These
variables or forces represent those factors, which can be controlled either
partially or completely by the business leaders or managers. They consist of a
set of forces, which can only impact negatively on the business if its managers
stay aloof with a reactive posture. But with a proactive attitude and approach
these factors
variables or forces represent those factors, which can be controlled either
partially or completely by the business leaders or managers. They consist of a
set of forces, which can only impact negatively on the business if its managers
stay aloof with a reactive posture. But with a proactive attitude and approach
these factors
can be effectively taken care of for the benefit of all the
overall business vision, mission and set objectives.
A common framework of micro forces
·
Employees: These represent the human factor and its contribution to the
business process. They include people working for the organization. They
produce goods and services, which are sold by the business firms for the
purpose of meeting customer requirements satisfactorily. Although, every
individual that work for an organization has his own set goals to achieve, but
such goals are subordinate to the corporate goals of that organization which
has his own set goals to achieve, but such goals are subordinate to the corporate
goals of that organization which has contracted his services. Hence he must surrender
his person, his education, skill and experiences creatively for the good and
benefit of the firm. In return the firm pay his wages and salaries as at when
due. This is the basis of the contractual agreement between firm and workers
Employees: These represent the human factor and its contribution to the
business process. They include people working for the organization. They
produce goods and services, which are sold by the business firms for the
purpose of meeting customer requirements satisfactorily. Although, every
individual that work for an organization has his own set goals to achieve, but
such goals are subordinate to the corporate goals of that organization which
has his own set goals to achieve, but such goals are subordinate to the corporate
goals of that organization which has contracted his services. Hence he must surrender
his person, his education, skill and experiences creatively for the good and
benefit of the firm. In return the firm pay his wages and salaries as at when
due. This is the basis of the contractual agreement between firm and workers
·
Trade union Trade unions the world over are an integral part of an
organization. They engage in collective actions for the benefit of their
members. Their basic philosophy of operation is that a worker who joins a union
is offering to be part the union, he supports it, and help fund it by check-off
process and in turn his rights are protected when he is unjustly treated by the
firm’s management. The union engages in collective bargaining with the business
firm on behalf of the employees at shop floor levels. Thus trade unionism is
anchored on the tripod of the firm, the union, and the government. Severally,
union presidents and activitist have had to champion the cause of a single
worker, or a number of its members who are unfairly treated by employers of
labour. In the wider dimension, union leaders have called for general strikes
to force management to listen to its demand. This exemplifies the fact that the
firm cannot be all in all. It must respect contractual agreements and workers
right. Although the firm has the right to sack workers, the union people
equally have the right to go on strike
Trade union Trade unions the world over are an integral part of an
organization. They engage in collective actions for the benefit of their
members. Their basic philosophy of operation is that a worker who joins a union
is offering to be part the union, he supports it, and help fund it by check-off
process and in turn his rights are protected when he is unjustly treated by the
firm’s management. The union engages in collective bargaining with the business
firm on behalf of the employees at shop floor levels. Thus trade unionism is
anchored on the tripod of the firm, the union, and the government. Severally,
union presidents and activitist have had to champion the cause of a single
worker, or a number of its members who are unfairly treated by employers of
labour. In the wider dimension, union leaders have called for general strikes
to force management to listen to its demand. This exemplifies the fact that the
firm cannot be all in all. It must respect contractual agreements and workers
right. Although the firm has the right to sack workers, the union people
equally have the right to go on strike
·
The share holders: these constitute the collection of people, some high net
worth others not too rich who constitute the pool of individuals that provide
the money for the establishment of the organization. In some case they may be
founding equity holders; in other cases they may be just a large collection of
people who owns small or fairly large units of company’s shares. Whichever
category they fall into, it is expected that the management of the business
would run it profitably. Therefore the investors expect to be paid dividend at
the end of each financial year. They appoint the Board of Directors at every
AGM.
The share holders: these constitute the collection of people, some high net
worth others not too rich who constitute the pool of individuals that provide
the money for the establishment of the organization. In some case they may be
founding equity holders; in other cases they may be just a large collection of
people who owns small or fairly large units of company’s shares. Whichever
category they fall into, it is expected that the management of the business
would run it profitably. Therefore the investors expect to be paid dividend at
the end of each financial year. They appoint the Board of Directors at every
AGM.
·
Management: management constitutes the people or executives who are saddled
with the responsibility of day to day running of the organization. They adopt
policies and strategies, which they deem appropriate in order to make a success
of what they have been assigned to do. In many cases, the boards of directors
are appointed at the AGM to run the organization. Should the company not be run
profitably, the shareholders can vote to replace the management and elect a new
set to run and manage the organization for another year?
Management: management constitutes the people or executives who are saddled
with the responsibility of day to day running of the organization. They adopt
policies and strategies, which they deem appropriate in order to make a success
of what they have been assigned to do. In many cases, the boards of directors
are appointed at the AGM to run the organization. Should the company not be run
profitably, the shareholders can vote to replace the management and elect a new
set to run and manage the organization for another year?
