Research Korner: Important external environmental factor

Sample Essay External Analysis Pinpoints Major Opportunities and Threats posed by the Environment

1 Strategic Issues of Jasmine House Hospice External analysis pinpoints major opportunities and threats posed by the environment. It analyzes those external factors the community or public sector jurisdiction cannot control but which nevertheless affect its ability to achieve strategic objectives. Internal analysis provides an objective understanding of the controllable factors in the public sector jurisdiction's internal environment, identifying those with the greatest long-term impact on a community's or organization's position (Mercer, 1991). The objective of this analysis is to identify the organizations or community's major strengths and weaknesses with respect to its overall mission or relative to each of the strategic issues it faces. The usefulness of the internal analysis depends on objectivity and completeness and identifies strengths and weaknesses of the organization as it attempts to implement strategic plans, goals and objectives, and its overall mission. Organizations need to be aware of what is happening in their environment that might affect them. In other words, they should continually survey and monitor the outside as well as the inside of the organization. This is especially true during the strategic planning process (Mercer, 1991).   Five separate but overlapping environments should be monitored. These include the macro environment, the government environment, the competitive environment, the citizen environment, and the organization's internal environment. These areas should be surveyed in depth. Environmental scanning will also identify a variety of factors, both internal and external to the organization. In fact, one of the benefits of strategic planning is that an organization will gain a better understanding of how environmental scanning should be done and be able to manage more effectively as a result.  Factors to be considered as part of the macro environmental scanning process include social factors such as demographics, financial factors such as interest rates, and political factors such as increasing government deregulation, changing federalism and state government's trends, and regulations (Mercer, 1991).    Among the factors to be considered as part of the government environment are the number and locations of other governments, the degree of federal and state government presence, the typical services being provided, and the marketing strategies of other competitive local governments. The competitive-environmental scan includes consideration of general competitor profiles, market segmentation patterns, research and development, and others (Mercer, 1991).The combination of environmental assessment and forecasting, and the strength and weakness evaluations is often referred to in the strategic planning process as the situation audit or the environmental scan. The basic purpose of the environmental scan is to assess the environment within which strategic planning will be conducted and to develop a set of strategic issues (Mercer, 1991). The Strategic issues faced by Jasmine House Hospice include funding and maintaining the quality of healthcare. Jasmine House Hospice may or may not have enough funds to last for a long time. Its quality of health care may decline after its healthcare professionals are replaced after some time. 2 Stakeholders of Jasmine House Hospice One of the primary concerns of the analytic approach to governance is who actually plays what role in governance decision making. To address this question, taxonomy of roles must be identified and the concept of the stakeholder must be evoked. There are three distinct roles in administrative decision making. There are those who make the decisions; there are those that influence those decision makers by providing information or recommendation; and there are those that ratify decisions. The latter role involves having little involvement in the choice of a preferred course of action but, in the last stage, having the authority to accept it or veto it. For example, in many nonprofit organizations, the chief executive officers (CEOs) are the primary decision makers, but some of their decisions are put to the board for ratification (Tot, 2001). The great majority of the time, the board routinely approves these motions, though occasionally one may be vetoed and returned to the CEO to be reconsidered. The concept of stakeholder refers to any party that sees its interests being affected by the actions of a given organization (Tot, 2001).   The potential stakeholders involved in governance decision for most nonprofits include some combination of the board as a whole, individual board members, board committees, the chief executive officer, other senior management staff, other paid staff and volunteers, users of the organization's services, members, fenders, and government regulators.  Various stakeholders have varying amounts and kinds of power, and those with the greatest influence shape a strategy from a number of specific decisions (Tot, 2001). Stakeholders are given the outmost authority in any business setting. Their power and importance is beginning to gain slighter advantage when compared to an organization’s management team. Stakeholders are given importance in both public corporations and family firms. Stakeholders provide a diverse influence to both kinds of organizations and they guide the people in the organization so that the goals will be met. The managers of a firm have the responsibilities of establishing its overall direction and seeing to it that these plans are carried out. Consequently, managers have both long-term and short-term responsibilities. Before the stakeholder view of the firm became necessary, the social and competitive environments were stable and management's task was relatively straightforward. Today, stakeholder management has become necessary and inevitable as many different groups demand to be recognized and satisfied. Experts have long known of the importance of managing people and consumers as an avenue of organizational success (Golembiewski, 2000).   Stakeholder management is an important concern for organizations because of the different implications such can bring to a company. Stakeholder management helps in creating and accomplishing long term goals for a company. Stakeholders have different ideas in how a business should be operated. The stakeholders of Jasmine House Hospice include board committees, the chief executive officer, other paid staff and volunteers, uses of the organization's services and the government.  