ORGANIZATIONAL ANALYSIS

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Seminar Question one:

People come together guided by a common motive or vision and establish a context within which they establish a common structure through which they would pursues common interests (Glass, 1991). This forms an organization, which therefore implies that it is a formation many persons who come together and form a common structure guided by a particular goal/motive. This common structure enables them to exploit resources for a common goal. In definition therefore, organizations are social set-ups or systems, which are goal oriented, distinct in deliberate coordination of activities and have a structure, which links the internal environment to the external environment. It is therefore worth noting that organizations are formations of people, who interact for a common purpose and exhibit good structure with a purposeful coordination of various departments and groups of people within the organization.

Organizations as shown have a common goal or purpose as a basic building block and as such, they are often formed to exploit resources for a common good. Organizations may vary in what they do but the commonality of interest in exploitation and mobilization of resources distinct organizations from other types of social set-ups. They are therefore often profit oriented and are formed to pull together resources and exploit them collaboratively for common good.

Organizations are formed of people with common motives or ideas. Members in an organization exhibit some traits in shared values, symbols, behaviors and beliefs, which together define the organization culture. Organization culture is a key determinant to any organization’s success in that it guides and influences actions as well as decision making at the organization though unconsciously (Haworth, nd). Organizational culture is a very strong force that is characteristic in an organization though not in a visible form.

Organizations are shown to be mere creations of collaborated efforts by persons and as such lack distinct features that would define them as individuals or separate entities from the members who form them. They therefore lack soul or capacity to reason and make own choices except that the members act on their behalf. They therefore have distinct links with the external environment, which implies that organizations interact with other forms of systems within the social environment, groups of people, individual persons, communities as well as other organizations.

Organizations are not similar but they exhibit a range of variations. The variations notable on organizations are evident in manner of operations, formation, organizations as well as the basic goal for their formation. On a broader view, organizations are distinct on matters of either being public or private. The public organizatiosn are designed and ran by a specific government department under which specific legal provisions apply and influence policy making towards the organization. On the other hand, private organizations are unique in that they are not directly under influence of the government but they are distinct. They are classified into either profit or nonprofit organizations where the activities involved are similar but the motives guiding the operations differ. The for-profit organizations exploit resources for profit motive while the non-profit organizations are guided by other motives and not making profit.

Seminar Question two:

The formation and management of organizations is dependent on particular contexts within which they operate. The organizational context in this regard implies that there are influential circumstances surrounding the working of the group of persons. Context refers to the environment of operations, influencing items in the scope of current operations and an overall setting within which the organization is established and within which the operations take place. Understanding the context within which an organization operates has absolute advantages in that it influences management practices and decision-making processes within the organization (Langfred and Shanley, 1997). For instance, organizations have corporate social responsibilities towards the social context they operate on as well as towards the environment. Corporate reporting is mandatory especially in matters of financial accounting as well as the organizational information towards the readers. The context also defines the legal frameworks that guide and influence the operations of such an organization. Organizational culture is equally considered in defining an organizational context because the cultural environment within which an organization operates has a direct influence towards the management as well as social impacts. Besides, organization context influences the level of competition within which an organization operates especially for the profit making organizations. Moreover, it is worth noting that the external environment but also the internal environment as defined by employees and factors of production do not only explain the context (Sharma, Pablo and Vredenburg, 1999). The internal environmental context has equal implications towards the running of the organization as defined by culture and managerial processes.

Seminar Question three:

Strategies as adopted and used within organizations defines specific course of action towards realizing set goals/objectives. Tactics are therefore seen to be varying actions, which an organization adopts towards actualizing a particular strategy or a stage of the strategy. This therefore implies that organizations adopt various strategies towards the realization of defined objectives/goals. It is therefore necessary that an organization clearly defines the strategic frameworks that are adopted towards the working of the organization which will not only help in management practices but will also be useful to third party persons interested with the organization (Njie, 2003). Decision makers at various stages in management of the organizations adopt the strategies defined and the definitive frameworks established for effectiveness in making decisions. This is because, based on time horizons defined by the strategies adopted; strategic decision makers are in a position to be objective in making decisions as against when no strategy was defined. Decisions in this regard refer to acts that require informed judgment translated into actions. The decisions stem from identified problems or needs towards actualization of set goals/objectives of an organization. Strategic making of decision is often tasks given to top levels of organizational management and involves a number of activities. This therefore implies that definitive frameworks following specified strategies assist the strategic decision makers matching organizational objects with the prevailing environments. It also aids in directing the realization of expectations and values of all stakeholders within decision making process besides guiding an organization towards long term prospects. Moreover, the definitive frameworks help and organization decision makers to match the resource endowment to the varying current and future needs of the organization, which has direct implications to the stakeholders, as well as the organization itself.

