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Organizations and Profits

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Every business organization exists to make profits and succeed among others. A business depends on capital and human resource to be able to achieve this profit objective. In the economic driven world every business want to move ahead of all others in becoming the most preferred provider of goods and services in a given locality. Other businesses aspire to become globally recognized in delivering quality goods and services. What is most important is internal organization of a business in such a manner that external conditions are foreseen and taken into consideration during the actual planning and implementation of business of various plans. An organization must have strategies well informed to move it to the next level in service provision.

These strategies are geared towards achievement of various objectives that the organization seeks to achieve at a particular period of time. In order to excel a business must consider the needs of the people it seeks to serve and ensure provision of goods and services which are in demand among the customers. Customers are a very key component in any business organization. Means must be devised to ensure customers’ needs are captured and incorporate into the overall design or manufacture of goods. Every business organization invests a specific component of customer needs or take advantage of identified customer needs to provide items which can meet those needs. So long as a business organization remain current and relevant to the needs of customers, while taking into consideration what others in the market are doing, it will always thrive. One of those other factors which an organization must consider is the dimensions of external business environment and economic systems in the planning and development of organizational objectives and strategies (Lawrence 200).

The external environment of a business consists of competitors, economic system, social system, monetary system, political/legal system, and environmental systems. All these influence how an organization will be organized in order to maximize its profits. The actions, policies and strategies which an organization will come up with to guide the operation of a business should be able to address these factors to enable management take appropriate measures in order to ensure an organizations thrives enough to cater for all running costs and make enough surplus for savings and expansion purposes. The growth of an organization in terms of its capital base and physical expansion to serve many customers is a sure indicator of an organization which is operating with acknowledgment of the external environment.

In a liberal market as exists in many countries globally you will find several companies or firms providing similar services in the same geographical market. The fact that there are so many organizations which do a business you are interested in should not prevent you from starting that business. To be able to get customers you must develop strategies which have to be good enough to attract customers in the midst of several oher businesses.  In order to survive in this liberal market, an organization must come up with a unique feature which will make it stand out and be noticed among customers. Sometimes it might not be necessary to come up with any unique feature especially when the customers demanding for that service are many. Duplication of services might not reduce the profits made another organization providing similar services since customers were never satisfied. However, in many cases the demand and supply are in equilibrium. For you to succeed to shift some of the customers who are already satisfied with the service they are receiving, you must come up with something attractive, usually taking advantage on the existing weaknesses in the already available service providers in the market.

A good example is existence of a super market is a small business centre where small retail shops were the ones serving people. Many of these shops are not well stocked and a customer has to move from one shop to another in order to obtain all the goods you need. On the other hand in a super store everything is under one roof. Customers will shift to the all in one stop store where they can shop everything they need in the specific quality and quantity they need. Small businesses will suffer as many of their customers will revert to that large shop. In order for a small business to thrive in that locality, one has to make sure its store is stocked and located strategically where customers can access it easily. It can also offer discounts to customers who purchase some specific goods or spend a given amount in the store.  This is the only way to meet competition from the super store and there are many stores which have thrived in the middle of large stores. In such a way, it is possible for one to make enough profits in order to sustain a business. This is the greatest factor in an external environment and success demands that you keep on observing on trends and taking necessary measures to ensure you always remain ahead of demand and customer needs (Vishwajeet 120).

The economic system in a particular country or sometimes globally influences demands for some services or goods. When the economy is growing many people are able to access funds and this increases their purchasing power. In such a period it is possible even for business and other organization to provide services as the demand will be high. When people have more money, the demand for non basic goods increases hence the effects trickle down to the entire market. The flow of money in a given society in terms of earning, borrowing, saving and spending does also to a large extent influences earnings of business people. Banks play a great role in ensuring an organization succeeds. When interest rates in banks are high, there decreased borrowing, there is little to spend, businesses suffer as sales go down. When interests are low, many people can seek for loans and provide variety to the market leading to more competitiveness to the advantage of the consumer (Bryon 69).

Purchasing also depends on the behaviors, habitts, ideas, and attitudes entertained by a certain group of people.  Success of any organization requires that one considers the kind of people in the environment where the service is being provided. There are various lifestyles adopted by a certain group of people. In a location where a large proportion of the population do not use meat for medical or as a healthy choice, a business which provides meat and meat products is bound to fail due to low demand. Some people could be having some taboos in relation to some goods or services or service providers. Some of these develop due to misconception among people or myths which develop with time. To change behavior is a very hard thing that requires application of behavioral approaches. This might not feasible always with a business organization. In that case it will be good to ensure understand the social structure before investing in that sector. It is advisable to understand the demographic structure of a particular population in order to determine which goods and services are ideal for them. In using demographic surveys you are able to know the size of the population you intend to serve and the quantity of goods which must be produced to meet the demand which you intend to create.

Environmental sustainability is closely linked with business activity. Issues of climate change have influenced the ability many business activities. The legal system of many countries have established rules which control emissions from companies due to high alert on global warming. Other than environmental protection laws, there are also other policies and regulations which an organization must abide by in order to run a business in a particular region. In case you don’t abide by those rules, the business will incur fines which might make a business to close or suffer a great financial loss. It might be necessary to contract a legal firm to help you in identifying these laws and guide you on what is necessary to comply with each of them.  It is the role of a legal system to make rules which will encourage competitiveness since this will be advantageous to consumers as they will get goods at a cost that is friendly. The judicial system’s commitment to ensure such rules and policies which exist in a country are adhered to will prevent deliberate violation of a country’s business laws. A country where there is no impunity will attract investors and discourage fraud hence boosting a country’s economy through business promotion (Janeen, 23).

Political stability also contributes greatly to the success of any business. Democratic political systems where everybody is bound to some responsibilities and rights ensure that there is fairness to all citizens. This encourages people to work to earn a living. As everybody is committed to their work and the government is on the other hand committed to provide all people with their needs, there peace and security. In such an environment investors are attracted to provide services. This can result in reduction of cost of goods and services. 

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