The objectives of the stakeholders provide additional guidance and give a detailed direction to the future strategies of the firm. 1 Barriers to change and George’s plans Potential barriers to change could be found in culture values and attitudes, social claims and obligations, or associated with perceptual differences between change agents and recipient groups. It is said that barriers to change can come from the value people place on their traditions, what they were taught as they became members of the culture, what they learned as true and behaviorally correct. Such things produce the pride in being identified with the group and with knowing the right way. In other words, the cultural forces consist of all those things that exist within the integrated culture and the logical order of things as they have been learned (Naylor 1996). It has become very clear, over many years of study, that the greater resistance to change comes where people place the greatest value, in association with core areas of culture. The social system of culture is such a core area of culture, if for no other reason than that humans group together. The enculturation system, which emphasizes cultural transmission and acquisition within a culture, is another core area on which great value is placed, for it ensures that the culture survives. Culture is reproduced through learning. Worldview provides the members of the group with some understanding or perception of the world around them (Naylor 1996).   Economic and political systems assist them in adapting to the resources with which they have to work and the social order within which all these things must exist. Changes that suggest altering basic beliefs and/or behaviors with regard to any of these core areas of culture, directly or indirectly, come into conflict with established patterns of belief and practice. In such circumstances, any of the traditional patterns can turn into barriers or stimulants to change. This is why it is so critical to understand the cultures involved in a change setting, not just as they may be ideally portrayed but as they actually exist and as individual members live them. For example, in the American culture, the gaps between these versions of culture can be substantial. Strategy is a question to be considered in the dynamics of change during implementation as well. Minimizing the potential barriers to change and maximizing the potential stimulants must become as much a part of planners' strategy as the introduction of the change idea itself. Barriers to change can be found in culture, in traditional practices and beliefs, in social structure, and in psychological areas (Naylor 1996).   In the corporate world, this can mean the expected relations between management and employees, using established channels of communication, and recognizing that there are both formal and informal leaders. Cultural barriers can come from the value people have placed on tradition, the learned truth and correct behaviors, things closely tied to the natural ethnocentrism of culture groups, the pride they take in being identified with the group, and the logical order of things as they have been learned (Naylor 1996). To overcome the barriers to change George must explain in detail why is change needed and what will be the benefits of change to the company. George should also provide concrete evidences that will provide additional assistance in showing that the change will give benefits to the hospice. 2. George Pursuing Internationalization strategy Four broad types of internationalization strategy that can be identified in the businesses include domestic, exporting, international, and global strategy dimensions. Understandably, the internationalization dimension played a very minor role in defining domestic strategies. Instead, overall strategic behavior was dominated by competitive positioning. Little emphasis was placed on international investment, political, or integration sub strategies. When compared with strictly domestic businesses, exporting businesses relied much more heavily on international sales in accounting for total business revenues (Morrison, 1990).  Furthermore, businesses were commonly committed to increasing international sales levels through eventual foreign direct investment, typically in terms of overseas sales/distribution centers. Exporting businesses placed considerable attention on international external integration and international political activities. Integration with the international external environment was achieved largely through developing expansive international information networks and establishing licensing agreements based principally on manufacturing technology (Morrison, 1990).   With increased levels of international activity, businesses became more fully exposed to divergent international business environments. This exposure had a dramatic influence on strategic behavior, as businesses found themselves stretched to balance global competitive pressures with organizational capabilities that remain dominated by domestic concerns. International investments were contingent on market opportunities for introducing the particular technology (Morrison, 1990).  Minimizing costs played a relatively minor role in determining the location of overseas operations. Also, rather than trying to influence their political environments proactively, international strategies seemed to be much more reactive. A high propensity existed either to enter independently only those foreign markets that provided attractive political environments or to avoid political entanglements entirely by seeking local partners to assist in product assembly and distribution. Of the four internationalization strategy types identified, the global strategy type demonstrated the highest commitment to international activities. This commitment was directed by tight head office control over all international activities (Morrison, 1990).   International investment location decisions were determined on the basis of potential comparative advantage. Value activities were frequently spread across national boundaries leading to huge scale economies. Production-sharing alliances were used frequently. Worldwide distribution networks were established to move the business's internationally standardized products. Distribution often involved the sharing of outlets with sister businesses within the same corporate organization (Morrison, 1990).  One issue George has to face when he purses internationalization strategy is the adjustments they had to make as a company. George and the hospice have to adjust to the culture of the other hospices they are conniving with. Another issue is the pressure from international organizations. They have to make sure that the funds will be used well. 1 Rik Walker and leading successful change Over the last two decades of the twentieth century, theories of organizational change have had a tremendous impact on business and not-for-profit companies. Many of the top corporations, have implemented one or other change program over the last twenty years, often at the cost of millions of dollars, and involving large-scale restructuring and extensive job losses (Mills, 2003).  At the end of the day, while it is generally agreed that certain change programs have become widely popular, there is considerable debate about the success or failure of the subsequent changes themselves. Business critics blame suggested failure on incorrect implementation. Other business critics are less convinced, questioning the lack of evidence of a clear link between the implementation of selected change program and subsequent business success. It is argued that, within management thought and practice, the notion of organizational change has changed in significance over the last two decades, from one of many potential strategies of managing to a key influence on organizational effectiveness and survival. The focus has shifted from the strategic choice of the actor to one of incontrovertible external forces that managers need to anticipate, react to and manage. It is contended that organizational change as imperative has become an important management discourse that can be witnessed in the discursive practices of companies (Mills, 2003).   