The specific environment comprises of the external and internal factors surrounding the business. An organization offers a platform for people to work together and achieve uniform goals by application of division of labor concept (Stephen Robbins 2013). Academic theories concept explain the impact of different factors on organizations. This report will give an analysis of the various theories and concepts that impact on the organization’s specific environments, using Samsung as the organization of the study.
According to (Dzimbiri 2009), there are classical organizational theories which have combined concepts from theorists who try to explain the different concepts underlying the business environments (Rudani 2013). It combines the concepts of Scientific Management Approach by Fredrick Taylor, which states that performance is influenced by existing relationships between employees and management. Webber’s bureaucracy theory which reflects on the personal attitudes of the people within the organization, according to this concept employee’s negative attitudes negatively impacts on organizational performance since they hinder proper implementation of corporate systems, bureaucracy provides for authority, the division of labor and process efficiency. Administrative theory of Henry Fayol bases its arguments on many management principles; he explains management to be as a result of planning, organizing, commanding, and coordination (PARDEEP SAHNI 2009).
Additionally, there are modern theories which combine the concepts of system theory. They view an organization as a system of interconnected components that should perform uniformly, the social, technical theory which suggests that organizations are made up of interconnected social elements and the contingency theory that explains the relationship between organizational systems and its environment (David Crowther 2004).
Competition for a company to be competitive, it’s important to carry out an analysis and establish who the competitors are. It’s not possible for any business to ignore this. Samsung strongest competitor is Apple in the phone manufacturing market, Apple dominates the market share of Smart phones in the US and is second largest market share in the world after Samsung. To overcome the challenge of competition Samsung should identify its size and market share in the industry. Other competitors include Huawei, Vivo, Lenovo (beats Samsung in laptop’s market share), among others (Dzimbiri 2009).
Samsung had a decline in the profits generated in the year 2016, but on the contrary, its competitor (Apple) recorded a rise in profits the same year. This directly shows that Apple’s competition is posing a notable impact on the company’s performance (Stephen Robbins 2013). The poor performance of Samsung last year is linked to stiff competition amidst weak global economic conditions. Samsung anticipates achieving solid growths in earnings in the year 2017, to improve its performances the company looks at increasing the earnings by increasing its business units focus on software and clearly differentiate itself from the competitors in this competitive market. (Rudani 2013).
In conclusion, it’s important for any organization to focus on its internal and external as both of the directly or indirectly impacts on its performance (Stephen Robbins 2013). Organizations are encouraged to lay enough focus on their competitors since no matter the quality of products competition will always arise; the organization should try and establish a sustainable competitive advantage against its competitors to enable them to have the largest market share.
David Crowther, Miriam Green. Organizational Theory. Illustrated, reprint. Wimbledon, London,: CIPD Publishing, 2004.
Dzimbiri, Lewis B. Organisation and Management Theories: an African Focus: Integrating Structure, People, Processes and the Environment for Human Happiness. Göttingen: Cuvillier Verlag, 2009.
PARDEEP SAHNI, ETAKULA VAYUNANDAN. ADMINISTRATIVE THEORY. New Delhi: PHI Learning Pvt. Ltd, 2009.
Rudani, Ramesh B. Principles of Management. New York: Tata McGraw-Hill Education, 2013.
Stephen Robbins, David De Cenzo, Mary Coulter, Megan Woods. Management: the Essentials. London,: Pearson Higher Education AU, , 2013.
Zilwa, Deanna de. Academic Units in a Complex, Changing World: Adaptation and Resistance. illustrated. Berlin: Springer Science & Business Media, 2010.
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