectedness of individual plans)
Flexibility (adjusting and coordinating them)
Accuracy (detail)
Planning classification:
1. According to the degree of coverage of the spheres of activity, the following are distinguished:
a) general planning (planning of all areas of the enterprise);
b) private planning (planning certain areas of activity).
2. According to the objects of functioning, the following are distinguished:
a) production planning;
b) sales planning;
c) financial planning;
d) personnel planning.
3. By periods (coverage of a period of time), there are:
a) short-term or current (from a month to 1 year)
b) medium-term, (from 1 to 5 years)
c) long-term planning (more than 5 years).
4. Whenever possible, changes are made to:
a) rigid (does not imply changes);
b) flexible (with such planning, changes are possible).
a) strategic planning includes the selection and justification of means, objectives and goals to achieve the specified or traditional ideals for the enterprise;
b) operational planning - the implementation of capabilities and control of the current course of production;
c) tactical planning consists in justifying the tasks and means necessary to achieve predetermined or traditional goals.
Strategic planning is a set of actions and decisions taken by management that lead to the development of strategies designed to achieve the goals of the organization.
Strategy - general plan actions, defining the priorities of strategic objectives, resources and the sequence of steps to achieve strategic goals.
The strategic planning process in a company consists of several stages:
- Determination of the mission and goals of the organization.
- Analysis of the environment, which includes the collection of information, analysis of the strengths and weaknesses of the company, as well as its potential opportunities based on the available external and internal information.
- Identifying alternatives or defining a strategy.
- Choosing a strategy.
- Implementation of the strategy.
- Evaluation and control of implementation.
Mission- a business concept that reflects the purpose of the business, its philosophy. The mission expresses striving for the future, shows what the organization's efforts will be directed to, what values will be priority
Target- is the concretization of the mission in the organization in a form that is available for managing the process of their implementation.
Introduction
The most important concept in management is organization. Any organization is located and functions in the environment. Each action of all organizations, without exception, is possible only if the environment allows its implementation. The internal environment is the source of her life force. It contains the potential necessary for the functioning of the organization, but at the same time it can be a source of problems and even its death. The external environment is the source that feeds the organization with resources. The organization is in a state of constant exchange with the external environment, thereby providing itself with the possibility of survival. Naturally, these moments should be subject constant attention from the manager's side. Therefore, the main task of this course work will be to consider the elements of the internal and external environment of the organization, which are in constant interaction. As well as the assessment and analysis of these factors using various methods.
The first chapter will describe internal environment organization, the main components of the organization are characterized, such as personnel, technology, structure, goals and objectives. The interconnectedness of all elements of the organization and the influence of environmental factors on them will be emphasized.
As already emphasized, the organization is influenced by numerous environmental factors. The second chapter will reveal the main factors of the environment of direct and indirect impact and the international environment. Just like the elements of the internal environment, external factors are closely interconnected and have a number of characteristics that will be disclosed in this chapter.
The last chapter will analyze such an important element of strategic planning as an analysis of the external and internal environment. Analysis of the environment is needed to determine the strategy for the behavior of the enterprise and to implement this strategy in life. Thus, the purpose of this work is to study the external environment and internal environment of the organization for more effective management decisions necessary for the successful operation of the company.
This topic is relevant, like the whole theory of management. In the new millennium, our country must learn to live in a market economy, the most important condition for this is highly qualified managers. The ability to identify and analyze the elements of the organization and external factors is the key to the success of the company.
1.Internal environment of the organization
1.1 Internal variables
The manager forms and changes, when necessary, the internal environment of the organization, which is an organic combination of its internal variables. But for this he must be able to distinguish and know them.
Internal variables Are situational factors within the organization. Since organizations are systems created by people, internal variables are mainly the result of managerial decisions. This, however, does not mean that all internal variables are completely controlled by management. Often the internal factor is something “given” that management must overcome in its work.
The main variables within the organization itself that require management attention are goals , structure , tasks , technology and people .
Goals
An organization, by definition, is at least 2 people with conscious common goals. Organization can be seen as a means to an end that enables people to collectively accomplish what they could not individually accomplish. Goals are specific end states or desired outcomes that the group seeks to achieve by working together. Experts say that the correct formulation of goals and setting tasks by 50% predetermine the success of the solution.
The main goal of most organizations is to make a profit. Profit is a key metric for an organization. The Civil Code of Russia, adopted in 1995 (Article 50, Part I), stated that the main purpose of commercial organizations is to make a profit. There are three main types of organizational profit orientation:
· Its maximization;
· Obtaining a "satisfactory" profit, i. E. the bottom line is that when planning profit, it is considered "satisfactory" if the degree of risk is taken into account;
Minimizing profits. This option means maximizing the minimum expected returns while minimizing the maximum losses.
But not all organizations have a primary goal of making a profit. This applies to non-profit organizations, such as churches, charitable foundations. However, as in the previous cases, the firm can only exist in the conditions of its profitability. Only instead of maximizing income, the growth of the rate of return is expressed in other indicators:
· Satisfaction of the consumer or user of the services;
· Position in the market, often associated with the desire for market leadership;
· Conditions for the well-being of employees and the development of good relations among staff;
· Public responsibility and the image of the organization;
Technical efficiency, high level of labor productivity, giving special attention research and development;
· Minimization of production costs, etc.
This diversity of focus extends further as large organizations have many goals. In order to generate profits, for example, a business must formulate goals in areas such as market share, new product development, quality of service, leadership training and selection, and even social responsibility. Non-profit organizations also have varied goals, but are likely to place more emphasis on social responsibility. An orientation driven by goals permeates all subsequent management decisions.
In departments, as well as in the entire organization, the development of goals is necessary. For example, the goal of the finance department might be to reduce credit losses by up to 1% of sales. The marketing department in the same organization may aim to reduce consumer complaints by 20% in the next year. The goals of departments in different organizations that have similar activities will be closer to each other than the goals of departments in the same organization, engaged in different activities. It must be remembered that the objectives of the departments should make a concrete contribution to the objectives of the organization as a whole, and not conflict with the objectives of other departments.
Structure
The structure of the organization reflects the existing in the organization the allocation of separate divisions, links between these divisions and the unification of divisions into a single whole.
Organization structure Is a logical relationship between management levels and functional areas, built in such a form that allows you to most effectively achieve the goals of the organization.
One of the main concepts related to structure is specialized division of labor... In most modern organizations, the division of labor does not at all mean a random division of work among the available people. A characteristic feature is a specialized division of labor - the assignment of this work to specialists, i.e. those who are able to do it best of all from the point of view of the organization as a whole. An example is the division of labor between marketing, finance and manufacturing experts.
At the moment, in all organizations, with the exception of the smallest, there is a horizontal division of labor along specialized lines. If an organization is large enough, professionals are usually grouped together within a functional area. How exactly to implement the division of labor in an organization is one of the issues that is a significant management decision.
It is equally important how the vertical division of labor is carried out. A vertical division of labor is essential for successful group work. The central characteristic of the vertical hierarchy is the formal subordination of individuals at each level. A person at the highest level may have several middle managers in his subordination, representing different functional areas. These managers, in turn, may have several line managers subordinate to them. The number of persons subordinate to one manager represents the sphere of control. Distinguish between a wide and a narrow sphere of control, depending on the number of subordinates. Typically, a narrow area of control corresponds to a multi-level structure, and a broad one corresponds to a flat management structure.