Explaining the popularity of organizational change in sense making terms it can be argued that change has become a conventional management practice, developed and sustained through a powerful management discourse, whose on-going character influences the decision-making of large and small companies, profit and not-for-profit companies alike. Whether or not the adoption of a particular program of change is the right course of action for some companies doesn't seem to matter. Decisions to implement change programs are based on plausibility rather than accuracy.  Prior to 1980, within business texts, organizational change as a management technique was either not mentioned at all or was limited to discussion of group dynamics and employee resistance to change (Mills, 2003).   Over time, the emphasis on change programs has switched focus from ways to improve employee satisfaction to a goal today of customer-driven corporate effectiveness. But something more than a change in focus has occurred. The notion of organizational change has taken on new meaning. Since the early 1980s, it has become an imperative rather than a technique to be considered at appropriate times, a holistic rather than a piecemeal approach to organizational effectiveness (Mills, 2003). Organizational change is done by a company when it believes that the company is not adjusting to the new trends in its environment. To turn the division around Rik Walker must make sure that the changes will help the members of the organization to easily adjust. Rik Walker must also make sure that there are back up plans in case the changes that the company intends to make will fail. This is to ensure that the company’s operation will not be stopped by the effects of the changes. 2 Data Source Corp’s traditional external environment PEST analysis Political sector The company will not get any good reputation, trust and success if it will not be aware of what is happening in the political sector of the country. The company makes sure they are aware of the political situation of the country and the company has its position with regards to political issues. The company is prepared for any problems concerning the political sector and has different steps undertaken to counter it.     Economic sector The company can be said to be economically stable for the past years. Its economic stature is doing well that’s why they try to improve their products to give the best to their clients. It is not only the internal economic situation of the company should be taken note of but also the economy of the country, the company checks first the economic status of the country they are operating in before making decisions because making decisions during a difficult time on the economy of another country may cause catastrophe for the company. It also checks on how the economy of the country they are doing.   Social sector The company makes sure that the product they create will not be cause of health problems. They make sure that the proper safety standards are followed and there are no hazardous chemicals in the production of products.  They make sure that the product they create will be accepted by the public. The company also has activities that can relate to providing assistance to society. The company engages in socially related activities that aim to foster a good relationship between the company and the society.   Technological Sector                      The company offered new innovations in the technological sector and introduced new concepts with regards to its industry. Since technology rapidly changes the company makes sure they are updated to what is happening and they can adjust to these changes. The company makes sure that the products they have are updated with regards to technology and if new technologies emerge they can compete with these products.   Porter’s five forces Potential Entrants             The company has been around for a long time and the company is not greatly affected by the new entrants. The influence of potential entrants to the company is weak. But to ensure that no other problem arise the company maintains low cost of unit production, this helps in making sure that the new entrant will not have advantage over them. Another thing that the company do is to innovate new techniques and procedures in serving the clients so that their can be product differentiation and the company has a unique product apart from the product their rivals has.    Competitive rivalry             Competition is one of the things that the company tends to focus its attention. Competitive rivalry affects the decisions made by the company. Different things are done by the company to ensure that they have advantage over their competitors one is a strategy wherein they give service straight from the heart. This kind of strategy gives the company a better relationship with the clients. Having a good relationship with clients gives them advantage over rivals. Another thing done by the company is to offer quality prices. By doing so the company lures clients away from competition. Moreover the company uses different promotional materials so that clients get to know them and so that more clients will transact with the company.   Substitutes  Substitutes give high influence to the company since substitutes can make a company lose the clients it has. The company makes sure that the substitutes won’t give them much problem. They do this by proving that the service and products they offer are the best quality and are better than substitutes. They also prove that their service is better against others by comparing and contrasting it with substitutes so that clients can know the difference. Bargaining power of buyers   The bargaining power of buyers highly influences the company. It shows how good the company is doing in serving the clients. It also helps in determining how known the company is. The company makes sure that the bargaining power of buyers is high. They do this by making sure that buyers are concentrated and there are few buyers in a significant market share.   Bargaining power of sellers  The bargaining power of sellers highly influences the company. The company makes sure that their suppliers have high bargaining power through helping them show their importance in the industry.  By demonstrating the value of their suppliers the company can attract other companies to purchase the suppliers products thus their bargaining power increase.   Resources Audit In creating the products the company needs different materials, these materials are made by the company’s trusted suppliers. The company gathers its materials and supplies from the most respected and trusted suppliers. The materials and supplies have high value and are highly reliable. The company is certain that the materials they use in producing a product is something that will make the product have high standards of quality. The company is certain that the materials they use for the products will not make the clients think that their money is put into waste. 