Strengths, Weaknesses, Opportunities and Threats for Human Resource Management - Assignment Example

?Running head: BUSINESS Business Insert Insert Insert 18th April Question 1A Imagine that you are Adrian Simpkin, and you are considering how to grow your business. You decide to complete a SWOT analysis so you can fully understand where the strengths and weaknesses of the business lie. You should evaluate the strengths, weaknesses, opportunities and threats for its human resource management, accounting and finance, and marketing functions. You should then summarise, in a short paragraph, which parts of the business you need to strengthen. (20 marks) SWOT analysis symbolizes the strengths, which include a company’s internal capabilities. Weaknesses include internal demerits of a company while opportunities are the external issues that could be an added advantage to the company. Finally, threats are the external problems that affect the business (Rogoff, 2007, pp 44). SWOT analysis assists an organization in their decision making. There are various strengths associated with the Simpkin’s sweet company; first, the company has stood the test of time since 1921, and secondly, the company only produces quality products. In addition, currently, it is able to export its products to 60 countries, which accounts for 25% of its overall income. The existing opportunities of this company are that, it is able to keep up with technology thus being able to sell online; it also has efficient staff members. The addition of the sugar-free sweets to their menu is an added advantage, since the diabetic customers can also benefit, thus boosting the company. In addition, the decision to open another tinning line could lead to more sales in a day. Some of the threats of the travel sweet company include increasing competition, and the plan to expand on their range means extra costs that will interfere with the profits, as well as the fact that their 200g of sweets is not selling well as compared to the 50 grams. The company’s weaknesses include the failure to expand to the Asian continent because of different water, which interfered with the taste of the sweets, and the Failure to move to another site, since some of their loyal and skilled employees cannot relocate. Table: 1.1 SWOT Analyses SWOT analysis -Human resource management -Accounting and finance -Marketing functions Strengths -Workers Working in shifts -A 25% income generated from exports -Exporting product to over 60 countries. -The use of internet to sell online. - Ability to market sugar-free sweets thus increasing on sales. Weaknesses -Few number of workers High turn-over due to - -Inability to expand business in Asia due the different taste of the sweets. -Inability to establish another site, due to fear of the current employees not following the company. Opportunity -Hiring more employees with the establishment of a new tinning line - -penetrating to new markets -producing more of 50g packets of sweets. Threat -Increase of salaries Income rose to 3 million last year Increase in competition. Therefore, for the travel sweet company to be at a competitive advantage, it should try to expand on its territories by establishing a new site. The fact that their employees won’t follow the company should not be a worry, since the management can always hire new employees. This will enable the company to test new waters in a different location, and with time, it would prosper. On the production part, the company should set up another tinning line, since it will fasten production, thus increasing the number of sales made per day. On the human resource department, more employees should be hired, with the creation of a new tinning line. 1B Identify the factors that seem to be influencing the organizational culture of AL Simpkins and explain which of these factors seem most important in determining that culture. (10 marks) An organization culture can be described as “an ensemble of traditions, values, procedures, conceptions, and attitudes that create the context of the activity within the organization” (Doina et al, n.d, pp 559). Hence, among the factors that influence organization’s culture is the initial owners of the company. The travel sweet company was founded by Simpkin grandfather who implemented the glucose sweets. Therefore, Simpkin has always followed this production process of sweets since he took over. Secondly, leadership style also influences the culture of this company in that, working in shifts has always been a norm and also the fact that the travel sweet company has a tendency of hiring only few employees but also very skilled and loyal, such that the company is afraid to move and leave them behind. The geographical location of the company also contributes to its culture of adaptability; this is evident since Simpkin also finds it hard to move to another location. The other factor is the characteristics of a company, for instance, the travel sweet company is known for only producing sweets, thus even today, it still operates on the same area of production. Travel sweet company has in no way changed or encouraged another production line like chocolates. Therefore, the travel sweets company should sustain the good management system since they are able to sustained skilled and loyal employees. 