Changing Environment

The world is characterized by rapid change and the managers are facing many difficulties in preparing
and adapting to the change. It can be change by nature of workplace, powerful customers, Social
responsibilities such as government intervention, ethical issues, technical issues, increased globalization
etc.

Because of that, the managers should have much awareness of the changing environment. The changing
environment can be divided as Internal Environment and External Environment.

Business Environment

Internal External
Environmen Environment

Closet Environment Macro Environment

 Owners  Customers  Demographic

 Managers  Suppliers  Technological
 Employees  Competitors  Economic
 Organizational  Producers of  Social
Structure substitute goods  Natural
 Organizational  Potential Businesses  Political
Culture  Intermediaries  Global
 Resources

There are so many analyses to get knowledge of the business environment. SWOT analysis is one of the
most important. By using it, we can analyses internal environment strengths and weaknesses and
external environment opportunities and threats.

SWOT Analysis

Internal Analysis External Analysis

Strengths Weaknesses Opportunities Threats

Strengths means its resources and capabilities. E.g. - Special expertise, reputation

Weaknesses are the absence of certain.

Opportunities can be seen in external environment and there are new opportunities for profit and
growth. E.g.-New technology, new market

Threats are also from external environment and they are the present threats to the firm.

We can use SWOT matrix to go ahead with this SWOT analysis to recognize our future strategies. There
are 04 main strategies in SWOT matrix.

1. S & 0 2. W & O

3. S & T 4. W & T

In the situation 1,

There are strengths and opportunities. This is a very good condition for an organization. An
organization should try to retain in this condition.

In the situation 2,

There are weaknesses and opportunities. An organization should put their maximum efforts to
overcome the weaknesses.

In the situation 3,

Strengths as well as threats are there. An organization should prepare well to face these threats.
And also they should maintain the strengths.

In the situation 4,

It is the worst condition that an organization could face. Both threats and weaknesses prevail
there. It is a critical condition. It is better to wind up the organization.

Accordingly, SWOT Analysis helps an organization to decide the status of it and to identify strengths,
weaknesses, opportunities and also threats.
Organizational Objectives

Organization is a social arrangement where people work together to achieve collective objectives.
Objectives mean a target that the organization aims to achieve within a time frame. It has 05
characteristics.

1. Specific
2. Measurable
3. Attainable
4. Realistic
5. Time bounded

Organizational objectives are very important in management. It directs managers. Without

organizational objectives, the management process is aimless and wasteful thing. When there is an
objective, mangers can measure how far they have acquired the objective by time to time.
Organizational objectives give purpose and direction to the management process.

The main objective that a organization have is to Survive. And the other main objective is to maximize its
profits.

Hierarchy of types of goals

Long Term
Vision

Mission

Goals

Objectives

Plans
Most
Specific