Internal and External Factors Affecting Businesses
Question:
Write a report discuss your chosen organisation’s general external environment and analyse the impact of one real-life dimension in its general external environment in 2016/2017.
Things that are considered as our surrounding is known as an environment which consists of natural forces, living organism and various other things that might be the reason for the success or failure of the business. As all the above-mentioned things can provide growth to the business or can damage the position of the business. Overall it can be said that business should properly identify and evaluate all the aspects of the environment that can affect business positively or negatively depending on the situation. The forces that are covered in the business environment are competitors, government, customers, suppliers and political, legal, social, technical, and cultural conditions. Further, the environment of business is dynamic in nature which means that it keeps on changing regularly.
RSPCA is a non-government, community-based charity and it is also known as Royal Society for the Prevention of Cruelty to Animals. It operates to stop brutality to animals by actively endorsing their care and defense. The establishment year of RSPCA is 1871 in Melbourne and at present, it is a leading Australian welfare charity for animals (RSPCA Victoria, 2017). RSPCA Victoria is associated with RSPCA Australia which is the alliance of the eight state and territory RSPCA in Australia. The national board of RSPCA involves presidents of each member society and CEO as an advisor. Across the state, the services of RSPCA’s community contain the work undertaken by their Animal Care Centres, Inspectorate, Education teams, and Clinics. The RSPCA controls Centres of Animal Care in Victoria, offering shelter, care and homes to 20,000 animals every year wherever possible (RSPCA, 2017). The RSPCA Inspectors team works to defend animals from brutality, every year receiving more than 12,000 complaints, accusing criminals and saving animals from unsafe circumstances. Its education team also contributed to the strategies of defense by encouraging people about the importance and value of animals for human beings. The RSPCA operates to educate the public concerning the welfare of the animal and operates with industry and government to guarantee the animal welfare standards. Being an organization of not for profit, the RSPCA depend on the support of society or public to continue its operations with the funding of RSPCA which is more than 90% that comes from to the substantial support of the public of Victoria. The objectives of RSPCA is to have a nationwide presence for the movement of RSPCA and to encourage the unity among all the members. In 2016, Company showed its revenue 30, 024,080 and profit 9,340, 770 (RSPCA, 2016).
A mission is a statement which contains the organization purpose and along with this, it remains same for long period (Papulova, 2014). The mission of RSPCA is to stop all the form of brutality with animals, to achieve the mission company is providing protection and care to those animals who are threatened or rare species. It has been noted that the authorities of Australia have been supportive in the battle against the cruelty on animals is the reason why RSPCA of Australia is handled by a board of directors who are selected from every state, and still it is a self-governing, non-governmental public centered charity which receives maximum of its funding from donations (RSPCA, 2017).
RSPCA – Mission and Operations
Analysis of the environment is known as a strategic tool which is utilized to recognize the external and internal elements that influence the organization or business (Pestle Analysis, 2017). Business involves internal and external environment and influences the short term and long term business operations. Internal environment consists of the surroundings of the business or organization which can affect the business positively or negatively depending on the situation. The management of the business can control the influence of the internal factors. On the other side, management cannot control external environment factors (IEDU, 2017). Therefore, in order to survive in the market business need to analyze the environment properly and according to that, they should make decisions. Along with that business can maintain some alternative strategies so that if one strategy didn’t work than they can use another strategy (Indris and Primiana, 2015).
The external environment of the business is made of factors outside the organization that affect the business operations (Tucker, 2017). The external environment is categorized into two types: the microenvironment and the macro environment.
Microenvironment- Microenvironment factors can directly impact the business operations. The factors that are involved in the microenvironment are customers, public perceptions, marketing intermediaries, suppliers, and financiers.
Macro environment- It involves general factors which are not under the control of the business. The success of the business is based on its capability to adapt. The factors of microenvironment are economic, political, cultural, technological, natural, international environment, cultural and demographic and these factors influence the decision making of the company.
The business needs to adopt some elements of the internal environment for achieving success in the market which includes financial, policies, human resources, operations and technologies to the external environment (PHAST, 2017). To identify the effect of each factor of general and operation environment business conduct an analysis of the environment (Olarewaju and Folarin, 2012). This analysis also provides a view of the opportunities and threats present in the environment of the business in the form of weaknesses and strength of the business (Nordmeyer, 2017).
RSPCA is the country’s ancient welfare charity which is guarding the rights of animals against many decades. They operate in various areas of the country with at least one Centre in major cities. They actively promote the welfare of animals in most of the parts of the country and is known as one of most trusted NGOs in the UK for animals. They are very popular in the UK which is a reason behind receiving calls in every 30 seconds from each part of the country. They have a helpline known as 24*7 animal cruelty helpline although receiving so many calls reflect the problem scale within the UK.
