External Environment And Organization Culture Commerce Essay

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Business strategy and change became increasingly evident throughout the report and discussion that being able to create a concise and effective values proposition is an essential skill when proposing a new service, strategy, change or goal also Strategy denotes an organization's highest level objectives and the integrated set of choices it makes and implements in attempting to meet these objectives. However Change is unavoidable and if managed poorly will result in failure. This failure can be attributed to many factors including: flawed vision, resistance, and a culture entrenched in the way it has always been done. Sometimes we have no choice but to change. This happens when there are outside forces driving the change. Many times this is due to technological changes, a shift in organizational priorities, or economics. Also there are various types of the business strategies and I will go through some of them in this report as well as the type of strategy which FIRST adopted, In addition to FIRST should always have alternative strategy in order to be in safe side in case of any failure in the strategy or change to. Regarding that I will mention the factors and key issues which can be helpful or impact to precede any business strategy. However any change in the FIRST can easily leads up to resistance, therefore I well end my report by giving some advices to analyze and over come any resistance to change.

2-a) Briefly explain four possible strategies which organization may adopt. In each case, indicate the business environment which would be appropriate for the strategy concerned:

Any organization have strategy which should be proportionate to conduct there business as well as it is main factor which lead the organization to success in addition to taking the time out to pinpoint strategic objectives is a worthwhile practice for all small business owners. With time, there's no reason you can't be aiming to grow and increase your turnover, also regarding the Business Strategies for Environmental Sustainability is a multidisciplinary approach to training future leaders to think--and act--rationally about the ways human activity impacts the environment. However their are many types of the strategies such as differentiation strategy, cost leadership strategy, focused differentiation strategy and cost focus strategy so I will go throw that four strategies deeply with indicating a proper environment for each strategy individually:

Differentiation strategy:

Is an integrated set of action designed to produce or deliver goods or services that customers perceive as being different in ways that are important to them.Classifying and trying to change product or giving for some consumer special offer to get their loyalty in addition to developing new ideas as well as reducing rivals.

Cost focus strategy:

A cost-focus strategy is a low-cost, narrowly focused market strategy. Firms employing this strategy may focus on a particular buyer segment or a particular geographic segment and must locate a niche market that wants or needs an efficient product and is willing to forgo extras to pay a lower price for the product. A company's costs can be reduced by providing little or no service, providing a low-cost method of distribution.

Cost leadership strategy:

A firm pursuing a cost-leadership strategy attempts to gain a competitive advantage primarily by reducing its economic costs below its competitors. Also it is involves the organization aiming to be the lowest cost producer within their industry. The organization aims to drive cost down through all the elements of the production of the product from sourcing. Some organization may aim to drive costs down but will not pass on these cost savings to their customers aiming for increased profits clearly because their brand can command a premium rate.

Focused differentiation:

A focused differentiation strategy is the marketing of a differentiated product to a narrow market, often involving a unique product and a unique market. This strategy is viable for a company that can convince consumers that its narrow focus allows it to provide better goods and services than its competitors. Many organizations are now running with competitive business are in search of differentiating their product or services in particular and definite way. Focused differentiation strategy could be helpful to being different from competition and rivals could be reduce in addition to market niche might reduce also.

The focus strategy has two variants:-

(a) In cost focus a firm seeks a cost advantage in its target segment, while in (b) differentiation focus a firm seeks differentiation in its target segment. Both variants of the focus strategy rest on differences between a focuser's target segment and other segments in the industry. The target segments must either have buyers with unusual needs or else the production and delivery system that best serves the target segment must differ from that of other industry segments. Cost focus exploits differences in cost behavior in some segments, while differentiation focus exploits the special needs of buyers in certain segments.

