The System Influence and how it is Influenced by the Environment (Essay Sample)

The system influence and how it is influenced by the environment
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The system influence and how it is influenced by the environment
Forces that rotate around the business influence the whole business system and its management. Therefore, the management is forced to respond accordingly to make business operations effective towards achieving the company's goals (Fernando 2011). These forces are either internal or external environment and the response that managers give is often in the form of organizational change and restructuring to counter these forces. The internal environment is comprised of employees' morale, management structure, financial changes and culture changes within the organization. While the external environment is composed of factors that occur outside the company and includes, economic changes, government regulations, political factors, competitors and the industry within which the company is operating.
These factors influence the whole system through the reaction that managers give upon their occurrence. The external factors such as competitor's behavior affect the business capability of making profits. Therefore, the business has to seek continually an edge that can place it above others. The management is forced to differentiate products (Longhofer, Kubek & Floersch 2010). The management can also change its approach to allocating scarce resources accordingly in times of economic cycles. The internal environment is interaction in the organization towards the consumers. T...