External analysis
Table of Contents
1.0 Introduction: -
For an organization to survive and grow, they must have strong build strategy. Strategy is defined as a tool to assist organizations to achieve its long-term goals Hubbard, Rice & Beamish (2010). These goals are the prime reason for an organization to exist and strategies are developed to achieve these goals.
Fig. 1.1- ESC model for strategy development
Hubbard, Pocknee and Taylor’s (1996), explains the strategy making process via ESC model. Fig 1.1 shows the ESC (Environment, Strategy & Capabilities) model to describe the strategy making process for an organization. Strategies are made keeping a number of factors in consideration. Environment stands for Macro and industry based environment and factors that effect the operation of an organization. Environment is discussed more in detail in later part of this report. Business strategies are made considering the interest of stakeholders, company’s mission and value statement and values of the organizations. Capabilities for an organization are their resources, staff, economy of working and systems available for an organization to work in. This section is also discussed in details in this report. Also, to make effective strategies companies need to generate and gather information, analyze that information, process and implement those chosen strategies. Hubbard, Rice & Beamish (2010) explains that final part of strategy implementation is to review and monitor the strategies to find the gaps in results and fill those gaps accordingly to improve company performance.
2.0. Macro Environment Analysis
Hubbard, Rice, Beamish (2010), explains that all the factors outside the organization that effect the business are studied under external environment analysis. These factors effect the strategy formulations, vision and mission planning and future organizational business. Environment analysis comprises of
1.0 Introduction: -
For an organization to survive and grow, they must have strong build strategy. Strategy is defined as a tool to assist organizations to achieve its long-term goals Hubbard, Rice & Beamish (2010). These goals are the prime reason for an organization to exist and strategies are developed to achieve these goals.
Fig. 1.1- ESC model for strategy development
Hubbard, Pocknee and Taylor’s (1996), explains the strategy making process via ESC model. Fig 1.1 shows the ESC (Environment, Strategy & Capabilities) model to describe the strategy making process for an organization. Strategies are made keeping a number of factors in consideration. Environment stands for Macro and industry based environment and factors that effect the operation of an organization. Environment is discussed more in detail in later part of this report. Business strategies are made considering the interest of stakeholders, company’s mission and value statement and values of the organizations. Capabilities for an organization are their resources, staff, economy of working and systems available for an organization to work in. This section is also discussed in details in this report. Also, to make effective strategies companies need to generate and gather information, analyze that information, process and implement those chosen strategies. Hubbard, Rice & Beamish (2010) explains that final part of strategy implementation is to review and monitor the strategies to find the gaps in results and fill those gaps accordingly to improve company performance.
2.0. Macro Environment Analysis
Hubbard, Rice, Beamish (2010), explains that all the factors outside the organization that effect the business are studied under external environment analysis. These factors effect the strategy formulations, vision and mission planning and future organizational business. Environment analysis comprises of
Bibliography: - Hubbard, Pocknee and Taylor’s (1996), “Practical Australian Strategy”, Ch. 5, Prentice Hall Australia, Sydney. Hubbard, G. & Beamish, P. (2011). “Strategic management: Thinking, analysis and action”, 4th ed., Pearson Education: Australia. Hubbard, Rice, & Beamish, (2011), “ Strategic Management: Thinking, Analysis and Action”, 4th ed., Pearson Education, Australia. Michael E. Porter (2008), "The Five Competitive Forces that Shape Strategy", Harvard Business Review, p.86-104, Harvard Business Publication, Boston, USA. Ed Liston (2011), “ What is more popular: Coffee or Tea”, Blog on www. Stockriters. Com, Viewed on 05th Jan’12. Kotler Philip (2001),” A Framework for Marketing Management”, Prentice-Hall, Inc. 1997, Pearson Education Company, New Jersey, USA. Starbucks website viewed on 4th Jan’12, http://www.environmentalgraffiti.com/business/news-starbucks-contribution-sustainability. Howard Schultz & Joanne Gordon (2011), “Onwards: How Starbucks Fought for its life without losing its soul”, John Willey & Sons, United Kingdom.