BUSIG1 Introduction To Business Concepts
Porter’s five forces in an organization’s external environment are such as –
The threat of new entrants in the first force and the challenges that are associated with the organization or industry includes those new companies and competitors are entering the business which leads to a threat to the organization and managers need to identify what potential competitors or entrants are entering into the business. As several companies analyze before entering into the industry, they will realize the potential of expansion in the industry.
Another one is the threat of substitutes in the market – The threat of new substitutes are considered a porter’s five forces as well as it is a challenge in the market, and substitutes are always available in the market and managers need to analyze what are the substitutes as well as what is the impact on the organization of those substitutes (Zhang, et al., 2020).
Huge Competition exists – Huge competition is existing in every industry if we consider the entertainment industry then huge competition is the present entertainment industry and it is affecting the organization, and managers have to prepare strategies to retain customers as well as retain the market share.
Bargaining power of supplies – Bargaining power of supplies is affecting the external environment of the organization and the demand is high so the bargaining power is also high.
Bargaining power of buyers – It is also high because the demand of consumers is also increasing, and the cost of consumers of switching is also high considered (Zhang, et al., 2020).
Planning, organizing, leading, and controlling are the four functions of management, and they all are different from each other. All four functions of management that are also contributing to and determine the performance of an organization.
The process of planning deals with identifying the goals that need to achieve as well as what direction need to follow, and that is the determination of the required resources as well as identifying actions and activities to achieve the organizational goals.
Organizing is another function of management, and it is the process of building the coordination between all the activities and staff members, as well as coordinating among all the resources (Jones-Washington, 2018).
Leading is also known as direct, and it is another function of management. Leading is the process of directing and motivating employees by managers and directing employees for the full dedication to achieve their goals.
Another function of the management is controlling which the performance of employees will be measured and variances or deviations are identified between the projected performance as well as the actual performance of the organization. Managers’ abilities to handle each one that is affecting the organizational performance is that managers have to perform all the functions of management to maintain the organizational performance (Jones-Washington, 2018).
Leading is the process that is used in the organization to provide instructions, and guidance to all the several teams, controlling helps observe the performance of the organization, and measure the performance from time to time, and organizing is the process of establishing the priorities to maintain the organizational performance.
There are three different levels of management including top-level management, middle-level management as well as lower-level management.
Top-level Management – First one is top level of management which includes the board of directors, as well as the CEO of company and managing director. Their activities include that they work on to oversee the goals, policies, as well as procedures of the company. The main focus is on the planning of activities and goals (Steiger, et al., 2014).
Responsibilities of Managers in Top Level Management include issuing necessary instructions to all team members, laying down their objectives and policies, appointing the executives of middle-level management, also preparing the strategic plans.
Middle-level management – Second one is executive level of management, in which all the members are directly accountable to the top-level management, and they are devoting more time to direction functions as well as organizational functions (Steiger, et al., 2014).
The responsibilities of Managers in the Middle-level management include forming plans for the subunits, sending reports to top management, also they are entitled to evaluate the performance of subordinates, and then inspire the managers who are working under them so that their performance can be improved.
Lower-Level Management –Third one is lower level of management and another name of lower-level of management is the supervisory level of management which includes the supervisors, section, foremen, and managers at the lower level of the organization are focusing on the coordination as well as execution of the day-to-day activities.
Roles and responsibilities of managers include jobs that will be assigned to workers. Moreover, the lower-level managers have to oversee the quality of the production and instruct workers on routine activities.
The organizational environment is considered very important for managerial success because it is a major consideration. The organizational environment includes the scanning of internal as well as external environments, in which all the opportunities, threats as well as strengths, and weaknesses of the organization can be identified. The strategic decisions can also be influenced that has been made by the executives. Understanding the organizational environment by managers for the success of the management in the organization includes the understanding of the functional behavior of employees, trends, and motives of the organization (Errida, 2021).
Key elements of the organizational environment consist of government, economy, customers, competition, public opinion, and there are three different types of environments includes the internal environment which is also known as the microenvironment, the external environment is known as the macro environment, and general environment also known as the industry environment.
The impact of the organizational environment is that complexity of the environment will also be measured by the environmental factors and they have a direct impact on the performance of employees. Organizational factors such as relationships between employees, relations between the employer and employees, organizational structure, mode of leadership, decision-making process. Material factors for the organizational environment include attracting employees and allowing them the incentives that employees are entitled (Errida, 2021).
The external environment of the organization has an impact on the jobs and employment, also they have the uncertainty of environmental, and the relationships of stakeholders. Organizational culture is also affecting the managers that how they are behaving, plan, and organizing.
Errida, A., & Lotfi, B. (2021). The determinants of organizational change management success: Literature review and case study. International Journal of Engineering Business Management, 13, 18479790211016273https://doi.org/10.1177/18479790211016273
Jones-Washington, M. (2018). The Effectiveness of Fayol’s Principles of Management. https://scholarworks.calstate.edu/downloads/76537391v
Steiger, J. S., Hammou, K. A., & Galib, M. H. (2014). An examination of the influence of organizational structure types and management levels on knowledge management practices in organizations. International Journal of Business and Management, 9(6), 43. https://pdfs.semanticscholar.org/b6bb/6d5c39de433102a16fd67d0c9d78984b2721.pdf
Zhang, C., Leng, M., &Zhou, L. (2020). Developing strategies of social enterprises explained using Porter’s five forces analysis model: Taking mental challenged car wash as an example. International Journal of Organizational Innovation (Online), 12(3), 50-64. https://www.ijoi-online.org/attachments/article/192/0972%20Final.pdf