Managing organizations and people Essay Example | Topics and Well Written Essays - 2500 words

Managing organizations and people - Essay Example The external environment is hostile and it is a matter of survival from day one. Forces nearest to a company, which affect its capability of serving its customers are micro environmental factors. For example, customers, competitors, suppliers, marketing teams are some such factors (Kotler, et al, 2004, p.164). In perfect competition, there is no limit to the number of these different players and equilibrium is maintained in the form of reasonable profits and market share for each supplier. In this competitive condition, â€Å"Price changes act as the mechanism whereby demand and supply are balanced (Sloman et al., 2006, Ch.4)†, and a win-win situation is created for the seller and the buyer. However, such an equilibrium can be disturbed by any number of factors, When he started out his career, Mr. Will Chase, the promoter of Tyrrells Crisps was producing potatoes which, as a commodity with no added value and no differentiation from other suppliers, was giving him wafer thin margins. Terms could be dictated by the buyers, who play one supplier against the other to beat down the prices or set unjustified conditions. Chase decided to counter this situation by diversifying his business, converting the potatoes into a branded product namely Tyrrells Crisps and thus adding value to his produce. It was a right step, with the margins on chips being better than those on potatoes since he was producing the raw materials himself. His innovative modifications of the hand-fryer resulted in a dramatically successful product – hand fried crisps, made from potatoes from own farms. He continued with his innovative efforts adding new flavours and newer vegetables to his line of products. Branching out from local farm shops and delicatessens, he tapped the big stores like Harrods, Selfridges and Villandry (Hirchkorn, Telegraph, 2004) with their marketing strength and