Buy essay on The impact of the cultural environment on organizational performance and development

The corporate culture is often associated with practices and behaviors inherent to the company that determine the priorities and things that are made within it. There are also those who associate the message in the text of his mission, while economic and social responsibility as a company project. An appropriate corporate culture helps to build an identity and may prove key to the success of organizations.
According to Tamara Moyses, culture is the main asset of the company. The culture of a company is distinctly marked by the kind of industry where it operates, which adopt certain practices that are associated closely linked to that specific industry. We can take for example what happens to the information technology companies which in general suffer from the influences of culture generated by Silicon Valley. For businesses, it is absolutely essential to understand the culture prevailing in the external environment where they fall, or aspire to fit, because what works in another culture is not guaranteed to work.
The difficulties many companies encounter when they settle in other countries or regions and acquire or merge with other companies come, often, these cultural differences that hinder their proper functioning and the expected higher productivity. In this respect Europeans take a clear advantage over other people, given the enormous wealth and cultural diversity that we find there, according to Organizational Performance Management – Evaluating and Improving Organizations (2010).
Methodology
Consumers – are those individuals who are interested, or might be interested in the organization produced goods or services. A well-known specialist in the management of P. Drucker believed that the only true goal of any business – is the creation of the consumer. Need to meet the needs of consumers affect the processes within the organization, as the number of consumers determine ultimately the required production resources, and characteristics of consumers (which they are) – is the desired range of goods and services and their quality. In principle, all consumers can be divided into four groups: end-users or the public; industrial consumers, representatives of various sectors of the economy; brokers or traders, who buy goods for resale; and state as an entity, according to The social and cultural environment (2009).
Culture is a universal phenomenon as there is no society in history without a culture. But culture varies from one society to another. Studies of formal organizations in both Western and non-Western societies have shown the implications of varying cultures for ‘organizational operations and performance’. Multinational organizations operating in different cultural contexts have become increasingly sensitive to the potential impact of the culture of a host country on organizational performance. (Brown 1973, and Hofstede 1991).
Results
Understanding the importance of assessing the external environment for the management of the company finally emerged in the late 50s., since the external environment of the organization became more and more and is still the source of many problems of leadership. Organization, as an open system, depends on the supply of resources, energy, human resources, as well as consumers.
In general, the external environment the organization can be described as the totality of the factors influencing the activities of the organization, namely, consumers, competitors, government agencies, suppliers, financial institutions, sources of labor, as well as science, culture, society and the state of natural phenomena, according to Organizational Performance (2010).
Since environmental factors have different power to influence the organization, they are divided into direct and indirect factors, and all the external medium on the medium of direct and indirect actions.
An important component of the environment is competitors. Each leader must realize that if he did not meet their customers as well (with certain quality and price), as well as its competitors, the company’s debts in the market conditions will not exist. Under competitive means not only those companies that offer the same products, but with a different brand, but also the companies that produce substitutes. Thus, in any organization, there are two types of competitors: direct competitors – manufacturers of similar products (for example, Coca-Cola and Pepsi-Cola); and indirect competitors –the producers of substitutes (eg, Coca-Cola and beer Heineken).
For business activities of each company there are the needs of external supply: raw materials, labor, and capital. In this case, there is a direct relationship between the organization and network of suppliers to ensure delivery of these resources. Procurement of organization in the market is most interested in terms of obtaining resources, namely price, quality and delivery terms (date, amount, payment terms, etc.). It is these market trends affect the procurement of the total turnover of the company.
Some NGOs also have a direct impact on the operations of enterprises. This is particularly the impact of intensified over recent years. It is well known influence of trade unions that are fighting for the rights of workers, thus establishing the balance of relations between owners and hired workers. Expanding the influence of organizations provides fighting for the rights of consumers and for environmental purity. For example, in 1992, Russia adopted a law on consumer protection, which strengthened the position of non-governmental organizations to protect the rights of consumers to purchase high quality products and to obtain reliable information.
The state has an impact on the organization primarily through legislative regulation of activities. The number and complexity of the laws that are directly devoted to business, have risen sharply. Undergo changes in various forms of reporting companies and organizations, changing tax and customs regulation. State law is characterized by complexity and mobility, and often even uncertainty. The uncertainty of the current impact of government on business stems from the fact that the requirements of some organizations are in conflict with others, and at the same time for many organizations are government agencies that enforce the fulfillment of such requirements.
Under the indirect impact of the environment it refers to factors that may not have a direct and immediate impact on the activity, but, nonetheless, could potentially affect her. Here we are talking about the state of the economy as a whole, scientific and technological development, socio-cultural and political changes.