Seminar Question Four:

An organization employs various tools for analysis and evaluation of performance within the environment. An organizational audit of environmental influences is carried out through a tool called ‘PESTLE’ analysis (Yüksel, 2012). The analysis revolves around an assumption that there is need for an organization to evaluate current environmental condition and influences in order to be strategic in influencing future decision making for effectiveness. Through the analysis, an organization is in a position to understand the risks and benefits that defines it current position as well as the future direction. The following is a Pastel analysis as holds for the General Electric organization in the United States (‘HubPages Inc’, 2013).

Political Economic Social technology

The company is a multinational and as such faces different political frameworks in its operations. Variations in political regimes implies that the policies developed such as the tax policies equally vary. However, local operations within the US are favorable as a result of favorable policy frameworks as well as stable political environment. Basic effects that the company faces are unsterilized exchange rates, fluctuations of values of currency as well as the instability in interest rates within the country. Besides, inflation, deflation as well as the government spending present basic macroeconomic factors that the organization faces within the country. Decreased lending by banks equally affects adversely the sales volume of the organization especially within hard economic times. Corporate culture has great significance towards the operations of the organization within the multi cultural business environment within the United States. The effects of culture are felt in management practices, employment policies as well as the working hours variation across different cultures within the country. Technological advancement within the modern day business environment increasingly influences the operations of the organization due to the reason of the pace of outdating older technologies with the modern and improved ones. This therefore necessitates that the organization keeps very alert in the prevailing technological environment in order to remain relevant in the industry.

Seminar Question Five:

In the competitive advantage examination, Porter established a ‘five model’ framework through which the analysis should be done (Li, 2003). The five-model framework revolves around suppliers, buyers, industry competitors, new entrants as well as substitutes within the industry (Wingwon, 2012). The Coca Cola Company operates in the soft drinks and beverage industry where its global dominance have given it the basic competitive strength within the industry. The strategic advantage that is presented by the global perspective of operation by the company presents the main challenge to new entrants within the industry or the resultant competition. However, it is worth noting that the organization is not the only player within the industry but the high competition within the industry already presents a challenge to new entrants. Competition levels vary from a region to another due to the variation in operating environments within different countries. The substitutes within the industry include new drinks introduced on ‘fashion’, red bull, Belgian beer as well as coffee. Coca cola organization presents the buyers with increased bargaining powers due to the variety of product that the organization offers. Besides, the products by the organization are trendy, fashionable as well as with improved image and quality of perception, which increases consumers’ bargaining power. The suppliers on the other hand receive competent prices for ingredients and raw materials supplied due to application of world prices by the organization. Besides, the organization runs an effective management chain, which improves on efficiency of supply chain with speed, flexibility as well as safety. The organization enjoys high command within the industry and as such, experiences low levels of rivalry by competitors. Variations in global market trends affect all players and as such, the organization enjoys higher dominance. Among other rivals within the industry are Pepsi brand as well as other local brands depending on the country but the rivalry is contained for the reason that Coca cola enjoy global dominance.

Seminar Question Six:

The models described above (the PESTE and Porters five forces) have the principle purpose of analyzing an organization’s capacity to thrive and perform effectively within the market. This is because the tools as employed portrays the internal as well as external environments to an organization and this is effective in helping management arrive at strategic decisions on the current performance and hence project future organizational performances. However, for organizational change after an organization effectively conducts the above analysis, the McKinsey 7S model can be employed (Zhao and Choma, 2012). This model identifies a number of managerial decisions making especially concerning organizational change. These therefore reveal the strengths of the organization both from the internal environment as well as the external environment as earlier alluded to by the PESTE and Porters five forces models. Change is inevitable in any organization as is experienced by such factors as the need to improve in performance or as a requirement by law among others. However, it is critical that an organization takes into account the effect of the organizational strategy, staff, skills, style, shared values, systems as well as organizational structure defining the organization whenever contemplating change because they greatly influences the performance of the organization through defining the organization’s goals and giving the organization direction. Analyzing such organization’s attributes is critical whenever change is bound to be commenced because not all the critical attributes discussed embrace/favor change and as such, some are seen to be rigid therefore necessitating special care and attention.