Source: Study materials

b) Which strategy did FIRST choice product to 'transform travel? Explain the connection between 'business strategy ' and 'strategic choice' of FIRST choice and identify four benefits that FIRST choice gained from the strategy:

For sure any organization conduct a strategy to be suitable for their marketing plans in order to crave after the success and to have more profit therefore FIRST choice carry out differentiation strategy by having set up ground -breaking alerting services for passengers in scotrail, journeys check and journey alert. These enable passengers to receive up-to-date train information by text or mail in order to let the costumer to know if there is any delay or alteration to train times as well as Market research showed that parents and students wanted safer buses so FIRST designed special pilot service with student in mind; drivers are trained to work with student. Vehicle safety includes padded seating, integrated seat belts, additionally escape hatches and CCTV. Aiming to meet social requirement by satisfying the society and providing better technology in order to differentiate from the other competitors in addition to it is a big jump or transform in the travel world.

Business strategy: is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations".

Strategic choice: is viewed as an ongoing process in which the planned management of uncertainty plays a crucial role. The Strategic Choice Approach is used in face to face workshops of a decision making group. Focuses on decisions to be made in a particular planning situation, whatever their timescale and whatever their substance.

Actually, if we are trying to find out the relationship between ' business strategy' and ' strategic choice' we will recognize that, business strategy of FIRST choice was designed to implement their goals and what they were planning for in order to meet the standards and fulfilling the desires of customers. Hence, FIRST strived strongly to adopt differentiation strategy in order to enlightenment the customers and raise the perspective of the people regarding the public transport. However the strategic choice is very beneficial for the company; whereby it can affect the company business strategy by understanding the expectation of the stakeholders. In addition to it can affect the business strategy by working as group in order to have a proper planning and taking decision to select suitable strategic options. Also by evaluating the employees which could help to improve the business strategy as well, and leave it continues to exist. The main things in this relation, this choice strategic may help the business of FIRS choice company effectively.

The importance of differentiation strategy for FIRST are as following:

Differentiation will lead to customer brand loyalty and result in reduced price elasticity.

It is also lead to higher profit margins and reduces the need to be a low-cost producer.

It is also increase in revenue generated by sales.

It gives guidance for managers, employees and FIRST choice company overall, as well as to meet there goals and enhancing their skills to take dissection and new ideas.

Benefits that FIRST choice gained from the strategy:

Improving the fuel efficiency of its vehicles

Purchasing vehicles with greater fuel efficiency

Using alternative fuels, such as bio-diesel.

Operational improvements through driver training new technology to monitor driver performance.

C) Which alternative strategy could have FIRST choice fallowed?

Compare the two different strategies in term of influence that each would have on the behavior of the organization:

There are many strategies can be useful for FIRST choice and they differ in the extent of the changes that are made to methods to meet the situation specific needs, It's also must be noted that these strategies are not mutually exclusive; indeed they are often combined. However the alternative strategy which FIRST choise follwod is growth strategy due to the FIRST choice that wants to raise its level of performance may adopt as well as The following measures are usually adopted by such an organization:

(i) Development of new products such as economical buses in the existing markets.

(ii) Creation of new uses for the existing products.

Aiming to reach in the level of costumer satisfaction in order to en hence the number of customer.

Comparison between two different strategies which are ( cost leader ship and differentiation strategy):

The two most important generic strategies are cost leadership and differentiation. To generate above average returns, a firm needs to make a choice of following either one of the above two strategies. A firm that applies both strategies will end up "stuck in the middle" and will not generate above-average returns. This study showed that Porter's contention need not be true in all industries. Using data from case-studies involving firms in the industries, the study showed that integrated cost leadership/differentiation strategy can help firms achieve high levels of performance. The firms in the study pursued differentiation strategy in sales and marketing. However, they also stressed continuous innovation in their process technology. And generating volume to achieve economies of scale - the basis for cost leadership strategy. In other words, against the advice, they successfully applied the "stuck-in-the middle" strategy to increase their competitiveness.

d) Assess the factors that FIRST choice should consider before changing its business strategy:

There are various factors in this business which may effect the FIRST choice strategy, so as it has many competitors it should do proper planning or having overview about the factors in order to differentiate them self from other competitors. However FIRST choice should concentrate in two factors (promotion and product) to get an improvement or grow in the market. Regarding the promotion its important for any organization as well as for FIRST choice to enhance the number of the customers and the promotion will attract attention of costumers in addition to clarifying the types or the important of transportation particularly there are various type of the peoples with different level of education also to have good nation about FIRST choice which lead to the celebrity, moreover there are many ways for promotion such as (internet-newspapers-magazines -sms by phones). However there is another factor which should be considered also which is place. The place can by helpful in many ways, especially if FIRST choice vast its business by having more stations, branches and routs in order to enhance the revenues, make easy locomotion for the society or people who are living in a critical places in different cities and villages as well as owning loyalty of the costumers and reducing the numbers of cars which lead to reduce congestions.

