Organizational Environment

Organizational Environment: Surviving the Global Marketplace
Organizational Environment: Surviving the Global Marketplace
Book Summary
The global environment has both direct and indirect influence to any organization
operating internationally. Pfeffer and Salancik (2003), elucidates that organizations are
dependent on external physical and financial resources that are obtained from the external or
global environment. They point out that understanding of an organization’s environment is the
key to comprehending its structure and actions that need to be taken when dealing with changes
in their environment. Similarly, Pfeffer and Salancik (2003) elaborate on how organizations
survive from the external environment. This survival is highly dependent on how efficiently the
organization can acquire and retain resources from the external environments.
In their book, Pfeffer and Salancik (2003) indicate that prior decisions, by managers, are
a contributing factor to several external factors faced by an organization. Managers have the
obligation of manipulating the environment for it to suit the organization and its operations
(Pfeffer & Salancik, 2003). The two also describes how organizations try to manage their social
context with the aim of establishing a favorable global environment. Similarly, understanding the
relations existing between an organization and its environment is a crucial skill that the
management should exhibit about the adoption of the external orientations and comprehend the
organizational functioning (Pfeffer & Salancik, 2003). Additionally, the management should
understand the external challenges facing their organization to develop a strategy to overcome
those challenges.
Blog Article Summary
Global companies face numerous challenges that call for particular attention. In their
article, Dewhurst, Harris and Heywood (2012) indicate that running a global organization has
been a major business challenge for years. In their site, they discuss how profound globally
operating companies experienced low performance in comparison with locally focused
organizations in the year 2011. In their survey, Dewhurst, Harris and Heywood (2012)
discovered that firms that direct their survival on external environments to acquiring natural
resources adapt more favorably to dynamic regulatory authorities. On the other hand, consumer-
oriented organizations have some challenges on their local operations while maintaining
coherent global operations (Dewhurst, Harris & Heywood, 2012). Similarly, despite the
difference in operations, most organizations face similar challenges when it comes to the global
According to Dewhurst, Harris and Heywood (2012), no particular model can encompass
all global organizations. However, most global firms are faced with similar challenges under
costs, people, management strategies as well as the global scale risk. They also indicate that how
critical these four elements are is dependent on the companies’ model of operation, the global
strategy, and their histories. Although global expansion has its substantial benefits, it also comes
with several strategic challenges, which include challenges of maintaining local flexibility as
they expand globally (Dewhurst, Harris and Heywood, 2012). For firms to enjoy the benefits
associated with global expansion, global companies need to adequately deal with the challenges
(people, costs, and risk of global scale).
Training Course Summary
University of London (2016) in its Global MBA Module Specifications indicates that
successful organizations are characterized by abilities to effect change and “win” competitive
advantage. The module provides fundamental theories that can be applied by innovative firms
that need to operate globally. Additionally, the course provides adequate knowledge to spearhead
innovation in the modern dynamic global market. The module also provides a chance for
evaluation of externalities in the business world involving innovation trends to equip
organizations with essential knowledge on strategies to take in developing an internal
environment to facilitate expansion.
University of London (2016) Global MBA course explains the dynamic internal and
external organizational settings. It gives an understanding of the available opportunities and
strategies to follow in embracing change. Innovation is the key to organizational growth.
Therefore, an organization’s ability to innovate and stand out contributes to its survival in the
global market. The course enables learners to acquire knowledge on basic innovative strategies
that guarantee substantial growth of a business expanding to the world markets. It also provides
information on different technologies affecting business (positively or negatively).
Journal Article Summary
A study by Knight and Cavusgil (2004) investigate organization adaptation in the foreign
market using the case of Born-Global Firms. The authors highlight that innovativeness,
organizational capabilities to achieve tremendous success in the global market and knowledge
are the key elements in measuring the performance of enterprises. According to the article,
companies that operate globally in their early stages exhibit exceptional managerial skills and
commitment of resource to the global operations. For successful adoption of the international
trade, the firms study the international market, understand them, and then formulate strategies or
capabilities to facilitate their international goals (Knight & Cavusgil, 2004). According to Knight
and Cavusgil (2004), technological advancement and globalization are the two key contributors
to the early adoption of internationalization by firms expanding to the external business
environment. Additionally, from their study, it was clear that the innovative nature of the born-
global firms is the key to success in the global business environment.
Knight and Cavusgil (2004) indicated that resource-based perspective stresses on
organization’s foundational resources, which are paramount since they provide stability for
strategy development in diverse business environments. From their study, it is evident that
entrepreneurs with a stable market orientation are the most likely to for the born-global firms.
Consequently, organizational culture and business strategies are essential elements in the
adoption of internationalization. Similarly, human, financial and physical resources have been
highlighted as primary factors influencing competitive advantage among young organizations.
At the strategy level, global technological competence, unique products development, quality
focus, and leveraging foreign distributor competences all appear to be significant drivers of
superior performance overseas, (Knight and Cavusgil, 2004, p. 136).
News Publication Summary
In an interview, David P. Kelly suggested that investors should invest in a risky
environment (Sommer, 2013). In his publication, Sommer (2013) indicated that according to Mr.
Kelly, an investor should focus on diversity not avoidance of risk. According to him, when there
are problems in the economy, investors should take the opportunity and expand their businesses.
External forces create uncertainties, which do not necessarily mean losses; it is, therefore,
advisable to make more investment since no one can predict what will happen.
From the publication, for investments to make more profits, investors need to buy assets
when they are cheaply priced with a possibility of rising. Kelly advises that developed-market
entities are better buying than developed-market bonds.
From the summaries, it is evident that the global environment comes with several
strategic advantages. However, the firms face numerous challenges as they adapt to the
international market. The management needs to pay more attention to these difficulties and
formulate plans that will overcome these problems. Competitive advantage is crucial for
organization’s survival in the dynamic business world. Firms that have been well established in
the global marketplace provide stiff competition to young companies trying to enter the market.
Therefore, it is up to the managers to these enterprises to make effective management strategies
that will allow the company to entry the market. As discussed above, the key strategies that
influence the success or failure in the international environment are organizational culture and
business strategies.
For firms to survive in the global external environment, they need to adapt favorable
culture and business strategies. For example, strategies such as product uniqueness, quality
perfection, and adapting to the global technologies contribute significantly to excellent
performance on the world market. Similarly, firms should formulate a culture that will support
changes caused by the external factors.
Dewhurst, M., Harris, J. & Heywood, S. (2012, June). The Global Company’s Challenge.
Retrieved from
Knight, G. A. & Cavusgil, S. T. (2004). Innovation, Organizational Capabilities, and the Born-
Global Firm. Journal of International Business Studies, 35, 12414.
Pfeffer, J. & Salancik, G. R. (2003). The External Control of Organizations: A Resource
Dependence Perspective. California USA: Stanford University Press.
Sommer, J. (2013, August 31). For Investors, No Need to Duck. Just Diversify. Retrieved from
University of London. (2016). Global MBA Module Specification: Innovation and Change.
Retrieved from

