Internal Analysis - Essay Example

?Internal Analysis Naif Al-Hajri Assignment 2-3 BSAD 495 Section H2FF Roger Kisiel Franklin November 27, Stilsim Company: Internal Strategy Introduction: The main essence of the company Stilsim is to act as an intermediary between individuals looking for jobs, and companies. It ensures that the clients get the Job that they desire and are capable of. Value chain can most simply be defined as a series of activities and potential, each activity adding value to the end product. According to the value chain of Stilsim the value activities are the blocks that support the functions of the human resources in order to motivate and teach the workers while the intrinsic ability and competence of the individual is the potential which would be enhanced by value activities. Weaknesses of Stilsim: The determination of the internal strengths and weaknesses will help in the analysis of the firm and in identifying the value chain activities. There are a plethora of weaknesses that strike the company's internal processes and some of major ones are mentioned here. There are some basic problems with the leadership of the company. The higher level of the company is faced with lack of communication and information dessimination. Although, Bill Simmons, the CEO of the company is extremely competent and experienced, the rest of the leadership is the contrary. Due to the lack of communication, other business processes are affected as information is not circulated on time. There are three offices that function in three different areas, the information between the three locations are not circulated. This lack of information makes the branches work independently with hardly any synchronization. Adding to the weakness is with the corporate culture of the company. There issue is with the absence of focus among the employees of the company. There is no investment over the development of employees and their skills, there are no trainings provided. The company works on old-fashioned work practices and the employees perform repetitive tasks without any variations or enrichment. Employee guidelines and their job descriptions are not formally documented. As a result of these factors, the employees are not well motivated and satisfied. They do not feel a sense of belonging to the company and have rare understanding of the business value. The lack of employee loyalty also creates demoralization and rivalry among the employees. With the passage of time and the advent of information technology, businesses have to keep up to date with the technological evolutions and maintain their systems in accordance with the advancements in technology in order to gain and maintain a competitive edge. One of the significant weaknesses found with Stilsim was with its technological implementations. Most of the systems were old and obsolete. The company does not have temporary methods of work and management which makes causes a great hindrance while competing with other companies. Strengths: The major strength of Stilsim lays in its vast experience of two and a half decades in the industry. Despite the weaknesses, the fact remains that Stilsim has been around for the longest time and by the nature of the business, this is a significant strength. There are loyal customers that have been seeking services from Stilsim and refer the company to others. The experience has led Stilsim to develop a vast network in the industry and even though the employees are not fully satisfied, they are highly experienced as they have been serving the company for a long time. Value Chain Analysis As described before, the value chain comprises of the activities that add value to the end product of the company and help it develop a competitive advantage. According to Porter’s Generic value chain, the primary activities in the value chain of an organization include inbound logistics, operations, outbound logistics, marketing & sales and service respectively. The support of the activities is through the infrastructure of the firm, the human resource management, technology development and procurement. Now let us analyze the value chain of Stilsim. Te first activity of the value chain is the inbound logistics. This is the matching of the workers to the firms and employment opportunities to those who are looking for jobs. This is basically, the core competency of the organization and the revenue generating activity. Significant supporting activities include technology development and human resource management, this are where Stilsim is held up. There is lack of technological development and innovation in work design that hinder the production or operation. Moreover, the HRM functions do not provide adequate training and development to the employees. The marketing and sales activity is also in need of rejuvenation. There are a number of new opportunities that the company fails to exploit. For example, the company can make use of E-marketing tools to attract more clients. Other marketing and promotion tools can be used to reach the market spread the word. Among the support activities, procurement is not applicable to the organization. Technology development, as discussed earlier, is in dire need of attention and innovation. Also, the Human resource management needs to implement training activities and resolve employee conflicts and bring changes in the job description that would allow employees to grow and mature with the work. Core Competencies: Being in the industry for 25 years has developed as the core competency of Stilsim. Being the oldest job services provider and having a considerable experience is what is the value proposition of the company and it has enabled the company to develop a vast network and contacts with clients over the years. Moreover, having three offices in different locations serving to clients from different areas is another core competency on the part of Stilsim. Stakeholder Analysis: The purpose of the stakeholder analysis is to identify those individuals or groups that are likely to affect or be affected by the actions of the company. This enables the company to take into consideration all the stakeholders interests when taking certain action. The stakeholders of Stilsim are the employees, the shareholders, the community and the clients. It is hence, necessary to consider the interest of these individual or groups that have direct concern with the company and its future. Mission Statement and Vision Stilsim is basically an agency that provides recruitment services to the clients at lower costs and quality services. Some of the value propositions of Stilsim are as follows: Building relationships through matching the right people to the right job Maintaining high standards of quality in services Capitalize over the skills and experience of the staff Ensure the availability of equal opportunities in all areas of our work Focus upon the core value proposition to provide speialist services to clients Conclusion: In order to improve the performance of the company it is necessary to recognize the faults and the strengths. This is purpose of the external and internal analysis. The analysis would enable Stilsim to develop strategies in accordance with the issues and would be able to eradicate the weaknesses in order to prosper in the future and maintain its standing in the industry. Reference: Dess, G. G., Lumpkin, G.T., & Eisner, A. B. (2010). 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