Last Updated 06 Jul 2020

A Discussion of Environmental Changes Affect Organisations

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There are two types of the term environment, internal and external; both of them can be changed. Recently the global environments are changing and will keep changing, either the internal or the external. As the very famous butterfly effect theory, a small change at one place in a complex system can have large effects elsewhere. A tiny environmental change can badly affect a organisation itself. This essay is going to discuss the influence of the environmental changes effect the organisations in both sides, positive and negative. The most important factor to an organisation is the market; it is like the blood for a corporation.

In the current situation, globalisation acts the main role of business. Which means any organisation has the opportunities to meet the global market? Therefore the marketing division in each organisation has to consider the global environment can change the market share percentage. For instance, the natural environment getting more and more polluted, and consumers choose products more carefully. So the quality of products also have to be more carefully monitored, otherwise customers will choose the products from the competitors and the corporation loses the market. Another example is the global economy.

It is well known that the finance crisis in 2008 affect most entities all over the world. The ex-market might never need the products or could cut down the needs. Or those ex-markets do not exist any more. So the external environment can definitely change the market. Other the other hand, external changing environment could bring new market. Any new changes can create new wants and needs, thus the new creation can be found for cater to the needs and wants of customers. Secondly, the changing environment affect the resourcing include the natural resources and human resources.

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It is undeniable that the resource on earth is getting less and less, and most of them are non-renewable. Since children, we were told that the last drop of water will be human being’s tear. With the decreasing of the natural resources, the organisations will have to adjust itself to get with it. After finish the oil resources, how many oil based organisations can survive, like the car corporations? However, with the new inventions, there are more and more new power resources can be used. For instance solar, wind power, wave energy and nuclear.

So the car industries can produce and sell cars using new energy. Changing from whether internal or external environment can make a lot differences on human resource. Talk about the human recourses, the new generation is called Generation Y, who have highly educated. Which means more and more talents from the entire world could get and work together. So more and more diversity and multi-culture can display in today’s organisations. Take Australia for an example, people in different age, gender, background, personality, educational level and so on can just perfect amalgamated.

However, the diversity can also cause misconstrue, conflict or discrimination. Another important thing has to be mentioned is culture diversity. As we all know, the current society has became social diversification. Take Australia for example, more than 100 nationalities and cultures can be found in this continent. People who from different culture background can mostly examine the matter from different angles. Also, the changes of environment affect the managing, different environment requires different styles of management.

In modern society, most multinational organisations need to consider that what kind of leadership is the best way to leader the local teams. To gain the highest profit, a good leader who can lead the team and motivate staff is highly necessary. A good manager can adjust his methods to cater to different requirement. For example, a good newly transfer manager could get into the local culture quite soon and respect it. And the changing environment can affect the decision making. Good management could never include personal moods or emotions, same as changes in working conditions.

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