As for those factors, FIRST choice should conduct them while they are dealing with business strategy to gain repaid development and growth in order to overcome the competitors in the market.

Critical examination of the factors is:

With above factors FIRST can implement a new strategy which will support and develop their business. Also FIRST has to think of their Manpower, it is drivers and employee has to be trained well to satisfy the customer's requirements.

e) Describe the key issue that FIRST choice must consider while managing its business strategy:

The key issues need to be considered by whoever is developing the business plan in parallel because decisions made on one issue will often impact on other issues. However the issues which first should consider are:

Innovation and imagination:

Innovation and an imaginative approach to tackling problems require a working environment that encourages open discussion and supports risk-taking. by identifying some of the risks which might cause to vulnerability of road and rail infrastructure to flooding and storm surges along the coast. However they identify ways managing these risks by working with transport network providers to monitor and maintain roads and rail.

Developing a healthy business culture:

To achieve a healthy business culture a communications and training plan needs to be developed and implemented. It should ensure that staff and other stakeholders are part of the FIRST choice planning process so that they have ownership of the plan and any changes it brings in their working day. Training in the use of the website, email and any other courses-related technologies should be planned so that staff are not afraid to use the technology and can use it well.

Security:

As part of the planning process, you should develop a privacy policy to deal with company information and especially customer information, an email security policy and one that addresses the physical safety of your systems and information.

Knowledge management:

Knowledge is an asset to a business. It often evolves from years of experience that can be used to improve the business and its profitability. A driver who gathers information on trends in tickets prices over a number of years and analyses that information has knowledge that can be used to anticipate rises and falls to his advantage.

Estimating the budget:

Managing the budget for any aspect of a business is an important undertaking. The FIRST budget needs to be estimated and secured each year and then managed responsibly to ensure that the objective for the FIRST is achieved. One budget period is not necessarily going to be the same as another. The FIRST budget period often includes the (re)development of the site, which is a significant cost. Subsequent budget periods may require less money but beware: maintaining, evaluating, testing and enhancing a buses will usually exceed the initial development cost.

Organizational change is strategically achieved through the implementation of the eight-step plan of action established by John P. Kotter, six of them are as follows:

Increase urgency

Get the vision right

Communicate the buy-in

Empower action

Create short-term wins

Don't let up, and make change stick.

It is very important for FIRST to consider the above issues before it manage its business strategy.

f) With reference to 'force of the change' explain why the strategy of the FIRST choice changed over time.

There are six stages to change - not being interested in solving a problem such as giving up a habit which is not good for any organization, thinking of change, planning and preparation, action, maintenance and relapse.

Stage 1 . Not thinking about change: People at Stage 1 often do not accept that they need to change a behavior that is not good for them and will ignore the effect the behavior may have, sometimes because of fear but often through lack of awareness . At this stage, some people avoid taking advantage of health checks, such as cervical and testicular screening and cholesterol checks, which may detect and allow treatment of existing conditions.

Stage 2. Thinking about making changes: By identifying and accepting the behavior its the time to think about how to make the change.

Stage 3. Planning and Preparation (getting ready for moving forward): This is a very important stage of the change process. Taking time to plan will help to be more successful and will help to make change which last longer.

Stage 4. Action (moving your plans forward to make changes): During this stage, will start to put your plan into action and will update it in line with how well the change process is going.

Stage 5. Maintenance (continuing with positive healthy behaviors):

The next stage is to try to maintain the healthy behavior so it has a long-term effect on your life.