1 Data Source Corp managing the development of new products A core new product concept can be viewed as proceeding from an abstract to a more specific level. Six levels of product concept development help define managerial checkpoints during development. A new product originates as an idea that is shaped into a concept, a design, a prototype, a product, and ultimately a commercial product. An idea is the highest form of abstraction a new product can take. It is usually represented as a descriptive statement, written or spoken. With ideas, a company is more interested in generating the maximum number of ideas than in being concerned whether each idea is stated completely and specifically. To become a concept, an idea must be defined more completely and more specifically (Odem, 1997). However, the process of making ideas into concepts should not be hastened, or the idea generation process will be thwarted. Concept is more specific in description than an idea and should define the core benefit and the major supporting benefits. It can be a verbal or written description, an artist's rendering, or a model or appear in another suitable presentation format that depicts the idea. The concept must be defined specifically enough that it can be evaluated by the stakeholders, particularly prospective customers. In summary, a concept is a combination of verbal and/or prototype information that tells the customer what core benefit and major supporting benefits will be provided and how they will be provided (Odem, 1997).   In practice, ideas and concepts are often combined and considered to be part of one creative process. Separating ideas and concepts allows ideas to remain in free form to aid idea generation, while concepts are defined more completely for evaluation by different stakeholders. A design is a preliminary outline or sketch showing the main features of something to be built (Odem, 1997).New product design involves the translation of concepts into a tangible representation of the concept. Until recently all designs were on paper, but now many designs are recorded in electronic form by Computer Aided Design (CAD) (Odem, 1997). A prototype is a working model or preliminary version of the final product, achieved through an implementation of the product concept. Several iterations of prototypes may be necessary before a final product is achieved. For many products, the prototype is the first full-scale likeness of the product; for others, it is a scaled-down model. For some products a prototype is not possible without at least a small-scale product launch. A product is the realization of the core product concept and the means by which users can experience true benefits (Odem, 1997).   The development of the final model will be based on these prototypes and their test results, but the final product may not be exactly like any of the prototypes. A product's final definition may be the result of several iterations of development and refinement and may involve all relevant stakeholders, especially potential buyers (Odem, 1997). In managing the development of new products full attention should be given on the product. Ahmed should make sure that the conceptualization and creation phases of the product will go smoothly and with more benefits than problems. 2 Strategies for Mergers and Acquisition  It is difficult to justify lies or deceptions at any time during the merger and acquisition process. However, they are most likely to occur during a negotiations process in an attempt to make the acquisition more attractive to the other party. It is not necessarily unethical to pursue one's own benefits at another's expense, but the manner in which the gain is pursued and obtained affects the degree to which the actions are considered unethical (Harrison, Hitt & Ireland, 2001). Coercion can occur at several points in the merger and acquisition process. Statements made by both parties prior to the completion of a merger or acquisition process often emphasize participation by both parties in implementing appropriate organizational change, yet the process of such change can be tightly controlled by the managers of the acquiring firm. Sometimes the acquirers can act like victors and simply demand that the acquired firm's employees make the necessary changes (Harrison, Hitt & Ireland, 2001).    In these cases, they are coercing a change in culture and procedures along with other types of changes being implemented. Although such changes may not be unethical, coercive changes often lead to ineffective integration. In these cases, employees frequently resist the changes, sometimes in subtle or tacit ways. Consequently, the changes may be less effective than they would be otherwise. Furthermore, if employees feel they are being coerced, the best ones are likely to leave, causing the newly merged firm to lose valuable human capital (Harrison, Hitt & Ireland, 2001). These outcomes represent voluntary but undesired turnover and the inadvertent loss of human capital. When units from the two firms performing the same or similar tasks are combined, economies of scale are often created. In these instances, some employees become expendable after the two firms are integrated. These terminations should be handled in a sensitive and humane manner (Harrison, Hitt & Ireland, 2001).   As mergers and acquisitions are announced and implemented, employees can feel stress, anger, disorientation, and sometimes fright. When this occurs, employees may reduce their commitment to the organization and lower their productivity as well. The employees' psychological states can produce potentially dysfunctional behaviors. The integration process in mergers and acquisitions is difficult enough without including questionable management tactics and decisions (Harrison, Hitt & Ireland, 2001). Mergers and acquisitions often involve long waiting times with high uncertainty, frenzied activity, minor and major changes, and tensions and conflicts in the best of circumstances. These conditions create uncertainty and stress. If, prior to mergers and acquisitions, promises are made for both parties to participate in the implementation process, changes should not be forced on the other party after the merger or acquisition contract has been completed and signed (Harrison, Hitt & Ireland, 2001).  Mergers and Acquisitions fail because some companies force other companies to instantly adjust to the culture of the more powerful company.  When a company is forced to change the tendency is for the said company to commit more mistakes. The company must take the changes brought in by the mergers and acquisitions slowly. 1. Developing Sustainable Competitive advantage A customer may defect to a competitor even if satisfied with the current provider because the competitor may be offering a value bundle with the perceived potential for a higher degree of satisfaction for that customer. Therefore, firms have to strive to achieve higher levels of satisfaction than their competition by providing superior customer value. This is the essence of achieving a sustainable competitive advantage. Technology alone will not provide a competitive advantage (John 2003). The combination of superior technology and superior employees with a service orientation will contribute to achieving sustainable competitive advantage. It also quickly becomes evident that they need suppliers as well as distributors and agents who have a similar and compatible culture. Thus, there are two strong themes in any discussion of creating superior customer value at a sustainable profit and this includes a customer-focus imperative and a service orientation (John 2003).    