Chapter III. The factors of external environment.

When considering the external environment of the organization it is important to understand that the characteristics of the environment are different, but at the same time connected with its factors. Characteristics of the interconnectedness and complexity, mobility and uncertainty describe the factors of both direct and indirect impacts.

Classification of factors of external environment due to their diversity is quite different and in its basis there can be based on various principles. But in management adopted, and most of them share it, classification of the factors on the factors of the direct and indirect effects. In the environment of the direct impact can be identified such as: suppliers, laws and governmental authorities, consumers and competitors. [George A.Steiner and John B.Miner, Menedgment Policy and Strategy (New York: Macmillan, 1977)]

3.1. Suppliers.

From the point of view of system approach the organization is the mechanism of transformation of inputs and outputs. The main varieties of inputs - the materials, equipment, energy, capital and labor. The dependence between the organization and the network of suppliers, to ensure the input of these resources, is one of the most striking examples of the direct impact of the environment on the organization and success of the organization. Obtaining resources from other countries can be more profitable from the point of view of price, quality or quantity, but at the same time dangerous gain such factors mobility of environment, as fluctuations in the exchange rate or political instability.

In some cases all of the giving of the region conducts business with one or practically with one supplier. So they all get equal dependence from actions of the supplier. A good example is the provision of energy. All organizations obtain energy at prices set by the state, and can rarely find an alternative supplier, even if the entity believes that the current energy saving inadequate or too expensive. Changes such as the increase of the prices of the supplier facilitates the organization to the extent that it consumes energy. For example, the sharp rise in gasoline prices, much more is reflected in firms that are dependent on gasoline, in particular, dealing with road and air transportation of cargo and passenger transport.

3.2. The Materials.

Some organizations rely on the continuous inflow of materials. Examples: engineering firms; firms that distribute goods (distributors); and retail stores. The inability to ensure supplies in the right quantities can create great difficulties for such organizations. For example, in that it would cost the absence of at least one detail, which is installed at a certain point in an assembly line, for example, the firm "GM". Similarly, if the shop is deprived of some popular product, consumers will most likely go to a competitor.

The Japanese consider the creators of the methods of limitation of stocks. Firms for which the materials inputs, believe that what is needed for the next phase of the production process must be delivered to the principle of "just-in-time". This supply system requires close cooperation of the manufacturer with the highly interrelated suppliers. In other countries may need to search for alternative suppliers or maintain a significant amount of reserves. Large manufacturers of beer, for example, conclude contracts with several Manufacturer of paper the card of the standard size - under the six-pack of beer and ensure the steady flow of a packing material consumed in large quantities. In this way the producers of beer ensure their safety in case of a strike or production difficulties, which in the situation of a single provider of paperboard would have prevented beer production in popular for six cans packages. However, the reserves of the associate of money that must be spent on materials and storage, and not for other needs. This interdependence between money and suppliers of raw materials well illustrates the interconnectedness of the variables.