Analysing an organisation
1. Analyse the external environment
Analyse the external environment your business operates in. Consider the political, legal, technological, economic influences on your business. Now categorise these into opportunities and threats. 2. Analyse the internal environment
Now identify the internal strengths and weaknesses of the business. Consider the internal resources, structure, leadership, skills, knowledge, culture etc. 3. Conduct a SWOT analysis
Put your analysis of the external and internal environment into a SWOT analysis. You might find it useful to prioritise the key strengths and weaknesses of the business, and the main threats and key opportunities available to the business. Remember that it is important to be able to justify your decisions. You also need to be clear about differentiating between business and HR issues, although it is likely that certain HR strengths could be a core business competence/weakness. 4. Strategic choice
Now consider the organisation’s strategy, review its vision statement, mission statement, corporate objectives and values. Does a comprehensive analysis of the external and internal environment of your organisation help you to understand the reasoning behind the organisation’s strategy? Can you identify the organisation’s key sources of competitive advantage? Does this analysis help you to understand why the organisation has made certain strategic choices? What other information do you think you would need to fully understand the strategy making process in the organisation? Do you think the organisation adopts a classical approach to ‘strategy-making’? 5. Implementation
What changes has the organisation made in terms of culture, structures, leadership and HR practices to deliver its strategy? Have these changes been effective? Why? Why not?
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