If all aspects of the firm and how the firm creates and delivers value to the customer are focused on the customer, the firm can provide a superior level of customer value. Such a firm is well positioned for a sustainable competitive advantage. A customer focus necessitates a deep understanding of customers and their activities, interests, and opinions around the particular value or solution that the firm is providing. It should be an attitude that is pervasive and that permeates throughout the firm such that it becomes ingrained as a culture. Once this focus becomes a given, then the firm will find itself in the mode of serving the customer while ensuring a reasonable profit (John 2003). Every firm in any industry provides some customer value. The firm that provides superior customer value is the one that has a sustainable competitive advantage. Firms compete with each other on differentiable aspects of the total solution. If organizations can conceptualize that every product has parts that are commodities and parts that differentiate it from others, superior value is in the augmented product, not in the conceptual core (John 2003).   As firms focus on customer needs and become service oriented to deliver satisfaction, there are favorable ripple effects throughout the firm. Consistent delivery of customer satisfaction persuades customers to be loyal because perceived risk in buying a product from that firm is substantially reduced. By way of their continued patronage, they become more valuable to the firm. When customers are loyal to the provider by choice, it is also in their best interest to support the provider because the prosperity and longevity of the provider is beneficial to the customer (John 2003). Similarly, with regard to employees, research has shown that when employee satisfaction is high employees are more likely to be loyal to the company. When employee loyalty is high, employees are likely to be more productive and to be providing quality products and does for the customer and everything associated with it (John 2003).  The McKinsey 7S Framework helps in making sure that the organization runs effectively. When an organization runs well it satisfies clients and employees thus sustainable advantage is acquired by the company. 2. Leadership styles of the candidates A categorization of leadership types can be established relating to the institutional settings within which leadership is exercised and which allow or prevent feasible leadership action. Leadership styles by contrast can be categorized according to the actual behavior of leaders faced by particular situations. The leadership component is not much easier to identify. Traditional organizational culture is sometimes expressed in terms such as risk aversion, inertia, hierarchy and sometimes political clienteles (Hausa, Hainault & Stewart, 2004). Leadership styles associated with this kind of political culture are far removed from the values and expectations which might be linked to an effective complementarily between leadership and community involvement. A range of leadership styles may therefore be appropriate for joint working dependent on the personal characteristics evident in the leaders reflecting the degree of charisma, commitment, persuasion, ambition etc. which rest within any individual (2004).   The leadership styles of the internal candidates vary depending on the beliefs and intentions they have. Some of the internal candidates want for the company to succeed while the others just want to gain personally from the company. A thing that Jim Nicholson can do is list all the traits of each candidate. After listing it all he can analyze which candidate can still be changed and honed to his idea of a good leader.  Another thing that Jim can do is give leadership tests with high standards to all the candidates for the successor ship. 1 Bidding for overseas contracts A method of engaging in cooperative contractual business relationships with foreign firms is through subcontracting. Also known as outsourcing, subcontracting refers to an agreement in which one company contracts to another a specific production task or segment of its business operation. These contracts may be long-standing, as part of a buyer-supplier relationship, or they may be temporary agreements that end when the contracted activity is completed (James Jar, & Feigenbaum 1993). Subcontracting also encompasses agreements ranging from the purchase of foreign-made components that are assembled in the home country of the enterprise to the complete production of products by manufacturers overseas. Contracts securing the production of goods by foreign manufacturers are to be distinguished from foreign direct investments, in which the parent company builds and operates its own production facilities overseas (James Jar, & Feigenbaum 1993).   In engaging in overseas contract the main concern for the company is the expenses they will have to incur in putting up a branch in another place in the world. The company has to know the operating expenses they will have to incur. Another concern for the company is profitability in the other country. The company has to make sure that they will gain an acceptable amount of income in another country. Moreover in engaging in overseas contract a concern for the company is the competitors in the other country. The company must have strategies that can help it gain advantage over competitors. 2 Styles of decision making found in the case study Decision making process is done when a company wants to make new, polices, goals, and strategies. All of companies have this and it is the best way to settle problems in the company. The decision making process must come up with the best result to prevent more problems to come. The decision making process should be done accordingly and with so much care. When companies need to make decisions on certain issues they use strategic decision making process to make the best decisions. Decision makers must make decisions and take actions in this rapidly changing world. The ability to view the current situation through the good judgment viewpoint is weakened through increasing external noise and changing epitome of how people think about social, cultural, organizational and economic issues.   The style of decision making involved in the case includes thinking, extroversion, judgment and sensing styles of making important decisions. The main decision making situation that must be dealt with involves who will succeed the leader of the company. The different decision making styles assist in dissecting the information that can be acquired from the different situations in the case and in the end it guides in discerning what action should be done.  The different styles of decision making helps not only in finding solution for the apprenticeship in the company but it assists in determining what actions should be done so that the company can improve its operations and have sustainable competitive advantage. 