To begin with, it is necessary to mention that any organization should have its principal goal, clearly stated mission, values and goals, which are planned to be achieved. The fact is that, the clearness of the goals defines the strategy for achieving the goal, and defines the process of strategic planning, which is the most essential factor of any business activity. However, in spite of the defined aims, goals and strategies, there are internal and external factors and driving forces in any business activity, which define the business environment and provide positive or negative progress for the successful activity and growth of any organization.
As for the issues of the forces, which drive the progress and business activity in any organization, it is necessary to emphasize that these forces are often linked with the improvement or regress. Originally, Elkin (2005) emphasizes thaat there are two central spheres that drive improvements: “On the one side these are aspects of an external nature such as laws, systems of regulations, competition, external customer requirements or the economy. On the other, there are internal aspects such as organizational structures, philosophy as well as the capacities required for accepting changes or concluding projects. In the majority of cases, these internal aspects tend to be a hindrance to taking the organization forward. A SWOT analysis can help identify the opportunities that lead to genuine improvements.”
From this point of view it should be stated that the mergers and acquisitions among companies and business organizations may be regarded as the external driving force for the restructuring of business activity. These factors have the great potential for creating essential financial and social consequences, especially if numerous people are engaged in the business activity of the organizations. Weed (2002) states the following fact: “They can easily drive away the major competitors within a country. They can also determine how and where people should work. However, earning the approval of the government for merging and acquisition deals would never be easy.” This is the most essential driving force, which causes the changes in the organizational structure.
As for the internal driving forces, it should be emphasized that marketing strategy in particular, and the strategic planning of the organization in general may be regarded as the most powerful driving force. If a company loses the basis in the marketing strategy, it may lead to the implementation of business process reengineering. Another driving force is the management process, and the actions, performed by the management team.
There is a strong tendency for consultation of the employees and motivation of the workers by proper actions. Moreover, management team is responsible for performing crucial business decisions in order to avoid marketing pitfalls. Schindehutte and Kocak (2008) emphasize that the management generally entails the perfectionist type of management in order to confirm that the innovative marketing strategies and business procedures would stay efficient. The motivation environment may be featured by the means of establishment of a new arranged set of rewards and punishments among workers.
Finally, it should be stated that the driving forces, which affect business performance may be different, and depend on the surrounding business environment. Nevertheless, the most essential factors, which influence the business structure are the merging of the companies, and the managerial principles.
Elkin, P. (2005). Mastering Business Planning and Strategy: The Power of Strategic Thinking. London: Thorogood.
Schindehutte, M., Morris, M. H., & Kocak, A. (2008). Understanding Market-Driving Behavior: The Role of Entrepreneurship. Journal of Small Business Management, 46(1), 4.
Weed, F. J. (2002). Organizational Mortality in the Anti-Drunk-Driving Movement: Failure Among Local Madd Chapters. Social Forces, 69(3), 851-868.