There has been a continuous change in external environment affecting companies, for that reason for an organization to be ahead of competition; it requires changing its organization of operations. If an organization achieves good results, it does not necessarily mean they will remain the same. Listo underestimated the power of technology and in return faced the competition. Listo systems failed to understand that for an organization to compete favorably in an economic environment, it is paramount that it comprehends that the consumer will buy what they want and not what the organization has made or is offering. Initially, people bought what the company produced but presently companies produce what the consumers need. Therefore, the market has become a consumer driven market controlled by what the consumers need (Krishnamurthy & Kumar, 2015). Because of the forces of globalization many organizations in the same industry have cropped up taking competition to a new level (Hersey et al., 2013). The phenomenon has led to a situation where if one organization does not deliver then the consumer has the choice to go to the competitor hence giving consumers the power to have control over what they demand. Listo had to grow quickly because of competition and rapid evolution of technology making it challenging for the organization’s management to adapt to the rapid change. Listo may not have planned for the future and may have been unsure of what they want out of its employees. Unclear objectives and goals demotivate organization employees as they do not clearly understand the direction the organization is taking (Mcleod, 2018). The power alteration from producers to consumers translates to the culmination of traditional management by organizations. With just one click, customers can search for the best quality, services, terms, flexibility, and innovation. If a consumer is not pleased with one firms' product or services they have the choice of choosing another organization which is just a click away (Csikszentmihalyi, 2000). For consumers, all companies are the same, they will choose the one that favors them in terms of cost and speed the company takes to offer their services.
Listo Systems External Environmental Factors
Listo Systems is affected by various external factors. Consumers are very important factors as to why companies exist. Different factors must be considered by Listo systems in order to attract customers. Every customer has different preference which Listo systems have to adhere to. The organization must deliver products and services that adhere to consumer needs or else risk losing the business to other competitors in the same line of work. It therefore becomes the prerogative of the organization to study and understand their consumer behavior with the objective of preceding their expectations. Another external influence to the business is competitors. It is not possible to dictate how other organizations operate because in the spirit of propagating globalization, trade has been established to operate under a free and fair environment. Therefore, organizations are free to be run by their management as they deem fit as long as the outcomes bear set outcomes. Listo systems have to formulate strategies that are in line with their competitors to survive in their line of work (Salavou, 2015). Many organizations have been established in the graphic design industry creating an environment that is highly competitive. Competition has sparked quality to improve and a shorter delivery time, and cheaper cost for products being offered by organizations like Listo systems. Listo is an organization based in the technology industry even though the technology is one of its greatest drawbacks. The drawback is brought about by the ever changing nature of technology and the need to conform because of competition. Failure to understand the need for technology and the role it plays towards business progression is what may have led to the decline of Listo systems.
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References
Krishnamurthy, A., & Kumar, S. R. (2015). Exploring the formation of consumer expectations. Journal of Customer Behaviour , 14 (1), 7–31. https://doi.org/10.1362/147539215x14267608004005
Hersey, P., Blanchard, K. H., & Johnson, D. E. (2013). Management of organizational behavior : leading human resources (pp. 1–10). Pearson.
Mcleod, S. (2018, February 5). Cognitive Dissonance . Simplypsychology.org; Simply Psychology. https://www.simplypsychology.org/cognitive-dissonance.html
Csikszentmihalyi, M. (2000). The Costs and Benefits of Consuming. Journal of Consumer Research , 27 (2), 267–272. https://doi.org/10.1086/314324
Salavou, H. E. (2015). Competitive strategies and their shift to the future. European Business Review , 27 (1), 80–99. https://doi.org/10.1108/ebr-04-2013-0073