·
Suppliers: these are individual and organizations that affiliate
themselves to the organization as contractors to render supply services to the
organization. Mostly in production-based organizations, suppliers are
responsible for providing materials and other necessary inputs that the
organization uses in its production system. Some suppliers give a long credit
time to their clients before payment is made. In other instance, the
organization can grant credit to their valued suppliers to enable them meet
with the task of garnering enough materials for its business work to meet
production target and also the goals of the marketing department. Most times
sales people are under constant pressure to meet distributors and market demand
Suppliers: these are individual and organizations that affiliate
themselves to the organization as contractors to render supply services to the
organization. Mostly in production-based organizations, suppliers are
responsible for providing materials and other necessary inputs that the
organization uses in its production system. Some suppliers give a long credit
time to their clients before payment is made. In other instance, the
organization can grant credit to their valued suppliers to enable them meet
with the task of garnering enough materials for its business work to meet
production target and also the goals of the marketing department. Most times
sales people are under constant pressure to meet distributors and market demand
·
Consumers: they represent the reason why the organization exists and is
in business. The customers are related to the firm directly because they
purchase or buy the goods and services produced by the firm. When customers buy
products, they do so to fulfil the functional and exchange goods of marketing.
And in the same vein receive satisfaction through consumption. Hence the money
they part with is used to service other consumption. Hence the money they part
with is used to service other component parts of the firm and provide the
profit which the organization uses to discharge its responsibilities to its
shareholders, creditors, and in buy products it means the firm will have a
large unsold stock of goods. This could translate into untimely demise and
liquidation of the firm
Consumers: they represent the reason why the organization exists and is
in business. The customers are related to the firm directly because they
purchase or buy the goods and services produced by the firm. When customers buy
products, they do so to fulfil the functional and exchange goods of marketing.
And in the same vein receive satisfaction through consumption. Hence the money
they part with is used to service other consumption. Hence the money they part
with is used to service other component parts of the firm and provide the
profit which the organization uses to discharge its responsibilities to its
shareholders, creditors, and in buy products it means the firm will have a
large unsold stock of goods. This could translate into untimely demise and
liquidation of the firm
·
Competitors: These are the organizations that provide the same goods and
services as those provided by the firm. Their products are technically called substitutes,
which mean a buyer may exercise his freedom of choice to buy any brand he
desires, so long as it satisfies his wants. Businesses have to compete fairly
and should not contemplate running down another business in order to survive or
to be the sole dominant actor. In the USA monopoly is discourage. The forming
of cartel is illegal because the Americans want a dynamic industry, where no
one firm will control more than 15% of any industry’s entire market. This
explains the reason why Bill Gates, the CEO of Microsoft Inc., has been having
running court battles with the US government. Also OPEC is not liked by US
because they feel producers should never come together to hold any one industry
to ransom. Business should be dynamic and businesses should coexist side by side
for the sake of achieving an equilibrium state throughout the economy. This is
geared towards preventing the customer from being exploited unnecessarily.
Competitors: These are the organizations that provide the same goods and
services as those provided by the firm. Their products are technically called substitutes,
which mean a buyer may exercise his freedom of choice to buy any brand he
desires, so long as it satisfies his wants. Businesses have to compete fairly
and should not contemplate running down another business in order to survive or
to be the sole dominant actor. In the USA monopoly is discourage. The forming
of cartel is illegal because the Americans want a dynamic industry, where no
one firm will control more than 15% of any industry’s entire market. This
explains the reason why Bill Gates, the CEO of Microsoft Inc., has been having
running court battles with the US government. Also OPEC is not liked by US
because they feel producers should never come together to hold any one industry
to ransom. Business should be dynamic and businesses should coexist side by side
for the sake of achieving an equilibrium state throughout the economy. This is
geared towards preventing the customer from being exploited unnecessarily.
·
Trade association: trade associations are specialized group that belong
to a particular industry. They exist for the purpose of harnessing their common
business and professional interest, reputation, image and also to protect
themselves. Many also exist to foster high standards and make the firms under
that industry to observe certain quality standards, codes of operation for the
betterment of the entire industry. It is common these days to see firms
embracing the ISO 2001, 9000 etc, quality control standard or certification.
This is with a view to creating good products and for their operation and firm.
Many of this association have stringent body of rules, which govern their member’s
actions and operations. Some have direct advisory roles to play in government.
They exist to advice, direct and influence government policies and programmes
to promote betterment of member-firm and society. Example include the MAN(Manufacturers
Association of Nigeria), NACCIMA(Nigeria Association of Chambers of Commerce, Industry,
Mines and Agriculture), NMA (Nigerian Medical Association) etc
Trade association: trade associations are specialized group that belong
to a particular industry. They exist for the purpose of harnessing their common
business and professional interest, reputation, image and also to protect
themselves. Many also exist to foster high standards and make the firms under
that industry to observe certain quality standards, codes of operation for the
betterment of the entire industry. It is common these days to see firms
embracing the ISO 2001, 9000 etc, quality control standard or certification.