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Rice. 1 High and flat control structure
There is no perfect sphere of control. Many variables inside and outside the organization can influence it. Moreover, neither the scope of control nor the "height" of the structure is an indicator of the size of the organization itself.
The need for coordination, which has always existed, becomes truly urgent when work is clearly divided both horizontally and vertically, as is the case in large modern organizations. If management does not create formal coordination mechanisms, people will not be able to do the work together. Without appropriate formal coordination, different levels, functional areas and individuals can easily focus on their own interests, rather than on the interests of the organization as a whole.
The formulation and communication of the goals of the organization as a whole and of each of its divisions is only one of many coordination mechanisms. Each management function plays a role in coordinating a specialized division of labor. Leaders must always ask themselves the question: what are their coordination obligations and what are they doing to fulfill them.
Tasks
Another direction of the division of labor in an organization is the formulation of tasks. Task Is a prescribed work, a series of works or a part of a work that must be performed in a predetermined manner within a predetermined time frame. From a technical point of view, tasks are assigned not to the employee, but to his position. Based on the decision of the management about the structure, each position includes a number of tasks that are considered as a necessary contribution to the achievement of the organization's goals. It is believed that if the task is completed in this way and within the time frame prescribed, the organization will be successful.
Organizational tasks are traditionally divided into three categories. This is working with people , subjects , information... For example, on an ordinary factory assembly line, the work of people consists of working with objects. The task of the master is mainly to work with people. At the same time, the tasks of a corporate treasurer are mainly related to information.
Two important points in the work are the frequency of repetition of a given task and the time it takes to complete it. A machine operation, for example, might involve performing a hole drilling task a thousand times a day. Each operation takes only a few seconds to complete. The researcher performs various and complex tasks, and they may not be repeated at all even once during the day, week, or year. In order to complete some of the tasks, the researcher takes several hours or even days. In general, we can say that managerial work is less monotonous, repetitive, and the time it takes to complete each type of work increases as managerial work moves from a lower level to a higher one.
Changes in the nature and content of tasks are closely related to the evolution of specialization. As Adam Smith showed in his famous example of pin making, a specialist can significantly increase productivity. In our century, technological innovations and the systemic combination of technique and specialization of labor have made task specialization deep and complex to a degree that Smith could not even think of.
Technology
Technology as a factor in the internal environment is much more important than many people think. Most people view technology as something related to inventions and machines, such as semiconductors and computers. However, the sociologist Charles Perrow, who has written extensively about the impact of technology on organization and society, describes technology as a means of transforming raw materials - be it people, information, or physical materials - into desired products and services.
Technology implies standardization and mechanization . That is, the use of standard parts can greatly facilitate the production and repair process. Nowadays, there are very few products, the production process of which is not standardized.
At the beginning of the century, there was such a thing as assembly conveyor lines. Now this principle is used almost everywhere, and greatly increases the productivity of enterprises.
Technology, as a factor that strongly influences organizational performance, requires careful study and classification. There are several ways to classify, I will describe Thompson classification and by Woodward .
Joan Woodward's classification of technology is the most famous. She will distinguish three categories of technologies:
1. Single, small batch or individual production where only one product is made at a time.
2. Mass or high-volume production used in the manufacture of a large number of products that are identical or very similar to each other.
3. Continuous production uses automated equipment that works around the clock for continuous production of the same product in large volumes. Examples are oil refining, power plants.
Sociologist and organizational theorist James Thompson suggests three other categories of technology that are consistent with the previous three:
1. Multi-link technologies, characterized by a series of independent tasks that must be performed sequentially. A typical example is assembly lines for mass production.
2. Intermediary technologies characterized by meetings of groups of people, such as customers or customers, who are or want to be interdependent.
3. Intensive technology characterized by the use of special techniques, skills or services in order to make certain changes in a specific material entering production.
These two categories are not that different from each other. For example, multi-tier technologies are equivalent to mass production technologies, and intermediary technologies are intermediate between individual technologies and mass production technologies. The differences in these classifications are primarily caused by the different areas of specialization of the authors. That is, Woodward was mainly involved in industrial technology, while Thompson covered all kinds of organizations.
There is no one type of technology better than another. In one case, one type may be more acceptable and in another, the opposite is more suitable. People determine the ultimate suitability of a given technology when they make their consumer choice. Within an organization, people are an important deciding factor in determining the relative relevance of a specific task and content of operations to the chosen technology. No technology can be useful and no task can be accomplished without the collaboration of humans, who are the fifth internal variable.
People
People are the backbone of any organization. There is no organization without people. People in the organization create its product, they shape the culture of the organization, its internal climate, what the organization is depends on them.
Because of this situation, people are “subject number one” for a manager. The manager forms cadres, establishes a system of relations between them, includes them in the creative process working together, contributes to their development, training and promotion at work.
People working in an organization are very different from each other in many ways: gender, age, education, nationality, marital status, his abilities, etc. All of these differences can have a profound effect on both the performance and behavior of an individual employee and the actions and behavior of other members of the organization. In this regard, management should structure its work with personnel in such a way as to promote the development of positive results in the behavior and activities of each individual and try to eliminate the negative consequences of his actions. Unlike a machine, a person has desires, and he is characterized by an attitude towards his actions and the actions of those around him. And this can seriously affect the results of his work. In this regard, the management has to solve a number of extremely difficult tasks, on which the success of the organization's functioning depends to a large extent.
The internal life of an organization consists of a large number of different activities, sub-processes and processes. Depending on the type of organization, its size and type of activity, individual processes and actions may take a leading place in it, while some processes that are widely implemented in other organizations may either be absent or be carried out in a very small size. However, despite the huge variety of actions and processes, five groups of functional processes can be distinguished, which cover the activities of any organization and which are the object of management by management. These functional groups of processes are as follows:
· production;
· Marketing;
· Finance;
· Work with personnel;
· Accounting (accounting and analysis of economic activity).
Control production consists in managing the process of processing raw materials, materials and semi-finished products entering the organization at the entrance to the product that the organization offers to the external environment. For this, the management carries out the following operations: management of product development and design; choice technological process, the placement of personnel and technology in the process in order to optimize the costs of manufacturing and the choice of methods for manufacturing a product; management of the purchase of raw materials, materials and semi-finished products; inventory management in warehouses, which includes storage management of purchased goods, home-made semi-finished products for internal use and final products; quality control.
Control marketing called upon by marketing activities for the implementation of the product created by the organization, to link in a single consistent process the satisfaction of the organization's customers and the achievement of the organization's goals. For this, the management of such processes and actions as: market research; advertising; pricing; creation of sales systems; distribution of created products; sales.
Control finance consists in the fact that management exercises control over the process of movement financial resources in the organization. To do this, it is carried out: budgeting and financial plan; formation of monetary resources; the distribution of money between the various parties that determine the life of the organization; assessment of the financial potential of the organization.
Control staff associated with the provision of production and other areas with human resources (hiring, training and retraining). It also involves the implementation of all management actions related to social sphere: payment, welfare and terms of employment.
Control accounting involves managing the process of processing and analyzing financial information about the organization's work in order to compare the actual activities of the organization with its capabilities, as well as with the activities of other organizations. This allows the organization to uncover issues that it needs to pay close attention to and choose the best ways to carry out its activities.
1.2 Relationship of internal variables
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Rice. 2 Relationship of internal variables.
