Macro Environmental Analysis

Only available on StudyMode
  • Download(s) : 230
  • Published : January 27, 2012
Open Document
Text Preview
Melanie Verreault
STMT-500
Strategic Management Analysis of Child and Family Services of Timmins and District Word Count: 2,494
November 8, 2009
Tracy Hillier

Table of Contents

Introduction............................................................................................3 External Situation...................................................................................3 Internal Situation....................................................................................5 Five Forces Analysis..............................................................................7 Competitor Analysis..............................................................................9 Objectives..............................................................................................11 Conclusion.............................................................................................11 References.............................................................................................12

3

Introduction
In 2000, CFSTD became the second social services organization in Ontario to amalgamate Children’s Mental Health and Protection Services. An appreciation of CFSTD and its services can be obtained by visiting its website: http://www.timminschildfamily.org In order to gain a greater understanding of CFSTD, a strategic management analysis will be completed. This goal will be achieved by completing the following: 1. an analysis of CFSTD’s external and internal situation; 2. an evaluation of CFSTD by using Porter’s Five Forces model, and; 3. an analysis of CFSTD’s main competition.

Based on this assessment, strategic objectives will be identified and recommended.

External Situation
As presented by Grant (2007), macroenvironmental factors are beyond a firm’s control. To adapt and remain competitive, a firm must understand how these external influences “affect the firm’s industry environment” (p.66). The six factors impacting the endeavours of a firm are demographic, economic, political/legal, ecological, socio-cultural, and technology.

Barney (2007) states an analysis of the external situation identifies a firm’s “critical threats and opportunities in its competitive environment” (p.11) and “examines how competition in this environment is likely to evolve and what implications that evolution has for the threats and opportunities a firm is facing” (Ibid). The following outlines these factors and their level of influence on CFSTD.

Demographic:High
The population of the City of Timmins can best be described as aging with a decrease in birth rate. It is important to add that the population of Native People migrating to the Timmins area from the James Bay coast is increasing. Since CFSTD’s main reason for operating is to offer services exclusively to youth under the age of sixteen and their respective families, the demographic factor scores high. Without this, threats such as decrease in ministry funding and personnel layoffs can occur. To

4

adapt to the changing demographic environment, CFSTD can implement new and creative initiatives by collaborating with other service providers.
Economic:High
The current economic situation has impacted most if not all of the world. As a result, government funding to organisations has been affected. Due to current budget cuts, CFSTD is facing threats of potential downsizing in various services, capping travel and other expenditures and suspending relevant personnel training initiatives. To respond to the changing economic environment, CFSTD can explore amalgamating programs and services, developing new partnerships and increasing its capacity in the volunteer sector.

Political:Medium
Whenever a new government is elected, changes to the legislation can be anticipated. Amendments made to provincial legislation such as the Child and Family Services Act impact CFSTD’s operation. Threats CFSTD can face due to...
tracking img