1. Answer the following 4 questions clearly:
1- What constitutes the internal environmental forces in an organization's?
2- What is a backward vertical integration of an organization?
3- Give some examples of political and legal regulations which may affect an organization?
4- Mention some important considerations in determining organizational objectives?
Solution
1. Events and situations emerging from the permanent change every organization is submerged
in, affect the way an organization operates, either in a positive or a negative way. Those events
and situations are called environmental factors.
We can distinguish between two types of environmental factors: internal and external. The
internal factors are those that take place within the organization, such as management changes,
financial changes, business reputation and employee morale. Another characteristic of the
internal factors is that the can, in most cases, be controlled by the organization.
2. We speak of vertical integration when the supply chain of an organization is owned by that
organization. In this structure, each part of the supply chain produces products or services which
are combined to satisfy a common need.
A backward vertical integration occurs when the organization controls subsidiaries that produce
some of the inputs used in the production of its products, in order to create stability in the supply
of inputs and in the quality of the final product.
3.
Some examples of political regulations:
Some examples of legal regulations:
4. Organizational objectives should be SMART, that is to say, they must be:
Once the objectives are determined, they must be formally informed to those responsible for
achieving them. A follow-up of the progress made must be carried during the period stated for
their achievement.