Organisational Analysis
Organisational Analysis
With growing competition, especially from the impact of globalization (Hamilton et. al, 2009), it is crucial for an organisation to develop strategies which maintain their survival, growth and success (Mullins, 2010) “The environment is the external context in which organisations find themselves undertaking their activities” (Capon, 2009, p5). Assessing the external environment is thus a crucial part of any business strategy. Organisations can either react as of when change occurs, or they can anticipate the changes and develop strategies to respond to them by being pro-active (Kew & Stredwick, 2010).
By careful and accurate analysis of external factors, organisations will be able to predict future trends allowing them to respond effectively to changes, to foresee future threats and opportunities, and lead to greater development of long-term strategic decisions (Capon, 2009; Farnham, 2010). Ultimately providing a greater understanding of the context of the organisation operates in can determine the future of their organisation.
There are various methods to analyse the general external environment which can benefit organisations. However it is worth noting that analysing the external environment can be time consuming, costly and create excess information, it is therefore vital to distinguish between what is important and relevant for the organisation and what is not (Grant, 2010). According to Farnham (2010) the process of environmental analysis can be divided into four stages: scanning, monitoring, forecasting and assessment. By application of these stages organisations can ensure they understand the dynamics of each context before arriving to a decision. In particular links between improved organisation performance and environmental scanning provide evidence to show that organisations are likely to succeed when they are “in tune” with what is going on in their environment (Slaughter, 1999; Choo, 1995).
STEEPLE ANALYSIS
Since its
With growing competition, especially from the impact of globalization (Hamilton et. al, 2009), it is crucial for an organisation to develop strategies which maintain their survival, growth and success (Mullins, 2010) “The environment is the external context in which organisations find themselves undertaking their activities” (Capon, 2009, p5). Assessing the external environment is thus a crucial part of any business strategy. Organisations can either react as of when change occurs, or they can anticipate the changes and develop strategies to respond to them by being pro-active (Kew & Stredwick, 2010).
By careful and accurate analysis of external factors, organisations will be able to predict future trends allowing them to respond effectively to changes, to foresee future threats and opportunities, and lead to greater development of long-term strategic decisions (Capon, 2009; Farnham, 2010). Ultimately providing a greater understanding of the context of the organisation operates in can determine the future of their organisation.
There are various methods to analyse the general external environment which can benefit organisations. However it is worth noting that analysing the external environment can be time consuming, costly and create excess information, it is therefore vital to distinguish between what is important and relevant for the organisation and what is not (Grant, 2010). According to Farnham (2010) the process of environmental analysis can be divided into four stages: scanning, monitoring, forecasting and assessment. By application of these stages organisations can ensure they understand the dynamics of each context before arriving to a decision. In particular links between improved organisation performance and environmental scanning provide evidence to show that organisations are likely to succeed when they are “in tune” with what is going on in their environment (Slaughter, 1999; Choo, 1995).
STEEPLE ANALYSIS
Since its