Forces in the Environments


Environment is the sum of all the forces surrounding and influencing the life and development of the firm. The forces themselves can be classified as external or internal. Management has no direct control over them, though it can exert influences. The external forces are commonly called uncontrollable forces and consist of the following:

  1. Competitive: kinds and numbers of competitors, their locations, and their activities.
  2. Distributive: national and international agencies available for distributing goods and services.
  3. Economic: variables (such as GNP, unit labor cost, and personal consumption expenditure) that influence a firm’s ability to do business.
  4. Socio-economic: characteristics and distribution of the human population.
  5. Financial: variables such as interest rates, inflation rates, and taxation.
  6. Legal: the many kinds of foreign and domestic laws by which international firms must operate.
  7. Physical: elements of nature such as topography, climate, and natural resources.
  8. Political: elements of nations’ political climates such as nationalism, forms of government, and international organizations.
  9. Socio-cultural: elements of culture (such as attitudes, beliefs, and opinions) important to international businesspeople.
  10. Labor: consumption, skills, and attitudes of labor.
  11. Technological: the technical skills and equipment that affects how resources are converted to products.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

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Concepts of ISO 140001


This standard provides organizations with the elements for an environmental management system (EMS), which can be integrated into other management systems to help achieve environmental and economic goals. It describes the requirements for registration and/or self-declaration of the organization’s EMS. Demonstration of successful implementation can be used to assure other parties that an appropriate EMS is in place. It was written to be applicable to all types and sizes of organizations and to accommodate diverse geographical, cultural, and social conditions. The requirements are based on the process and not on the product. It does, however, require commitment to the organization’s EMS policy, applicable regulations, and continual improvement.

The basic approach to EM begins with the environmental policy, which is followed by planning, implementation and operation, checking and corrective action, and management review. There is a logical sequence of events to achieve continual improvement. Many of the requirements may be developed concurrently or revisited at any time. The overall aim is to support environmental protection and prevention of pollution in balance with socioeconomic needs.

The standard is not intended to create nontariff barriers or to change an organization’s legal obligations. In addition, it does not include aspects of occupational health and safety management, although an organization may include these aspects in the documentation.

In order to understand the requirements, a few definitions are necessary. Environment is defined as the global surroundings in which an organization operates and includes air, water, land, natural resources, flora, fauna, humans, and their interaction. Environmental aspect is defined as an element of an organization’s activities, products, or services that can interact with the environment. Examples are wastewater discharge, air emissions, and energy use. Environment impact is defined as any change, whether adverse or beneficial, wholly or partially resulting from an organization’s activities, products, or services. Examples are impacts on habitat, water supply, and soil erosion. Environmental objective is an overall environmental goal, arising from the policy statement, that an organization sets for itself and which is quantified when practical. They define how the policy will be achieved. For example, an objective could be to control the temperature of the wastewater effluent. Environmental target is a detailed performance requirement and should be quantified when practical. It needs to be met in order to achieve the objective. For example the wastewater temperature should be controlled between 10 and 14 degrees centigrade.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Bases for Market Segmentation


Two broad types of variables are commonly used for market segmentation. Socioeconomic characteristics of consumers, such as gender, age, occupation, income, family life cycle, education, and geographic location make up one type. The other type consists of behavioral variables, including benefits sought from products and services, usage behavior, lifestyle, and attitudes. For industrial buyers, socioeconomic characteristics may include company size and location, and industry or customers served. Behavioral variables may include purchasing objectives and practices as well as product and service benefits. The appropriateness of any one or combination of variables in a specific situation will depend on whether or not a variable relates to purchasing, use, or consumption behavior and responsiveness to marketing programs.

The choice of variables to use to segment a market often depends on insights into buyer behavior, provided by creative research. Even people with similar usage needs often have differing lifestyles representing various value sets. For example, some people have an active lifestyles in which sports and fitness play an important role, while for others arts, fashion and trends may be very important.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight