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Summary

The author of the article starts by classifying the environmental components that have adverse effect on today business operations. Environmental components affecting businesses are classified as internal environment or the external environment. The internal components are the generally controllable factors that an organization can control, modify, or alter them. On the other hand, the external environmental factors are such components related to economic, society, government, and law. The author gives an example of an Indian industry whose production rose by 8.21% after the management took control of all the environmental components. Leaders are presently facing many challenges due to the ever changing environment as advancement in technology and globalization keeps growing. The article discusses Indian companies who make huge profits by ensuring their managers take control of the social-cultural components. The author calls for managers of various organizations to make concrete decisions that takes control of the future changes in the business world. Moreover, the article gives an analysis of the strategic, leadership, and decision making processes that managers should possess while dealing with environmental components affecting a business (Kundu 5-12).

The environmental components identified and relevant measures

The most dangerous environmental components that have serious effects on a business are those associated with the external environment. Social-culture component contribute a lot to the growth and development of an organization. In addition, the component takes control of business ethics in addressing the issues of employees, customers, and the society. A manager who fails to follow the social-cultural rules of a business finds it hard managing the business irrespective of its output. Managers should take strict measures about these issues by ensuring they study all the cultural and ethnicity values about any location they wish to start a business. Moreover, managers should hire labor from the local people in order to avoid quarrels and destructive of properties by angry residents. The management style used by people who really understands culture makes the firm successful. Cultural dimensions contribute a large percentage of a business growth especially when an organization controls cultural challenges associated with international organizations (Kundu 15-20).

Impact of the component to an organization strategy, leadership, decision-making process

Managers should come up with perfect business strategies that ensure an organization takes control of any social and cultural issues affecting it. The strategies involve hiring employees which are competent enough with organization culture, motivating employees, and involving the society in various business operations. In addition, Indian business leaders possessed perfect leadership qualities when it comes to social-cultural issues. These issues are environmentally triggered and leaders should always be alert to offer solutions to such issues. Third, social-cultural component of business environment has an impact on business activities. It touches on crucial issues like power sharing, and distribution of duties. Industry managers in India had to make crucial decisions on who to select as a leader in a manner that will not lead to quarrels. In addition, the cultural component describes the relationship between an individual and groups in an organization. An essence of individualism is created that affects the relationship between the organization employees, and stakeholders (Kundu 16-30).

Significance of the occurrence

The article acts as a lesson to other managers who ignore simple business rules. Environmental components contribute a lot to the success of any organization. In addition, the article gives examples of industries in India whose profit margin rose within a very short period after putting into consideration the effect of environmental components on business success. On the other hand, this occurrence gives an opportunity to potential entrepreneurs to come up with the best strategies, select best leaders, and decision makers before starting any business.

Work cited

Kundu. K. K. The Mirage of an Industrial Production Revival. 2013. Retrieved from:

h HYPERLINK “ttp://blogs.wsj.com/indiarealtime/2012/12/12/the-mirage-of-an-industrial-production-r” ttp://blogs.wsj.com/indiarealtime/2012/12/12/the-mirage-of-an-industrial-production-revival/? KEYWORDS=environmental+component+effect+on+business