Answer to Question #219642 in Management for LASHLEY

Question

Discuss any three factors each for environmental and sociological factors respectively that are likely to be the reasons for the collapse of contemporary businesses

Answer 1

Environmental factors are defined as identifiable elements within the cultural, economic, demographic, physical, technological or political environment which impacts the growth, operations and survival of an organization.

The following are the environmental factors;

1) Climate Change- Climate change is a threat to businesses. The pace can be recognized only when it is taken into consideration on the basis of year after a year. Increasing issue of global warming and adverse weather conditions in the recent few years, it is difficult for companies and organizations to operate equally in every type of weather condition. Businesses that are directly dependent upon adequate water supply e.g., field sports or agriculture will be affected adversely if climatic changes resulted in reduced rainfalls.

2) Pollution- Pollution has an impact over business strategies. Pollution may cause some major environmental events which can result in the disruption of supply chains or an increase in the cost of raw material. Organizations need to monitor such events and develop contingency plans so as to deal with them.

3) Waste Disposal- there has been a positive trend towards recycling of waste materials, still there is several businesses which dump wastage in landfills. This not only increases their cost of dumping waste but, is also harmful to the environment in which the business operates. Businesses, in order to meet their bottom line, should first look at producing less waste and use fewer resources which will reduce their production cost along with making the corporation sustainable.

The following are the sociological factors;

1) Mismanagement- Many business has collapsed because of bad management. This is common, because the nature of business model is often far more personal than that of a corporate business. If you’re the owner, manager and the director at the same momment, it’s unnervingly easy to create multiple problems of your own doing.The key is to accept that you have made mistakes and you are rectifying them in a timely fashion.

2) Stiff competition- businesses must operate in a strategic manner when it comes to competing within their market in oder to outshine their competitors and emerge customers favorite by satisfying their wants and needs.

3) Lack of a proper planned business plan- it is easy to get carried away when starting a contemporary business. Therefore, without a proper business plan, the business might collapse. Creating a business plan for a business ensures profitability and sustainability. Without a business plan, undertaking new initiatives and ideas without knowing potential impact on the business future might collapse the business.