BUSI770DB4

docx

School

Southern New Hampshire University *

*We aren’t endorsed by this school

Course

770

Subject

Business

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by fmalik89

School of Business, Liberty University Faizan Malik Week 4 Discussion Assignment Author Note: Faizan Malik I have no known conflict of interest to disclose. Correspondence concerning this article should be addressed to Faizan Malik: Fmalik@Liberty.edu Introduction An organization’s internal environment carries equal significance to the external, as it provides businesses with the opportunity to assess potential risks and/or weaknesses that can impact the performance of the organization. To properly evaluate the internal environment, Gamble et. al (2021) recommend a multistep process that assesses a business’s current strategy, including its existing resources and capabilities, and position within their respective markets (Gamble et al., 2020). In this process, managerial intervention addresses any outstanding issues, with tools such as SWOT analysis, and highlights the source of power that exists with strong organizational leadership. Process: Evaluating the Internal Environment The ability to identify and evaluate one’s internal environment is crucial for the success and sustainability of any business, as doing so allows the organization to identify its core competencies and areas that require improvement. Gamble et al. (2020) describe an analytic process for the evaluation of an organization’s internal environment which includes assessments of how well the current business strategy working, the existing resources and capabilities, cost structure and customer value proposition, strength against the competition, and other strategic issues that require intervention (Gamble et al., 2020). To understand how well an organization’s current strategies are working, Gamble et al. (2020) go on to explain that the business’s ability to be profitable and improve its position amongst competitors within their market are often the strongest indicators of success. (Gamble et al., 2020), as these indicate whether a business can cover its expenses and grow and decrease the risk of going into obsoletion respectively. Organizations can then look to perform a resource and capability analysis, which can be used to “ascertain which of a company’s resources and capabilities are competitively valuable and to what extent they can support a company’s quest for a sustainable competitive advantage over market rivals.” (Ahmed & Siddiqui, 2020). Organizations should then begin to evaluate their internal environment and how it relates to their competition, specifically evaluating factors such

as cost structure, customer value proposition, and overall strength against competition. Cost structure, which refers to the overhead incurred by a business to provide goods and services, and customer value proposition, or the benefits a business can offer their customers, allow organizations to identify competitive areas that require improvement to increase profitability. Gamble et al. (2020) then recommend organizations assess their competitive strength in relation to their key rivals, which includes creating an assessment of the business’s overall competitive strength (Gamble et al., 2020). This is echoed by Rumelt (2011), who explains that an organization’s position relative to its competitors is a critical factor in determining success and requires businesses to assess their competitive strengths and weaknesses, including products, services, strengths, weaknesses, and market positioning (Rumlet, 2011). Finally, explained as the most critical step in assessing an internal environment by Gamble et al. (2021), is determining which strategic organizational issues require managerial intervention which “sets the agenda for deciding what actions to take next to improve the company’s performance and business outlook” (Gamble et al., 2020). Strategic Thinking: Discussion of a Key Source of Power Rumlet (2011) explains the significance of organizational leadership, as they are responsible for creating the business’s identity, communicating strategy, creating a culture aligned with the organization’s mission and values, and effectively managing change or resistance to new strategies (Rumlet, 2011). Strong leadership is one of the key sources of power when evaluating internal environments, as they can influence an organization’s culture, business strategy, and subsequent performance. As stated by Kazmi and Naaranoja (2015), “Leaders, considered as the builders and reformers of the organization ́s internal environment, possess the ability to enhance and establish stronger connection between organizational processes and the team workers ́ ability of learning to think strategically” (Kazmi & Naaranoja, 2015). In addition to being the foundation for organizational stability, the significance of leadership is seen in Gamble et al.’s (2021) process of evaluating internal environments as well, which concludes with identifying strategic issues and problems that require managerial intervention. This analytical process, as described by Gamble et al. (2021), draws upon both industry and competitive analysis in addition to the evaluation of a business’s internal environment and allows leadership to assess problems or weaknesses that have the highest priority (Gamble et al., 2021). The significance of leadership is also described by Keller, who calls for all Christian leaders to “treat all people and their work with dignity,” “create an environment in which people can flourish and use their God-given gifts to contribute to society,” and “to embody grace, truth, hope, and love in the organizations we create” (Keller, 2012). Decision Models PESTEL analysis is typically utilized when analyzing an organization’s external environment, however, some aspects can be repurposed to analyze a business’s internal environment. For example, certain economic factors such as interest rates may impact an organization's financial performance, or technological factors such as artificial intelligence advancements may be hindered by existing technological capabilities. SWOT analysis likely remains the best candidate to evaluate an organization’s internal environment, as this model includes factors from both