1. Entrepreneurial spirit and behavior The entrepreneurial spirit and behavior can be found in many, if not all, aspects of human involvement, not just in business. Entrepreneurial behavior is a potential candidate to significantly influence marketing thought and practice because it deals directly with a key concept in marketing: bringing innovation successfully to market (Hills, 1994). Although the basic concept of bringing innovation to market and the concept of diffusion of innovation is not unknown within the discipline of marketing, it is an area of thought and practice that is relatively undeveloped in comparison to managing products in mature markets (Hills, 1994).Entrepreneurial attitudes and behavior have been conceptualized as consisting of three underlying dimensions: innovation, risk-taking, and pro activeness. Because different amounts of innovation, risk, and proactive behavior are involved in a given entrepreneurial event, varying degrees of entrepreneurship become possible (Hills, 1994).   This suggests that some of the activities of salespeople and sales managers might be highly entrepreneurial, whereas others are only modestly so. The entrepreneurial sales organization produces a continual flow of activities representing numerous points along the entrepreneurial continuum (Hills, 1994). To encourage entrepreneurial behavior employees there should be a reward system in the company wherein employees that show entrepreneurial spirit will be rewarded in both financial and personal benefits. This would create an entrepreneurial spirit in the employees as well as better products and services.   2. Development of a new strategy Because any new arrangement is likely to decrease some valued benefits of past associations, and outcomes of new activities are often uneven, the period of affirming a new strategy continues to be unstable. Interaction among those in the middle of the organization will also bring conflicting interests and concerns to the attention of top executives, which can be an important impetus for developing new strategy. The true second order change will be more likely if people across the organization gain ownership in the new strategy by putting together pieces of it for themselves (Barr, Huff, A. & Huff, J. 2000). New assignments also divert attention to new issues. These factors, in conjunction with social norms about fair trial, help generate a honeymoon period following formal adoption of a new strategy. In the formal model, the affirmation of the new strategy is assumed to be accompanied by a reduction in stress, such situations out of the old strategy (Barr, Huff, A. & Huff, J. 2000).   In developing a new strategy the environmental analysis needed to be successful is the PEST analysis. This kind of analysis provides a wider picture of the situation in the environment and it provides assistance in determining what may give the company threats. PEST analysis can help the company prepare for problems brought by the environment, it provides information on what external environment should the company prioritize and what strategies will be enough for the situation in the environment. 1 Leadership styles at the BA The leadership styles at the BA depend on the different intentions each leader has. Each leader has different motives for the company and each has its own style of leading. The motives of the different leader serves as their guide in choosing what leadership style can help them achieve their goal. The leaders who were strict believe that for the company to be successful they must impose strict ordinances and rules so that the employees will be productive.   2 Benefits of the alliance In general, the reasons for mergers and acquisitions include achieving competitive advantages through market power, overcoming barriers to entry, increasing the speed of market entry, the significant cost involved in developing new products, avoiding the risk of new product development, achieving diversification, and finally avoiding competition (Culpa, 2002).   Although small and medium-size firms with product and market niches continue to compete in domestic and global markets, they will have a rough time against mega companies that have plenty of resources. The major driver of strategic alliances, the emergence of intense global competition, has rendered less effective the simple generic strategies that have been the staple of many U.S. firms (Culpa, 2002).  Alliances with another airline provide different benefits to BA. This includes introduction of the company to new clients. The alliance with an airline company helps in making sure that new clients will be introduced to BA. Another benefit of the alliance is the other airline can provide financial assistance to BA. 1. 7S model and the internal issues The 7s model shows that how intact the strategy, structure and systems of the company. It provides information on how organized the company is and how the company provides solutions to the problem it has. The company provides excellent service and it provides the best kind of answers to the clients’ needs.  The staff and the style of the company is made and trained according to the goals of the company and these two parts of the 7S model are honed to the culture of the company. The company’s shared values is focus on making sure that the employees will treat all employees fairly and enthusiasm.   2. Management Awareness Program The level of competition and environmental turbulence a firm has to cope with are rooted in various competitive forces that go well beyond the established combatants in the particular firm's industry. At the lowest environmental level, the organization takes the raw materials, resources, and knowledge needed for its operations from the environment, and exports to the environment the products and services needed by the environment. At this micro-environment level, the focus is therefore on the concrete inputs and outputs of the primary process of the organizational unit (Valera, 1999). At the task-environment level, the organization unit engages in exchanges with external elements or constituents suppliers, potential employees, financiers, distribution intermediaries, and customers to attain the raw materials or necessary inputs and to dispose of its outputs. Contingency theorists consider the task environment as most important.  The aggregation environment level or industry level is composed of associations, interest groups, constituencies, and other sanctioning groups that influence a focal set of organizations or industry as a whole. These groups may restrict or regulate both inputs and outputs (Valera, 1999).   At an even higher level, people can identify the macro-environment level, which consists of the larger societal forces that affect all the actors in the organizational unit's task and aggregation environment, namely the demographic, economic, physical, technological, political / legal, and socio / cultural forces. In the population-ecology theory, these forces receive most attention (Valera, 1999).Most environmental analyses end by summing up the competitive forces that determine the nature and intensity of competition and which determine profitability. They assume that the structure of competitive forces is stable and non-changing. However, a key feature of the competitive process is that competitive forces are continuously being changed, both consciously by a firm's strategic decisions and as an outcome of the competitive interaction between firms. In other words, it is not merely the competitive forces that are a reliable guide to the level of competition and environmental turbulence, but the degree of change in these competitive forces (Valera, 1999). The management awareness program reshaped management training division’s competitive forces through strengthening the management training division and making the said division more reliable and customer oriented. This helped the division have more advantages to the competition and it led to creation of better products. 