Task

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Task

Introduction

This is a medium-size business organization which is facing significant. For many years, the business has operated in a stable environment, protected by tariffs and government policies hostile to foreign competition. Recently, there has been a change in government policies and the market is now more accessible by overseas business competitors. Technology used by the industry is also changing, resulting in the development of new products. Competition has become intense as rival firms introduce innovative products to increasingly sensitive customers.

1. What are the Operative goals in your organization?

This is a medium-size business organization which is facing significant challenges. The medium size company is one that employs fewer than 500 people and that generates sales of less than 20$ million annually (Bowman, 2001, pp501). For many years, the business operating in a stable environment had relatively mechanistic characteristics, highly centralised decision making, many rules and regulations, and hierarchical communication channels. Much emphasis was on vertical coordination, with limited delegation between management levels (Bowman, 2001, pp501). Recently, there has been a change in government policies and the market is now more accessible by overseas business competitions. The organization turns to operating in highly unstable and uncertain environments had more organic characteristics, decentralised decision making, few rule and regulations, as well as hierarchical and lateral communication channels. Horizontal co-ordination was emphasised, which considerable delegation between levels.

2. How do they stem from the organization's external environment?

The external environment, also called the mega-environment or general environment, consists of the external broad conditions and trends in the societies within which the organization functions.

The mega-environment consists of five major elements described by Bartol et al (2002). The major elements of the mega-environment are:

* International

The international element is concerned with developments in countries outside the firm's home country that may potentially affect the organization. The changes ...