Information Systems Essay Sample

Information Systems

Each organization is located and operates in the environment. Every action of any organization may exist only if the environment allows for its implementation. The following paper focuses on analyzing the U.S. Toy Company and the elements of its external environment. The company is a manufacturer of different kinds of toys, accessories for parties, etc. It also has a huge nationwide market (U.S. Toy Co., Inc, n.d.).

A legal component of external environment includes the Constitution, laws, and regulations that govern the activities of legal entities and individuals, as well as their associations throughout the country. Analysis of legal regulations enables organizations to determine for themselves the acceptable range of actions in relation to other subjects of law and proper methods for protecting its interests. It is important to pay attention to such aspects of the legal environment as the activity of the legal system, traditions in this area, and the procedural side of the legislation’s practical implementation.

Social environment of the U.S. Toy Company is organically linked to technical, economical, and humanitarian components of the society in which it operates and develops.

Effectiveness of the personal management system is highly dependent on the nature of the relationship between employers and employees. The economy can greatly affect the possibility of obtaining capital for the organization’s needs.

Economic environment consists of the level and the rate of inflation, taxation, credit conditions and bank interest rates, creditworthiness, etc. Nowadays globalization plays an important role in the worldwide market and it makes the strongest market players stronger and the weak weaker. U.S. Toy Company is on market from 1953 and has a large base of its clients. To ensure favorable conditions for work, the company constantly monitors the economic situation and evaluates the changes in terms of possible consequences for business operations.

Enterprise management is based on certain organizational structure. There are three main systems for managing a business: linear, functional, and mixed. Linear system represents a pattern of direct reporting from subordinate departments to higher ones. This system is very simple and can be effective if the number of pending issues is not big. Functional system involves a pattern of subordination of lower departments to functional subdivisions and better solves some management issues such as technical, planning, financial, etc. In this case, instructions get more qualified. In its pure form, this system is used very rarely. The most common is a mixed system that combines linear and functional systems. In this case, decisions prepared by functional departments are reviewed and approved by a linear manager who passes it to subordinate departments. This type of management structure is used in the U.S. Toy Company.

Organization’s operational planning is aimed at developing annual production programs, quarterly budgets, monitoring and adjustment of results, etc. It does not matter in which area of the company the decision is made because it directly or indirectly influences the formation of cash flows and affects financial results. Financial management directly relates to the production management, innovation management, personal management, and other types of functional management.

In financial management, a number of functional elements is involved: planning, operational management, and control. U.S. Toys Company creates different financial plans for toys manufacturing and its distribution. Fulfillment of these plans is highly controlled by the Management of the Company. Effective financial management ensures continuous growth of equity and significantly improves the competitive position in the commodity and financial markets to ensure stable prospective economic development.

The main environmental factors, which directly influence the company, are suppliers of materials, the laws and regulatory agencies, customers, and competitors. The environment in which the company is working is always in motion. The ability of the organization to respond and cope with these changes is the most important element for success. U.S. Toys Company also constantly surveys its customers in order to improve the quality of its services and products.

Potential performance of a specialized division of labor has increased significantly due to technological innovation, standardization, and introduction of assembly conveyor lines.

Tech-important internal variable has a much broader meaning than traditionally believed. Sociologists have described technology as a means of converting raw materials. Quarterly, U.S. Toys Company analyzes sales of certain kinds of toys to increase production of the ones in highest demand. U.S. Toys Company also pays great attention to the quality of raw materials for manufactured toys while always looking for vendors willing to sell the best quality material for a lower price. In addition, the company buys the latest and improved equipment to increase its productivity and efficiency.

Analysis of the environment is very important for development of the organization's strategy. Strategic planning is a very complex process that requires careful monitoring of events occurring in the environment. Furthermore, it involves evaluation of various factors and links between those factors and strengths and weaknesses of the organization as well as opportunities and threats that exist in the environment. Obviously, without knowing the environment, an organization cannot exist. U.S. Toys is one of the companies studying the environment to secure a successful path toward their goals and develop strategies to interact with the elements of the environment that gives it the most comfortable coexistence.

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