Assignment 1,: 2 pagesFind an article that talking about Fundamentals of Organization Structure ( structure vertical or horizontal) or External Environment of organization. To have more idea just a...

Journal: External Environmental Analysis For Small And Medium Enterprises
(SMEs), by Heather C. Banham, CGA, Okanagan College, Canada, Journal of Business &
Economics Research — October, 2010, Volume 8, Number 10
Article Analysis:
With the increasing competition across the globe, the organizations have a strong focus
on analyzing their environment in which they operate. The external environment faced by the
firm and its business units affects the strategy of the firm, the value of the strategy, and thus the
firm’s performance. Environmental analysis is considered to be an active input which helps in
identifying different threats and opportunities a firm is likely to face which will help in
formulating different strategies for competing in the competitive market. External analysis takes
into consideration competitive analysis as well as industry analysis.
This article brings into picture the impact of the environmental changes which relates to
SME’s. So as to compete in the global environment, the SME’s needs to have a strong focus on
change. The change drivers of SME’s are technological advances, customer expectations,
supplier requirements, regulatory changes and increasing competition across the globe.
For assessing the external environment of SME’s the organizations should focus on
different steps, firstly it should assess the forces of change and assign a quantitative value to the
particular force as per the needs and requirements of the company. After assigning them the
quantitative value to the forces the strength of the forces are assessed. The next step is to
multiply the value assigned to each force by the value assigned to its strength. The result is
interpreted on different values which helps in analyzing the importance of the force on the
organization. Higher the value of the particular force, higher is the effect of the particular force
on the organization.
There are other tools as well which helps in analyzing the effect of the external
environment. These tools are: Five force model – Five force model is the model which helps in
doing the industrial analysis, through this model the organization is able to know its competitive
position in the business of its operations. There are five aspects that are brought into focus in five
force model bargaining power of suppliers, buyer, and intensity of rivalry, substitutes and entry
and exit barriers.
SWOT analysis – through SWOT analysis the organization is able to bring into picture
the internal strengths and weaknesses of the organization and the external opportunities and
threats of the organization. ...