Environments of Firms

Case 1

Public image of a firm is crucial in ensuring that the organization maintains a positive image in the eyes of the public. In the case where a crises or a scandal occurs within the firm, the executives resolve it. This is done before the media catches wind of the matter and ruins the reputation of the firm by shining a light on it to the public. Competitors also have an impact in an organization. Similar business firms are constantly in competition to remain the superior brand among their peers. Competition from other firms causes an institution to continuously rebrand itself while coming up with ways to maintain relevance in today’s world. The economic environment of a country is essential for the growth of a firm. For  instance,  if there is a recession in the economy, then the customer purchasing power is reduced. Therefore this causes a firm to incur losses. However if there is a boom in the economy then firms are able to meet their targets. Demographic environments have the least impact on firms. Today’s world has moved from analogue to digital. The world is a global village. Through the internet services are provided in firms with less manpower. Shipping of products is done to all parts of the world upon request.

Case 2

Consider Apple Incorporated a tech company based in the U.S.A. Apple in their mission statement (Farhan,2017) speak about the products that they have developed over  the  years(Mac computers) and rolled out to the public. The mission statement also includes services that Apple provides through the internet such as iTunes. Clearly what the mission statement seeks to prove is the commitment that Apple has to the public. Therefore the organization vows to continuously reinvent their brand while providing top notch services as well as products to its customers. Apple like every other company has goals that they strive to achieve such as, product development and market penetration (Meyer,2017) . To be a leading organization, Apple ensures that  cutting edge products are released into the market. Innovation is highly pursued to ensure attractive products are attained for the public. Apple has an objective to effectively market their products to achieve sales targets. This is done by creating a hype around their products that makes it impossible for consumers to ignore. Various advertisements on traditional media ensures the public buys the products faster. Apple’s goals all allow the organization to connect the public with their products effectively.

Case 3

A physician who runs a private clinic is equipped with a unique skill-set to aid in the running of his clinic. He must be very experienced at his job. A wide span of control (Juneja n.d) is ideal in that the clinic is a small organization. The nurses he supervises already have the skills required to operate in the clinic. Hence supervision will be minimal since the nurses know what is required of them on a day to day basis. The office staff required in a clinic,  do not require much training to be efficient in their work. Therefore the doctor can supervise all the staff smoothly without a hitch.

The owner of an auto body shop may require a narrow span of control. He may have  to hire a manager to aid him in dealing with the day to day supervision of the experienced mechanics. Since the mechanics are already experienced, they are able to work with little or no supervision. Hence they may report to the manager in charge. The owner may also appoint a supervisor to train the unskilled labors while overseeing their progress. This will ensure that the laborers get ample time with their supervisor to learn their trade faster. This ensures efficiency.

 Needless to say, this leaves the owner with the responsibility of dealing with the customers. He is able to build intricate customer relations while building his brand to the public. Any other escalating issues that the managers cannot deal with then the owner can handle them to ensure effective running of business.

A manager in an international advertising agency would need a wide span of control. He is tasked with directing a team of professionals in offices around the world. Seeing as the team is comprised of individuals that are well trained, the manager will only need a few assistant managers who his team can report to. The manager does not require a lot of time with each team member seeing as the duties each member performs is relatively the same.

Case 4

  • Teaching college courses by videotaping the instructor and sending the image over the Internet

This can be referred to as product innovation (Morrison,2010) The image will be sent after the professor has already completed his session. A better method would be to record the professor and stream on the internet in real time for students to receive the lesson at the same time it was delivered.

  • The rise in popularity of virtual organizations

We can refer to this as process innovation. Numerous institutions such as renowned colleges have been able to offer some online courses for students all over the world. Students do not have to attend the classes physically but can enroll online. Eventually they are able to graduate while receiving their degrees. These organizations have offered opportunities for individuals who are juggling work with study to get a good education.

  • Checking the security of packages on airlines with the type of MRI scanning devices that are common in healthcare

Promise innovation where airports have intensified security protocols to increase the value of their systems. This has boosted the confidence of passengers towards the airlines. It has made travelling by air feel safe and controlled while deterring errant passengers.

  • A device combining features of a cell phone and a handheld computer with Internet capability

Process innovation

This is an improvement of a product already in the market. The development of a handheld computer is as a result of building on the original computer model making it smaller. 

  • Robotic arms that can perform surgery that is too precise for a human surgeon’s hands

In an industry that has been marred by malpractice, we can refer to this innovation as promise innovation. Complex surgeries that have been impossible to perform in the past can be successfully carried out without error. Efficiency in the medical field will finally be achieved. The percentage for human error will conclusively be eliminated. More lives will be saved.

  • Hybrid automobiles, which run off of both batteries and gasoline

The global market has seen the rise of fuel prices in the recent years. Drilling oil in the ocean has led to death of marine life due to the oil spills.  Hybrid automobiles can be described as promise innovation. This would be an improvement on the vehicles that use only gasoline which has detrimental pollution effects on the environment. Batteries would be a clean alternative.

  • Using video games to teach soldiers how to plan and execute battles

Process innovation

This is done where specific video games are developed to aid in the training of soldiers in combat. Video games are already a product in the market which is developed so it can be a teaching aid to real life situations.


Farhan, B. (2017). Apple Company Mission Statement not Innovative,Inspiring or Jobs-ish

Juneja, H. Span of Control in an Organization.

Meyer, P. (2017). Apple’s Generic Strategy & Intensive Growth Strategies. Retrieved from com/apple-mission-statement-vision-statementhttp://panmore.com/apple-mission-statement-vision-statement”>http://panmore.com/apple-mission-statement-vision-statementhttp://panmore.com/apple-mission-statement-vision-statement

Morrison, T. (2010). The 3 Dimensions of Innovation.

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