This figure is a model showing the relationship of internal variables: goals, structure, objectives, technology and people. But we must not forget that an organization is an open system. And therefore, this diagram cannot be an adequate complete model of variables that affect the success of an organization's actions, because it only shows internal variables. It is more correct to consider this figure as a model of internal sociotechnical subsystems organizations. Internal variables are usually called sociotechnical subsystems because they have a social component (people) and a technical component (other internal variables).
In the next chapter, the influence on the organization of external factors will be considered and this model will be supplemented by the presence of the external environment.
2. External environment of the organization
2.1 Characteristics of the external environment
The first chapter described the internal environment of the organization. Environmental factors, on the other hand, received much less attention than internal factors. In our time, the external environment is studied no less carefully than the internal one. The manager is aware of the state of the external environment and be able to react to its changes, be it the actions of competitors, changes in technology, etc.
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Rice. 3 Model of the influence of unforeseen circumstances on the organization.
If we talk about the number of external factors that an organization is forced to respond to, then if it is under pressure from government regulations, frequent renegotiation of contracts with trade unions, several interest groups of influence, numerous competitors and accelerated technological change, it can be argued that this organization is in a more complex environment. than, say, an organization preoccupied with the actions of just a few suppliers, a few competitors, in the absence of unions and slow technology change. Likewise, when it comes to a variety of factors, an organization using only a few inputs, a few professionals, and dealing with only a few firms in its country should find the provisioning environment less challenging than an organization that has different parameters. In terms of the diversity of factors, an organization will be in a more complex environment that uses numerous and different technologies that are undergoing faster development than an organization that does not apply to all this.
The external environment is not constant, changes occur in it all the time. Many researchers have pointed out that the environment of modern organizations is changing at an accelerating rate. However, while this trend is general, there are organizations around which the external environment is particularly fluid. For example, it was found that the rate of change in technology and competitive parameters in the pharmaceutical, chemical and electronic industries is higher than in mechanical engineering, the production of spare parts for cars and the confectionery industry. Rapid changes are taking place in the aerospace, computer, biotechnology and telecommunications industries. In addition, the mobility of the external environment may be higher for some organizational units and lower for others. Given the complexity of functioning in a highly mobile environment, an organization or its units must rely on more diverse information in order to make effective decisions about its internal variables. This makes decision making more difficult.
2.2 Direct exposure environment
The direct exposure environment is also called direct business environment organizations. This environment forms such subjects of the environment that directly affect the activities of a particular organization.
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Rice. 4 Environment of direct exposure.
Suppliers
From the point of view of a systems approach, an organization is a mechanism for transforming inputs into outputs. The main types of inputs are materials, equipment, energy, capital, and labor. Vendors provide input for these resources. Obtaining resources from other countries could be more profitable in terms of prices, quality or quantity, but at the same time it would be dangerous to increase such factors of fluidity of the environment as fluctuations in exchange rates or political instability.
All suppliers can be divided into several groups - suppliers of materials, capital, labor resources.
Materials (edit)... Some organizations depend on a continuous flow of materials, that is, dependence on prices, timing, rhythm, quality, etc. is manifested here. Moreover, this dependence has recently been increasing with the deepening of the division of labor and the development of cooperation. Firms are increasingly focusing on the preferential acquisition of component parts from partners, and only certain operations are performed at the firms themselves, and this is typical for both manufacturing and firms operating in the service sector. Therefore, we can talk about an increase in the strengthening of their dependence on suppliers in the future. At the same time, changes are taking place in the relationship between buying and supplying firms based on the Japanese system of subcontracting, organization effective system supplies. At the same time, additional powers and responsibilities are transferred to suppliers, both in the field of design and in the field of production, which allows us to speak about the management of suppliers.
Capital... For growth and prosperity, a firm needs not only suppliers of materials, but also capital. There are several such potential investors: banks, federal loan programs, shareholders and individuals who accept company promissory notes or buy its bonds. As a rule, the better a company is doing, the higher its ability to negotiate with suppliers on favorable terms and receive the required amount of funds. Small businesses, especially venture capital firms, are finding it hard to get the funding they need today.
Labor resources. Adequate provision of a workforce with the necessary specialties and qualifications is necessary for the implementation of tasks related to the achievement of the set goals, that is, for the effectiveness of the organization as such. Without people capable of efficiently using complex technology, capital, and materials, all of this is of little use. The development of a number of industries is currently constrained by the lack of the necessary specialists. Practically every sector of the computer industry is an example, and this is especially true for firms that need highly skilled technicians, experienced programmers and system designers.
The main concern of the modern organization has become the selection and support of talented managers. George Steiner, in his research, asked the leaders of a number of firms to rank 71 factors in order of importance to them in relation to the last five years. Factors included: general management, finance, marketing, materials, manufacturing, and finished goods. In terms of labor resources, two factors were quoted above others: the recruitment of highly qualified senior managers and the training of capable leaders within the firm. The fact that professional development of managers turned out to be significantly higher than profit, customer service and payment of acceptable dividends to shareholders, a clear sign of the importance of the inflow of this category of labor into the organization. Supporting talented executives is often a face-to-face negotiation problem with job candidates who are offered fairly high wages and benefits. For the most part, organizations are also trying to solve the problems of securing the right workforce by training and supporting their own employees.
By signing an agreement with the union, the firm essentially negotiates with the supplier work force... The proliferation of unions is another confirmation of the need to take external factors into account when deciding internal issues. Moreover, in different countries, the relationship between the firm and the trade union is manifested in different ways. For example, in the United States, the management of firms has traditionally been in conflict with trade unions, while in Japan they usually cooperate successfully.
Laws and government agencies
Many laws and government agencies affect organizations. Each organization has a specific legal status, being a sole proprietor, company, corporation or non-profit corporation, and this determines how the organization can conduct its business and what taxes it must pay. Regardless of how the management views these laws, they have to adhere to them or reap the benefits of refusing to abide by the law in the form of fines or even a complete termination of the business.
As you know, the state in a market economy exerts on organizations both indirectly, primarily through the tax system, state property and the budget, and directly through legislative acts. So, for example, high tax rates significantly limit the activity of firms, their investment opportunities and push to conceal income. On the contrary, a reduction in tax rates helps to attract capital, leads to a revival of entrepreneurial activity. And thus, with the help of taxes, the state can manage the development of the necessary areas in the economy.
State bodies... Organizations are required to comply with not only federal and state laws, but also the requirements of government regulatory bodies. These bodies ensure the enforcement of laws in their respective areas of their competence, as well as introduce their own requirements, often also having the force of law. The uncertainty of today's legal framework stems from the fact that the requirements of some institutions conflict with the requirements of others, and at the same time, behind each is the authority of the federal government to enforce such requirements.
Local government legislation... Further complicating matters are the regulatory decisions of local authorities, the number of which is also multiplying. Nearly all local communities require businesses to acquire licenses, restrict where they can operate, tax businesses, and set prices for energy, in-state telephony, and insurance. Some local laws modify or strengthen federal regulations.
Consumers
Well-known management specialist Peter F. Drucker, speaking about the purpose of the organization, singled out, in his opinion, the only true purpose of business - the creation of the consumer. This means the following: the very survival and justification of the existence of an organization depends on its ability to find a consumer of the results of its activities and satisfy his needs. The business value of consumers is clear. However, nonprofits and government organizations also have consumers in the Drucker sense.
All the variety of external factors is reflected in the consumer and through him affects the organization, its goals and strategy. The need to meet customer needs affects how an organization interacts with suppliers of materials and labor. Many organizations target the large customer groups on which they are most dependent.
