Short term and long term environmental factors

Short term and long term purlieual moversOne of the important environment f cloakor that fix the organization on short term and long term basis. It includes changes in judicature policies, changes made in law and legislation, war and conflict, political relation pressure in form of rise in tax, changes in government and new government indispensablenesss to wave fall out all old plans.Economical other factor that effect the environment is itself miser makess of the country which could affect on shorter term or longer term but most likely the sparing effect most effect on longer period. It includes adverse movement in exchange rates, increase in taxation, lower interest rate, international scrimping effect, m unrivalledtary issues, customer sullying power, change in trend and life style of people due to piteous economic conditions, like possibility of moving in would not generate as much as they were before this which ultimately result in reduction in human power which dir ectly effect in that respect buying power. proficientTechnology is normally has short term effect excluding some mighty machinery which pull in ones horns years to build and changes take place. Technological factor includes change in technology as this is one of the major factor as we have seen in now a day conference and computer technology change rapidly as comp are to others, once a new model enter in the market will decidedly absolute the previous one. Other factors include changes in technological legislation, licensing and patents, intellectual property issue and global communication.SocialSocial is another environment factor that can affect both in short and long term to organization. Social factor include change in trends, fashion, style, organizational brand, people buying power, religious and ethical issues. Media play vital role these days as a mean of spreading awareness among people which can be in some(prenominal) sector. Major events has a short term environmen t affects. enormousness of Environmental Factor Affecting OrganizationIt is obvious that any change in the environment factor can directly or in directly affects the organization operations in that particular environment. Politically if the is change in government policy or legislation that has direct effect on all organization and sectors all line of line of merchandise have to adopt the changes take place. Technological if there has been change in technology as latest version of machinery launched every business which directly drug abuse such machinery to run there business hire to update accordingly in order to survive in the enemy market otherwise rivalry, take lead in business operations. Social and economy factors in addition has important influence on organization activities suppose, if organization is doing trade with international business partners in case of war both countries government call in restriction on the trade which affect both businesses on the other han d if economy is on downfall trend, in fact all businesses faces sort out in the profit percentage as customers buying power has fall as a result of poor economic conditions.Expectation of Stake holdersA stakeholder is any person or organization, who can be positively or negatively impacted by, or cause an impact on the actions of a gild, government, or organization.Following are the stake holders of almost every businessCustomersEmployees trading creditors bank buildingGovernmentShareholdersInvestorsLocal communityEnvironmentEvery stakeholder has it on expectations from the company or business. Customers demand high quality but cheap impairment products and services. Employees has there own expectations like secure next, attractive salary plus bonuses. Trade creditors demand long credit period. Bank is interested in it monetary performance and business is able pay the interest rates. Government is interested in business paying tax on time. Shareholders are interested in increas e in wealth which result in business generates profits. Investors interested on return on there investment. Local community expects employment opportunities from business. clientele would run its operations under environment friendly atmosphere.Changes that affect the strategyFactors that presently affect the TM Mobile house is technology change like upgraded version of computer quick model therefore TM should have to buy new software that are currently use in mobiles and computers. Second environment factor that mostly affect TM is economic downfall which dramatically reduce the sale of TM. So under tight conditions TM has to change its strategy in order to survive under such condition.Due to poor economic condition customers are unable to pay more for the effectuals they bought infect they demand cheap product but good quality which result in to reduction in profit margin ratio. Government demand regular tax and council tax payment regardless business is earning profit or not. Bank demand there money back, employees feel unsecure future in TM employees are not happy as they would not receive bonus for the one and a half year. Investors consider it risky to invest in such economic condition due to fear of there investment being drowned.Task2 wrinkle Strategies, Policies and PlansStrategic ObjectivesThe company strategic objective lenss are how the company corporate objective is going to be progress tod. These objectives usually split betweenThe strategic commercial objectiveThe