This is with a view to creating good products and for their operation and firm.
Many of this association have stringent body of rules, which govern their member’s
actions and operations. Some have direct advisory roles to play in government.
They exist to advice, direct and influence government policies and programmes
to promote betterment of member-firm and society. Example include the MAN(Manufacturers
Association of Nigeria), NACCIMA(Nigeria Association of Chambers of Commerce, Industry,
Mines and Agriculture), NMA (Nigerian Medical Association) etc
·
Local community: the community consists of individuals, groups and
institutions that live or operate in the immediate environment where the
business is sited and operates. They supply the land on which the business is
built. They provide the pool of clientele, which patronize the goods, and
services of the firm. They are the neighbours of the firm and they create the
ambient environment necessary for the business to function profitably. Their
activities can promote or impede the ability of the organization to realize its
mission and broad objectives. Many firms think of themselves as islands that
can exist without giving a damn to the immediate community. They neglect to be
socially responsible to the people and environment. Yet they forget that their
activities often impact negatively on the environment by the way of pollution,
noise, and traffic jams along with a myriad of other inconveniences.
Local community: the community consists of individuals, groups and
institutions that live or operate in the immediate environment where the
business is sited and operates. They supply the land on which the business is
built. They provide the pool of clientele, which patronize the goods, and
services of the firm. They are the neighbours of the firm and they create the
ambient environment necessary for the business to function profitably. Their
activities can promote or impede the ability of the organization to realize its
mission and broad objectives. Many firms think of themselves as islands that
can exist without giving a damn to the immediate community. They neglect to be
socially responsible to the people and environment. Yet they forget that their
activities often impact negatively on the environment by the way of pollution,
noise, and traffic jams along with a myriad of other inconveniences.
·
Government agencies: These exist as creations of government through
legal instruments to serve particularly purpose to government and society in
general. The government through these agencies therefore tries to set
guidelines and rules on how particular businesses within an industry should
play. Thus they perform protective, promotional and regulatory roles in one-way
or the other. If rules are not set to play any games, chances are that the game
will be played anyways and anyhow. It would become like John Lock’s postulation
in his book, the origin of the specie, where the strong can terminate the weak
and even threaten society’s’ peace and stability. Government through its
agencies plays these important roles. For instance, when the GSM companies were
to come to Nigeria, the National Communication Commission (NCC) has
responsibility for granting them license and set a body of rules on how they
should operate. BON- Broadcasting Organization of Nigeria supervises the
operation of radio broadcasting and operations in Nigeria. NAFDAC takes care of
drugs and related products to make sure that fake products are not put into the
market. An ongoing problem is now being combated by the Director General of
NAFDAC, Mrs. Dora Akunyeli., The fight against De United Food Industries Ltd.,
owners of Indomie Fast Noodles, fast food giants, whose products have been
responsible for the reported death of a man and several others been admitted
into hospitals after consuming portions of the Noodles. It is reported that
batches manufactured within April 30th and May 4th are
poisonous and should be withdrawn from the market.
Government agencies: These exist as creations of government through
legal instruments to serve particularly purpose to government and society in
general. The government through these agencies therefore tries to set
guidelines and rules on how particular businesses within an industry should
play. Thus they perform protective, promotional and regulatory roles in one-way
or the other. If rules are not set to play any games, chances are that the game
will be played anyways and anyhow. It would become like John Lock’s postulation
in his book, the origin of the specie, where the strong can terminate the weak
and even threaten society’s’ peace and stability. Government through its
agencies plays these important roles. For instance, when the GSM companies were
to come to Nigeria, the National Communication Commission (NCC) has
responsibility for granting them license and set a body of rules on how they
should operate. BON- Broadcasting Organization of Nigeria supervises the
operation of radio broadcasting and operations in Nigeria. NAFDAC takes care of
drugs and related products to make sure that fake products are not put into the
market. An ongoing problem is now being combated by the Director General of
NAFDAC, Mrs. Dora Akunyeli., The fight against De United Food Industries Ltd.,
owners of Indomie Fast Noodles, fast food giants, whose products have been
responsible for the reported death of a man and several others been admitted
into hospitals after consuming portions of the Noodles. It is reported that
batches manufactured within April 30th and May 4th are
poisonous and should be withdrawn from the market.
·
Miscellaneous: These include financial institutions, media
organizations, political parties and other organizations. They interact with
business firms everyday. They also influence the activities of business
organization
Miscellaneous: These include financial institutions, media
organizations, political parties and other organizations. They interact with
business firms everyday. They also influence the activities of business
organization
