Does the External Environment Determine the Success or Failure of an Organization?

1405 words 6 pages
The external environment can be defined as forces and factors outside the organization affecting the overall company’s performance directly or indirectly. It can be divided into two components including specific environment and general environment. Specific environment refers to the unique factors of each company that directly relevant to the achievement of goals and affect managers’ actions and decisions directly including suppliers, customers, pressure groups and competitors. General environment refers to the broad conditions that may affect the company, in which includes political or legal environment, economic environment, sociocultural environment, technological environment and demographic environment.

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Worker values and social protection such as, mandatory provident fund will affect the ways to manage employee, the internal operating and the types of staff to employ. Social value about Chinese values and demographic data will also affect the preferable coffee to sell. Consumer preferences could shift from coffee to other beverages. There are some principles to affect the business environment.

First, Starbucks strive to buy, sell and use recycling products. In many Starbucks stores, cardboard or milk jugs are recycled. But the commercial recycling services are difficult found in some countries. If the stories are located in some communities without recycling services, Starbucks may not provide comprehensive or no recycling. The waste collection and recycling in malls often account by the landlords because of lacking of shared spaces. Even so, Starbucks strive to make recycling easier for customers. In the U.S. the company are working with major authorities to gain more front-of-house recycling opportunities. To reduce the environment impact of cups, Starbucks developed recyclable cup and encouraged customers to use their own reusable cups. The customers can get a 10-cent discount if they use their own reusable tumblers and mugs for their coffees. Customers are requested to serve in a reusable mug if they stayed in a store to enjoy coffee. It can reduce the impact on environment to keep the forests intact. Some customers think


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