Various associations and associations of consumers, which influence not only demand, but also the image of firms, are also gaining importance in modern conditions. It is necessary to take into account the factors influencing the behavior of consumers, on their demand.
Competitors
The influence of such a factor as competition on the organization cannot be disputed. The management of each enterprise clearly understands that if the needs of consumers are not met as effectively as competitors are doing, the enterprise will not stay afloat for long. In many cases, it is not consumers but competitors who determine what kind of performance can be sold and what price can be asked for.
Underestimation of competitors and overestimation of markets lead even the largest companies to significant losses and to crises. It is important to understand that consumers are not the only competition between organizations. The latter can also compete for labor, materials, capital and the right to use certain technical innovations. Internal factors such as working conditions, wages and the nature of the relationship between managers and subordinates depend on the reaction to competition.
The modern development of science and technology in the conditions of scientific and technological revolution has significantly exacerbated the competition between firms. The most important condition for the prosperity of a company is its constant improvement and, above all, on the basis of modern achievements of science and technology. A scientific discovery or a fundamentally new product or service can elevate a firm to the pinnacle of success.
At the same time, it should be noted that competition sometimes pushes firms to create agreements of various types between them, from the division of the market to cooperation between competitors.
2.3 Medium of indirect impact
Environmental factors of indirect impact or general external environment usually do not affect the organization as noticeably as environmental factors of direct impact. However, management needs to take them into account. .
The indirect environment is usually more complex than the direct environment. Therefore, when studying it, they usually rely primarily on forecasts. The main environmental factors of indirect impact include technological, economic, sociocultural and political factors as well as relationships with local communities.
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Rice. 5 Indirect exposure environment
Technology
Technology is both an intrinsic variable and an extrinsic factor of great importance. As an external factor, it reflects the level of scientific and technological development that affects the organization, for example, in the fields of automation, informatization, etc. Technological innovations affect the efficiency with which products can be manufactured and sold, the rate of obsolescence of the product, how it is possible to collect, store and distribute information, as well as on what kind of services and new products consumers expect from the organization. To maintain competitiveness, each organization is forced to use the achievements of scientific and technological progress, at least those on which the effectiveness of its activities depends.
Researchers have described the rate of change in technology in recent decades and argue that this trend will continue. One of the reasons for this phenomenon is that in our time there are more scientists living on earth than there were in the world before. Some recent major technological innovations that have deeply affected organizations and society are computer, laser, microwave, semiconductor technology, integrated communications, robotics, satellite communications, nuclear power, synthetic fuels and food, and genetic engineering. Daniel Bell, the celebrated sociologist, believes that future generations will find miniaturization technology the most valuable innovation. Today's innovations such as micropoint and cylindrical magnetic domain memory make it possible to store on a small disk the same amount of information that previously required buildings with multiple database filing units. Semiconductors and microprocessors have made small computers readily available. They also changed the nature of many products (for example, electronic watches replaced mechanical ones) and led to the introduction of new types of machines and devices into new areas (for example, devices intended for diagnosis and treatment in medicine).
Obviously, organizations dealing directly with high-level technology, knowledge-intensive enterprises, must be able to quickly respond to new developments and propose innovations themselves. However, today, in order to remain competitive, all organizations are forced to keep pace, at least with those developments on which the effectiveness of their activities depends.
The state of the economy
Management should also be able to assess how general changes in the state of the economy will affect the operations of the organization. The state of the global economy affects the cost of all inputs and the ability of consumers to buy certain goods and services. If, for example, inflation is forecast, management may find it desirable to increase the supply of resources to the organization and negotiate fixed wages with workers in order to contain cost increases in the near future. It may also decide to take out a loan, because when the payments are due, the money will be cheaper and thus will partially offset the interest losses. If an economic downturn is predicted, the organization may prefer the path of reducing stocks of finished products, since there may be difficulties in marketing them, reduce part of the workers or postpone plans to expand production until better times.
The state of the economy can greatly affect the ability of an organization to obtain capital for its needs. This is mainly due to the fact that the federal government often tries to mitigate the effects of a worsening economic environment by regulating taxes, the money supply and the interest rate set by the Federal Reserve Bank. If this bank tightens the conditions for obtaining a loan and raises interest rates, commercial banks should do the same so as not to be out of the game. As a result, it becomes more difficult to crawl loans, and they cost the organization more. Likewise, reducing n increases the mass of money that people can spend on non-essentials and thus help boost business.
It is important to understand that a particular change in the state of the economy can have a positive impact on some and negative on other organizations. For example, if during an economic downturn, stores retail may be seriously affected in general, then shops located, for example, in wealthy suburbs, will not feel anything at all.
Sociocultural factors
Any organization operates in at least one cultural environment. Therefore, socio-cultural factors, among which attitudes, life values and traditions prevail, affect the organization.
Socio-cultural factors influence the formation of the population's demand, labor relations, the level of wages and working conditions. These factors include the demographic state of society. The relationship of the organization with the local population where it operates is also important. In this regard, they also distinguish as a factor in the socio-cultural environment - independent mass media, which can form the image of the company and its goods and services.
Sociocultural factors also affect the products or services that result from a company's operations. The ways in which organizations conduct their affairs also depend on socio-cultural factors.
Political factors
Certain aspects of the political environment are of particular importance to the leaders of the organization. One of them is the sentiment of the administration, legislatures and courts in relation to business. Closely tied to sociocultural trends, in a democratic society, these sentiments affect government actions such as taxing corporate income, establishing tax breaks or preferential trade duties, requirements for recruitment and promotion practices for ethnic minorities, consumer protection legislation, price and wage controls. wages, the ratio of the strength of workers and managers of the company.
The factor of political stability is of great importance for companies conducting operations or having markets with in other countries.
Relations with the local population
For almost all organizations, the predominant attitude of the local community towards it, in which this or that organization operates, is of paramount importance as an environmental factor of indirect impact. In almost every community there are specific laws and guidelines in relation to business that determine where the activity of this or that enterprise can be deployed. Some cities, for example, have spared no effort to create incentives to attract industries to their city limits. Others, on the contrary, have been fighting for years in order to prevent an industrial enterprise from entering the city. In some provinces, the political climate is favorable to business, which forms the basis of local budget revenue from taxation. Elsewhere, property owners choose to shoulder a larger share of municipal spending, either to attract new businesses to the community, or to help businesses prevent pollution and other problems that business and the new jobs it creates can be created. ...
2.4 International environment
While the environmental factors described above affect all organizations to one degree or another, the environment of organizations operating internationally is highly complex. The latter is due to the unique set of factors that characterize each country. Economy, culture, quantity and quality of labor and material resources, laws, government agencies, political stability, level of technological development vary from country to country. In planning, organizing, incentivizing, and controlling functions, managers should take these differences into account.
When an organization begins to conduct its business outside the internal market, the corresponding procedures are subject to modification for certain specific environmental factors. As the group of researchers points out: "The firm must determine in what respect the new environment differs from the more familiar one inside the country, and decide how to change the theory and practice of management in the new environment." However, the analysis of the factors of the international environment is a difficult and urgent task.
Varieties of international business
There are several ways for an enterprise to enter the international market.
Export... The easiest way to enter international markets is to export products. While the organization continues to manufacture all of its products in Europe, it may establish an independent trading company or intermediary service to coordinate exports to facilitate transactions with foreign buyers. With the expansion of exports, an organization can create an export department with an export manager at the middle level in the management hierarchy.