2(a) Adrian Simpkin is thinking about suitable selection methods to use in order to choose from a pool of candidates for the proposed production operative posts. Explain the different methods of selection that are available to him. Given the requirements of the post and the characteristics of the organization, which method do you think should be used to select candidates to fill the posts? (15 marks) Once the travel sweets company has advertised the vacancy, then a pool of candidates will apply, and only the short-listed ones will be interviewed. Once the candidates have been interviewed, the next step is selecting the suitable candidates for the position. The desired candidate should be able to serve for a long-term period. Above all, the recruitment and selection process should be fair and just. Though Simpkins does not regard experience so much, it is however appropriate to consider candidates with experience on productive operation department. A suitable candidate is one who can adapt to the organization culture of hard work and loyalty. In addition, his capability to learn fast should be weighed and flexible to the changing Environment of business. Another selection method may include aptitude tests, so that the candidate can be relevant for the post he is being chosen for. This company should select candidates on their capabilities to learn fast. A test can be given to them regarding their writing, learning and about the production operative duties; then the candidates should be gauged and the top candidates should be selected as the most suitable for the job. Simpkins can also use interviews to gauge employees and get the best among a pool of applicants. However, to make sure that the perfect candidate is chosen for the position, there should be no bribery or nepotism, and a candidate should qualify based on his merits. 2(b) Adrian now begins to consider the induction programme that will need to be organized for the successful candidates. What types of information do you think should be included in this programme? Again considering the requirements of the post and the characteristics of the organization, explain what information will be particularly useful to the new employees. (15 marks) Once candidates are recruited, the next step is usually induction. A well planed induction programme consists of information that will help the recruited candidates to be able to adapt well to the values, cultures and the norms of the organization. In this case, loyalty should be a main value since it runs within the organization. The induction programme should include the values of the organization. It should also be able to assist the new recruits on becoming efficient quickly and being able to settle fast in the organization. In this case, since Simpkins required a number of new employees, the induction process can be performed in the form of discussions or presentation. However, it should contain information about the owners of the company, for instance, the managing director, the human resource manager, finance manager, and their supervisor’s names. They should also be familiarized with the organization’s departments and sections in addition to being introduced to their work and hence trained so as to keep up with the organization’s pace. In addition, the values, visions and objectives should be well stated for the new employees. Moreover, the rules and regulations of the company should not be left out in the induction programme. It is also wise for the company to introduce the new employees to the existing staff so as they can feel part of the group. Simpkins should also make sure that the new employees are familiarized with the employment conditions and are able to understand their job well. The company should also make sure that the induction programme covers health and safety, performance, working conditions and procedures, on either shift basis or regular basis. The main issues that the new employees of Travel Sweet Company should learn are expertise on skills and loyalty. 2(c) Imagine that you are Adrian Simpkin and, in order to plan the future of the company, you are trying to identify the most pressing marketing and accounting and finance issues for the company. Describe two marketing and two accounting and finance issues currently faced by the company. (5 marks) In accounts and financing, Simpkin’s company already has to part with about ?50,000, which seems a lot for the company because it is already suffering pressures on profit margins. In addition, with the rise of technology, the company has had to layoff most of the workers from the initial figure of 300 - now it has only 50 worker in total. With the plans to add on a tinning line, the firm will incur huge costs. Moreover, there is also constraining in the marketing area; first, the inability to expand on the Asia market due to the difference in the type of water that led to different tastes in sweets. Thus, the company made an exit from the market. The existence of the competitors in this industry could also be interfering with the company’s sales. In addition, the packing of their sweets in a 200g cold be leading to relatively low costs. Therefore, their concentration should be on the packaging of many 50 grams packets, since one can purchase it as an impulse item most of the time. Question 3 (a) Explain the extent to which you think that the AL Simpkins business is globalised. (10 marks) According to Waters (2001, p. 5), “globalization is a social process in which the constraints of geographical on economic, political, social and cultural arrangements recede, in which people become increasingly aware that they are receding and in which people act accordingly.” Therefore, globalization is always associated with developments in a country and hence acts as a boon to citizens. In the case of Simpkin’s Company, the fact that they are able to export their candy to 60 countries in which these exports account for 25% of the company’s income is a sign of a globalised company. Exporting means that there is the presence of international trade, and the Travel Sweets Company gains a lot of income while trading in other countries. The Travel Sweet