Seminar Question Seven:

Many organizations are known to adopt a multi-product portfolio of operation where many products are produced concurrently. There are many reasons that are shown to explain the reason on this trend among which is the diversification in risk mitigation. Whenever one such product portfolio fails, an organization is able to rely on the rest of the products. However, organizational management adopts the Boston matrix as an analytical tool on the nature of products that organizations produce. The ‘Boston matrix’ tool is applied in decision making when a firm is interested in balancing its activities among which lead to profit maximization, ensuring growth as well as those that represent the future and heritage of a firm (Kamphaus and Yates, nd). A company is able to apply the tool for defining the development policy where the firm categorizes the products/services in terms of market growth rates as well as the share of market by the products or services compared with competitors. In the application of this tool, the firm must be able to position the products or services on offer within the market matrix while at the same time creating long-term value.

The BCG matrix has four main components in structure, which are question marks (Cash user), stars (cash neutral), cash cows (cash generator) as well as dogs (cash neutral) (Taggart and Harding, 1998). The relative share of the market by the product(S) as well as growth rate of the products in the market determines whether products or services are to be considered as cash users, neutral or even generators and are the basis on which the Boston matrix is formulated. Cash users are products, which have high liquidity demand though they do not generate profits and thus involve the management on the decision of whether to invest or dispose them. The stars on the other hand are products that require sums of cash but are great contributors to a company’s profitability and are thus seen as most promising products within the firm. Cash Cows finance others in the matrix and must therefore be replaced in order to realize future growth. Other products become too expensive for a company to maintain and thus it opts to dispose them and is referred to as the dogs. The BCG continues to be very relevant in the modern day business analysis for the reason that the structural components of every business as outlined above are basic to all business. However, it is worth noting that an organization may decide on producing products or services after the product reaches low return stage for maintaining diversified portfolio while at the same time maintaining competitive advantage whenever the product(s) attracts low investment costs.

Seminar Question Eight:

A value chain analysis is developed and used to sight core competences of an organization through which the analyst is able to distinguish strategic competences that define the organization and its competitive advantage. In a breakdown, porter’s value chain is divided into two components, which are primary activities as well as other supportive organizational activities. A university value chain would therefore adopt such a similar outlook with primary activities as well as supportive activities just as is the like with other organizations. According to Gabriel (2005), the value chain for a university (higher education organization) comprises of the primary as well as the supportive attributes. The primary attributes engaged are such as program designs, regulatory recognition, management of truths, learning spirit as well as service competition among others. The supportive services developed in the chain of value include professional recruitment, modernized infrastructures and tools, well-equipped library with relevant learning materials as well as effective strategies in delivering after sales services. The interactions of these attributes are mandatory for any university to be effective in delivering value in services offered.

Rational university value chain model: (Where the respective horizontal rectangular blocks represents supporting services describe above, the colored vertical blocks represents the primary services described above and the blue triangle represents the delivered outcome from the university).

Minimizing the costs of these attributes is a common motive for the universities and this comprises of measures that are meant to reduce on operating costs as well as the direct installation costs. From the value chain model described here, it is necessary that the design of primary program designs should be as minimal as possible. Moreover, universities should adopt direct and not complicated mechanisms of recruiting the professional staffs needed. Besides, construction of learning infrastructure as well as the tools used should be cost relevant in order to reduce on operating costs. The libraries should adopt modern technology in use of internet for accessing online materials, which reduces high costs that would be incurred in physically stocking the libraries.

Seminar Question Nine:

Features of competitive positioning of Ryan Air, BMW and Rolls Royce

Ryan Air BMW Rolls Royce

Operates in the industry of air travel and has the main competitive advantage in low pricing mechanisms together with improved customer service and effective marketing strategies among the competitors (Ryanair ltd, 2013). Product differentiation presents the main strength of the organization where it produces customized products such as mini cars at specialized features enabling customers buy them even at an extra premium. Besides, it enjoys brand supremacy and loyalty by the customers. Product differentiation: manufactures air engines, common vehicles as well as military vehicles (Rolls-Royce plc 2013). It has competitive pricing for the products among the prevailing competitors.

Competitive organizations choose among various generic strategies as developed by Porters and they include cost leadership, product differentiation as well as organizational focus. Sustainability in competitive advantage among such firms requires that a firm adopt either of the strategies as described.

(Cost leadership)

BMW (Differentiation)

Rolls Ryce

(Cost focus)

Ryan Air (Differentiation focus)

Porter’s Generic Strategy

These companies are unique in the strategies they adopt to sustain their competitive advantage where the BMW thrives through increased product diversification, brand loyalty as well as increased advertisement. The Ryan air thrives and relies on pricing mechanisms as well as increased customer services in freight operations. On the other hand, the Rolls Royce organization invests in variety of products as well as in competitive pricing mechanisms. These strategic mechanisms make the organizations to realize competitive advantages against other players within the like markets/industries.

