Strategic Analysis: Size and Growth, Key Success Factors, Capabilities, External Analysis, Social, Environmental, Cultural and Political Factors (Essay Sample)

Strategic Management
Business Strategy
October 20, 2016
2,750 words
(Your Name)
(University)
Part 1: Strategic Analysis
Stretegic analysis is the evaluation of organization’s existing environment externally and internally. Because of inconsistent economic and political conditions along with increasing social demands has amended the character of working around the globe. Basically the work was considered to be a base for existence and needs. During the course of multiple years, the function of work has progressed and the structure of working has been transformed respectively.
When the ongoing system of organization is bothered by any internal or external factor, change in organization process occurs automatically. Change as a term with reference to organization is the alteration go organization structure and systems. Therefore, the impact of change could might be good or bad, depending on the nature, quality and quality of change. There exists multiple factors that are responsible for disturbing of organizations functions internally and externally . Any change in the internal or external environmental factors brings modifications to organizational systems. A detailed analysis of the factors are defined as under;
Internal Analysis
On the first place there are internal factors that affect an organization systems. In accordance of different scholars and mangers, these factors are considered to be controllable factors for an organization. Some of the factors including the organization’s goodwill, credit standing and financial positon are the outcome of running an organization. Some other factors including organizations structure, staff allocation and physical systems of the organization are connected with the decisions that can be altered as the managers deem fit. A change in the current associated internal factors of the organization results in unintended costs including software costs, redundancies, training and documentation costs etc.

Size and Growth:
The size and the growth margin of the organization are considered to be the basic internal factors as these factors include the key markets of the organization, the factors affecting size and growth level, sales driving forces and the overall business of the organization. A small and medium sized organization tends to operate in medium sized markets. Moreover, the level of growth varies from organization to organization.
Profitability:
The other internal force that is very much connected to the organization is the profitability aspects of the organization. The associated factors here are the firm’s current profitability analyses, level of competition within the same and diversified markets, threats involved with completions and products, bargaining powers of the company and the future based position of the operating market.
Cost Structure and distribution system:
The major cost of production and administration of the market, the competitive advantages of the company and the competitors, the current channels of distributions and their frequency of change. The both two elements including the cost structure and distribution network of the organization is of key consideration for any organization. The reason behind is that organizations profitability and survival are associated with both these elements. The stronger the cost controlling and distribution system of an organization strengthens the profitability of the organization.
Market Trends:
The current market trends of the market, the frequency of their transformation, the factors associated with transformation, the defined response of the organization and profitability management in tight market trends. Market trends comprise of the sales trends, business fluctuations, market declining and competition in the market.
Key Success Factors:
The other internal component are the key success factors associated with the organization including competent services, efficient products, key business areas, competencies, effective working standards and the changes in these factors throughout the organization. For any organization, key success factors should be documented and should be reviewed annually and semiannually to get an idea of variations in the factors.
Resources:
Resources are also one of the key internal factor of an organization. The resources of the company can be categorize as tangible resources, intangible resources and the human resources i.e. staff and personnel. Identification of these tangible resources is simple as these resources of the organization can be availed through the financial reports of the company. Moreover, talking about the tangible resources of the company to can be said that tangible resources of the company are difficult to track as a number of these resources are invisible to a large extent. These intangible resources can be of more significance for the organization as these resources can turn into competitive advantage for the organization. Intangibles assets generally include, brands, patents, software’s, copyrights and goodwill etc. Process of Resource acquisition, allocation and monitoring of activities should be analyzed critically to get aware of the budgeted verses planed utilization of resources.
Capabilities
Other internal forces associated with the organizations. The productivity of resources cannot be availed by resources itself. Resources of the organization should be utilized effectively and efficiently in order to have productive takes. Capabilities of an organizations are the organization’s competences for accepting productive activities. These capabilities differentiates an organization from the competitors and serve to be a competitive advantage for the organizations. Here the capabilities pertaining to the organizational are of consideration rather than the capabilities of the staff and working teams. In order to access the capabilities of the firms, divisional classification approach is applied to understand the firm’s capabilities based on the application areas.
External Factors
External Analysis

External analysis of an organization is the assessment of external environmental factors which have been termed as the key success factors of any organization. These external factors are out of the control of an organization as these factors respond as per the circumstances. Theses external factors are termed as PESTEL, which includes the factors comprising of political, economic, social, technological, environmental and legislative respectively. These environmental factors are externally associated with the organization and tend to change against of organizations desire . These factors are defined as under;
Political Factors:
As defined by Dennis and Merilee’s (2005, p. 191), for a multinational corporation i.e. operating in multiple continents of the world will be influenced by the political conditions of the respective countries. These variations in political factors indirectly affect the overall performance of the company. The political instability, terrorism, complex political structure and lack of coordination among political bodies are some the actors that contribute to the disturbance of current political systems of economies. Due to these existing political hurdles in isolation or in combination cut the profits of the corporations as consumer confidence and consumer demand are pretty much affected by these variations in political systems.
Economic Factors:
As per Joost (2005, p. 22), the items cover in the economic factors of on organization comprise of pricing, consumer demand, costing, market supply and profitability of the organization. There is a situation in the economy when the rate of unemployment increases and as a results puts negative impact on the inflation. As a result the organizations fails to grab the desired demand of products and services. Economic factors as a whole cover unemployment trend, inflation rates, interest rates, trade cycle and the macro economic factors of the organization. Although these external factors are out of the organization’s control however, demand management, marketing and performance strategies can be used to have a competitive advance in such conditions which are tend to be in the firms control .
Social/Cultural Factors:

On the second place the social factors are rank as second in the external analysis of an organization. According to De Toni and Tonchia (2003, p. 974), in order to avail competitive advantage and sound profits organization should put close eye on the social factors. For instance, the customers of British section have moved towards concepts of Bulk and One Stop shopping. Organizations should take measures to divert some components of the business towards improvements in customer satisfaction . Multinational corporations should abreast of the current social and cultural aspects of the organization in order to convert the same into competitive advance. Culture tends to change with the change in the taste and fashion of the customers. Therefore, keeping the products and services in line with the variations in the social and cultural aspects will generate good margin of profits.
Technological Factors:
Technological factors are the third important factor in the external analysis of an organization. Myers (2004, p. 2) commented that technological factors are the significant factors for many of the goods and services of an organization. In order to avail efficiency and effectiveness in productivity and profitability, the organizations should maintain the current available and advance version of technology in all the functions and operations of the organization. Technology in present transforms itself in minutes and keeping an eye on these variations will result in organizational success respectively. Particular for the operati...