9. Economic element: This is concerning about the systems of producing, distributing & consuming wealth. Prevailing economic conditions have great impact on the management practices in an organisation.
These different factors are inflation, interest rates, stock market fluctuations, which affect the profitability and success of an organisation (MBA Lectures, 2010). If people’s earned income decrease, it will decrease the amount of spending that they will make, lower demand for goods and services. As a result it will influence profitability of the organisation.
For example, some of the seasonal workers already deposited their payment and waiting for their chosen vehicle to arrive and they will pay the rest when their vehicle is. However, over months, the amount of money they received from fruit picking is not good enough. They wanted to refund their money, according to the amount of needs they need to fulfil. Changing in forms of payment will have an impacts on Lovely Imports and Exports. International element: The developments in countries outside of an organisation’s home country have potential to influence the organisation’s success. When there is a change in forex market, it will influence the organisation’s success. For example, when importing vehicles from Japan, it is in US dollars, when US dollars become stronger, it will have an impact on Lovely Imports and Exports’ amount of imports, both number of vehicles imported and value. Technological element: It refers to the current state of knowledge about the production of goods and services (MBA Lectures, 2010).
The impact of technology on the overall success of an organisation is either positive or negative. It can either in forms of computer, telecommunication, machines and other technological tools. Mr Mafile’o relies a lot on computer and internets, to make communication with their importers easier and accessible at all times. Organisations must stay abreast of current 10. Competitors: Competition is the basic elements of a free enterprise system and it encourages progress and product-developments (Malhotra, n.
d.). It is important to recognize that the area of competition is not limited to customers only but it extends to competition for all scarce resources such as raw materials, capital and human resources. Managers will look for cheaper but quality substitutes for raw materials and must acquire and retain an effective and dedicated work force by offering good working environment and by providing motivate for self-actualization goals. To develop new products, research activities must be done to differentiate their products from their competitors including advertising. Managers should be able to monitor competitor activities and able to analyse their competitors. Lovely Imports and Exports have lots of competitors as numbers of private car dealers increased. Mr Mafile’o is trying different ways to compete with the other car dealers.
He was using ruffle withdrawn in December quarter, shout out a free meal (dinner at Vakaloa Beach) in every quarter, and enable partially payments which make it easier for his customers. At the same time, he offered some free licensing and quarter licensing to their customers. This will enable Lovely Imports and Exports to attract more customers.Government Agencies: There are some rules and regulations (protocols) that every business must fulfil before continue on with their business. Every business must be registered at the Ministry of Labour and Commerce for a legal entity.
At the same time, every business must pay taxation to Inland Revenue. Managers should make sure that they comply with the rules and regulations before proceeding their business. Mr Mafile’o fulfilled the requirements at the Ministry of Labour and Commerce before establishing his business. He registered their business and also registered for taxable payment. In every quarter, he had to make sure that they are paying their tax to the Inland Revenue on time.Suppliers: They are organisations and individuals supplying resources an organisation needs to conduct its operations. Quality and costs of raw materials determine whether the output product can meet the quality standards of a competitive market, many organizations look for suppliers which might provide advantages in price, quality and quantity (Malhotra, n.d.
). It is the roles of mangers to choose the right suppliers for the organisation, and able to build and keep good relationship with their suppliers. Mr Mafile’o heavily relied on Japan importers to provide him with the best vehicles at a reasonable price, and less or no damage to these vehicles. Not only that, he relied on JM Exports for packing bags for their crops to be exported overseas.11.
I would advised Mr Mafile’o to pay more attention to its Mega external environments. Because they are going to deal with it in the daily operation of the business. If they do not deal with it and pay more attend to it, they are going to lose their customers. For Task environment, the organisation will only deal with it once in a quarter or a year. For example, when paying taxation to Inland Revenue Department, payment done once in a quarter.12. Cultural differences manifest themselves in different ways and to different levels of depth. Symbols: They are words, gestures, pictures, or objects that carry a particular meaning which is only recognized by those who share a particular culture.
If there are new symbols being developed, then the old one will easily disappear. Rituals: They are collective activities, sometimes imaginary in reaching desired objectives, but are considered as socially essential. Managers carried out most of the times for their own sake such as ways of greetings, paying respects to others, and religious…etc. Mr Mafile’o has been participated in social activities and contributed to its success. When he participated seasonal workers, he knew what happened out there, the difficulties, the challenges that they faced with.
He helped most of his co-workers importing their vehicles from Japan at a very low price, they respected him for what he had done.Stories: Narrative based on true events, which may be embellished to highlight intended value. The idea of establishing Lovely Imports and Exports was based from a true event, when Mr Mafile’o participated in seasonal workers. He knew that most of seasonal worker’s targets is to buy vehicles for their families. They had to save to be able to buy their vehicles. He knew that at that moment, buying cars and vans in a local car dealers is very expensive, so he decided to establish our business, to help those who participated in seasonal workers, and earned some more money for family’s obligations.
13. Yes.Potential advantage: Results oriented: high performance cultures invest more time and resources to ensure that employees who excel and achieve performance targets are identified and rewarded such as bonuses.Potential disadvantage: unhealthy promotion practices: as it will take time for an employee to get a promotion, even though you are hard-working and good at day-to-day operations of the business.14.