Seminar Question Ten:

With the current concerns that the higher education sector in UK is undergoing structural changes and has potential implications on the overall effects to the society as well as the education industry, we undertake an analysis on the University of Huddersfield. In this section, we intend to have the analysis of the 0rganization’s strategic macro, industrial as well as competitive environment with a special focus to the entire global industry of higher education in UK. In particular, we engage the SWOT analysis of the company as at 2013 from which, we shall be in a position to project future performances of the organization (The University of Huddersfield, 2013).

Strengths: the university enjoys dynamic pool or professional resources, improved infrastructure for learning as well as the strategic distribution in location of the campuses.

Weaknesses: The University has invested greatly in technological infrastructure though the students and researchers have not fully adopted the advantage in exploiting the resources. Opportunities: There are postulations that with the adoption of proposed structural changes in the overall industry of higher education, the university would become more influential and raise standards of education, which would be favorable in meeting social needs.

Threats: Research and development by the university continues to experience setbacks with the increase in competition from emergent universities as well as the general restructuring of the higher education sector within the country.

The SWOT analysis therefore reveals that the university, as a major player within the higher education sector in UK has strategic role to play in influencing social impact through education.

References

Gabriel E., 2005. Value Chain for Services: A new dimension of “Porter’s Value Chain” Retrieved on Dec, 11, 2013 from: http://www.olegabriel.com/publication-web-Gab/Value_Chain_for_Services.pdf

Glass J. F., 1991. Understanding organizations and the workplace. Retrieved on Dec, 11, 2013 from: HYPERLINK “http://cdn.calisphere.org/data/28722/87/bk0003v1n87/files/bk0003v1n87-FID1.pdf” http://cdn.calisphere.org/data/28722/87/bk0003v1n87/files/bk0003v1n87-FID1.pdf

‘HubPages Inc’, 2013. PEST Analysis of General Electric Company. Retrieved on Dec, 11, 2013 HYPERLINK “http://richet.hubpages.com/hub/PEST-Analysis-of-General-Electric-Company” http://richet.hubpages.com/hub/PEST-Analysis-of-General-Electric-Company

Haworth, nd. “What is Organizational Culture — and Why Does it Matter?” Retrieved on Dec, 11, 2013 HYPERLINK “http://www.organicworkspaces.com/pdf/What_is_Organizational_Culture.pdf” http://www.organicworkspaces.com/pdf/What_is_Organizational_Culture.pdf

Kamphaus D. and Yates D., nd. BCG Growth/Share Matrix. Retrieved on Dec, 11, 2013 http://www.innovation-ideas.gr/club/basicMemberMaterial/presentations/1.pdf

Li H., 2003. An Examination of the Sources of Competitive Advantage in the Wenzhou (China) Footwear Industry. ProQuest Information and Learning Company.

Langfred C. and Shanley M., 1997. The importance of organizational context, 1: conceptual model of cohesiveness and effectiveness in work groups. Public Administration Quarterly; 21(3); 349

Njie S., 2003. Organizational relationships: perceptions of the value added by a procurement department in organizations and the implications for organizational development. ProQuest Information and Learning Company.

Ryanair ltd, 2013. RyanAir. Retrieved on Dec, 11, 2013. http://www.ryanair.com/

‘The University of Huddersfield’, 2013. Customer Relationship Management (CRM). Retrieved on Dec, 11, 2013. HYPERLINK “http://www.hud.ac.uk/business/customerservice/crm/selfanalysisframework/” http://www.hud.ac.uk/business/customerservice/crm/selfanalysisframework/

Rolls-Royce plc, 2013. Rolls-Royce. Retrieved on Dec, 11, 2013. HYPERLINK “http://www.rolls-royce.com/” http://www.rolls-royce.com/

Sharma S., Pablo A. L. and Vredenburg H., 1999. Corporate environmental responsiveness strategies: The importance of issue interpretation and organizational context. The Journal of Applied Behavioral Science; 35(1): 87

Taggart J. H. and Harding M. S., 1998. The process of subsidiary strategy: a study of Ciba-Geigy Classical Pigments. Management Decision, 36(9), 568–579

Wingwon B., 2012. Effects of Entrepreneurship, Organization Capability, Strategic Decision Making and Innovation toward the Competitive Advantage of SMEs Enterprises. Journal of Management and Sustainability, 2(1): 137-150

Yüksel I., 2012. Developing a Multi-Criteria Decision Making Model for PESTEL Analysis. International Journal of Business and Management; 7(24); 56-66

Zhao F. and Choma P., 2012. A business excellence and sustainability model and its Operationalization. 2nd Annual International Conference on Business Strategy and Organizational Behaviour (BizStrategy 2012).