on the environment of an organization

Muhammad Azeem
Roll # AD-514025
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 Organization
An organization is a separate and distinct
group of people and resources put together
for a common objective.
Example:
 Pakistan Air Force.
 Distinct and separate entity.

 Military Organization

 Hiring pilots

 Purchasing planes, Guns, Warships

 Crew

 Fighters

 One Common Objective. To protect the people of its

country.

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 Environment of an Organization
Organizations are Distinct but not isolate.
They must interact with their environment.
Environment has following sectors.
 Economic Sector
 Consists of economic elements of the environment.

 Cultural Sector
 Consists of Cultural elements of the environment.
 Political Sector
 Consists of political elements of the environment.

 Competitive Sector
 Emergence of new competitors is contained in this sector.
 Technological Sector
 Introduction and implementation of new technologies.

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 Effect of Economic Changes
Economic changes in the environment
affect the organization in one way or the
other.
Example
 Car Manufacturers in America
 Slump in American economy due to Iraq and Afghan wars.

 Less buying power of the people.

 Low demand for the luxury cars

 Response by Managers
 Manufacturing small cars which are within the purchasing
power of people.

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 Effect of Political Changes
Child Labor Policy enforced in Pakistan.
Effects
 Caused a slump in the football industry.

Response by Managers
 Internal Child labor control policies designed and
implemented
Results
 Restored contracts with major football buyers.
 Increased business
 Increased profits
 Increased employment opportunities.

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 COLARO SPORTS
STUDY OF RESPONSE OF MANAGERS
TO MINIMIZE THE EFFECT OF
ECONOMIC AND POLITICAL CHANGES
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 Introduction of Organization
Name: Colaro Sports
C.E.O.: Sh. Imran Majeed
M.D.: Sh. Usman Majeed
Prod. Dir.: Sh. Abdur Rehman
Capital: 1000 Million PKR.
Exports: 500 Million PKR. Anually
Products
Sportswear, Leisurewear, Knitwear, Hosiery
Products
Sublimation printed Garments.

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 Effect of economic changes on the
environment of Colaro Sports
Inflation:
Inflation is general rise in prices of goods &
services
Colaro is affected by both national &
international inflation level
Recent slump in sportswear industry causing
high inflation rate all around the globe
Costly Raw Materials for Colaro Sports.

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 Response by a Manager:
Colaro has hired purchase managers
Finding alternative raw material sources
Better prices of raw materials
Imports managers for raw materials that are
not locally available
Negotiations with existing suppliers
Study of the behavior of competitors in such
situations.

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 Effect of Political changes on the
environment of Colaro Sports:
Example of political change (Minimum Pay
scale Law)
Minimum monthly salary for unskilled worker
is fixed to 6000 PKR.
Adverse effect on HR department
Decrease manpower available for performing
the tasks because the payments to unskilled
workers were not affordable
Increased salaries add to production costs
and hence finally affect the profits
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 Response by a Manager:
Colaro has to abide by the laws of Govt. of
Pakistan
Managers search for better alternatives
Workers who can handle multiple jobs
simultaneously and effectively
Worst case scenario
Downsizing

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 SWOT
Analysis
Strengths:
Colaro doesn’t usually resort to downsizing
Increments and bonuses for motivations
Complies with all the laws and regulations of
Pakistan Govt., so less legal problems
Strictly disallows child labor
Less intervention of Govt.
Satisfaction of customers

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 SWOT
Analysis
Weaknesses:
Avoiding downsizing can causes the
organization to suffer economically
Yearly bonuses and increments add to the
production costs constantly
Can not increase the export prices for the
foreign customers annually

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 SWOT
Analysis
Opportunities:

No internal labor unions

No HR problems due to worker friendly
environment
It is an advantage in long run

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 SWOT
Analysis
Threats:

Ever increasing competitors in sportswear

manufacturing industry
Study of competitors intelligence is necessary
May face problems in competition

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 Recommendations:

Proper data security policy

Must study competitor intelligence and make
decisions accordingly
Strong social and logical policies be made to
filter out the malicious elements

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 Thanks to:
Allah the almighty.
For giving me enough zeal and exuberance to perform this task
My Respected teacher
For providing me guidance on how to accomplish this task
Finally, all of you
For being here and providing me your support

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