strategic planning
Explain the importance of external factors affecting your chosen organisation.
1.1 External Factors
External factors affect the demand, cost and supply levels of any organization and so is the case with Unilever. All factors are interlinked with each other. ‘Radical and ongoing changes occurring in society create an uncertain environment and have an impact on the function of the whole organization’ (Tsiakkiros, 2002).
External environment scanning is very important for gaining competitive advantage and successful strategic planning. . Wide range of factors acts as an external one that affects organizational performance i.e. political, economical, social and technological .
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Political Factors: Political factors have a massive impact on organization’s strategy planning. Highlighted factors include: Health & safety laws, political stability, tax regulations and employment & environment laws. Unilever always maintained very good reputation with government by respecting the rules and understanding the political condition of the region. Unilever is bound to follow the regulations of UAE government and political conditions. Regulatory areas include : employee health and safety, product safety, trademark laws, tax laws and patent laws. Strategies currently need more time for implementing because of the political environment of UAE. In some areas government has imposed heavy duty on imports & raw material which has a direct impact on the production of Unilever. Unilever is clear about following rules no matter of its positive or negative impact on the production. Thus, External environment scanning is time consuming as well as important step in strategy planning.
Economical Factors: Economical factors have a direct impact on strategy planning and implementation of an organization. These factors include: Exchange & inflation rates and economic down turn. Unilever market is highly competitive in Europe. Unilever is facing a downturn of profitability. Business
1.1 External Factors
External factors affect the demand, cost and supply levels of any organization and so is the case with Unilever. All factors are interlinked with each other. ‘Radical and ongoing changes occurring in society create an uncertain environment and have an impact on the function of the whole organization’ (Tsiakkiros, 2002).
External environment scanning is very important for gaining competitive advantage and successful strategic planning. . Wide range of factors acts as an external one that affects organizational performance i.e. political, economical, social and technological .
.
Political Factors: Political factors have a massive impact on organization’s strategy planning. Highlighted factors include: Health & safety laws, political stability, tax regulations and employment & environment laws. Unilever always maintained very good reputation with government by respecting the rules and understanding the political condition of the region. Unilever is bound to follow the regulations of UAE government and political conditions. Regulatory areas include : employee health and safety, product safety, trademark laws, tax laws and patent laws. Strategies currently need more time for implementing because of the political environment of UAE. In some areas government has imposed heavy duty on imports & raw material which has a direct impact on the production of Unilever. Unilever is clear about following rules no matter of its positive or negative impact on the production. Thus, External environment scanning is time consuming as well as important step in strategy planning.
Economical Factors: Economical factors have a direct impact on strategy planning and implementation of an organization. These factors include: Exchange & inflation rates and economic down turn. Unilever market is highly competitive in Europe. Unilever is facing a downturn of profitability. Business