In chapter two of “Management: Leading & collaborating in a competitive world” by Bateman one can identify that a business is affected by various factors that merge to form the general business environment. Social, technological, economic, and political forces act like external factors that affect the operations of an organization. The macro environment is termed as all main external and uncontrollable factors that affect both the strategies and decision making of an organization and is mainly segmented for analysis purposes (Bateman & Snell, 2011). The competitive environment is a different term that is said to be the dynamic external body that a specific organization function and competes. The term can be expounded by a situation where many traders sell a similar product. The elements of a competitive environment that shape competition are supplier’s bargaining ability, customer’s bargaining power, the threat of new entrants, competition among the old sellers, and the threat of a new product.
Organizations and managers should participate in social and economic developments to improve and impact their working strategies. In this case, organizations and managers can evaluate the core causes of inflation and interest rates that affect the cost of products (Bateman & Snell, 2011). Organizations often respond to environmental uncertainty by devising proactive strategies. A strategic resolution includes creating new boundaries of a competitive environment. The change of these boundaries involves selection of diversification, domain, and mergers. In short, the setting of independent strategies does not demand a change in environment but rather revising several aspects of the current environment.
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Organization’s culture may be either strong or weak. In other cases, the culture might be rational, group or hierarchical. An organization requires a strong and long-term commitment by the managers and chief executive officers to change and manage the culture parallel to the environment. In relation to the chapter discussed, it is evident that the unique nature of the airline industry affects its performance as a result of combined micro uncertainty, macro environment, and macro predictability. Currently, airlines in South Africa have been unable to set effective strategies that solve these challenges (Mhlanga, 2018). During a study on the continuous downfall of the airlines, economic, technological, political and legal factors were named responsible for a significant negative correlation. On the other hand, socio-cultural showed a positive relationship. It is evident that over-protection of state carriers, restrictive air services, high operating cost, and government interference are the main factors affecting the airline performance in the country.
The protection of government carriers has contributed to the downfall of private operators hence affecting other sectors. The current situation can be related to mandatory competition. The government of South Africa is required to create a standard playing level for both state and private carriers.
References
Mhlanga, O. (2018). Impacts of the macro environment on airline performances in southern Africa: Management perspectives. Tourism and Hospitality Research, 1467358418771442.
Bateman T., Snell S. (2011). Management: Leading & collaborating in a competitive world. 11 th ed. - McGraw-Hill Education, 2011. - 744 p. - ISBN: 9780077862541
