Organizational Response to Internal and External Challenges Research Paper

Organizational Response to Internal and External Challenges - Research Paper Example There are many challenges that are experienced by various organizations and each challenge needs its own solution - each challenge is handled differently and uniquely from others. Some of the challenges might include technological advancement, change in customers’ preference, inflation, fraud, increasing local and international competition, globalization, reducing cost structures and economic crisis among others (Cathy and Tim, 2008). Many organizations find it difficult to survive in the current business environment with its technological advancement. This means that every part of organization has to keep up the pace at which technology advances for sustainable growth and competitiveness. Although modern technology is generally considered good enough to go for, it always presents a challenge to organizations in that it comes at a higher cost of adoption and sophistication. Daft and Willmott (2010) explain that not only is the initial cost expensive but also the maintenance and running costs that make it difficult to adopt and maintain. The short lifespan of technological innovations also means that companies and organizations have to invest a great deal in updating of current technology to the most current for relevance purposes. The main reason for going the modern technological way is to offer relevant services which are compatible with the societal needs and to be cost effective in the long run. An organization should always monitor the external environment for any emerging technology that has the potential of changing the way it operates hence the basis for competition. This can help in identification of the most challenges that emerge everyday with Information Technology. Some of these technologies when adapted might mean loss of jobs for individuals for instance when the desktop came, many typists who did not update their skills lost their jobs. Ragg (2011) contends that recipients or consumers of the organizations’ goods and services also offer challenge to the organizations in terms of their change in preferences, likes and dislikes, lifestyles and opinions. For instance, consumers can prefer a product to be wrapped using a polythene material while on the other hand the cost of polythene is higher than that of paper to discourage its use due to environmental concerns. The options left for the business is using the polythene wrapper then increase the price of thei r product or to continue using non polythene materials and maintain the commodity price while risking loss of customers. In case such an organization responds by adopting the first option, then the external environment will surfer by receiving non-biodegradable materials. Consumers will also experience high cost of the product which can mean that the organization may lose some of them to its rivals because of inability to cope with the increased cost. Local and international competition also presents a challenge to many organizations. Organizations with the same mission and aim and which offer the same goods and services are likely to compete with one another because each believes in itself and that it is the best or it can be the best among the pack. Once one