Licensing... An enterprise can sell a license to manufacture its products to a foreign company or government through a royalty agreement. That is, the organization grants the foreign company the right to use patents or technology in return for cost recovery in the form of royalties or service fees.
Joint ventures... The organization of a joint venture is that two or more private companies or states investments in production facilities. The participants are equal partners in the business and profit depending on the share of the shareholding of each in the joint venture.
Direct investment... The strongest commitment to international business arises when management decides to launch their firm's products overseas and retain complete control over manufacturing, marketing, finance and other key functions.
Multinational corporations own and operate businesses in other countries. The 100 largest multinational corporations in the world have branches in more than 20 countries around the world. Many of them work in the manufacturing sector, focusing on pharmaceuticals, chemicals, electronics, agricultural and petroleum refining, synthetic fibers and electrical equipment.
International factors
In order to adapt their services and products to the characteristics or other international environment, leaders of the organization must learn to understand the factors of each international environment. If they believe that the environment of another country is similar to the internal one, there is a great danger of erroneous assumptions and decisions.
Consideration of the factors of the environment in which international business operates focuses on four factors - culture, economy, legislation, government regulation and political environment .
The culture... Culture is understood as the dominant system of values, beliefs, customs and prevailing attitudes shared by all in society. Every society has its own culture, the influence of which affects the style of everyday life.
Language is an important aspect of culture, which always creates difficulties for organizations doing business abroad. Due to the discrepancy in the meanings attributed to words, as well as problems associated with translation, barriers to the exchange of information may arise. Their impermeability can be increased by the mismatch of linguistic gestures in interacting cultures.
Differences between cultures are also expressed in the mismatch of attitudes about power, the value of work, the role of women in society, and the willingness to take risks. Researchers have found that it is human problems associated with working in a different culture that usually cause failure. Therefore, to be successful, organizations and leaders need to identify cultural differences and change interpersonal behavior accordingly, not to mention changing the style and methods of business and leadership.
Economy... Firms operating in an international environment must analyze economic conditions and trends and observe the economies of the countries in which they do or intend to do business. Analyzing the environment can help improve the efficiency of the decision-making and planning process.
Some of the economic factors that can affect doing business abroad include: wages, travel costs, exchange rates, inflation and rates. bank interest, GNP, taxation and the general level of economic development. There are other factors related to the international economic environment, although they do not have a purely economic nature: population size, levels of literacy and professional training, quality and quantity of natural resources, level of technology development, and features of competition.
Laws and government regulation... Just as organizations doing business within a country are dependent on domestic laws, so firms operating in international markets are forced to reckon with many laws and regulations. The latter relate to issues such as taxation, patents, labor Relations, finished product standards, pricing and reporting to government agencies.
Political situation... The domestic market is influenced by political events and decisions, similarly, political factors can affect international business operations. Social tensions can disrupt production or restrict marketing if unrest is directed against a foreign-owned plant or product.
3. Analysis of the environment
To determine the strategy of the organization's behavior and implement this strategy in life, management must have an in-depth understanding of the internal environment of the organization, its potential and development trends, as well as the external environment, development trends and the place occupied by the organization in it. At the same time, the internal environment and the external environment are studied by strategic management primarily in order to reveal the threats and opportunities that the organization must take into account when defining its goals in achieving them.
3.1 Analysis of the internal environment
The internal environment of the organization has a constant and most direct impact on the functioning of the organization. The internal environment has several sections, each of which includes a set of key processes and elements of the organization, the state of which together determines the potential and those capabilities that the organization has. Personnel a cut of the internal environment covers such processes as: interaction between managers and workers; recruitment, training and promotion of personnel; assessment of work results and incentives; creating and maintaining relationships between employees, etc. Organizational the cut includes: communication processes; organizational structures; norms, rules, procedures; distribution of rights and responsibilities; hierarchy of subordination. The production cut includes product manufacturing, supply and storage; maintenance of the technological park; research and development. Marketing a cut of the internal environment of the organization covers all those processes that are associated with the sale of products. This is a product strategy, a pricing strategy; product promotion strategy on the market; selection of sales markets and distribution systems. Financial cut includes the processes associated with ensuring the effective use and flow of funds in the organization. In particular, this is maintaining liquidity and ensuring profitability, creating investment opportunities, etc.
The internal environment seems to be completely permeated organizational culture , which, like the above sections, should be subjected to the most serious study in the process of analyzing the internal environment of the organization.
Organizational culture can contribute to the fact that the organization acts as a strong structure that stably survives the competition. But it may be that organizational culture weakens the organization, preventing it from developing successfully if it has a high technical, technological and financial potential. The particular importance of the analysis of the organizational structure for strategic management is that it not only determines the relationships between people in the organization, but also has a strong influence on how the organization builds its interaction with the external environment, how it treats its customers, what methods it chooses for competitive struggle. Since organizational culture does not have a pronounced manifestation, it is difficult to study it. However, there are nonetheless a few enduring points that are important to clarify in order to try to point out the strengths and weaknesses that organizational culture imparts to the organization.
In order to successfully survive in the long term, an organization must be able to predict how difficult it may face in the future, and what new opportunities may open up for it. Therefore, strategic management, studying the external environment, focuses on finding out what threats and what possibilities is fraught with the external environment.
To successfully cope with threats and effectively seize opportunities, it is by no means enough to know about them. You can be aware of a threat, but not be able to resist it and thereby be defeated. It is also possible to be aware of new opportunities that are opening up, but not have the potential to use them and, therefore, not be able to use them. Strong and weak aspects of the internal environment of an organization, as much as threats and opportunities, determine the conditions for the successful existence of an organization. Therefore, when analyzing the internal environment, strategic management is interested in identifying exactly what forces and weak sides have separate components of the organization and the organization as a whole.
Summarizing the above, we can state that the analysis of the environment, as it is carried out in strategic management, is aimed at identifying the threats and opportunities that may arise in the external environment in relation to the organization, as well as the strengths and weaknesses that the organization possesses. It is to solve this problem that certain methods of environmental analysis have been developed, which are used in strategic management. Quite famous SWOT method(an abbreviation of the English words: strength-strength, weakness-weakness, opportunity-opportunity and threat-threat) is a fairly widely recognized approach that allows a joint study of the external and internal environment. By applying the SWOT method, it is possible to establish links between the strength and weakness that are inherent in the organization and external threats and opportunities. The SWOT methodology involves first identifying strengths and weaknesses, as well as threats and opportunities, and then establishing chains of connections between them, which can later be used to formulate an organization's strategy.
First, taking into account the specific situation in which the organization finds itself, a list of its strengths and weaknesses, as well as a list of threats and opportunities, are drawn up. Once a specific list of the organization's strengths and weaknesses, as well as threats and opportunities, has been compiled, the stage of establishing links between them begins. To establish these links, a SWOT matrix is compiled, which has the following form:
On the left, there are two sections (strengths, weaknesses), in which, respectively, all the strengths and weaknesses of the organization identified at the first stage of the analysis are introduced. In the upper part of the matrix, there are also two sections (opportunities and threats), in which all the identified opportunities and threats are entered.
At the intersection of the sections, four fields are formed: the "SIV" field (strength and capabilities); field "SIA" (strength and threats); field "SLV" (weakness and opportunities); field "SLU" (weakness and threats). In each of these fields, the researcher should consider all possible paired combinations and highlight those that should be taken into account when developing a strategy for the organization's behavior.
