Introduction
Different business concepts are used in the marketplace. In many cases, what seems perfect on paper ends up failing. It can be caused by problems in the company’s internal or external business environment. Knowing how to properly connect these environments, analyze their problems, and gain the necessary skills to adapt and influence will help the business succeed. The topics revealed in this essay are the consideration of how external environments influence organizations, the companies’ methods for dealing, and the problems managers face when working with them.
Discussion
Alphabet is one of the world’s largest product companies that develop feature-rich software. The structure of the holding company includes several subsidiaries, including its venture capital fund and Google Inc. Google became the main for reorganizing the company’s structure in 2015 when all of its shares were converted into Alphabet shares. Environmental forces from all sides affect organizations. As mentioned above, influence factors are divided into two types. It is necessary to consider more specifically what is included in the internal and external environment.
The economy is a prominent part of the external environment in which a company must develop and maintain business contacts. In a poorly designed economy, even a quality business will experience problems functioning (Sherman, 2019). It is very difficult to influence the economy and its laws, but the ability to analyze its condition helps identify possible threats or opportunities for development. Part of the normal functioning of the economy is market competition with other companies in the chosen field.
Finance, the quality of employees, and corporate culture are the defining components of a company’s internal environment. A project can die when there is a lack of investment or when one person wants to manage all the processes in the company, which reduces efficiency. Companies with good financial resources can invest in profitable new research and take over other companies. A good staff will allow the division of tasks in the company, reducing the workload (Sherman, 2019). Combined with a company culture based on mutual help and teamwork, this can produce excellent results.
It is necessary to consider what Alphabet employees do to adapt and influence the environment and what issues they face. Challenges and approaches should be considered as one. Google managers make extensive use of PEST analysis in their work. The structure of this study includes many items, each of which is worth examining separately. A very important thing for the company is government stability. If a country or region has a strong government that supports business, that is a positive sign for Alphabet (Google. All about Google, 2017). Customers are placing more ads, and the company is making more profit with the Chrome search engine. In this case, managers are actively looking for loopholes in information-sharing laws, gaining more leeway. There can be certain problems, as in China, when the government imposed personal restrictions on Google, the main division of Alphabet.
PEST is used to analyze external markets and economic conditions in the world. In dynamic markets, people are more likely to buy products and services. This profit is used by management to create new projects. Alphabet’s success is due to a huge list of proprietary technology solutions: in addition to those listed above, these include Google Analytics, Picasa, AdSense, Gmail, and many others. These high-quality products win the competition in the market and contribute to the company’s growth (Google. All about Google, 2017). It is the adaptation to the external environment to which one should aspire. For a company, unfortunately, there can still be problems. If a sharp economic crisis starts in any market, Alphabet needs to be ready to use a set of tools to help get out of a difficult situation with the least losses.
The Alphabet team also has a huge impact on the internal business environment. People are what make Google Inc. the company it is. In 2018, the holding was the best place to work, according to the Fortune 500. This height was conquered because of the successful implementation of strategies developed by management. The product teams maintain a start-up spirit, where everyone can contribute an idea and get support (Google. All about Google, 2017). There are opportunities to speak directly to senior executives, including the CEO. Employees work in comfortable open offices and can communicate freely among themselves, not only about work but also about fun. Alphabet encourages Googlers to take up sports, self-study, and other hobbies.
Alphabet has a comprehensive policy of adapting and influencing the business environment. There are a couple of other things to recommend to the company to make its progress and growth more pronounced. First, it needs to work more carefully in the legal environment, which in the U.S. and EU is very tough on antitrust issues. Management should create policies that allow more flexibility in adapting to such changes. It will probably reduce the company’s revenues slightly, but it will save it from possible legal difficulties (Thompson, 2021). Another trick could be actively attracting young talent from developing countries to work for the company. Eastern European countries such as Ukraine are filled with ambitious and intelligent people who want to be part of a big, high-quality project. It is important to create many campuses and learning labs in schools and universities, recruiting new employees.
Conclusion
At the end of this essay, it is once again important to note that the external and internal business environment is a complex space. Company management must be able to adapt to new challenges, such as economic crises or political constraints. In turn, developing corporate culture will help retain employees and increase their interest in the common cause. Implementing progressive policies will enable companies like Alphabet to become global leaders in their segment actively.
References
Google. All about Google. (2017). External and Internal Environment of Google.
Sherman F. (2019). What Are Internal & External Environmental Factors That Affect Business? Chron. Web.
Thompson, C. (2021). Why Businesses Need to Adapt Change in a Rapidly Changing Business Environment to be Continuously Successful. LinkedIn. Web.