Forces that influence business activities.

Identify the main participants of business, the functions that most businesses perform, and the external forces that influence business activities.

 

Sample Solution

Sometimes a business concept that appears good on paper may appear imperfect in the real world. Sometimes failure is due to the internal environment – the company’s finances, personnel, or equipment. Sometimes it’s the environment surrounding the company. Knowing how internal and external environmental factors affect your company can help your business thrive. In a bad economy, even a well-run business may not be able to survive. If customers lose their jobs or take jobs that can barely support them, they’ll spend less on sports, recreation, gifts, luxury goods, and new cars. High-interest rates on credit cards can discourage customers from spending.

gain a product of good leadership. Motivation is highly personal, and it is the leaders responsibility to understand what motivates each individual and implement policies to obtain maximum performance from a group. The importance of the leaders role in motivating individuals is highlighted in Herzberg’s Two Factor theory. The theory highlights factors that must be in place to avoid dissatisfaction, hygiene factors, and factors that promote satisfaction, motivation factors, shown in Figure 4 (Pettinger, 2007). Herzberg’s theory helps to decipher what motivates individuals, but does not advise on how to implement this to produce maximum productivity from an individual, this is achieved by using the theory in conjunction with other motivational theories such as goal setting theory.
Figure 4: Hygiene and Motivating Factors (Pettinger,, 2006)
Goal setting is not just an important part of motivation, they are essential for both teamwork and successful leadership, they provide indication on what must be achieved, how much effort they must devoted to achieve it and they act as the primary source of job motivation for individuals, therefore setting them accurately is essential (Pettinger 2007). Specific and clear goals are the most effective motivators, and will lead to optimum performance, therefore it becomes essential for a leader to understand what motivates each individual within a group (Pettinger, 2007). Motivation is highly personal, and can differ massively across a group, so the leader must adapt how they motivate to suit each individual, this highlights the need for an organisation to implement policies that allow leaders to be flexible in how they reward individuals. Issues arise when goals are not set well, if the goals are ambiguous, unachievable or too easy then the individual will lose motivation (Pettinger, 2007). Once goals have been set it becomes essential for leaders to regularly assess how individuals are progressing towards them, if well then goals should be made more challenging, if they are struggling then the goals should be made easier. Goals also allow for leader to assess how the team are performing, and how their leadership style is functioning with the group, if goals are not being met the leader must adapt how the team interact together or their leadership style to achieve them.

Conclusions

This question has been answered.

Get Answer
WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
👋 Hi, Welcome to Compliant Papers.