Hump Day Hail Mary--What Climate Change?

External Forces, Literally!..

 In looking at the forces that affect a firm’s ability to perform, we see there are internal forces and external forces. Labor and capital are internal, and those can be manipulated from within the hierarchy. The firm also operates in direct competition with others, within the laws existing in the physical location and under the political framework in the country. These are all external factors that cannot be controlled by any management action. The physical elements of nature such as topography or climate. In some locations for example, the hurricane season brings new challenges to ALL businesses, those having direct competitors or not. 

Climate is important to business; it is the meteorological state of the atmosphere that includes temperature, wind and existing rainfall conditions. Apart from natural disasters where the impact is obvious, climate conditions can mold decisions and affect the day to day operations in a firm. For regions with hot, tropical climates, companies operating there will need to ensure the comfort of employees and air conditioning will form part of the expenses to be met. In cold regions,  heating and temperature control is no less important. Building design and location will also be impacted by climatic conditions. In making key management decisions, the firm has to consider all the factors. Climate change regulation must be included in planning, what air conditioning choice will bring the best returns on energy costs? Buildings need to be insulated. Employees need training about natural disasters and what to do if one occurs. Who is in charge of emergency planning? Are there hotlines set up for employees to call after an emergency? Be smart- plan ahead, or better yet get a consultant to take care of your planning needs. Cheers!