Stage 6. Relapse (slipping back to old behaviors): At this stage people often give up, but the important thing is to accept the "blip" and get back on track as soon as possible

- Strategic change could be affected by the states of firms and their external environments. Because the performance of firms might dependent on the fit between firms and their external or internal environments, the appearances of novel opportunities and threats in the external environments as well as strength and weakness internal, in other words, the change of external environments, require firms to adapt to the external environments again. However there are many reasons which might force the organization to change as following:

2. Sales Decline:

There may be a serious decline in sales. Competition, new technologies, a failure to meet the customer needs and expectations, a history of poor product development and introduction or poor marketing may all be contributory factors in reduced sales and be the catalyst for the business owner to change the approach to the business development.

5. Lack of Internal Skills:

The dearth of management skills within the business may trigger the appointment of an external senior executive who brings new methodologies, planning and enterprise to the business.

6. Family Business 'Turmoil':

The autocratic control of an owner may at times only be changed through the realization that permanent family divisions are undesirable. It may well be the opportunity for perhaps the 'university educated next generation of family' to demonstrate their abilities in setting and achieving sustainable growth strategies and managing the culture change.

4. Takeover

The business is acquired and the policies and practices of the acquiring business are adopted and introduce a proactive approach to the business. This may follow the appointment of new executive directors.

FIRST need to change its strategy from time to time to get the following benefits:

Reduced stress

Decreased resistance and infighting

Achieve planned goals

Exceed planned goals

Reduced cost

Faster implementation of change

Improved leadership

Better morale

This change will affect FIRST management employee positively. The challenge is to help FIRST people win instead of lose and to derive the most benefit from every situation...no matter how difficult or challenging. 

Business Solutions can FIRSTS with change in a number of ways including:

Identify opportunities for strategic growth for positive change

Assist in change management by introducing change processes and creating change plans

Crisis and problem interventions

Maximize the positive benefits of change while reducing stress and problems

Team and change leadership training

- As for FIRST choice, they implement the change to fulfillment the environment particularly families or society as Market research showed that parents and students wanted safer buses so FIRST designed special pilot service with student in mind; drivers are trained to work with student. Vehicle safety includes padded seating, integrated seat belts, additionally escape hatches and CCTV. Aiming to meet social requirement by satisfying the society especially Society's habits and tastes are changing.

g) Choose ONE of the following: stake holders power, business goals, organization culture, business ethics, social responsibility. Explain how the factors you have chosen may impact the management of change in FIRST choice.

Business goals: are measuring sticks; but on these sticks, we get to draw the dividing marks. We determine what we'd like to achieve during a specific time frame; we design a particular outcome. You define your goals to meet your needs; it is also your guideposts, established to keep you on the right path and to help you assess your progress.

Setting goals will make FIRST choice planning easier. Challenging tasks can appear overwhelming such as FIRST strategy has sets targets to reduce co2 emissions in the short and long term along with plane to achieve these targets, so this will encourage green energy customers to give up at the seeming enormity of FIRST choice as well as By setting strong objective that seemingly impossible task can be broken up into manageable chunks. In addition to FIRST was Aiming to meet social requirement by satisfying the society as it shown in the case study FIRST choice do these by listening customers to ensure they keep their costumers and attract new ones with good services that customers want and need, there is another example of this in the provision of buses that lower the floor for easy entry, this provide better accessibility for disabled and older people, there fore the older people prefer to travel by bus.

Social responsibility is an ethical or ideological theory that an entity whether it is a government, corporation, organization or individual has a responsibility to society at large. This responsibility can be "negative", meaning there is exemption from blame or liability, or it can be "positive," meaning there is a responsibility to act beneficently (proactive stance).

From the beginning FIRST was growing with a theory of saving Environment. This is a social responsibility. It is the health concern of the people (customers as well).

FIRST is the leader in providing reliable, safe, innovative and sustainable transport services.

Some changes in business may bring opportunities. Environmental impacts, such as those caused by carbon dioxide (CO2) emissions or the management of waste, are of particular concern to businesses like FIRST. A business must assess what external changes are likely and which it needs to react to or take advantage of. Business planners can then create strategies to help the business respond effectively. FIRST's strategy relates to its transportation plans and takes into account the entire PEST factors in its environment.

For example: FIRST is actively encouraging People to use the bus instead of their cars to help to reduce carbon emissions.