The external analysis includes some factors which influence the activities of the business or general functioning.
The business organization is affected by the political factor of an external environment. This factor can add an element of risk which can result in a major loss in the business (Robins, 2016). It is known that the political factors are very influencing and can change the results. It can affect the policies of the government from federal to local level. Therefore, to deal with these factors business have to be ready (Pestle Analysis, 2015). The political factors are formed with the changes in the policy of the government. These changes can be social, legal or economic. Some of the political factors that affect the RSPCA are:
- An attitude of government towards the significance of defending the rights of the animal.
- There are some laws established to stop the cruelty on animals such as performing animals (regulations) act 1925, The Pet Animals Act 1951, and Animal Welfare Act 2006.
- Laws regulatory activities of the business like selling and breeding; sale of dogs and breeding (welfare) act 1999.
The Importance of Environmental Analysis for Strategic Decision-Making
Every organization which operates in the environment should fulfill their responsibilities and duties towards the society. The society expects business to operate in such a way that they should be benefited from the activities of the business (Pachamama Alliance, 2017). Therefore, society keeps their eyes on that business who fulfill their corporate social responsibilities. Along with this most of the business organizations perform corporate social responsibilities for enhancing their image in the market and in society. Corporate social responsibilities are also termed as social responsibility. It means that business performs according to the society or for the benefit of the society by shifting from its normal economic and legal responsibilities (Jennifer, 2017). In the business manager is responsible for taking care of its operation and considering whether their activities are able to do something for the society or not.
RSPCA is a non-governed organization which is working for the welfare of the animals. The aim of the company is to enhance and update their approach for doing welfare of animals. Company is working for the pet animal’s welfare which includes- confirming that each pet is properly cared and has a home, stopping the cruelty against pet animals, stopping pet overpopulation. Along with this RSPCA has introduced some campaigns for farm animals in order to improve the lives of animals and reduction in the farm animals suffering. This has been done by enhancing the welfare of farm animal’s legislation, confirming about the labeling of animal products so that customers can think of higher welfare choices (RSPCA, 2017).
RSPCA Australia thinks that all the animals must be treated gently and kindly. Where people use animals or restrict with their environment, they should give a level of care suitable human pride as rational, intellectual, sympathetic beings, and a level of care earned by the animals as a sensitive being accomplished of answering to human care and courtesy. Such care must be noticeable by sympathy, thought, concern, and sensitivity towards animals. RSPCA Australia considers that national and international acceptance of set standards of dealing and farming, and the compliance of some points, will allow all animals species to survive according to their social needs as delivered by a sympathetic and liable society:
- Animals have an inherent importance of their own and therefore should be measured to own the right to survive in a method that allows them to spend positive life and maintain and enjoy their essential qualities.
- An animal should never be used for the food production, either by agricultural exercise, conveyance, or technique of killing which may cause sorrow, wound or suffering.
- Animals should never be used for the human entertainment, because these type of activities may increase the suffering, wound, or sorrow risk to the animals.
- People should not use animals in direct battle, either one against other or fighting.
- While conducting experiments people or scientist should not make use of animals which impose pain or sorrow on them and which are not necessary for the animal and human benefit. In place of animals different and innovative techniques should be used which are available in the market.
- Not a single animal should be used in the programs of unnecessary breeding and nor even in the programs which harvest deformed or feeble offspring.
- Domestic animals should be endangered from opposing climate situations, slayers, and disease (RSPCA, 2017).
Every business has their own and unique personality same as human being. The personality of the business is known as its culture. The culture of the organization is very powerful and has the ability to influence the behavior of people who are part of a team. It is a system of collective norms, beliefs, values which guide people to behave inside the organization (Knowledge Management Tools, 2017). The culture of RSPCA Company is focused towards the welfare of animals and society, which brings the sympathetic feeling of all the employees of the company towards animals. The company does not perform the activities for the profit rather they are doing it for the benefit of the community and animals.
|
Serial Number |
Basis |
1– Strongly Disagree |
2- Disagree |
3- Uncertain |
4- Agree |
5- Strongly Agree |
|
2-10 |
I like the thrill and excitement from taking risks. |
|||||
|
2-11 |
I prefer managers who provide detailed and rational explanations for their decisions. |
|||||
|
2-12 |
If a person’s job performance is inadequate, it’s irrelevant how much effort he or she made. |
|||||
|
2-13 |
No person’s needs should be compromised in order for a department to achieve its goals. |
|||||
|
2-14 |
I like being part of a team and having my performance assessed in terms of my contribution to the team. |
|||||
|
2-15 |
I like to work where there isn’t a great deal of pressure and where people are essentially easygoing. |
|||||
|
2-16 |
I like things to be stable and predictable. |
(2-10) +4
(2-16) +1
(2-12) +3
(2-13) +4
(2-14) +5
(2-15) +4
(2-11) +5
=26
Note- The scoring of 2-11 and 2-16 has been interchanges as per the description.