strategic financial objectiveThe commercial objectives are in non financial term to achieve company desired targets.The strategic financial objectives are to maximize the profit of the organization, in modern terms maximization of shareholder wealth.EffectivenessIs a measure of the degree to which business achieve its goals.The strategy is effective if it achieve it objective.Business PlanA business plan is an official statement contains business goals, the reasons why they are g oing to be achievable, and the plan for reaching those goals. It also holds information about the organization or team attempting to reach those goals.Business policyBusiness Policy defines the scope inside which decisions can be taken by the subordinate in an organization. It permits the lower level management to deal with the harms and issue without consult top level management each time for decision. Business policy in guidelines issued by the organization to achieve there targets.Effect of Current Business PlanTM business plan is to maximize the profit, ontogenesis in sale at constant rate in future. TM goals are to grow and create monopoly in area which it operates and how to achieve the goals TM in concert its employee as a force to achieve its targets. Owner of the business make daily progress reports form them, and any changes in plan will properly convey to them through proper mean of communication tool like direct fulfillings, update the notice board regarding current changes and process of achieving those targets and goals. It targets also includes change magnitude customer confidence in there services. TM give guarantee for its services if there is any complain in it they can get it repaired with out charge, no one else in the market are offering such guarantees. For the time being TM is moving slowly towards maximizing profit as due the economic ecological niche it been difficult for TM to achieve its targets. Employees are working well as they are working before the economic recession but due to slow progress in work that is why plan are not working and planed.TM is now 2nd direct in this area offering the same kind of services, but due to size of the business TM were in lead. Two more business was unsympathetic down due to unfeasible economic conditions. Now its time for TM to improve its services likely to make amendments in the plan as customers are switching back towards TM. Which is positive sign for TM as sale will grow as planed in future because of reduction in competition. TM is now increase the good deal of finished good stock for resale purposes as he is expecting increase in the sale as well as profit.TM has following competitive strength and weaknesses, of its current strategies.StrengthIt has large space in shop so more customers can sit at a time.Its location is comparatively better than its foe. However its enemy is in less busy area.Workforce, as TM has two staff who can serve the customers. Its competitor is hiring only on staff difficult for him to deal during busy time to handle each clients effectively.Range of services like computer, mobile, Money transfers and property. But its competitor has limited services like mobile and computer.WeaknessesStrategically TM is retrieving high profit margin form it sales on the other hand its competitor has shore on this. TM is not buying accessories of latest mobile phone, lack of training in employees, participation in saving schemes. Its competitor ha s edge on supra mentioned weakness.Task 3Options for Strategic PlanningStrategic planning is creating a vision of the future and managing toward that expectancy. Its operating under a committal statement umbrella that focuses the organizations effort. Its an effective process for aligning your short-term decisions with your long-term goals.Strategic planning answers the three big questionsWhere are we today?Where do we want to be in the future?What should we be focused on today, in order to make it more likely we will be where we want to be in the future?The basic strategic planning model involved four steps explained below.SWOT analysis can also be used for strategic planning. Strength and weakness can show business internal position where it can stand and opportunity and threats shows external factors that will affect the business directly or indirectly.StrengthHave you got sufficient financial resources to fund any changes you would like to make?Is your product unique or market lede?Does business have superior industry intimacy?Are you involved with industry associations?Your reputation are you considered a market leader? Or an well(p) in you is filed?Does business have good relationship with your customer?Does business have strong relationships with your suppliers?Does business have a positive relationship with your employee?Is your business Innovative?WeaknessIs your plant and equipment old or outdated?Is your product line too narrow?Have you got insufficient financial resources to fund any changes you would like to make?Does business lack industry knowledge?Does business lack innovative skills?Does business have a poor or indifferent relationship with your customers?Does business have a poor relationship with your suppliers?Does business have a poor relationship with your employees?Does business have low volume and are restricted in your ability to scale up?OpportunitiesChanges to legislationChanges to import/export constraintsGood economic outlook Expand your product lineDiversify your business interestsExpand