Factors Affecting Business Essay

 

Introduction

Business organizations have become a very important engine in the field of the economy and of life for all of us, in recent years they have managed to position themselves as one of the largest producers that improve the quality of life of people. Like any commercial success, business organizations have their own conflicts that they must resolve little by little, otherwise they could affect their business relationships with their partners and consumers. The following essay seeks to know which are the main factors that affect business organizations.

Development

The first important point and which I consider to be the main factor that positively or negatively influences a company is the business environment, dynamic environments are important for consumers and employees. That is why it is important that companies have a positive business environment to always have better control with all factors. Business strategies can also be a factor in the development of the organization's structure, high-growth companies often have small organizational structures so that they can react to changes in the business environment faster than other companies. Business strategies can also be a factor in the development of the organization's structure. High-growth companies often have small organizational structures so that they can react to changes in the business environment faster than other companies. The size of the company is many times the determining factor for the organizational structure of a company. Smaller or residency businesses typically don't have a huge structure, because the business owner is generally responsible for all tasks. Larger organizations generally require a more intense structure in the organizational structure.

General information, the organizational structure that companies use is the infrastructure to delineate their authority and communication processes. There are several factors that affect the organizational structure of a company. These factors can be internal or external. Small business owners should be responsible for creating their infrastructure. The life cycle of the company also plays an important role in the development of an organizational structure. Business owners attempting to grow and expand their business operations often develop an organizational structure to outline their business mission and objectives. Companies that achieve optimal performance are generally more functional in their organizational structure. Mature companies often focus on developing an organizational structure to improve efficiency and profitability.

The political environment unavoidably affects the economic performance of companies. Legislators at the local, state and federal levels on the one hand may offer tax or duty incentives or exemptions to businesses. On the other hand, they can impose rules that restrict or limit their business transactions. The Macro-economic environment around a company is a factor that can affect its microeconomics. A decrease in interest rates can be an incentive to finance assets and increase installed capacity. During a recession, consumers spend less on optional items, such as cars and appliances.  The social factors that affect the economic environment of a company are the cultural influences of the time, trends at the level of consumption, fashions and customs. Consumer trends are easily transferible between certain cultures. Innovation and technology affect business environments. As technology advances, a company is forced to keep up, otherwise it will lose competitiveness, market power, and become obsolete, companies that don't keep up technologically risk higher production costs and higher prices. The most effective way for a company to prepare is to be flexible and adapt. An environmental analysis is the process of methodically gathering, analyzing, and interpreting data about external opportunities and threats. It is a mechanism to collect information and do a relevant data analysis about the outside world, your competitors and indeed, about your own company

Conclusion

As it could be analyzed in this document, there are many important factors that every company must carry out to have better control in its business organizations, some are more important than others but all this works as a set of factors that must be balanced, we can To say that there are 10 pillars that support a company, when half is missing, the company falters, with less than half the company falls flat, it is important to take all these points into consideration so that the directors, employees and managers of a company manage to control all these factors that can positively influence the management of a company, but also, if done correctly, it guarantees us enormous opportunities.