Significance of the External Environment in Managing Organizations in Kenya

Significance of the External Environment in Managing Organizations in Kenya.

1.0 Introduction

Certainly, no organization exists in a vacuum hence various factors without the organization influence the organization’s performance levels. In many cases, organizations have little or no control at all on the external environmental influences. However, there is need to continually monitor the external environment with an aim of adapting to the external variations.  Positive and responsive reactions often result in considerable different outcomes. In this regard there is need to look at the various aspects of the external environment in order to understand its significance in managing organizations in Kenya (Griffin, 2010).

1.1 Customers

An organization’s customers form part of the external factors that influence management of an organization.  Therefore, the management influence on this factor has a great impact. This can be done through engaging in effective marketing and a strategic release of organization information.  Nonetheless, the organization’s relationship with its customers is founded on finding ways to encourage and influence the customers to buy its products and services.  With this in mind the management should be privy to the needs, tastes and expectations of the Kenyan population in order to offer the right products and services.  Effective market research can be employed to determine the organization’s effectiveness of its marketing strategies and make decisions on what changes are necessary to improve the sales and overall profitability of the organization (Campling, 2008).

1.2 Government

An organization’s activities are dependent on various regulations that pertain to product development, the packaging and shipping which altogether play a critical role in the overall cost of running an organization.  The Kenyan government has put in place various laws and regulations that govern the operations of different organizations in Kenya. In addition, the government’s laws determine an organization’s ability to venture into new markets.  When the rules and regulations put in place by the government dictate particular requirements, this can have an overall effect on the profit margins of the organization (Lussier, 2009).

1.3 Economy

Perhaps one of the greatest influence on an organization’s general performance is the prevailing economic conditions. The economic conditions of Kenya keep on fluctuating from time to time depending on circumstances such as climatic conditions and politics among many other factors.  Nevertheless an organization must be efficient at monitoring the economic changes and learning of ways to be responsive to it as opposed to manipulating it. Economic factors influence how an organization markets its products and services, the amount of money that an organization can put into business growth, and the various target markets to be pursued (Yaeger, Head, & Sorensen, 2006).