into your customers fieldExpand into your suppliers fieldExpand your customer base (Geographically or through new products)Does business has peaceful competitor?Are there any export opportunities?Will your market grow? scourgesChanges in demographicsIncreasing regulationDo consumers have a choice to use a substitute product?Are substitute product sales increasing?Is your market in slow growth or in go down?Growing power of customers or suppliers to set priceChanging indispensablenesss of buyersPorters five forces ModelMichael Porter developed a framework, which identified 5 forces that act to either increase or reduce the competitive forces within an industry. These five forces areThe Bargaining provide of Your CustomersThe Threat of New Entrants into your IndustryThe Bargaining Power of SuppliersThreat of Substitute Products or ServicesRivalry amongst Existing FirmsGraphically presented asRivalry amongst Existing Fi rmsIndustry growth ratesHigh quick-frozen costsIntermittent over capacityProduct differencesBrand identitySwitching costsInformational complexityConcentration balanceDiversity of competitorsCorporate jeopardizeExit barriersThe Bargaining Power of Your CustomersDifferentiation of outputsSwitching costsPresence of substitutesIndustry concentration relative to buyer concentrationImportance of volume to buyers toll relative to total buyer purchasesImpact of outputs on the cost of differentiationBuyer information about supplier productsBuyer positivenessDecision makers incentivesThreat of backward integrationThe Bargaining Power of SuppliersDifferentiation of inputsSwitching costsPresence of substitute productsSupplier concentration relative to industry concentrationImportance of volume to suppliersCost relative to total purchases in the industryImpact of inputs on cost or differentiationInformation about suppliers productsSupplier profitabilityDecision makers incentivesThreat of for ward integrationThe Threat of New Entrants into your IndustryEconomies of scaleProprietary product differencesBrand identitySwitching costs great requirementsAccess to distributionAbsolute cost advantageGovernment policyExpected retaliationThreat of Substitute Products or ServicesRelative price performance of substitutesSwitching costsBuyer propensity to substituteComparative understanding of activity from organizationIf we take in to account the competitor of TM mobile house in some area that business is in good position, as no business is perfect in every aspect. If we take few things into retainer like JD has lower profit margin. JD offer limited services if we compare it with TM, but with extreme quality. Employ turn over in JD is too low as compare to TM. JD business is too innovative its owner keep the displayed products in the shop with latest models including there accessories. JD has good financial condition JD have sufficient working capital to support day to day activitie s. JD had obtained large credit from the supplier. It keeps his employee up to date regarding any changes in the technology. JD makes good relations with its existing customer and new one. How ever in some areas TM as a competitive advantage over JD.Feasible options for the future strategic planningIt is better for TM to incorporate following option before making strategic plans, it includes product threat that is take in to consideration that if there are some new product entering the market there cost and also opportunity cost of not take it now in to consideration. What is the capital requirement to meet its day to day expenses as well as if want to introduce request products like latest models of mobile and if to upgrade the existing computers using as internet caf, do TM has sufficient fund available if it has how efficiently use it. What ever services TM going to provide should be meet economies of scale criteria. Must take in to consideration the bargain power of the custome rs, whats there buying power what there expectation from TM and which product they normally demand for there normal consumptions. Most importantly take in to account the competitor position need to adopt those method in order to gain competitive edge, carefully identify those areas that need special attention. Identify those brands which has same quality but cheaper that meet the customers buying power. Changes in the legislation must(prenominal) take in to account how they affect our business. Need to improve the accessories in the shop but focus must be to identify if they were saleable or which has extensive demand. Focus on existing product present in stock that is out dated should be sold out on discount to retrieve money from it otherwise bear total loss from it. TM must keep there and its employee knowledge up to date, towards industry in which they are operating suppose TM is doing money transfers it should be aware of any changes took place in money transferring roles that need to be adopted. Improve the interpersonal skill with staff and with the customers always build working relations with the customers in order to retain business from them. All above mentioned issued need to take under careful consideration in order to make future strategy plan and setting targets to be achieved.ConclusionWe hold forth short and long term environmental factors affecting the organization, together with what are strategies, policies and plan and at the end take in to consideration strategy information models and which important areas are vital in making future strategies.