on the environment of an organization

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Muhammad AzeemRoll # AD-514025

OrganizationAn 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 OrganizationOrganizations 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 ChangesEconomic changes in the environment

affect the organization in one way or the other.

ExampleCar 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 ChangesChild Labor Policy enforced in Pakistan.Effects

Caused a slump in the football industry.

Response by ManagersInternal Child labor control policies designed

and implemented

ResultsRestored contracts with major football buyers.Increased businessIncreased profitsIncreased employment opportunities.

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COLARO SPORTSCOLARO SPORTSSTUDY OF RESPONSE OF MANAGERSSTUDY OF RESPONSE OF MANAGERS

TO MINIMIZE THE EFFECT OFTO MINIMIZE THE EFFECT OFECONOMIC AND POLITICAL CHANGESECONOMIC AND POLITICAL CHANGES

Introduction of OrganizationName: Colaro SportsC.E.O.: Sh. Imran MajeedM.D.: Sh. Usman MajeedProd. Dir.:Sh. Abdur RehmanCapital: 1000 Million PKR.Exports: 500 Million PKR. AnuallyProducts

Sportswear, Leisurewear, Knitwear, Hosiery Products

Sublimation printed Garments.7

Effect of economic changes on the environment of Colaro Sports

Inflation:Inflation is general rise in prices of goods &

servicesColaro is affected by both national &

international inflation levelRecent slump in sportswear industry causing

high inflation rate all around the globeCostly Raw Materials for Colaro Sports.

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Response by a Manager:

Colaro has hired purchase managersFinding alternative raw material sourcesBetter prices of raw materialsImports managers for raw materials that are

not locally availableNegotiations with existing suppliersStudy 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 departmentDecrease 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 alternativesWorkers who can handle multiple jobs

simultaneously and effectivelyWorst case scenario

Downsizing

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Strengths:Colaro doesn’t usually resort to downsizingIncrements and bonuses for motivationsComplies with all the laws and regulations of

Pakistan Govt., so less legal problemsStrictly disallows child laborLess intervention of Govt.Satisfaction of customers

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SWOTSWOTAnalysis

Weaknesses:Avoiding downsizing can causes the

organization to suffer economicallyYearly bonuses and increments add to the

production costs constantlyCan not increase the export prices for the

foreign customers annually

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SWOTSWOTAnalysis

Opportunities:

No internal labor unionsNo HR problems due to worker friendly

environmentIt is an advantage in long run

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SWOTSWOTAnalysis

Threats:

Ever increasing competitors in sportswear manufacturing industry

Study of competitors intelligence is necessaryMay face problems in competition

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SWOTSWOTAnalysis

Recommendations:

Proper data security policyMust study competitor intelligence and make

decisions accordinglyStrong 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 teacherFor providing me guidance on how to accomplish this task

Finally, all of youFor being here and providing me your support

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