Competitive organizations across the world are undergoing various processes that will be used to improve the overall performance and meeting customer specifications. The strategic development should be implemented regardless of the organizational size or comprehensive activities involved in the industry. Most of the competitive managers have embarked on various mechanisms including detailed benchmarking to compare performance and restructuring the functions of the organization (Li et al., 2013). The end analyses are aimed at improving performance and the overall increase in the market share involved and increasing the profits generated from the business. Considerably, managing of the business tends to take several approaches which are considered to comply with the provided business legislation and the entire business environment.
Moreover, the management should focus on various methods to make the organization more accountable to increase the economic well-being and making the firm more competitive in the market. As an MD of the national chain of the retail food store, the authority should justify the approach that it intends to introduce in order to achieve desired economic results within the specified period of time. Therefore, the report elaborates the implications of the business environment, application of PESTEL method, the importance of improving organizational policies and procedures and how business functions influence the functions of the organization.
The Implications of Business Environment to the Success of the Firm
For any competitive business, the environment consists of various conditions and entire forces which influence the performance of the firm. The environment consists of customers who consume the products and services which are produced within the organization and involved operations (Ogbonna and Harris, 2010). Moreover, the overall threat is contained within the forces which are driven by the rival firms which exist in the market as well as the industry. The rival firms may be involved in the production of food materials thus providing a variety of choices to which the customers may make regarding perceived consumption rates.
Apparently, political and economic development provides a major force which as a business should not ignore as they demonstrate high consequences to increase the market share and overall profits generated. Therefore, as a managing director, it would be necessary to understand the changing trends in the market and technological development which are being innovated on daily basis (Li et al., 2013). Most importantly, the authority should be able to consider the available demographic as it is comprised of the potential consumers of the products.
As an organization, it would be necessary to increase the number of consumers of the products being produced by the company and all firm. Some of the actions which should be taken include launching of product advertisement and increasing the prices of the products to increase the profits generated. The approach will influence the operations of the firms within the industry thus shaping elements involved in the entire business environment.
Application of PESTEL Analysis
According to Yüksel, (2012), the public sectors across the world are made up of the organizations which are controlled and governed by the respective national authority and regulations. The government influence on the industry over the years has been controlled by the available market share and overall profits each of the firms generate within the specified period of time. The businesses organizations are influenced by the number of individuals which govern and control the firm and consequentially financing its operations.
Therefore, to achieve long-term economic benefit to the organization, it would be necessary to conduct comprehensive SWOT and PESTEL analysis of the business. The approach defines the initial stages of planning and evaluating business functions (Yüksel, 2012). The analysis provides a competitive advantage to the firm as well as facing out their respective competitors that exist in the industry and overall business environment. Moreover, the analysis provides an insight into external and internal factors which affects the operations of the business and its related environment.
In order to achieve the best results for the firm, the authority ought to consider conducting the analysis on the annual basis in order to turnaround economic functions. The assessment will help the management in determining the available market opportunities and threats which surround the operations of the business (Chan et al., 2014). These are because most of the businesses are based on political, economic, social, technological development and legal processes which provide the framework of the business success and gaining increased market share.
Importance of Organizational Policies and Procedures
According to Ogbonna and Harris, (2010) in the recent past, organizational policies and procedures are considered to be an essential component to the success of the organization. The policies and procedures constitute an acceptable code of conduct among the employees and addressing the emerging market trends. On the other hand, the procedures will be used to determine effective processes of addressing and responding to the violation of the organizational policies and regulations which are designed to increase the market share and overall profit generation.
Proper utilization of the outlined policies and procedures will increase the consistency of the employees making own and organizational decisions during the short-term and long-term operations of the business. To ensure that the approach is more effective and efficient, the organization should be able to streamline the levels of communication within the organization (Walsh, 2015). Moreover, the management will be entailed with the responsibility of making the policies more accessible to the employees within and outside the business. Improved levels of communication will be emphasized through proper training and ensuring the application tools are more accessible compared to the current state of the firm.
Apparently, the business management and overall authority of the managing director should be emphasizing the mechanisms to mitigate the organizational costs and expenses involved in the business operations. This can take the important step of determining the best prices of the commodities produced within the specified period of time (Chan et al., 2014). Moreover, the application will ease to determine goods and services which are needed by the organization without compromising on the quality which the market expects. Other organizational policies and procedures which ought to be introduced include the building of the learning culture, maintaining full compliance with the organizational requirements and introduction of effective and efficient internal control systems.
The following of will be the recommended structure of reporting and communication within the organization.
The structure will reduce the instances under which the organizational resources are misused or any level at which there will be a duplication of roles among the employees.
Roles of Function to Organizational Objectives
After developing the expected strategies and plans of the business, the management team should be tasked with the responsibility of determining how the plans will be carried out. Moreover, develop mechanisms which will warrant the modification of the available plans when the need arises. These are because the primary function of the available authority will be to control the organizational policies and activities which may be involved (Yüksel, 2012). The approach ensures that the firm is able to carry out activities which will be directed towards meeting the demands of the customers available in the market. Proper execution will translate to an increased number of clients and attracting the potential customers available in the market.
Basically, the function of the management and the managing director will be establishing the production and delivery standards which are accepted within the firm and entire industry involved. Therefore, it would be easy to determine the performance of the firm against the already provided standards and expectation (Walsh, 2015). To achieve the best yields for the company, the evaluation should be done at provided regular intervals which are well communicated by the management to employees available. At the end of the exercise, the firm will find it easy to correct the deviations which are identified within a specified period of time.
The chart below indicates the recommended process of monitoring the organizational functions to achieve its market objectives.
Conclusion
Lack proper knowledge on the operations of the business has been regarded to contribute to poor performance of the business in the market. Moreover, there are clear indications that the policies and procedures of the business are not well communicated to employees who are responsible to implement them. The outcome of these impacts has been shrinking of market share as well as control which have translated to the business recording minimal profits in the industry. To mitigate or reduce the instances that have led to the current trend within the business operations streamlined and well-determined structure of communication will be required. However, poor economic, political and technological understanding can be blamed. To eradicate this, a proper market analysis should be conducted as provided for by the SWOT and PESTEL analysis.
Bibliography
Li, F., Zheng, G. and Tian, Z., 2013. Optimal operation strategy of the hybrid heating system composed of centrifugal heat pumps and gas boilers. Energy and buildings, 58, pp.27-36.
Yüksel, I., 2012. Developing a multi-criteria decision making model for PESTEL analysis. International Journal of Business and Management, 7(24), p.52.
Walsh, P.R., 2015. Dealing with the uncertainties of environmental change by adding scenario planning to the strategy reformulation equation. Management Decision, 43(1), pp.113-122.
Chan, L.L., Shaffer, M.A. and Snape, E., 2014. In search of sustained competitive advantage: the impact of organizational culture, competitive strategy and human resource management practices on firm performance. The International Journal of Human Resource Management, 15(1), pp.17-35.
Ogbonna, E. and Harris, L.C., 2010. Leadership style, organizational culture and performance: empirical evidence from UK companies. International Journal of Human Resource Management, 11(4), pp.766-788.