In addition to the SWOT matrix, the analysis also uses matrix of possibilities in which the probabilities of opportunities for the organization are highlighted, and threat matrix which is used to assess threats.
3.2 Analysis of the external environment
The threats and opportunities that an organization faces can usually be categorized into seven components. These components are economics, politics, market, technology, competition, and social behavior.
The study economic Components The macroenvironment provides insight into how resources are generated and allocated. It involves the analysis of such characteristics as the value of the gross national product, inflation rate, unemployment rate, etc. Each of these factors can pose either a threat or a new opportunity for the firm. What appears to be an economic threat to one organization is perceived by another as an opportunity.
Analysis technologies allows you to discover in a timely manner the opportunities that the development of science and technology opens up for the production of new products, for the improvement of manufactured products and for the modernization of the technology of manufacturing and marketing products. Advances in science and technology bring tremendous opportunities and equally tremendous threats to firms. Many organizations fail to see the new perspectives that are opening up because the technical capacity for fundamental change is predominantly created outside of the industry in which they operate. Late in modernization, they lose their market share, which can lead to extremely negative consequences.
Political the component of the external environment should be studied first of all in order to have a clear idea of the intentions of the organs state power with regard to the development of society and the means by which the state intends to implement its policy. The study of the political situation includes finding out what programs are being implemented by various parties, what attitude the government has in relation to various sectors of the economy and regions of the country, etc.
The study competitors, i.e. those with whom the organization has to fight for the resources that it seeks to obtain from the external environment in order to ensure its existence, occupies a special and very important place in strategic management. This study is aimed at identifying the strengths and weaknesses of competitors and, on the basis of this, build your competitive strategy.
Competition is not only formed by intra-industry competitors that manufacture similar products and sell them in the same market. The subjects of the competitive environment are also those firms that can enter the market, as well as those firms that produce a substitute product. In addition to them, the competitive environment of the organization is significantly influenced by its buyers and suppliers, who, having the power to bargain, can significantly weaken the organization's position in the competitive field.
Volatile market Wednesday is an area of constant concern for organizations. The analysis of the market environment includes numerous factors that can have a direct impact on the success or failure of an organization. These factors include changing demographics, life cycles of various products or services, ease of market penetration, income distribution, and the level of competition in the industry.
Factors social behavior include the changing expectations, attitudes and mores of society. Some of the factors include prevailing feelings about entrepreneurship in society, the role of women and ethnic minorities in society. It is often social factors that create major problems in an organization. To respond effectively to change social factors the organization itself must change.
Conclusion
Having considered and analyzed the external and internal environment of the organization, it is necessary to draw the main conclusions on this topic.
Internal variables are situational factors within an organization that are primarily controllable and regulated. The main variables of the internal environment of the organization that require management attention are: goals, structure, objectives, technology and people. All internal variables are interconnected. In their totality, they are considered as socio-technical subsystems. Changing one of them affects the others to a certain extent. Improvements in one variable, such as technology, may not necessarily lead to increased productivity if those changes negatively affect another variable, such as people.
From internal variables on which the internal well-being of the organization depends, and their interaction contributes to the achievement of the overall goals of the organization. However, the success of an organization also depends on the external environment of the organization, without which the life cycle of any organization is not possible. The leader must take into account the external environment. The factors that have an immediate impact on the organization are related to the environment of direct impact, the rest of the factors - to the environment of indirect impact. Just like internal variables, environmental factors are interrelated and interact with each other. The external environment has the properties of complexity and uncertainty.
Thus, the main thing that needs to be learned is that external factors in combination with factors of the internal environment have a decisive impact on the functioning of the organization. All variables are closely intertwined and affect each other. The manager must be able to analyze all these factors in aggregate, without losing sight of any of them, and make the right decision.
External and internal environment of the organization
Any organization is located and functions in the environment. Every action of all organizations, without exception, is possible only if the environment allows for its implementation.
External environment of the organization- a set of conditions in which the organization's activities take place. It includes elements such as customers, competitors, government agencies, suppliers, financial institutions, and sources of labor that are relevant to the organization's operations. It is the source that feeds the organization with the resources necessary to maintain its internal potential at the proper level. The organization is in a state of constant exchange with the external environment, thereby providing itself with the possibility of survival. But the resources of the external environment are not unlimited. And many other organizations in the same environment apply for them. Therefore, there is always the possibility that the organization will not be able to obtain the necessary resources from the external environment. This can weaken its potential and lead to many negative consequences for the organization. The task of strategic management is to ensure such interaction of the organization with the environment, which would allow it to maintain its potential at the level necessary to achieve its goals, and thereby give it the ability to survive in the long term.
In order to determine the strategy of the organization's behavior and implement this strategy in life, management must have an in-depth understanding of both the internal environment of the organization and the external environment, its development trends and the place occupied by the organization in it. At the same time, both the internal environment and the external environment are studied by strategic management primarily in order to reveal those threats and possibilities which the organization should take into account when defining its objectives and achieving them.
The external environment in strategic management is considered as a combination of two relatively independent subsystems: the macroenvironment and the immediate environment.
Macroenvironment creates general conditions for the environment where the organization is located. In most cases, the macroenvironment is not specific to a particular organization. However, the degree of influence of the state of the macroenvironment on different organizations is different. This is due to both differences in the spheres of activity of organizations, and with differences in the internal potential of organizations.
The study economic the components of the macroenvironment allow us to understand how resources are formed and allocated. It involves the analysis of such characteristics as the value of the gross national product, inflation rate, unemployment rate, interest rate, labor productivity, taxation rates, balance of payments, accumulation rate, etc. When studying the economic component, it is important to pay attention to factors such as the general level of economic development, extracted natural resources, climate, type and level of development. competitive relations, the structure of the population, the level of education of the labor force and the value of wages.
Analysis legal regulation , involving the study of laws and other regulations establishing legal regulations and the framework of relations, gives an organization the opportunity to determine for itself the permissible boundaries of actions in relations with other subjects of law and acceptable methods of defending their interests. The study of legal regulation should not be limited only to the study of the content of legal acts. It is important to pay attention to such aspects of the legal environment as the effectiveness of the legal system, the established traditions in this area, the procedural aspect of the practical implementation of legislation.
Political the component of the macroenvironment should be studied first of all in order to have a clear idea of the intentions of public authorities in relation to the development of society and the means by which the state intends to implement its policy. The study of the political component should focus on finding out what programs different party structures are trying to implement, what lobbying groups exist in government bodies, what attitude the government has in relation to various sectors of the economy and regions of the country, what changes in legislation and legal regulation are possible as a result of the adoption of new laws and new forms that regulate economic processes. At the same time, it is important to understand the following basic characteristics of the subsystem: what political ideology determines the government's policy, how stable the government is, how capable it is to carry out its policy, what degree of public discontent and how strong the opposition political structures are, in order to use this discontent to seize power.
The study social components of the macroenvironment is aimed at understanding the impact on business of such social phenomena and processes as: people's attitude to work and quality of life, customs and beliefs existing in society, values shared by people, demographic structures of society, population growth, educational level, people's mobility , i.e. readiness to change place of residence, etc. The value of the social component is very important, since it is all-pervading, affecting both other components of the macroenvironment and the internal environment of the organization. Social Processes change relatively slowly. However, if there are certain social changes, then they lead to many very significant changes in the environment of the organization. Therefore, the organization must seriously monitor possible social changes.
