Organization Development and Change †MyAssignmenthelp.com

Question: Discuss about the Internal and External Contextual Factors. Answer: An organization can be defined as an individual or a group of people who collaborates together to achieve some specific commercial goals. Some business organizations are set up in order to earn money for the owners and some non-profit organizations are for the public purposes. In other words, an organization can be defined as a structured group of people need to pursue a collective goal (Cummings Worley, 2014). The objective of this essay is to gain some knowledge and understanding of the internal and external contextual factors that will mark its impact on a business organization and its way of making decisions. The essay throws light on a hypothetical business start up, a brief description of the organization, its size, the industry and the country or countries in which it will operate and the strategies and visions it will adopt. It also includes the internal and external contextual factors that will impact the business organization, the probable risks of the business, the practices which needs to be adopted to enhance the organizational performance, the most important functions of the organization and its relation to its performance. I am planning to start a business of costume jewelry in Sydney. It will manufacture different designs of earring, necklaces, pendants and bangles. All the products will have unique designs which will differentiate it from other jewelers of the city, attracting more and more customers. Initially, the size of the jewelry shop would be medium, depending on the capital. The customers will have a wide range of costume jewelry offerings to choose from. They will also have the facility to customize the items based on their choice. Moreover, the design of a shop highly matters in order to attract people. The shop will have colorful lights all over with wall arts. Any business organization has some internal and external environmental forces which will impact its growth. It is beyond the control of the business owner and their management team which will affect the organization. These forces can be the customers, competitors, creditors, socio cultural organizations, government, national and international organizations, political parties and others. Some of the above forces may directly or indirectly affect the progress of the business (Cummings Worley, 2014). A business organization has some general and specific forces. General forces are the ones which affect an individual firm indirectly and specific forces affect an enterprise on a daily basis. Moreover a business organization is dynamic and it keeps changing, be in terms of technological improvement, change in the preferences of consumers or the entry of any new competition of the organization in market. Uncertainties are there in any business organization because it is too difficult to pre dict what is going to happen in the future, especially when the changes are occurring too frequently (Baker, 2014). The internal environmental forces have direct impact on any business organization; on the other hand the external environmental forces have indirect influence on any business organization. Some of the internal forces which will have impact on any business organization are discussed here. The founders value system plays a very important role on the objectives of the business organization, choice of business, its practices and policies (Fransen, 2013). Vision is also an important factor in achieving the mission or aim of any organization. If the vision or prediction is wrong then it can hamper the progress of the business organization. Moreover, the business organizations structure also influences its decisions. The structure refers to the organizations board of directors, management, employees and others. The organizations style and structure may lead to the delay of making any decision (Kuratko, Hornsby Covin, 2014). The external forces have indirect impact on the business organization. Some of them are mentioned here. The working or operating environment of the organization needs to be professional as it has indirect impact on the organizations operations. The suppliers need to be efficient as they supply the raw materials to the organization (Wheelen Hunger, 2017). Along with these factors, the organization should be able to maintain a good amount customers base. A businesss progress and existence depends on its customers. The intermediaries of marketing which include agents and other middlemen help any company to find its customers and financers. If the marketing is not done properly then it would impact the business organization. Moreover, a business progress depends on how much media attention it is getting. Media helps in getting mass attention, so adequate media coverage is required for its growth (Kuratko, Hornsby Covin, 2014). There are also some business risks which will confront the organization. It can be categorized into five factors. Those factors can be economic, social, political, legal and technical. The economic environment refers to the business economy and the socio economic infrastructure. If the businesss economy is not good enough it will risk its growth (Wild, Wild Han, 2014). Moreover, the sociological factors like cost, value system of the society, conventions, customs, labors mobility and others have a huge impact on the business organization. The political factors include the influence of any political organization, the governments ideology or the party which is in power, philosophy