Market forces shape organisational responses through a very basic economic principle: Supply and demand.
A company or organization will always try and predict demand for its product or service, and ensure that demand is met by implementing a cost effective strategy.
Market forces, by definition, can have an effect on that demand - and as such, will have an affect on the supply chain and strategy used by an organization.
We could make a never ending list of market "eventualities" and examine how they impact supply and demand, but actually it's safer to just stick to the well-established concept of Porter's Five Forces:
- likelihood of new entry,
- powers of customers,
- power of suppliers,
- degree of rivalry
- substitute threat
Each of these have a tangible and obvious impact on supply and demand, be creative and come up with examples for your assignment!
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