Class Notes: 7th Class

 Challenges: Environment: Challenges from industries, market place, human resource,

international sector, raw material sector, government sector, social culture sector, economy
sector, technological sector, financial sector.
 Task environment: the sector that org interacts directly to achieve its goal. If anything goes
wrong then it gets affected directly
a) Industry: Example Jio entered the market and changed the telecom sector operation.
Also, Netflix disrupted the market with OTT concept and changed the way people
view contents.
b) Market: It comprises of customer and meeting fast changing needs of customers.
c) Raw material: Cost of raw material, availability.
d) Human resource: Need for skilled people. Gap between demand and availability.
e) International sector: We always try to be competitive (Bring cost down and make
quality product)
 General environment: Where org don’t interact directly with sectors. Whenever there is
change in sector, the org gets impacted indirectly.
a) Government sectors: change in regulations and norms. For example: scrap policy.
b) Social culture sector
c) Economy sector: For example, covid
d) Technology sector: For example, Robotics are used for operations
e) Financial sector: funds
 Types of organisations:
a) Stable organisation (environmental challenges doesn’t affect much),
b) unstable organisation (environmental challenges affect largely)
c) Small organisation: For example, bottle manufacturers
d) Complex organisation.
e) Complex organisation but stable: For example, universities
f) Simple organisation but unstable: For example, small gaming organisation
g) Complex and unstable organisation: For example, health care, airlines, oil companies
h) Simple and stable organisation:
 How face challenge:
a) Business intelligence
b) Differentiation and Integration
c) Planning and strategizing
 Long term strategies to overcome future challenges
a) Open new jobs in structure of the company
b) Acquire start-ups or small organisation having same interest line
c) Buying companies
d) Joint ventures: For example, Reliance with Office Depot
e) Lock and key player strategy: keeping board member in your organisation who is also
board member of another organisation
f) Recruiting high skill from another organisation
g) Advertising and public relation
 How to influence your sectors:
h) Change the environment: TATA Nano changed their manufacturing place
i) Keeping good contacts with policy makers
j) Avoid getting indulged in illegitimate work