of the political parties, extent and the nature of bureaucracy, influence of the primary groups and more (Kaplan Mikes, 2012). Legal factors are the flexibility of the law and the adaptability of other laws which are governing the business organization. It may also include the courts rulings and decisions. With all the above factors, comes the last one which is the influence of technical environment. Any business is largely influenced by technical development. The technology which is adapted by the organization determines the quality and the type of products or services it will produce and the equipments which are used (Sadgrove, 2016). There are several business practices that need to be adopted to enhance organizational performance. Those are discussed here. Firstly, it is necessary to choose the right equipment for any business start up. It reduces the chance of any risky errors and it will improve the way of doing business. Therefore, before buying any equipment, it is important to thoroughly check the present as well as future needs of any business. The equipments should be in good condition along with several features, which will give good results. If any replacement is required, it should be done beforehand (Kaplan Mikes, 2012). Secondly, use of right technology to improve the operations. With the advent of digital media, marketing has gone too far. Digital marketing can be done to reach the international customers. Web technology helps in improving the business marketing and reach to the furthest corners. Online purchases would help the business getting international acclamation, it should be tracked and ch ecked whether any customer is facing any kind of problem or not, on a daily basis (Fransen, 2013). Thirdly, employees behavior should be checked daily. It is important to keep a track record of all the employees working for the organization. If they are facing any kind of problem in the organization, it should be immediately taken care of. Fourthly, while doing the business, it is important to keep a record of the product which is having the most percentage of profit and which needs improvement. There should be a suggestion box for the customers, which will help in the improvement of the business organization. Customers should have lucrative opening offers and discounts to gain more and more attention. Moreover, media attention is necessary for any business start up, so the opening ceremony should have media coverage (Chen et al., 2014). This essay also discusses the most important functions within the business organization and how it is related to its performance. Firstly, the production function, which is the creation of products and services, undertaking several processes and using proper equipments. The production depends on the organization, labors, capital, materials and facilities for the smooth operation of the business. Moreover, it is important to meet the delivery schedules within the given time and perform the operations at the minimal costs (Schaper, 2014). Secondly, the function of marketing, which is the way of getting the products and services to the consumers, satisfying their desires and needs. It is the function of bringing together the producers of the organization with its customers, in a relationship of exchanging and ownership transfer takes place. Marketing involves product distribution, promotion and pricing. This function also involves the digital marketing, which is very important nowadays. It enhances product sales and marketing. Thirdly, the finance function of the business organization, which includes decisions related to investment, finance and dividend (Garca-Morales, Jimnez-Barrionuevo Gutirrez-Gutirrez, 2012). Fourthly, the human resource function deals with the human side of any business. It maintains an effective and capable workforce, motivating the employees to give their fullest in order to achieve the goals of the organization. Fifthly, the information function, which is basically, concerned with the track records of any business. It helps in maintaining the organizational records, analyzing and providing information, operational function as well as public relations function. Last but not the least, is the innovation function, which is the implementation of new and innovative ideas or opinions to enhance the business performance. The ideas can be of anyone, be it the owner, or the associates or even the consumers suggestions (Zikmund et al., 2013). To conclude, an organization is set up to achieve certain goals. Various organizations have different policies; objectives and work flow which help them grow. While setting up a business it is important to keep in mind the above factors. No matter how small the business organization is, it is necessary to keep all sorts of records and check that marketing is done properly. Marketing is the powerhouse of any business organization; it is responsible for a successful organization. Moreover, digital marketing must be done which will be beneficial for any industry. It helps the organization reach the international markets and gain mass attention. References: Baker, M. J. (2014).Marketing strategy and management. Palgrave Macmillan. Chen, Y., Wang, Y., Nevo, S., Jin, J., Wang, L., Chow, W. S. (2014). IT capability and organizational performance: the roles of business process agility and environmental factors.European Journal of Information Systems,23(3), 326-342. Cummings, T. G., Worley, C. G. (2014).Organization development and change. Cengage learning. Fransen, L. (2013). 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