The change in FIRST Strategy also is the future vision for FIRST. They aims to reduce its CO2 emissions by 25% for its bus division and 20% for rail, both by 2020.

Society's habits and tastes are changing. People are more aware of the importance of the environment and becoming 'green consumers'. Green consumers prefer goods and services that are 'environmentally-friendly' and which have less impact on the environment. The green consumers, for example, prefer to travel by bus or train than by air or in a large car.

h) Explain the role that the management of FIRST choice could play in dealing with the change situation:

FIRST choice conduct a climate change as well in order to over come the problems which appears, FIRST choice using busses and train with high of co2 emissions and People are more aware of the importance of the environment and becoming green customer, so this can diminution number of customer as well as effect the economy of the company, in addition to the Legal changes that affect business are closely tied up with political ones. Many changes in the law stem from government policy. Many of these laws are Europe-wide, example, the standards for bus transport emissions but unfortunately FIRST busses and rails are not suitable environmentally which can lead to unhealthy environment, there for FIRST suggested to set out its climate change strategy which is identified opportunities and set out ambitious target of reducing its CO2 emissions from its bus rail division by 25% and 20% respectively by 2020.

Some changes in business may bring opportunities. Environmental impacts, such as those caused by carbon dioxide (CO2) emissions or the management of waste, are of particular concern to businesses like FIRST. A business must assess what external changes are likely and which it needs to react to or take advantage of. Business planners can then create strategies to help the business respond effectively. FIRST's strategy relates to its transportation plans and takes into account the entire PEST factors in its environment.

For example: FIRST is actively encouraging People to use the bus instead of their cars to help to reduce carbon emissions.

i) What advice would you give to the management of FIRST choice to help them analyze a change situation and to over come any resistance to change?

Change is an inevitable factor in any organization. The FIRST choice leaders and managers should know that managing change, adopting new technology, and implementing innovation are therefore integral components to running a successful organization. However anytime change is set in motion, companies should expect resistance. It is a natural tendency for people to reject what they perceive as a threat to their livelihood but there are some strategies which can be used to overcome this resistance to change(BY Thurley and Wirdenius):

This step is important if you are to motivate any unwilling staff members.

Secondly, try and involve a variety of employees in the planning, decision-making, and monitoring stages of the change strategy. By including members across the organizational hierarchy.

It is important that you communicate your change program (as much of it as is possible) on a regular and timely basis. No one likes to be surprised.

Finally, find individuals throughout the organization who can serve as "champions" in the change program. These individuals carry influence among other staff members; their ability to convince others of the merits of the desired change strategies makes them strong proponents of the program.

With globalization, the aging population/demographic shifts, and the emergence of new global markets, it will be plainly apparent that the organizations with the greatest ability to quickly adapt to change will be the ones that will reap the greatest rewards.

Advice for the management to resist change:

Facilitation

The best approach to creating change is to work with them, helping them achieve goals that somehow also reach to the goals of the change project. When you work with people, they will be happier to work with you.

This is a good practice when people want to collaborate but are struggling to adjust to the situation and achieve the goals of change.

Manipulation

Manipulation means controlling a person's environment such that they are shaped by what is around them. It can be a tempting solution, but is morally questionable and, if they sense what you are doing, will lead to a very dangerous backlash. Only consider this when change is necessary in the short term and all other avenues have been explored.

Coercion

Even more extreme than subtle manipulation is overt coercion. This is where you sit them down and make overt threats, for example that if they do not comply that they will lose their jobs, perhaps in a humiliating and public sacking. This should only be used when speed is of the essence or when the other person themselves has taken to public and damaging actions.

Conclusion:

Addresses the relationship between organizational culture, identity and image. Argues that contemporary organizations need to define their corporate identity as a bridge between the external position of the FIRST plc company in its marketplace and other relevant environments, and PESTEL factors. SWOT analyzes, using the concepts of organizational culture in term of shared values and taken for granted, identity the type of which proceed in FIRST and including the comparing with other types of the cultures. However I hope the wish for the first company in addition to I hope that I covered all the topics as well as all the readers get useful from my report.

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