Company has had to layoff some of its workers due to the existing technology that requires less human labor. The use of computers and internet to sell online is a boost to the company, since it saves on some costs that are associated with trade. The online selling is fast and reliable and this way, the company is also able to market itself online. Therefore, the ability to penetrate to the Asia market, despite the water problem, is a step to advancing in their market. The company also produces 80 lines which is profitable figure to the business and it is also able to import 50 sugar-free sweets from other countries. With the above development and advancement taking place in the country, then the Travel Sweet Company can be said to be globalised, since globalization is associated with developments. (b) Evaluate the relevance of each of the four drivers of globalization to this case. Which do you think is the strongest? (25 marks) According to Campbell et al (2002, pp 259), there are four drivers of globalization namely market drivers, cost drivers, government drivers, competitive drivers. Generally, market drivers concentrate on the common customer and global customer needs. The common customer needs involve how customers in different countries share the same needs in terms of products and services. In this case, clients globally share the need for candies, thus benefiting the Simpkin’s company. The market driver also consists of government–owned competitors and customers, whereby the government–owned competitors enjoy subsidies and compete with global competitors, whereas, government–owned customers favour domestic supplies thus acting as a barrier to globalization. The competitive globalization drivers enhance global competition when imports and exports are high between countries, if competitors are widely spread, and perhaps located in different countries. This also applies when the countries involved have interdependent economies and the competitors involved are globalized. In this case, Travel Sweet Company has the capability to export and also import their products to over 60 countries. According to Campbell (2002, p. 265), “the greater the strength of the competitive drivers will be the tendency of an industry to globalize.” In addition, porter’s five strategic postures are included in this driver. In global cost leadership, a firm opts to lower it cost globally so as to attract customers, for instance, the Travel Company is usually attacked due to its low price. In global differentiation, a firm can opt to differentiate its products globally, while in global segmentation, the focus is on the target of a market segment based on the cost leadership or cost differentiation. In addition, protected markets are those businesses that are protected by the host government, while strategy is the national responsiveness, whereby a business adapts to a certain strategy so as to meet the needs of a local market (Campbell et al 2002, pp 267). Cost globalization drivers are dependent on the economies of the business. For instance, the global scale economies, high product development, rapid change in technology and production difference are all cost drivers. The cost globalization leads to the achievement of a competitive advantage via the sourcing efficiencies, a country’s cost, and the cost of product development. In new product development, uniqueness and differentiation are an added advantage for a product. Cost driver also focuses on the advances in transportation and the emerging new countries that are associated with productive capability and low costs of labor. Therefore, Simpkin’s company has achieved this driver in that, it has kept up with the pace of technology in terms of online sales to clients globally. Government globalization drivers, emerge from political and legal environments, and include favorable trade policies that allow businesses to penetrate and trade with different countries. In this case, Simpkin’s company is able to trade with over sixty countries, due to the favorable trade policies. Other government drivers include common marketing regulations, compatible technical standards, and host government concerns (Parker, 2005 pp 137). In conclusion, the most favorable globalization driver is the competitive driver, since this driver focuses on competitors with a profit-making mind. A business can either collapse or rise depending on the type of competition it is facing; however, one factor that influences competition is how spread the competitors are. If competitors are scarce, then it means the market is favorable and may yield to high returns. However, if the market is so competitive, it would lead to decisions by companies on issues such as product differentiation in order to be at a competitive advantage. Competitive driver is a factor to consider before engaging in any business. In addition, competition can determine how well a business will perform in a certain environment. For the Travel and Sweet Company, they should improve on their 50g sales packaging to achieve a competitive advantage since their market targets teenagers. References Campbell, D. et al. 2002. Business Strategy. Second edition. NY: Butterworth- Heinemann publisher. Doina, R. et al. N.d. The organizational culture and the factors of its formation. (Online). Available from: http://steconomice.uoradea.ro/anale/volume/2008/v4-management-marketing/099.pdf (Accessed April 19, 2011). Parker, B., 2005. Introduction to globalization and business: relationships and responsibilities. Second edition. NY: Sage publishers. Rogoff, E. and Bezos, J., 2007. Bankable business plans. Second edition. NY: Row-house publishers. Waters, M. 2001. Globalization. NY: Routledge publishers. Read More