internal and external environments. Described as a “powerful tool for sizing up a company’s internal strengths and competitive deficiencies, its market opportunities, and the external threats to its future well-being,” SWOT analysis provides numerous benefits including increased advantage over competition and opportunities for growth. Conclusion A proper assessment of an organization’s internal environment is pivotal to the business’s long- term success, as it allows them to identify and address potential weaknesses. Using Gamble et al.’s (2021) multiple-step process, organizations can identify areas that require attention, both with existing strategies and position with the market. It then becomes the responsibility of management to resolve any outstanding issues, highlighting the significance strong leadership can have on the success of an organization. Although internal environments have shared impacting factors with external environments, they also possess unique impacting factors that require analysis, through the use of decision-making models such as SWOT analysis. References Ahmed, S. W., & Siddiqui, D. A. (2020). Human resource management, total quality management and competitive advantages: evidence from Pakistani banking industry . SSRN. Gamble, J., Peteraf, M., & Thompson, A. (2021), Essentials of strategic management , McGraw- Hill Course Content Delivery (7th ed.), New York, NY. ISBN: 9781260785791. Kazmi, S. A. Z., & Naaranoja, M. (2015). Cultivating strategic thinking in organizational leaders by designing supportive work environment!. Procedia-Social and Behavioral Sciences , 181 , 43-52. Keller, T. (2014), Every good endeavor: Connecting your work to God's work , Riverhead Books, New York, NY. ISBN: 9781594632822. Rumelt, R. (2011), Good strategy/bad strategy: The difference and why it matters ., Crown Business, New York, NY. ISBN: 9780307886231. School of Business, Liberty University Faizan Malik Week 4 Annotated Bibliography Assignment Author Note: Faizan Malik I have no known conflict of interest to disclose.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Correspondence concerning this article should be addressed to Faizan Malik: Fmalik@Liberty.edu Ahmed, S. W., & Siddiqui, D. A. (2020). Human resource management, total quality management, and competitive advantages: evidence from the Pakistani banking industry . SSRN. In this study, researchers aim to understand the relationship between human resource management, total quality management, and competitive advantage concerning the banking industry of Pakistan. The study found that both have competitive advantages in the banking industry, with human resource management tools such as training and development being significant predictors of competitive advantage, while total quality management areas such as customer focus have a similarly positive influence. Researchers describe the relationship between human resource management and total quality management as complementary, as both act to create competitive advantages such as improved employee performance. The publication was included in the Journal of Organizational Change Management, which is peer reviewed and includes high-quality research. The study was structured well, with a detailed review of techniques used to analyze data. The study is, however, limited due to a small. The localized data set includes self-reported data which may carry certain biases. Both researchers appear to be well-versed and knowledgeable in the subject and provided a study that was easy to follow and explained the results well. Overall, this was a high-quality publication. The study fits into the discussion somewhat indirectly, as it enforces the significance of competitive advantage which is a major impact factor for internal environments. It also highlights human resources and total quality management as crucial elements to understanding competitive advantage and, subsequently, evaluating internal environments. Additionally, the study highlights the significance of aligning human resource management and total quality management, as this is also required for evaluating an internal environment by providing additional insights into a competitive advantage. Kazmi, S. A. Z., & Naaranoja, M. (2015). Cultivating strategic thinking in organizational leaders by designing a supportive work environment! Procedia-Social and Behavioral Sciences , 181 , 43-52. This study sought to understand how organizational leadership can cultivate a strategic mindset amongst employees by developing a supportive work environment. The researchers found that such supportive work environments led to the benefits of improved communication and collaboration, and employee empowerment. Leaders, in this study, played a significant role in this process by establishing clear direction, opportunities for growth, and a positive work culture. The study also explained the benefits of including all employee levels in organizational planning, as it provides a sense of ownership and

promoted strategic thinking amongst employees. Finally, the researchers demonstrated the significance of aligning organizational mission, vision, and values with strategic goals, as this would motivate staff by providing the sense that their work is impacting the business. The journal is peer-reviewed and includes multiple reputable sources, although it should be noted the articles are shorter than one would expect. The quality of the publication, however, is unclear as it provides no clear understanding of the sources of data. The methodology is well explained but carries multiple limitations such as a lack of depth when explaining the benefits of supportive work culture. The authors are well-versed and known within the area of study. The study is well-written and provides a clear explanation of the benefits of a supportive work culture. The study fits into the discussion as it highlights the importance of strong leadership and the impact it can have on internal environments. Organizational leadership is often responsible for developing culture, which is directly correlated to the work environment. When leadership promotes growth for employees and emphasizes competitive advantage for the business, the organization is often met with sustained success. Hey Malte, great post! You really explain the significance of evaluating internal markets well in the context of developing and executing business strategies, highlighting the processes of evaluating resources, capabilities, and competitive advantage. I especially appreciated your suggestion of continual monitoring of internal environments, as opposed to planned or scheduled events, as this privates the benefit of agility in relation to the external environment as well. As stated by Huy et al. (2021), “Monitoring risk in business life can be done periodically or randomly and it will help firms to recognize new risks happening in ongoing business activities” (Huy et al., 2021) both internally and externally. You highlighted lack of awareness as a potential weakness, as this puts organizations at a disadvantage in terms of competitiveness. Lastly, you highlighted SWOT and VRIN analysis as two potential decision-making models for assessing the internal environment of the analysis. My only critique from your post is the use of VRIN analysis when evaluating internal environment, which Choudhary (2020) states “can be employed to determine whether a competitive advantage of being a first mover will be sustainable” (Choudhary, 2020) as this model primarily relies on external factors such as rarity, and does not natively include internal factors that can impact competitiveness. Additionally, in most VRIN analysis models, organizational resources and capabilities are considered static, which is unrealistic in the modern

workforce, and also does not consider the relationship between the two entities. Although VRIN analysis framework can provide valuable insights into a company's competitive advantage, it should not be relied upon as the sole tool for analyzing the internal environment of a company and organizations should look to use multiple frameworks in decision making. References Choudhary, A. (2020). Sustaining a first mover advantage in a fast-growing meat substitute market. Rutgers Business Review, 5(3), 405-415. Huy, D. T. N., Thach, N. N., Chuyen, B. M., Nhung, P. T. H., Tran, D. T., & Tran, T. A. (2021). Enhancing risk management culture for sustainable growth of Asia commercial bank-ACB in Vietnam under mixed effects of macro factors. Entrepreneurship and Sustainability Issues , 8 (3), 291.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

BUSI770DB4

Related Documents