Strategic Plan Part 3: Strategic Evaluation and Recommendation

Running head: INTERNAL ENVIRONMENT ANALYSIS 0

Internal Environment Analysis

Virgie Tatmon

STR/581

April 3, 2017

Professor Suchitra Veera

Internal Environment Analysis

The environment in which any organization conducts its business determines the chances of succeeding in the industry. Therefore, the identification of key factors in the said environment is important for making the appropriate strategies that would drive the business to success. As previously identified, the discussion herein involves investment in a human resource consultancy company, and the environmental scan proved the possibility of success in the business if the investor in question takes the ideal steps to ensuring that the interaction with the other factors in the environment yields success. Notably, the internal environment is one of the most important aspects of the environment as it involves the interaction of the different factors of production to produce the desired output. Identification of different aspects in the internal surrounding of the business under consideration will help develop appropriate responses, geared towards reaping maximum benefit for the new venture.

Internal Assessment

The business investor is an experienced manager in the consultancy industry, which puts the company at an advantage position as he has had experiences in dealing with productivity issues for businesses in the industry. Therefore, the chances are that he will be better placed than companies that have been in existence for a longer period, but their management is not as experienced. Consequently, along with such experience comes the ability to discern the possibility of issues and make the appropriate alterations to deter negative effects of such issues. The experienced manager has the ability to manage effectively the interaction of theories of management and their practicality to ensure success of any given establishment.

Such experience and expertise explains the intended approach to business in the internal environment of the company. The business hopes to create a culture in which the management will focus on the employees’ welfare as an approach to promoting productivity. Being a service industry, the interaction between the business ambassadors seeking contracts with different firms will be of significant effect to the success of the company. Bearing that in mind, the satisfaction of an employee is vital to ensuring the employee’s commitment to a particular employer (Lee & Bruvold, 2003). Therefore, the company hopes to develop a culture that will create an internal environment in which every staff member feels welcome in the company, a factor that will eventually stimulate high quantity and quality productivity.

Important Strengths and Weaknesses

Strengths and weaknesses result from internal factors of a business environment just as the opportunities and threats result from the external environment factors (Ndlela & Du Toit, 2001). The proposed company would have some strengths, which it would leverage to gain a significant market share in the industry, just as much as it would face weaknesses that it would need to address to effectively conduct business in the industry. Specifically, being a new entrant in the market would be a strength as it would present the company with an opportunity to create a strong brand name through quality service delivery. However, just as it would be a strength, it would present challenges that could amount to weaknesses for the company.

The lack of knowledge of employee capabilities other than what they present during the interview sessions may be a weakness for the company. Their lack of practical understanding of company culture would present a challenge in getting them to follow their culture in their responsibilities. Addressing such challenges could take time which could result to delayed productivity and success of the new establishment. Nonetheless, with effective planning and management of human resource capital, the time taken for such an adjustment would be effectively minimized and the organization would be in a capacity to compete effectively in the market. Therefore, the weaknesses identified would be short-lived unlike the long-term effects of the strengths.

Important Internal Environmental Factors

The internal factors would interact with those in the external one and result in improved productivity and a faster achievement of the organization’s objective. First, the employee-oriented approach to management would interact with the general environment to result in employees with an understanding of activities in the organization such that they would effectively respond to demands within the organization. Notably, there are chances that there will be rapid rescheduling of tasks in response to urgency of the contracts won by the company. Consequently, the management would need to contact the employees regularly and offer updates on current assignments, which may change depending on the requests by the client organizations. Unless the employee clearly understands his or her responsibility to the company, then there would be increased chances of conflict due to such impromptu changes. However, the approach of the company to focus on the employee would provide the latter with sufficient support that would assist in understanding such situation.

In addition, the same approach would also help the company in coping with the industrial challenge of competitiveness which may lead to high employee turnover for the company due to their high demand. The management’s focus on employees would imply its quest to satisfy the employee needs as noted in the Maslow’s Needs Theory, which would reduce the chances of a staff member leaving the company for an alternative elsewhere. Further, the approach to management also results to the development of a company culture, which would eventually create homogeneity in employee activities. Consequently, it would increase consistency in product delivery, create a brand name, and help position the company in an effectively competitive position within the industry, much to the extent of eliminating the threat of established and reputable companies in the consultancy industry.

Competitor Analysis

The human resource consultancy industry is full of different players all of whom rely on their reputation and cost efficiency to bid and win contracts. The market in which the different players play is leveled with different organizations seeking the most cost-effective organization to award contracts. An interaction between cost efficiency and product quality provides the competitors with leverage over entrants into the market, who have had not any chance to prove to the market their ability to offer such product quality (Awwad, 2015). In addition, the resources available to the different organizations also play a role in their success, which implies the necessity of adequacy to competitively bid for contracts, win them, and proceed to execute them with ease. These form some of the issues that ought to be primary objectives for the new organization for it to succeed in the market.

Organization Structure and Effect on performance

One of the primary objectives of any new investment should always involve the development of a definitive culture that would effectively distinguish it from other establishments within the industry. The organization structure in the new company will focus on achieving an employee-oriented environment with the leadership maintaining a structure that would increase accessibility of the management to the employees in the company. Notably, the top-most executive will be the Chief Executive Officer. The second office will be that of the organizational manager, whose mandate will be policy formulation and development in addition to maintaining relationships with the organization’s clients. Under the manager’s office will be the departmental heads, who will be responsible for oversight over the activities of the respective departments.

Competitive Position

The identification of an organization’s competitive position gives it an opportunity to determine how best it would take advantage of the position to acquire a market share. In this case, the use of an employee-centered approach, and the strife to acquire an organizational culture within the shortest possible time is the competitive position of the establishment. As earlier identified, the position helps integrate the internal environment into the external, general, and industrial one, ending up in improved productivity and a positive gain on access to the market in the industry. Therefore the competitive position of the company will be the source of quick access of the organization to the larger market in the industry and hasten its success in gaining a sizeable market share. It is always the objective of any new establishment to achieve fast growth in any industry.

Getting to the identified position in the market within the shortest time possible will be a cause of celebration in the company. However, it ought to harness the identified opportunities presented by its internal environment to meet such organizational goals effectively. The focus on establishing a culture would be an effective way to achieve such an objective as exemplified in the discussion.

References

Awwad, R. (2015). Evolutionary simulation of contractors’ learning and behavior under two bid-tendering approaches. Journal of Management in Engineering, 32(2), 04015041.

Ndlela, L. T., & Du Toit, A. S. A. (2001). Establishing a knowledge management programme for competitive advantage in an enterprise. International Journal of Information Management, 21(2), 151-165.

Lee, C. H., & Bruvold, N. T. (2003). Creating value for employees: investment in employee development. The International Journal of Human Resource Management, 14(6), 981-1000.