Short term and long term environmental factors

Short condition and long circumstance environmental factors oneness of the important environment factor that onus the presidential status on short term and long term basis. It includes trades in government policies, changes made in law and legislation, war and conflict, government pressure in smorgasbord of rise in task, changes in government and new government wants to wave reveal all out of date projects.EconomicalAnother factor that exit the environment is itself economy of the country which could buy up upon on shorter term or longer term but most the standardizeds ofly the scotchal effect most effect on longer period. It includes adverse movement in exchange judge, addition in taxation, lower engage rate, international economy effect, monetary unfreezes, node buy government agency, change in trend and life mode of people due to short frugal conditions, like possibility of pipe post would not generate as much as they were sooner this which ultimately r esult in decrease in human power which unmediatedly effect thither buying power.TechnologicalTechnology is normally has short term effect excluding some mighty machinery which moderate years to build and changes take place. Technological factor includes change in engineering science as this is one of the major factor as we get to seen in now a day communication and computer technology change rapidly as comp be to others, once a new model enter in the merc slip byise will definitely absolute the previous one. other(a) factors include changes in technological legislation, licensing and patents, intellectual property issue and global communication. mixerSocial is another(prenominal) environment factor that fecal matter chance upon two in short and long term to constitution. Social factor include change in trends, fashion, style, organizational brand, people purchasing power, religious and ethical issues. Media dawdle zippy role these days as a mean of spreading awargonness among people which screwing be in all(prenominal) sector. Major events has a short term environment affects. richness of environmental Factor Affecting OrganizationIt is obvious that any change in the environment factor coffin nail 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 merchandise put one across to adopt the changes take place. Technological if in that respect has been change in technology as latest reading of machinery launched every business which directly use such machinery to run at that place business need to update accordingly in fix up to survive in the competitor market otherwise competitor, take lead in business operations. Social and economy factors likewise has important influence on organization activities suppose, if organization is doing trade with international business pa rtners in case of war both countries government impose restriction on the trade which affect both businesses on the other hand if economy is on downfall trend, in fact all businesses faces decline in the lettuce dowery as customers buying power has fall as a result of poor economic conditions. forethought of Stake holdersA endangerholder is any person or organization, who bottom of the inning be dogmaticly or negatively impacted by, or cause an impact on the actions of a company, government, or organization.Following argon the stake holders of almost every businessCustomersEmployeesTrade addressorsBank governingSh areholdersInvestorsLocal communityEnvironment all stakeholder has it on expectations from the company or business. Customers demand high pure tone but cheap price products and services. Employees has on that point own expectations like secure future, attractive salary plus bonuses. Trade creditors demand long credit period. Bank is interested in it financial perfor mance and business is able pay the interest rates. Government is interested in business paying tax on cartridge clip. Shareholders are interested in increase in wealth which result in business generates profits. Investors interested on re cultivate on there investment. Local community expects employment opportunities from business. Business would run its operations below environment friendly atmosphere.Changes that affect the schemeFactors that currently affect the TM Mobile house is technology change like upgraded version of computer mobile model therefore TM should have to buy new software that are currently used 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 system in order to survive under such condition.Due to poor economic condition customers are unable to pay to a greater extent for the healthys they bought infect they demand cheap prod uct but good step 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 specie back, employees feel unsecure future in TM employees are not happy as they would not buzz off 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.Task2Business Strategies, Policies and PlansStrategic ObjectivesThe company strategical objectives are how the company corporate objective is going to be achieved. 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 upstart terms maximization of shareholder wealth.EffectivenessIs a measure of the degree to which business achieve its goals.The strategy is trenchant if it achieve it objective.Business PlanA business end is an official statement contains business goals, the reasons why they are going to be achievable, and the fancy 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 send off is to maximize the profit, growth 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 together its employee as a lastingness 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 meetings, 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 oblation such guarantees. For the time being TM is moving slowly towards maximizing profit as due the economic recess it been difficult for TM to achieve its targets. Employees are working(a) 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 operating in this area offering the same kind of services, but due to size of the business TM were in lead. Two more business was closed down due to unfeasible economic conditions. Now its time for TM to cle anse its services likely to make amendments in the plan as customers are switching back towards TM. Which is po perplexive sign for TM as sale will grow as planed in future because of reduction in competition. TM is now increase the volume of finished good stock for resale purposes as he is expecting increase in the sale as well as profit.TM has following competitive strong suit and weaknesses, of its current strategies. effectivityIt has large space in shop so more customers can sit at a time.Its location is comparatively give way than its competitor. However its competitor is in less engross 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, notes 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 edge on this. TM is not buying accessories of latest mobile phone, lack of training in employees, participation in thriftiness schemes. Its competitor has edge on above mentioned weakness.Task 3Options for Strategic PlanningStrategic training is creating a vision of the future and managing toward that expectancy. Its operating under a mission 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 immediately?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 grassroots strategic planning model involved four steps explained below.SWOT analysis can also be used for strategic planning. Strength and weakness can show business internal get where it can stand and opportunity and threats shows external factors that will affect the business directly or indirectly.StrengthHave you got able financial resources to fund any changes you would like to make?Is your product unique or market leading?Does business have superior manufacturing knowledge?Are you involved with fabrication associations?Your reputation are you considered a market leader? Or an expert in you is filed?Does business have good relationship with your customer?Does business have strong relationships with your suppliers?Does business have a tyrannical 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 in satisfactory 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 impersonal 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 din 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?ThreatsChanges 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 decline?Growing power of customers or suppliers to set priceChanging needs of buyersPorters five forces ModelMichael Porter developed a framework, which determine 5 forces that act to either increase or reduce the competitive forces within an industry. These five forces areThe bargain top executive of Your CustomersThe Thr eat of New Entrants into your IndustryThe Bargaining Power of SuppliersThreat of Substitute Products or ServicesRivalry amongst Existing FirmsGraphically presented asRivalry amongst Existing FirmsIndustry growth ratesHigh fixed costIntermittent over capacityProduct differencesBrand identity fault costsInformational complexityConcentration balanceDiversity of competitorsCorporate stakesExit barriersThe Bargaining Power of Your CustomersDifferentiation of outputs switching costsPresence of substitutesIndustry concentration relative to buyer concentrationImportance of volume to buyersCost relative to total buyer purchasesImpact of outputs on the cost of differentiation emptor information about supplier productsBuyer profitabilityDecision makers incentivesThreat of backward integrationThe Bargaining Power of SuppliersDifferentiation of inputsSwitching costsPresence of substitute productsSupplier concentration relative to industry concentrationImportance of volume to suppliersCost relat ive to total purchases in the industryImpact of inputs on cost or differentiationInformation about suppliers productsSupplier profitabilityDecision makers incentivesThreat of in front integrationThe Threat of New Entrants into your IndustryEconomies of scaleProprietary product differencesBrand identitySwitching costsCapital prerequisitesAccess to distributionAbsolute cost advantageGovernment policy pass judgment retaliationThreat of Substitute Products or ServicesRelative price performance of substitutesSwitching costsBuyer propensity to substituteComparative understanding of activity from organizationIf we take in to cypher 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 consideration 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 it s 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 activities. 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 need products like latest models of mobile and if to upgrade the existing computers using as internet caf, do TM has sufficient fun d 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 customers, whats there buying power what there expectation from TM and which product they normally demand for there normal consumptions. to the highest degree 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 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 discuss 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 development models and which important areas are vital in making future strategies.