Analysis technological components allows you to see in a timely manner the opportunities that the development of science and technology opens up for the production of new products, for the improvement of manufactured products and for the modernization of the technology of manufacturing and marketing of products. Advances in science and technology bring tremendous opportunities and equally tremendous threats to firms. Many organizations fail to see the new perspectives that are opening up because the technical capacity for fundamental change is largely created outside of the industry in which they operate. Having been late with modernization, they lose their market share, which can lead to extremely negative consequences for them.
In order for an organization to effectively study the state of the macroenvironment components, a special system for monitoring the external environment must be created. This system should carry out both special observations associated with some individual events and regular (usually once a year) observations of the state of external factors important for the organization. Observations can be made in many different ways. The most common observation methods are:
· Participation in professional conferences;
· Analysis of the experience of the organization;
· Study of the opinion of employees of the organization;
· Holding intra-organizational meetings and discussions.
The study of the components of the macroenvironment should not end only with a statement of the state in which they were previously or in what state they are now. It is also necessary to reveal those trends that are characteristic of changes in the state of individual important factors and try to predict the direction of development of these factors in order to anticipate what threats may await the organization and what opportunities may unfold for it in the future.
A macroenvironmental analysis system gives the desired effect if it is supported by internal management and provides it with the necessary information, if it is closely related to the planning system in the organization and, finally, if the work of the analysts working in this system is combined with the work of the specialists on strategic issues who are in able to trace the relationship between data on the state of the macroenvironment and the strategic objectives of the organization and evaluate this information in terms of threats and additional opportunities for implementing the organization's strategy.
Analysis buyers , as components of the immediate environment of the organization, primarily has as its task the compilation of a profile of those who buy the product sold by the organization. Customer research allows an organization to better understand which product will be most accepted by customers, how much sales the organization can expect, to what extent customers are committed to the product of this particular organization, how much the pool of potential customers can be expanded, what the product will expect in the future, and much other.
Studying the buyer, the firm also understands for itself how strong its position in relation to it in the bargaining process. If, for example, the buyer has a limited opportunity in choosing the seller of the goods he needs, then his bargaining power is significantly weakened. If, on the contrary, the seller should look for a replacement for this buyer with another who would have fewer opportunities in choosing a seller. The trade power of the buyer also depends, for example, on how important the quality of the purchased product is to him. There are a number of factors that determine a buyer's trading power. These factors include the following:
Correlation between the degree of the buyer’s dependence on the seller and the degree of the seller’s dependence on the buyer;
The volume of purchases made by the buyer;
Buyer's awareness level;
The presence of replacement products;
The cost for a buyer to switch to another seller;
The buyer's sensitivity to price, which depends on the total cost of purchases made by him, his focus on a particular brand, the presence of certain requirements for the quality of the product, its profitability, incentive system and the responsibility of those who make the decision to purchase.
Analysis suppliers is aimed at identifying those aspects in the activities of entities that supply the organization with various raw materials, semi-finished products, energy and information resources, finance, etc., on which the effectiveness of the organization's work, the cost price and quality of the product produced by the organization depend.
Suppliers of materials and components, if they have great strength, can make the organization very dependent on themselves. Therefore, when choosing suppliers, it is important to deeply and comprehensively study their activities and their potential in order to be able to build such relationships with them that would provide the organization with maximum strength in interaction with suppliers. The following factors determine the competitive strength of a supplier:
The level of specialization of the supplier;
The value of the cost of switching for a supplier to other customers;
The degree of specialization of the buyer in the acquisition of certain resources;
The concentration of the supplier on working with specific customers;
Importance of sales volumes for the supplier.
When studying suppliers of materials, it is necessary to consider the following characteristics of their activities:
The cost of the supplied goods;
Quality assurance of the supplied goods;
Time schedule for the delivery of goods;
Punctuality and obligation to comply with the terms of delivery of goods.
The study competitors , that is, those with whom the organization has to fight for the resources that it seeks to obtain from the external environment in order to ensure its existence, occupies a special and very important place in strategic management. This study aims to identify weak and strong side of competitors and on the basis of this to build their strategy of competition.
The competitive environment is formed not only by intra-industry competitors who manufacture similar products and sell them in the same market. The subjects of the competitive environment are also those firms that can enter the market, as well as those firms that produce a substitute product. In addition to them, the competitive environment of the organization is significantly influenced by its buyers and suppliers, who, having the power to bargain, can significantly weaken the organization's position on the competitive field.
Many firms do not pay enough attention to the possible threat from the "aliens" and therefore lose in the competition to the newcomers to their market. It is very important to remember this and to create barriers in advance on the way of entry of potential “aliens”. Such barriers can be in-depth specialization in the production of a product, low costs due to savings from large production volumes, control over distribution channels, the use of local features that give an advantage in competition, etc. However, any of these measures is effective only when it is a real barrier to the "alien". Therefore, it is very important to know well what barriers can stop or prevent a potential “alien” from entering the market, and to erect precisely these barriers.
Producers of replacement products have a very high competitive power. The peculiarity of the transformation of the market in the case of a replacement product is that if the market of the old product is “killed” by it, then it usually cannot be restored. Therefore, in order to be able to adequately meet the challenge from firms that produce a replacement product, the organization must have sufficient potential to move on to creating a new type of product.
Analysis labor market aims to identify its potential in providing the organization with personnel. The organization should study the labor market both from the point of view of the availability of personnel of the necessary specialty and qualifications, the required level of education, the required age, gender, etc., and from the point of view of the cost of labor. An important area of study of the labor market is the analysis of the policies of trade unions that have influence in this market, since in some cases they can severely restrict access to the labor force necessary for organizing.
Internal environment of the organization- this is that part of the overall environment that is within the organization. It has a constant and most direct impact on the functioning of the organization. The internal environment has several sections, each of which includes a set of key processes and elements of the organization, the state of which together determines the potential and those capabilities that the organization has. Frame cut the internal environment covers such processes as the interaction of managers and workers; recruitment, training and promotion of personnel; assessment of work results and incentives; creating and maintaining relationships between employees, etc. Organizational cut includes: communication processes; organizational structures; norms, rules, procedures; distribution of rights and responsibilities; hierarchy of subordination. V production cut includes product manufacturing, supply and warehouse management; maintenance of the technological park; research and development. Marketing slice internal environment of the organization covers all those processes that are associated with the sale of products. This is a product strategy, a pricing strategy; product promotion strategy on the market; selection of sales markets and distribution systems. Financial cut includes the processes associated with ensuring the effective use and flow of funds in the organization. In particular, this is maintaining liquidity and ensuring profitability, creating investment opportunities, etc.
The internal environment seems to be completely permeated organizational culture , which, like the above sections, should be subjected to the most serious study in the process of analyzing the internal environment of the organization.
An understanding of organizational culture can be obtained from the various publications in which the organization presents itself. An organization with a strong organizational culture is characterized by an emphasis on the importance of the people working in it. Such organizations, in their publications about themselves, pay great attention to explaining their corporate philosophy and promoting their values. At the same time, organizations with a weak organizational culture are characterized by a tendency in publications to talk about the formal organizational and quantitative aspects of their activities.
An understanding of organizational culture provides an observation of how employees work in their workplaces, how they communicate with each other, what they prefer in conversations. Also, the understanding of organizational culture can be improved if you become familiar with how the career system in the organization is built and what criteria serve to promote employees.
