External Environment

Trying to run a business in today’s turbulent economic environment is similar to trying to get a small boat back to shore while being in the middle of a category 5 hurricane. There are so many factors at work that a manager is required to immediately respond to, just to keep the business above the water. This is known as organizational change. The factors that push this modification are known in the managerial world as external environments, and internal environments. The external environment of an organization is referring to elements that exist outside the company that require adjustment within the organization in order to stay in business. These factors are, for the most part, out of the organizations control. For example, available

The internal environment refers to the conditions inside the company such as, employees, systems, incidents and working conditions within the company. These factors are typically something that the business can control. For example, the culture within a company can lead to a very positive environment for consumers, and a very good morale tool for employees. Another good example would be the style of leadership from upper management, and departmental management. Providing the correct style of leadership to employees will enable them to perform at peak efficiency. Furthermore, it will foster the workplace culture, keep the staff happy, and allow them to want to come to work. Lastly, the organization’s mission statement is an internal environment factor that can be controlled. This also will have large impacts on the attitude, performance, and overall employee and customer behavior. It is important for managers to understand that the internal environment that ultimately influences decisions, employee behavior, and even encourages company activities. Changes to any of these factors can have both a large impact positively (if implemented correctly), or negatively (if implemented

Prior to purchasing the gym, the business was in extreme financial failure. The majority of the employees frequently complained about the current leadership style experienced from the manager and their poor leadership style. They reported that they were often unsure of the current rates and services because the manager often made many changes with little to no warning, all of which, ended in failure and unhappy clients. Robert realized that if this business was going to succeed, then he must implement numerous changes to the internal environment in order to restore the gym to its former glory. Robert’s first change was to fire the current manager based on his terrible decision making and leadership. Robert’s next move was to hire an experienced fitness center manager that utilized a better leadership style that harmonized with the business and the staff. Next, Robert reinvented the mission and vision of the business that was clearly conveyed to the staff. Throughout the next few months, Robert spent a lot of time getting to know his staff and created a positive workplace culture. These changes implemented by Robert clearly were necessary in order to combat the negative internal environment that was driving the business into the ground. He quickly recognized the factors, and made the needed changes to turn