Management & Leading

4/12/2019
Organization
Assignment No. 3

Faiza Tariq Roll # 01

Asma Zahid Roll # 04

Asif Ali Roll # 11

Muhammad Umair Tariq Roll # 16

Muhammad Rafiq Roll # 30

 Analyzing the Affect of Mega Environmental Factors on AFAQ
Introduction
AFAQ is an independent, ISO certified 9001-2015 organization that is dedicated for improving
educational services all over Pakistan. The department of Innovative Learning is determined to serve
AFAQ by providing the perfect blend of technology and eLearning in modern day educational
practices in the country. Inevitable transition from paper-based learning to digital interactive learning
is the future and hence department is here to address this change by using instructional technologies
keeping in view technological pedagogy to ensure 21st century learning. Facilitate other
department’s transition to the latest technologies (Applications/ Software/ Digital Material/ Teachers
Training).

Environmental Factors Affecting AFAQ

AFAQ as a company don’t work in isolation but its business is influenced by Macro Environmental
forces that are uncontrollable external factors. These factors are not in control of management and
often these forces require changes in operating, management, production, and marketing functions
as well. These external forces are:

 Economic Conditions
 Political conditions
 Sociocultural Conditions
 Demographic Conditions
 Technological Conditions
 Global Conditions

Economic forces in the macro Environment:

Market boom, recession, growing inflation, changes in disposable income and per capita income can
all change the way an organization plans for the future and operates in the present. Due to economic
crisis and infirmity “AFAQ’ reduced the size of organization last year and started business with
Chinese vendors instead of Pakistan. And this year organization has increased the price of its
products due to which the sale of the products decreased thereby reducing the business.

Economic factors are frequently difficult to assess, since economic forecasts and analyses vary widely
between experts. Unemployment levels, comparative foreign exchange rates, and the state of the
global economy can all help or hurt a business' ability to get needed components and maintain a
stable profit.

Political forces in the Macro Environment:

Every business is limited by the political environment. This involves legislations, government agencies
and pressure groups. These influences and restrict organizations and individuals in a society. AFAQ
belongs to right wing of politics. Therefore, marketing decisions are favorable whenever the right
wing is in government. Contrary, if leftist group forms government the business is affected due to the
nature of organization and its relation with the ruling party.

On the other hand, AFAQ also work in different countries e.g. UAE, Russia, America, Finland etc.
Before entering a new market in a foreign country, the company study and know everything about
the legal and political environment of that country. For example, laws covering issues such as
education policy, competition, pricing etc. might require the firm to adapt certain aspects and
strategies to the new market. AFAQ use different approach towards project development as per the
requirement of their laws.

Socio-Cultural forces in the Macro Environment:

AFAQ has a large social network all over the world. In the Innovative learning department, we need
to collaborate and work with different cultures and societies and have to adopt some times their
technology in books and digital content without changing the content that is totally a reflection of
their societies and cultures. For example, Russian technology with their content.

Demographic Forces in the Macro Environment:

Demographic forces is relate to population. Keeping in mind about the capacity of customers and
their religious values AFAQ develops three different series of books as per demand. So that the
customers can purchase books as per their paying capacity. Even for KPK and Baluchistan AFAQ
makes sure to follow the norms and values of people in order to reflect them in our products.

Technological forces in the Macro Environment:

Education sector is moving towards technology and AFAQ is a pioneer private company that is
international technologies to schools in Pakistan such as, augmented reality, interactive content
learning and gamified technology for early child education. And specially career counseling, smart
technology for early children to judge their intellectual level and area of interest.

Global forces in the Macro Environment:

Another emerging mega factor is the global environment influencing AFAQ’s business. Working with
international clients require managers to learn different languages such as Chinese, Russian and
other languages and to be expert in English in order to learn and acquire new technologies from
international markets to improve business. Also, managers need to be well aware of international
currencies and foreign market deal internationally with the clients.