Question

What are the things that occur independently outside the organisation?

Answer 1

Answer: Things that occur independently outside the organization are as follows:-

i) Business Cycle - The stage at which organization currently operates is under the influence of business cycle which is the economic impacts like inflation, shift in Market demand,Recession,Growth or decline stage which operates on global level which directly affects the organization working regarding production,procurement,price tagging etc

ii) Tariff/Trade war - The imposition of trade barriers like tariff (Imposition of import duties in foreign lands),Price war by devaluating or evaluation of foreign currency to take competitive advantage by rival nations in order to mend the international trade in their favor impacts the export of the organization

iii) Cartel- The trade cartel formed by regional trade groupings/producers of goods of extreme importance involving of alliance of like minded nations determining the price offering in their trade impacts the local economy

iv) Substitute products- Any innovation made by rivals leading to displacement of organization's product by offering advanced attribute in the products to the customers happens outside the organization and organization has no control over it

v) Legal regulations - Law related to Organization's compensation management,Labor & Industrial relations are formed by Government which is to be adhered by the organization.

vi) Public view of organization - Only advertising made by the organization do not guarantees organization's image to the public ,it is actually how the public really thinks of organization as per their conscience in which organization do not have any control

vii) Merger and takeover - Sometimes merger or takeover of the organization do not necessarily happens only when the organization suffers loss but it also happens when business opportunity prompts the organization to merge with other organization so as to reap the mutual benefits.example - Takeover of a chat app by Facebook,Facebook investment in Indian Conglomerate Reliance industries.