The Impact Of External Forces On Cartel Network Dynamics: Direct Research From The Diamond Industry Case Study

1489 Words 6 Pages
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Teacher: Nam Tran

Diploma of Commerce
Question 2

External forces are what happens outside of an organization that hypothetically affect the performance. The external environment includes, Suppliers: are the associations or persons that supply assets such as capital, people and materials and information. It used to be assumed that an association should not be contingent on a sole source for any particular supply of resources. Competitors are other associations or entities who compete with each other for resources. Pressure groups are those within the environment that inspire the associations’ policies and practices formally through the legislatives system or informally bringing
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(July 6, 2009). This article portrays the how external forces have been affecting the cartel network. In specifically to comprehend and explain they dynamics of network behavior, resulting a part from the external forces. This article states by using case research in order to explore the network behavior of the two firms. The two case studies are, “De Beers Jewellery” and the other case study from “Rio Tinto Diamonds”. (S. Gupta et al. 2010) After investigating these case studies it was found that it is important for the manager in the organisations to understand the dynamics of an industry. The analysis also shows that De Beers Jewellery business have been having some significant problems as the external forces laws have been changing and have lost control of the network structures. (S. Gupta et al. 2010). All in all from this article it explains that the external factors play an important role in any sort of business weather the business produces good or services need to think about the external forces. The manger needs to be clear on the external forces because it can lead to major issues within the organization as well as the external …show more content…
Even though all the articles focus on a different kind of business or industry in the end almost every article link it back that external forces are as important as internal forces are in any organization. The articles also mention that managers need do really need to pay attention to the external forces because if external factors are not taken into consideration then there are going to be major consequences that can occur in the business internally as well as externally. This also links back to the question on how there is a requirement for mangers making sure that external forces considered in making business decisions. As seen in one of the article that new innovations becoming more are demanding in organization. In the future directions mangers, which have been in the workforce, need to consider looking into the new technologies and innovations that are being developed and how these factors will affect the external forces in organisations. Any new mangers will also have to be aware of the external forces that have to be considered. It is important for managers to understand the external forces because as emphasized in the articles and books that it not only is good internally but also externally. If they are not considered then there might be problems not only to the business as well as

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