Understanding the environment in which a business organization operates is essential for a successful operation. In fact all organization aspects including revenues, organization nature, location, product prices, personnel policies and the distribution systems are affected by the environment. Organization environment thus connotes the external factors, forces or institutions that affect the normal business operations. In most cases, organizational environment is influenced by economic, political, legal, social, demographic and technological factors.
Of great importance is the economic environment which essentially determines the organization success. This environment comprises of economic conditions, economic systems and economic policies. Economic conditions incorporate factors such as economic growth, unemployment rate and disposable incomes. Canada’s economic growth determines the growth of CKUA as a business organization. For instance, the growth of such an economy determines the level of business product markets, the availability of capital and the strength of capital markets which are considered essential for the success of CKUA. Therefore, like any other business organization, CKUA operations are directly influenced by the general economic growth factors.
Canada’s economic growth also greatly influences the level of unemployment rates. Higher unemployment rates are associated with slow growth. This means that a majority of the population have lesser disposable income to buy CKUA products, thereby leading to shrinkage in the organization market. Conversely, it might also denote cheaper labor for the organization as most Canadians will be desperate for jobs. Thus, high unemployment rates have both indirect and direct impact on CKUA business operations.
Legal and political environmental influences include political systems, laws and regulations governing CKUA business operations, policies and the general attitudes geared towards this business organization. Canadian political trends determine the stability of the government which significantly influences CKUA business activity. Furthermore, the political ideologies have a direct influence on various CKUA business activities. The ideologies signify Canadian government strength and confidence to various business interest groups such as investors. It is a requirement that all business organizations operating within Canada must operate within the set legal framework.
The production and distribution techniques, approaches as well as methods comprises of the technological environment. CKUA must adopt new techniques in production and distribution of its services in order to survive in the modern competitive age. In fact the organization must keep pace with the rapid changes in technological applications. For CKUA to survive and maintain its growth in Canadian markets, it must adopt modern changes in technology from time to time. For example, CKUA needs to adopt the new information technology infrastructures such as the broadband that speeds up the internet access. Obviously, direct access to internet through broadband infrastructures will automatically improve this organization services.
Socio-cultural factors such as demographics, literacy levels and the general health of Canadians have a great influence in the demand for CKUA services. Higher demographics indicate the availability of labor and the expanded market for the organization services. The education and literacy levels also indicate skilled manpower that CKUA may greatly benefit from. Hence, business organizations that accurately read Canada’s social-cultural trends such as demographic will always have greater success opportunities.
Finally, natural environment including ecological and geographical factors significantly influences CKUA business operations. Like any other business organization in Canada, CKUA must adopt greener technologies in all its infrastructures as well as other supportive equipment in the provision of its services. Besides, CKUA should adhere to government environmental regulations of maintaining ecological balances and the conservation of natural resources through recycling each materials used.