Uncontrollable Environment Affecting Organizations, Affecting International Logistic Activities
Uncontrollable environment affecting organizations, affecting international logistic activities
Uncontrollable environment is one major condition which is unpredictable and uncertain. Regardless of what it might be, an uncontrollable environment will negatively affect any organization effort, no matter which function it is and perhaps the objectivities and strategies of the business.
Today, business is a global market. In one way or another, we are all closely connected. The logistics systems have had the result of shrinking the world, allowing competitive trade. Hence, if an uncontrollable environment element rises, international logistic activities will be affected.
The uncontrollable environment consist of six elements namely economic, competition, technology, geography, social and culture, and political and legal.
Economic
Economic can be a major risk factor, it has a certain impact on the international trade patterns, products goods and service flows, and freight transport flows. In recent years, economic developments have led to the creation of complex company networks and systems of goods flow. The complexity of international logistics system in many divisions has grown as a result of increasing product variation and differentiation.
The relationship between the economic growth and demand for product-transporting services is the result of a range of effects. These effects clearly show the increasing importance of the economic sector on goods distribution.
For instance, oil prices increase resulting in high fuel costs. Demand begins to weaken. Stock prices started dropping, depression fears arise and recession occurs. These turbulence and uncertainty throughout the global economic, cause consumers to slow down cutting back on what they buy. This as a result, ripples back throughout the global economic and impacts the manufacturers, retailers and wholesalers who are contracting what they make, purchase and carry in inventory.
The effect of slowing down
Uncontrollable environment is one major condition which is unpredictable and uncertain. Regardless of what it might be, an uncontrollable environment will negatively affect any organization effort, no matter which function it is and perhaps the objectivities and strategies of the business.
Today, business is a global market. In one way or another, we are all closely connected. The logistics systems have had the result of shrinking the world, allowing competitive trade. Hence, if an uncontrollable environment element rises, international logistic activities will be affected.
The uncontrollable environment consist of six elements namely economic, competition, technology, geography, social and culture, and political and legal.
Economic
Economic can be a major risk factor, it has a certain impact on the international trade patterns, products goods and service flows, and freight transport flows. In recent years, economic developments have led to the creation of complex company networks and systems of goods flow. The complexity of international logistics system in many divisions has grown as a result of increasing product variation and differentiation.
The relationship between the economic growth and demand for product-transporting services is the result of a range of effects. These effects clearly show the increasing importance of the economic sector on goods distribution.
For instance, oil prices increase resulting in high fuel costs. Demand begins to weaken. Stock prices started dropping, depression fears arise and recession occurs. These turbulence and uncertainty throughout the global economic, cause consumers to slow down cutting back on what they buy. This as a result, ripples back throughout the global economic and impacts the manufacturers, retailers and wholesalers who are contracting what they make, purchase and carry in inventory.
The effect of slowing down