Forces That Affect Organization

Subject: Business
Type: Evaluation Essay
Pages: 3
Word count: 640
Topics: Business Plan, Management, Marketing, Work Experience

Evaluating an external business environment is an essential step in understanding and recognizing the threats and opportunities which enterprises face. Some of the most significant impacting forces affecting my firm include; market forces, technological forces, and economic forces.  The market forces which influence my organization significantly include those forces that shape the demand, supply as well as the products price. Making of marketing decisions is among the essential management roles required to direct the organization. Marketing managers are obligated to making decisions on product strategies, pricing, place, and promotion to successfully attain the profitability and sustained the growth of a business over time. According to McDonald, & Wilson, (2016), the marketing managers are required to evaluate the future and the current situation concerning the customers in the organization’s target markets. Salemi Industries failed to assess the customer environment as it never obtained information about the potential and the current clients, their current needs,  the essential features of the competitor’s and the firm’s products that are perceived by clients as meeting their needs as well as the anticipated customer needs changes. Even if the usage of mobile phones was increasing at a high rate, the founders of the Salemi Industries failed to consider the anticipated changes that were likely to occur in the needs of the customers. Thereby, due to lack of knowledge, Salemi Industries did not adequately understand its target markets. 

Technological forces are the other most vital forces found influencing my organization. Technology may catapult a given organization to success, or it may lead to its dissolution. Technological change in business involves the enhancement of the act of making products or developing the processes of making products. Technological forces influence how a company ventures into new opportunities (Forsgren & Johanson, 2014). Furthermore, adoption of new technology by a firm may create new services, and products hence end up developing the new market for the organization. In the case of Salemi Industries, the company made a huge mistake by failing to put into consideration the emerging technology which consisted of the rising popularity of the technology of text messaging and several other non-voice applications of communication technology. These emerging technologies significantly affected the marketing of its products. Therefore, the technology force mainly affects the profitability of Salemi Industries as many people were exposed to ditch the products of the company and significantly embraced the emerging technologies.

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The other force involved in affecting my organization is an economic force. The economic effects of a particular company are mostly associated with services, money, and goods.  The economic forces are among the many external environmental forces that affect companies significantly (Chittithaworn, Islam, Keawchana, & Yusuf, 2011). Even though the economic forces in my firm are found to be related to the economy on a broader scale, they have profound implication on the company’s inner-workings. In the case of Salemi Industries, the economic force seen to affect the performance of the company was that of demand and supply.  The economic power affected by the company products had little demand in the market because there were several other emerging technologies of the technology applications that improved communication. According to Wang, Chen, & Chen, (2012), little demand for a company’s products in the market leads to failure of the company regarding profitability.

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  1. Chittithaworn, C., Islam, M. A., Keawchana, T., & Yusuf, D. H. M. (2011). Factors affecting the business success of small & medium enterprises (SMEs) in Thailand. Asian Social Science7, 5, 180.
  2. Forsgren, M., & Johanson, J. (2014). Managing networks in international business. Routledge.
  3. McDonald, M., & Wilson, H. (2016). Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons.
  4. Wang, C. H., Chen, K. Y., & Chen, S. C. (2012). Total quality management, market orientation and hotel performance: The moderating effects of external environmental factors. International Journal of Hospitality Management31, 1, 119-129.
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