1. Difficulties in the leadership style One of the best ways that managers can increase the level of motivation among subordinates is to be effective leaders. Leadership can be defined as a process of influence in which the leader is able to get the follower to stay on a prescribed path toward the attainment of specific goals that are desired by the leader. Thus, by definition the art of leadership is an important part of effective management.  The art of leadership may be inherent within the individual. If leadership can be acquired through education and training it may be the most difficult thing to learn (Shell, 2003). Managers in the professional environment are likely to have specialized training and are often preoccupied with the technical or scientific aspects of subordinate jobs. Consequently, they may pay little attention to the development and application of leadership skills (Shell, 2003).   When overall organizational success is related to leadership qualities, it is clear that effective leadership can and does make a difference Leadership qualities assume great importance in the professional work environment because professionals are highly sensitive to how they are managed (Shell, 2003).  The leadership styles vary upon the characteristics of different individual in a firm. A person’s leadership style may not conform to the criteria of the subordinates. Management Training Division staff is having difficulty adapting to Terry Bull’s leadership style because of the various criteria they have of leaders. They were fond of other leadership styles and are not used to different styles. 2. Value of Cultural Awareness Program Policies and practices intended to support a multicultural work force cannot fully succeed unless they are grounded in an organizational culture that embraces multiculturalism. Such a culture is open to new ideas and ways of doing things, supportive of differences among employees, and flexible in responding to employee needs and concerns. Communication is central to creating and maintaining this kind of organizational culture (Fine, 1995). Management must be willing to listen to employees, to value what they say, and to respond seriously to employee concerns and ideas. Employees must take responsibility for communicating their concerns and ideas, rather than waiting passively for others to speak for them. They must also, however, be assured that they are safe when they speak (Fine, 1995).   Organizational cultures incorporate an attitude that certain things cannot be done, especially about things that affect human resources. Creating a multicultural organizational culture requires a new attitude, one that says all things might be possible. Just as employees who have multicultural literacy must be open to different modes of thinking, feeling, acting, and interpreting, multicultural organizations must be open to exploring all options and trying new ways of operating (Fine, 1995). In operating globally a company needs to be culturally sensitive of others. It needs to have a sense of multicultural knowledge so that it can operate well in other places. The cultural awareness program provides assistance in ensuring that the company is culturally sensitive.

Sample Essay External Analysis Pinpoints Major Opportunities and Threats posed by the Environment

1 Strategic Issues of Jasmine House Hospice External analysis pinpoints major opportunities and threats posed by the environment. It ana...

The Role of Environmental Analysis

The Role of Environmental Analysis               Planning ahead enables a person to think about the future. As a result, planning allows one to establish direction and purpose, which eventually leads to enhanced performance. The same principle applies when creating a marketing plan. This concept is vital as the development and implementation of market plans are natural parts of a progressing business. However, even if planning is integrated into the formulation of a market plan, success is still not guaranteed. Lack of ability to amend a plan, poor implementation techniques and absence of accurate market trend foresights are among the common causes of failure. Due to several reasons, businesses tend to fail in spite of their developed plans. Thus, most managers begin to lose their confidence over the whole planning mechanism.             In spite of the variety of reasons, a common similarity shared by these failed plans is their failure to coordinate strategies with their objectives (2002). When analyzed, such concept is simple to comprehend and yet it remains a wonder how businesses tend to overlook it. The inability of the company to align its marketing objectives with their strategies is perhaps attributable to their lack of discipline, more specifically to their lack of appropriate market planning guidelines.             Situational analysis, being a part of the market planning process, is an integral procedure and a very powerful tool for organizations and businesses to instigate effective marketing plans. As the initial procedure of creating a market plan, situational analysis aims to comprehend the environmental as well as the organizational influences that surround a particular business establishment. To put it simply, situational analysis is the process of reviewing the present situation of the company, which includes the review of relevant matters such as the history of the firm, analysis of its market environment, competitors and consumers. There are actually two types of situational analysis, both are equally significant. One is the external analysis and the other focuses on the internal environment. When conducting an external situational analysis, the business’ customers, market and competitors are analyzed. Relevant information regarding the company’s market segments, their competitor’s relative weaknesses and strengths as well as the industry as a whole. An analysis of the external environment requires more than just a summary of what the competition is doing. The external environment is comprised of two elements -- the societal environment and the industry. The societal environment includes a review of major trends in society affecting organizations across all industries. These trends include political, economic, social and legal. While not necessarily having a direct, immediate impact on the business, these trends are important to the long-run health and direction of the business. For example, the number of dual career couples does not directly impact the short-run performance of the company, but does certainly impact future policies and directions the company may take in the long run. An analysis of the industry takes a look at factors that have a more direct bearing on the business. Hence, in addition to analyzing the competition other groups must be similarly evaluated to ascertain that no opportunities or threats within the environment are overlooked (1994).             