Understanding organizational culture is facilitated by studying whether there are strong commandments, unwritten norms of behavior, ritual events, traditions, heroes, etc. in the organization, how aware all employees of the organization are and how seriously they take it all. If employees are knowledgeable about the history of the organization and take the rules, rituals and organizational symbols seriously and with respect, then one can assume with high degree the reality that the organization has a strong organizational culture.
In order to survive in the long term, an organization must be able to predict what difficulties may arise in its path in the future, and what new opportunities may open up for it. The strengths and weaknesses of the internal environment of the organization, as well as the threats and opportunities, determine the conditions for the successful existence of the organization. Therefore, when analyzing the internal environment, strategic management is interested in identifying exactly what strengths and weaknesses the individual components of the organization and the organization as a whole have.
Summarizing the above, we can state that the analysis of the environment, as it is carried out in strategic management, is aimed at identifying the threats and opportunities that may arise in the external or internal environment of the organization, and the strengths and weaknesses that the organization possesses. It is to solve this problem that certain methods of environmental analysis have been developed, which are used in strategic management.
Used for environmental analysis SWOT method (an abbreviation made up of the first letters of the English words "strength", "weakness", "opportunities" and "threats") is a fairly widely recognized approach that allows a joint study of the external and internal environment. Using the SWOT method, it is possible to establish lines of communication between the strength and weakness that are inherent in the organization and external threats and opportunities. The SWOT methodology involves first identifying strengths and weaknesses, as well as threats and opportunities, and then establishing chains of communication between them, which can later be used to formulate an organization's strategy.
First, taking into account the specific situation in which the organization is located, a list of its strengths and weaknesses, as well as a list of threats and opportunities, are drawn up.
After a specific list of the organization's strengths and weaknesses, as well as threats and opportunities, is drawn up, the stage of establishing links between them begins. To establish these links, a SWOT matrix is drawn up, which has the following form (Fig. 3.2).
Rice. 3.2. SWOT Matrix
On the left, there are two sections (strengths, weaknesses), in which, respectively, all the strengths and weaknesses of the organization identified at the first stage of the analysis are introduced.
In the upper part of the matrix, there are also two sections (opportunities and threats), in which all the identified opportunities and threats are entered.
At the intersection of the sections, four fields are formed: the “SIV” field (strength and possibilities); field "SLV" (weakness and opportunities); SIU field (strength and threats); field "SLU" (weakness and threats). In each of these fields, the researcher should consider all possible paired combinations and highlight those that should be taken into account when developing a strategy for the organization's behavior. For those couples selected from the SIV field, a strategy should be developed to leverage the strengths of the organization in order to capitalize on the opportunities that have emerged in the external environment. For those couples who found themselves on the field of “SLV”, the strategy should be built in such a way as to try to overcome the existing weaknesses in the organization due to the emerging opportunities. If the pair is on the “IMS” field, then the strategy should involve the use of the strength of the organization to eliminate threats. Finally, for couples on the SLU field, the organization must develop a strategy that will allow it to both get rid of the weakness and try to prevent the threat looming over it.
When developing strategies, it should be remembered that opportunities and threats can turn into their opposite. For example, an untapped opportunity can become a threat if a competitor exploits it. Or, conversely, a successfully avoided threat can create an additional strength for an organization if competitors have not eliminated the same threat.
For the successful application of the SWOT methodology - analysis of the organization's environment - it is important to be able not only to reveal threats and opportunities, but also to try to assess them in terms of how important it is for the organization to take into account each of the identified threats and opportunities in its strategy of behavior.
To assess the opportunities, the method of positioning each specific opportunity on the opportunity matrix is used (Fig. 3.3). This matrix is built as follows: from above is the degree of influence of the opportunity on the activities of the organization (strong influence, moderate influence, small influence); on the side is the likelihood that the organization will be able to take advantage of the opportunity (high probability, medium probability, low probability). The nine capability fields obtained within the matrix have different meanings for the organization. Opportunities that fall on the "BC", "VU" and "SS" fields are of great importance to the organization, and they must be used. Opportunities that fall on the fields “CM”, “OU” and “NM” practically do not deserve the attention of the organization. With regard to the opportunities that have fallen into the remaining fields, management should make a positive decision about their use, if the organization has sufficient resources.
Rice. 3.3. Opportunity matrix
A similar matrix is compiled for assessing threats (Figure 3.4). Above are the possible consequences for the organization, which can lead to the implementation of the threat (destruction, critical condition, serious condition, "light" bruises). On the side is the probability that the threat will be realized (high probability, medium probability, low probability).
Rice. 3.4. Threat matrix
Those threats that fall on the fields "VR", "VK", "SR" pose a very big threat to the organization and require immediate and mandatory elimination. Threats that hit the "VT", "SK" and "HP" fields should also be in the field of vision of senior management and be eliminated as a matter of priority. As for the threats on the fields of "NK", "ST" and "VL", then an attentive and responsible approach to their elimination is required.
The threats that have fallen on the remaining fields should also not fall out of sight of the organization's management, and careful monitoring of their development should be carried out, although the task of their primary elimination is not set.
The internal environment of an organization is that part of the overall environment that is within the organization. It has a constant and most direct impact on the functioning of the organization. The internal environment has several sections, each of which includes a set of key processes and elements of the organization, the state of which together determines the potential and those capabilities that the organization has.
Frame cut covers: interaction of managers and workers; recruitment, training and promotion of personnel; assessment of work results and incentives; creating and maintaining relationships between employees, etc.
Organizational cut includes: communication processes; organizational structures; norms, rules, procedures; distribution of rights and responsibilities; hierarchy of subordination.
V production cut includes the manufacture of the product; supply and warehouse management; maintenance of the technological park; research and development.
Marketing slice covers all those processes that are associated with the sale of products. This is a product strategy, a pricing strategy; product promotion strategy on the market; selection of sales markets and distribution systems.
slice includes the processes associated with ensuring the effective use and flow of funds in the organization.
The internal environment is completely imbued with organizational culture; it can contribute to the fact that the organization acts as a strong structure that stably survives in the competitive struggle. But it may also be that organizational culture weakens the organization, if it has a high technical, technological and financial potential. Organizations with a strong organizational culture tend to emphasize the importance of the people who work in it. An understanding of organizational culture provides an observation of how employees work in their workplaces, how they interact with each other, and what they prefer in conversations.
The organization's activities are carried out under the influence of many factors that exist inside and outside the organization.
Internal factors are called variables of the internal environment, which is regulated and controlled by management.
The main elements of the internal environment:
1) goals - a specific end state or desired result, towards which the organization's efforts are directed. The general or general goal is called the mission by which the organization declares itself in the market. Goals are set during the planning process.
2) structure - the number and composition of its subdivisions, management levels in a single system. Its purpose is to ensure the effective achievement of the goals of the organization. It includes communication channels through which information is transmitted for decision-making. With the help of the decisions made, coordination and control over the individual structural divisions of the organization is ensured.
3) task - work that must be done in a predetermined way and on time. The tasks are divided into 3 groups: work with people, work with information, work with objects.
4) technology - the accepted order of relations between certain types of work.
5) people - the team of the organization.
6) organizational culture - a system of collectively shared values, beliefs, influencing the behavior of individual employees, as well as the results of work.
All marked variables interact with each other and allow to ensure the achievement of the goals of the organization.
Best regards Young analyst
