SM Old Syllabus|Framework To Understand The Environment Influence|Q.9|CA IPCC|PS RATHORE|ATC| Even though it is difficult to understand the business environment, the business manager cannot ignore it. We can make an attempt to identify a framework for understanding the environment of the organization. This will help in identifying key issues. This will tell ways of coping with complexity and it will assist in challenging managerial thinking.
First Uncertainty
The management must take a bird-view of the nature of the organizational environment in terms of how uncertain is it?. Is it relatively static or does it show any sign of change? In case we find it is changeable, the way it will change. Is it simple or complex or comprehensive. Will it help in taking decision, where to focus and how to focus.
The next step Evaluation
There must be audit of the environmental influences. We must comprehend the most powerful factors. This is done by proper analysis of the best. It is very useful in the new era of globalization. This may provide a sight of the future road of the company. Management might consider, till where strategy might need some correction. Evaluation must be done for following.
1. Facilitate and foster strategic thinking.
2 Change understanding both present and future.
3 Input for strategic decision-making.
4 Evaluating present strategy
5 Formulating future strategy
6 Setting strategic objective to grow
To attack competitors with full planning.
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