26 is my total score which shows that my choice for the workplace is a flexible environment, innovative culture, informal environment and humanistic behavior. Depend upon the analysis this type of preference are identified in high-tech companies, research units, small businesses, and advertising agencies. According to the analysis, it can be said that person should work in those organizations where they feel familiar and can gather their interest in the assigned job. Even the performance and productivity of an individual increase when his/her choice matches with the environment of the organization.
RSPCA is the oldest welfare charity established in the UK, which reflects that they have a good experience of the market. Any candidate will feel privileged to work with this company in order to earn more experience and knowledge. The employee will be able to understand their social responsibility towards the environmental factors so that they can implement this in near future. I always wanted to join this type of organization where I can learn more things about the animals and how to take care of them.
Conclusion
In the conclusion, it can be said that RSPCA is fulfilling its social responsibilities towards the community. Though this is the fact that company is dealing with the external factors majorly with political factors as it is the duty of the company to follow the acts and regulations formed by the government. The company is majorly focused towards the welfare of animals which reflects their culture too. Each employee of the company is encouraged to have a sympathetic feeling towards animals and community so that they can work for the society.
References
IEDU, 2017, Internal and External Environment Factors that Influences Organizational Decision Making, Retrieved 21 December 2017, https://iedunote.com/organizational-environment-elements
Indris, S., and Primiana, I, 2015, Internal and External Environment Analysis on the Performance of Small and Medium Industries (Smes) In Indonesia, International journal of scientific & technology research, 4(4), 188-196.
Jennifer, 2017, What is Corporate Social Responsibility? Retrieved 21 December 2017, https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html
Knowledge Management Tools, 2017, The Significance of Organizational Culture, Retrieved 21 December 2017, https://www.knowledge-management-tools.net/organizational-culture.html
Nordmeyer, B., 2017, What Is an Environmental Analysis for a Business? Retrieved 21 December 2017, https://yourbusiness.azcentral.com/environmental-analysis-business-1017.html
Olarewaju, A.A, and Folarin, E.A., 2012, Impacts of External Business Environment on Organisational Performance in the Food and Beverage Industry in Nigeria, British journal of arts and social science, 6(2), 194-201.
Pachamama Alliance, 2017, Social Responsibility and Ethics, Retrieved 21 December 2017, https://www.pachamama.org/social-justice/social-responsibility-and-ethics
Papulova, Z., 2014, The Significance of Vision and Mission Development for Enterprises in Slovak Republic, Journal of Economics, Business and Management, 2(1), 12-16,
Pestle Analysis, 2017, What is Environmental Analysis? Retrieved 21 December 2017, https://pestleanalysis.com/what-is-environmental-analysis/
PHAST, 2017, The impact of political, economic, socio-cultural, environmental and other external influences, Retrieved 21 December 2017, https://www.healthknowledge.org.uk/public-health-textbook/organisation-management/5b-understanding-ofs/assessing-impact-external-influences
Robins, 2016, Management the essentials, Pearson, Australia.
RSPCA, 2016, The Royal Society for the Prevention of Cruelty to Animals New South Wales, Accessed on: 21 December 2017, Accessed from: https://www.rspcansw.org.au/wp-content/uploads/2017/09/2016-RSPCA-NSW-Financial-Report.pdf
RSPCA, 2017, About us, Accessed on: 21 December 2017, Accessed from: https://www.rspca.org.au/what-we-do/about-us-0
RSPCA, 2017, Our Charter, Accessed on: 21 December 2017, Accessed from: https://www.rspca.org.au/what-we-do/about-us/rspca-charter
RSPCA Victoria, 2017, About us, Accessed on: 21 December 2017, Accessed from: https://www.rspcavic.org/about-us
RSPCA, 2017, Our mission, Accessed on: 21 December 2017, Accessed from: https://www.rspca.org.uk/whatwedo/howwework/mission
RSPCA, 2017, About us, Accessed on: 21 December 2017, Accessed from: https://www.rspca-act.org.au/about-us
Tucker, B., 2017, What Are Internal & External Environmental Factors That Affect Business? Accessed on: 21 December 2017, Accessed from: https://bizfluent.com/info-8147438-internal-environmental-factors-affect-business.html
Pestle Analysis, 2015, Political Factors Affecting Business, Accessed on: 21 December 2017, Accessed from: https://pestleanalysis.com/political-factors-affecting-business/
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