answersLogoWhite

0

If there is anything that is stead fast and unchanging, it is change itself. Change is inevitable, and those organizations who do not keep up with change will become unstable, with long-term survivability in question.

There are things, events, or situations that occur that affect the way a business operates, either in a positive or negative way. These things, situations, or events that occur that affect a business in either a positive or negative way are called "driving forces or environmental factors or forces."

There are two kinds of driving forces; Internal driving forces, and external driving forces. Internal driving forces are those kinds of things, situations, or events that occur inside the business, and are generally under the control of the company. Examples might be as follows.

· organization of machinery and equipment,

· technological capacity,

· organizational culture,

· management systems,

· financial management

· employee morale.

External driving forces are those kinds of things, situation, or events that occur outside of the company and are by and large beyond the control of the company. Examples of external driving forces might be as follows.

· the industry itself

· the economy

· Demographics

· competition

· political interference

· government laws and regulations

Whether they are internal or external driving forces, one thing is certain for both. Change will occur! A company must be cognizant of these changes, flexible, and willing to respond to them in an appropriate way.

External driving forces can bury a business if not appropriately dealt with. The question is, how does a business know what changes are occurring so that they can deal with them in a positive way. OK, that's the next issue.

In order for a business to succeed and gain the competitive edge, the business must know what changes are indeed occurring, and what changes might be coming up in the future. I guess you might call this forecasting. Thus, critical to the business is what we call "informational resources." It is the collection and analyzation of data. Some examples of critical information might include the following:

  • Competition (what are they doing?)
  • Customer behavior (needs, wants, and desires)
  • Industry out look (local, national, global)
  • Demographics (the change populations, there density, etc.)
  • Economy (are we peaking, or moving negatively)
  • Political movements and/or interference
  • Social environment
  • Technological changes
  • General environmental changes
  • Government interference (laws, regulations, policies, ect.)

The above are just some issues organizations must be on top of. Well it's never easy, but organizations that are successful include all of the above (and more), to develop the appropriate tactics, strategies, and best practices, to ensure successful out comes.

Also, understand why many businesses fail. Some reasons are as follows.

  • No written plan
  • Little or no education in business
  • No coach or mentor
  • Did not take advantage of appropriate resources (SBA and SCORE for example)
  • Lack of start-up finances
  • Wrong location
  • Lack of collecting and analyzing informational resources (internal and external driving forces to include information on the competition)
  • Poor management skills including the inability to appropriately manage material, human, financial, and informational resources to achieve the organizations goals and objectives
  • Starting a business for the wrong reasons
  • Lack of good advertising to include a good web page
  • Lack of a real passion for business
  • Lack of contingency planning (risk management)
User Avatar

Wiki User

15y ago

What else can I help you with?

Related Questions

Is bearded dragons development internal or external?

its internal


Do donkeys have internal or external development?

internal


Is a clown fish internal or external development?

External


What are the internal and external factors that affect child development?

There are many internal and external factors that affect child development. One internal factor is the genetic makeup of the child.


Is development of economy internal or external phenomenon?

development of an economy is an internal phenomenon as it comes from within.


Do seahorses have internal or external development?

lll


Do mammals have internal or external development?

internal. They develop inside the womb


Do bees use internal or external development?

External, because they lay eggs.


Do cheetah have internal or external development?

Cheetahs are placental mammals, so they have internal fertilization and internal development within the uterus of the female.


Are mammals internal or external development?

Mammals have internal gestation with viviparous birth.


What are the concepts of internal and external systems development?

I am struggling with that answer my self.


What is the difference between internal and external development?

Internal development refers to the processes and activities undertaken within an organization to enhance its capabilities, products, or services, often involving existing employees and resources. In contrast, external development involves collaborating with outside partners, such as vendors, consultants, or other organizations, to achieve growth or innovation. While internal development focuses on leveraging internal knowledge and resources, external development seeks to incorporate external expertise and perspectives. Both approaches can be valuable, depending on the organization's goals and needs.