Accounting technicians scheme west africa


B.3 Analysis of the Business Environment



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B.3 Analysis of the Business Environment
The external environment consists of two broad groups of elements a) The task environment consists of direct action elements. b) The general or mega environment which consists of indirect action elements. c) The internal environment; which consist of elements within the control of the organisation

B.3.1 The Task Environment
This is a specific segment of the external environment with which an organisation interfaces in the course of conducting its business. The task environment depends heavily on the specific products and services that an organisation decides to offer and on the locations that it chooses to conduct its business. As stated earlier, a single organisation usually has the difficulty of exerting a direct influence on the mega- environment. It maybe easier for the company to exert a direct influence on its task environment. The major forces in the task environment include customers and clients, suppliers, organisations that produce substitute goods or services, current and potential new competitors and labour supply. The forces have direct impact on overall organisational profitability, survival and market share within the industry.


(i)
Customer and Clients
An organisation’s customers and clients are individuals and corporate bodies that purchase the goods and services of the company. A customer maybe the final recipient (user) of the goods and services or may use the goods and services to produce other goods and services.
The modern day businesses pay attention to customers needs and are customer- oriented. They investigate how best to serve their customers so as to maintain their market share in the face of fierce competition. Noting that the satisfaction of customers needs is the reason for the existence of a firm, organisational managers must pay special attention to this element in the task environment. They must find out their needs and how best to deliver them. A company that has a superior capacity on how to service its customers will excel better within the industry and this can be a strong competitive weapon. In the luxury bus transportation sub sector of the road transport industry in Nigeria, the ABC transport company has excelled so far because of its relatively superior customer


28 service packages. The workers are relatively more organised, customer friendly and above all time disciplined or conscious.

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