On the other hand, internal situational analysis focuses on the identification of the company’s distinctive competencies, expected growth, their assets as well as their liabilities. The internal analysis also illustrates the core values of a company, and in what ways can these values be enhanced or beneficial to the market plan (2002). The evaluation of the internal environment of the company involves the analysis of the company’s structure, culture and resources. When a strategy is selected for implementation, it must be appropriate given the way the organization is structured or the way an organization must be restructured. The strategy must be consistent with the organization's culture. Finally the organizational resources must be available to actually implement the strategy that was formulated. Without the proper people, skills, abilities, finances and physical resources, the strategy cannot be implemented (1994).             Having varied focal points, it is clear that a marketing plan cannot work out without the other. Perhaps, the role of environmental analysis can be further realized through the description of the SWOT system.             Most organizations have depended on the use of SWOT analysis as this system makes it easier for them to formulate objectives, which will specifically act upon the various areas of the company that need improvement. The following discussion outlines the effective characteristics of the SWOT system:   1. It helps in the identification of the company’s strengths and weaknesses.             The strengths and weaknesses actually characterize the internal analysis of the company. Issues such as the reputation of the company, the type and quality of its product, manufacturing costs, the effectiveness of their sales team, profitability, innovativeness on research and development, market share and other issues of the company’s capabilities are recognized as strengths and weaknesses ( 2002).                 The primary role of these identified capacities of the company is that is serves as an excellent method to recognize a company’s status in the market. This identification can help the company gauge whether they are at a competitive disadvantage or not. This can be done in the analysis of a company’s competitor as well. Through the analysis of a company’s abilities and inabilities, the firm will be able to develop strategies that will be specifically designed for the enhancement of their strengths. In turn, this step strategically lessens a company’s weakness and reveals the flaws of their competitors.             Taking Batelco, one of Bahrain’s largest telecommunication companies, as an example, its strengths are its products and its increasing services abroad. Considering these are the company’s strengths, Batelco may have chosen to simply make the most of these strengths. However, like any other companies, Batelco has its own set of disadvantages. The need for them to reorganize their system, enhance their customer and consulting services as well as establish a better human resource system are among their identified weak spots. By being able to recognize these issues, the company will be guided as to what areas of the company need greater priority and what areas would have to be retained.   2. It helps in the identification of the company’s opportunities and threats.             While the internal side of the company represents its strings and weaknesses, the opportunities and threats on the other hand is external in nature. Opportunities may be recognized in rising markets, extending service networks, growing economies or capitalizing on the competitor’s flaws. Threats on the other hand, represents issues such as the introduction of new competitors, changing market trends, alliances formed by competitors as well as the transforming demographics.             Both of these factors are interrelated with the company’s strengths and weaknesses. Opportunities may be used in the maximization of the company’s strengths. For instance, the opportunity of a growing telecommunication market, such as in the case of Batelco, may be used to enhance its products and services. In turn, this step will lead the company towards a better position in the market, augment their monthly sales revenue as well as their profitability. Threats are linked to a company’s weakness, which in general in not beyond the organization’s immediate control. Weaknesses are related to threats in such a way that the flaws may be resolved through improvement. As a result the company will be able to overcome its identified threats. Similar to the case of Batelco, the improvement of their identified weak spots may be done so as to outdo or outsmart their primary threats, and that is the removal of their monopoly status and the entry of a new competitor.   3. It serves as a conceptual framework for the company.             The identification of the various environmental factors that could possibly affect a company’s growth and success also serves as a significant conceptualization of what the firm wants to achieve and in what ways it would be able to achieve them. Moreover, the analysis provides them an overview of how the company wants to see itself in the coming months and years. Goals such as increasing the company’s market coverage, advertise a new product, implement a new marketing strategy, double the monthly revenue or triple the company’s profits are the most common aims of a company.             In other words, the situational analysis helps the company realize the actual situation and facilitates its formulation of clear and specific objectives. Through the information gathered in the SWOT analysis, companies will be able to make use of their strengths and create applicable strategies that will assist in the achievement of these goals.   4. It leads to a more appropriate and dependable market plan.             Overall, the identification of the strengths, weaknesses, opportunities and threats of a company leads to the formulation of a successful marketing plan. The environmental analysis is then an effective and important tool in creating a good plan as it helps in leveraging the strengths of the company while reducing its weaknesses. In the end, realizing the important role of situational analysis in the whole marketing plan will prove to be vital in strengthening the business or company within the market place and providing significant advantages which will push a company ahead of its competitors. When a company chooses to conduct a situational analysis or not, a choice between employing long-term focus or short-run focus is involved. However, based from the description made on external and internal analysis, it is clear that situational analysis, or the long-term focus, is the key to long-term success. This is because choosing the long-term focus helps the company management to evaluate their decisions and objectives well. Short-run focus on the other hand has this tendency to blind companies, making them uncertain of the future (1994).

The Role of Environmental Analysis

The Role of Environmental Analysis Planning ahead enables a person to think about the future. As a result, planning all...