Influencing the Environment

Companies sometimes utilize pro-active methods to cope with the high uncertainty.Instead of adapting their organizations to the changes, they prefer to change those elements in the environment causing changes. Some tech­niques widely used are: advertising and public relations, political activity and lobbying, and trade associations.

Advertising and Public Relations: Advertising is an effective way to man­age demand for company products. The objective is to influence customers to buy the company’s product by changing their tastes and purchasing behavior. Public relations attempts to influence public opinion about the company itself. Under the influence of advertising and public relations activities administered by the company, customers and the public may change their purchasing behavior toward company’s products and build positive opinions about the company image.

Political Activity and Lobbying: Organizations attempting to influence government legislation and regulations for their interests best describes politi­cal activity. One of the most widely used political activities to affect state legis­lators and other national or local governing bodies is lobbying, that is a political activity operated by professionals In a continuous and professional way. Many organizations pay lobbying companies to express their views to effective gov­ernment individuals and institutions.

Trade Associations and Unions: The not-for-profit institutions built by the organizations having similar interests is a good description of trade associa­tions and unions. In this way the organizations attempt to influence the envi­ronment through this jointly created institution by publicly announcing their opin­ions on specific issues.

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