Touchstone 4: Organization Analysis and Strategic Recommendations
SCENARIO: Select an organization you are familiar with or have worked for (currently or in the past). You are tasked with analyzing the organization both internally and externally using some of the tools and frameworks you have learned in this course. You are also tasked with recommending changes to the organization’s strategy and structure, in addition to considering associated ethical implications.
This assignment requires you to apply SWOT analysis, PESTEL analysis, Porter’s Five Forces of Industry Analysis, Porter’s Generic Strategies, and organization design concepts related to strategy-structure fit. You will prepare a slide deck containing your analysis and recommendations that could be presented to the organization’s Board. ASSIGNMENT: Your presentation will be 11-14 slides long, not including the title and references slides. It must include the following slides:
Title
Executive Summary
Organization Background
Internal Strengths
Internal Weaknesses
External Opportunities
External Threats
Macro Environment Analysis: PESTEL
Micro Industry Analysis: Porter’s Five Forces
Generic Strategy Recommendations
Organization Design Recommendations
Ethical Considerations
References
Organizational analysis is the process of appraising the growth, personnel, operations, and work environment of an entity. Undertaking an organizational analysis is beneficial, as it enables management to identify areas of weakness and then find approaches for eliminating the problems.
Important aspects of organizational analysis include the assessment of external elements that can influence the performance of an organization. An organizational analysis also includes strategically evaluating an organization’s potential and resource base.
Internal weaknesses and strengths, together with external threats and opportunities, determine the success of an entity. For this reason, SWOT analysis is an important part of organizational analysis. It is used by businesses to assess their performance and establish goals or objectives.
The competitive edge that an organization enjoys over its competitors is an advantage that defines its success. Assessing the strengths of an organization involves evaluating management, workforce, resources, as well as current marketing goals. In general, an internal analysis looks at an entity’s core competencies and resources.
Defining the capability of an organization helps the management team to make sound decisions as they formulate long-term objectives. Other important aspects of an internal analysis include looking at financial objectives, strategic planning, and operational structure.
Weaknesses are obviously an aspect of an organization that can affect its performance. Recognizing weaknesses is important, as it enables the organization to locate problems and implement beneficial changes. In addition, the organization is able to develop appropriate choices in its strategic planning process, especially when results are not satisfactory.
Potential weaknesses include low morale, poor leadership, poor financials, obsolete technology, and inefficient functions. An example of a turnaround would be an organization, which previously experienced poor cost control, working hard to manage costs.
Generally, an external analysis weighs the threats and opportunities that are present outside of an organization. An external assessment includes sizing up the competition, analyzing market trends, and evaluating the impact of technology on the performance of an organization. When looking at external opportunities, an organization needs to identify current trends in the market, as well as weaknesses and gaps in the market that it can come in and fill.
An entity also needs to consider technological changes as an opportunity. Innovation helps to create opportunities for business. Therefore, organizations that set themselves apart in terms of their efficient use of available technology are capable of becoming leaders in their respective industries.
Not all threats are detrimental to the success of a business. For instance, labor can be a threat or an opportunity, depending on the prevailing economic conditions. Legislation and regulations set by the government also exert an effect on how well an organization performs in its industry.
To succeed in a competitive environment, an organization needs to learn to cope and embrace change as it happens.