Place new order. It's free, fast and safe

550 words

Our customers say

Customer Avatar
Jeff Curtis
USA, Student

"I'm fully satisfied with the essay I've just received. When I read it, I felt like it was exactly what I wanted to say, but couldn’t find the necessary words. Thank you!"

Customer Avatar
Ian McGregor
UK, Student

"I don’t know what I would do without your assistance! With your help, I met my deadline just in time and the work was very professional. I will be back in several days with another assignment!"

Customer Avatar
Shannon Williams
Canada, Student

"It was the perfect experience! I enjoyed working with my writer, he delivered my work on time and followed all the guidelines about the referencing and contents."

  • 5-paragraph Essay
  • Admission Essay
  • Annotated Bibliography
  • Argumentative Essay
  • Article Review
  • Assignment
  • Biography
  • Book/Movie Review
  • Business Plan
  • Case Study
  • Cause and Effect Essay
  • Classification Essay
  • Comparison Essay
  • Coursework
  • Creative Writing
  • Critical Thinking/Review
  • Deductive Essay
  • Definition Essay
  • Essay (Any Type)
  • Exploratory Essay
  • Expository Essay
  • Informal Essay
  • Literature Essay
  • Multiple Choice Question
  • Narrative Essay
  • Personal Essay
  • Persuasive Essay
  • Powerpoint Presentation
  • Reflective Writing
  • Research Essay
  • Response Essay
  • Scholarship Essay
  • Term Paper
We use cookies to provide you with the best possible experience. By using this website you are accepting the use of cookies mentioned in our Privacy Policy.