CompanyIntroduction
Strategic decision-making is the process by which managers can decisions for the betterment of the organization. These decisions are concerned with organizational activities and the overall organizational environment. Companies make strategies towards achieving their goals and objectives and improve employees' efficiency. It is also helpful in competing with the external environment of the organization as well as the internal also. Employees' behaviour and their activities are affected by internal or internal factors of the market (Nielsen and Nielsen, 2011). So as these factors also reduce the chances of gaining a competitive advantage for the company, and its market growth. Internal factors of the organization can be reduced with the help of SWOT analysis, which involves strengths, weaknesses, opportunities and threats of the organization. SWOT analysis is helpful in evaluating the overall internal activities of the employees and suggesting strategies to reduce them. Due to this, strategic decision-making also develops a healthy and well-being environment in the organization. There are so many external factors in the organization that affect employees' performance and their behaviour. These factors are – political, economic, social, technological and legal (PESTAL). They also impact an organization's image and its market share and increase the number of competitors.
Task 1
Analyse the external environment of the organization and justify the threats and opportunities
The external environment of an organization is a combination of all outsider influences and factors that affect the activities of the company. organization should have to act or react to manage its flow of operations. The external environment involves entities, factors, events and conditions that are surrounding overall the organization. It not only affects an organization's activities and operations but also determines its risks and opportunities. The external environment also known as an operational environment is totally opposed form the internal environment. Managers can analyze the external factors with the help of PESTLE analysis, it is helpful in order to reduce the external factors that impact employees' performance and their productivity as well. The factors that are involved in PESTAL analysis are as follows...
Stuck with your Assignment?
Hire our PROFESSIONAL ASSIGNMENT WRITERS and
Get 100% Original Document on any Topic to Secure A+ Grade
Political factors
It includes political stability in the market, government of the organization, taxation policy, environmental law, labour law, trade restrictions and so on. Basically, it considers the relationship of the company with its government. It plays a crucial role in the success of Imda Tech. It establishes balances between free markets and a system of control. Along with this, the government of every nation don't support any illegal or immoral corporate activities.
Economical factors
Economic factors relate to the health and wealth of any business organization. In Imda tech, economic factors help to analyse the economic conditions of business. It is assistive in finding these problems such as unemployment, economic growth, international trade and current levels of inflation, so that managers can make a better strategic plan. There are some economic factors that impacts on company's performance, such as credit accessibility, interest rates, inflation, unemployment rates, and disposal income of buyers.
Social factors
Social factors involve the distribution of wealth, the education level of employees, changes in lifestyle and trends, population demographics etc. These circumstances affect the mentality of consumers and individuals in a given market. Social factors are also known as demographical factors.
Technological factors
Technological factors impact employees' performance because there are so many working techniques available in the market, due to these tools and technologies employees can work easily but they cannot develop their skills and knowledge (Citroen, 2011). In Imda tech, there are some technological such as – the rate of technological obsolescence, new discoveries and innovations or new technological platforms.
Legal factors
Legal factors involve profit margins, the viability of certain markets and product transportation. It assesses the legality of business towards products and services.
Porter's 5 model
Porter's 5 forces model is a framework for evaluating the level of competition between industry and organization strategy development. It is designed to determine the intensity of competition in industrial organizations. It also develops the attractiveness of competitive advantage which refers to the overall company's profitability. These are the 5 forces that are involved in Porter's model, such as – power of supplier, power of customers, threats of substitute products, competition in an organization, and potential of new entrants in the business (Dekkers, 2011). In media tech, these factors also impact productivity and efficiency, they also increase competition from new entrants and affect the quality of products and services.
Strategic Capability Analysis
The analysis is helpful in order to evaluate the capabilities of the employees so that managers can easily improve it. Along with this, managers create policies and strategies towards implementing them in the overall organization. It increases the financial liability of Imda Tech so that the company can grow despite the presence of co
UPTO50%
Avail The Benefit Today!
To View this & another 50000+ free
Update your Number