Exploring Organisations - Essay Example

? Exploring organizations Task: Introduction Established in the mid 1930s, in England, William Hill represents a pioneer entity in the gambling sector. During its establishment, gambling was unlawful. The founder of this entity, William operated based on trust since the industry was unregulated. Consequently, failure to pay player has no legal implications. However, the founder ensured that winner reaped their reward. The trust bestowed by the participant on the founder spurred the growth of the entity and the sector despite operating in secrecy. Initially, the entity operated under the pretence of a mail and telephone entity enabling. Subsequently, William Hill has developed into the current dominant body. During the progress of the entity, the shareholding has changed enabling restructuring through new management. The entity made minimal returns since gambling was unlawful. Nonetheless, legislation of betting in 1960s transformed the entity fortune radically. Despite the legalisation of betting, this entity still had multiple hurdles to surmount as the government had instituted countless regulations relating to the operation of this industry. Consequently, entrepreneurs in the gaming sector opted to minimize their operation scale. Digital advancement has influenced this industry sizeably since it facilitated the development of betting culture. Betting expanded concurrently with the digital sector since it aired events that were subject to betting. Furthermore, economic expansion has resulted in the citizenry having surplus finances to expend on such frivolous activities. This write-up seeks to evaluate William Hill relative to its features, clientele, and future prospects. Additionally, it will appraise the entity status based on certain theories (Funding universe ND). William Hill is a public entity that has an assortment of feature, which make it suitably suited for this industry. First, the location of the entity in London allows it to attract clientele on a global level. Additionally, the listing in the London stock exchange (LSE) has facilitated the establishment of the entity as market leader. This entity operates in a trendy market, which is subject to countless alterations. Subsequently, the entity has to adjust its product persistently to sustain its market niche. Visibly, the entity operates in an industry that is exceedingly dependent on digital communication. Hence, investing in pertinent systems will provide the entity with a competitive edge. William Hill also faces competition from other entities that operate in the above industry. The gaming sector requires originality from the firms that partake in it. Subsequently, the reference firm, William Hill has endeavoured to create an excellent merchandise portfolio. Evidently, the entity commenced with few products. However, the pool of product, which the entity avails to the clientele, has stretched out exponentially. Creating such a commodity portfolio demands extensive creativity from the management. The managers have to perform far-reaching studies, which will guarantee product success. Not only do the administrators endeavour to create products but also institute appropriate promotional campaigns. Promotion represents a critical aspect since William Hills operations relate to events such as games requiring intensive advertising to attract bids. The above details provide basic information that is vital in organizational analysis of William Hill (Funding universe ND). SWOT analysis William has countless strengths that have enabled the entity to dominate this industry in UK. First, the entity’s lengthy history has allowed the entity to assemble enormous volume of data. The enormous statistics coupled with the expertise of the exception workforce have been critical to the success of the body. These two constituents have enabled the entity model a unique culture that is central to attracting an extensive clientele base. The entity guarantees players countless opportunities to win. Moreover, the data assembled is critical in designing products. This is a critical element in this sector, which demands creativity from the firms partaking in it. The demand for creativity emanates from the fact that the sector deals in recreational activities. Products for recreation should be trendy and creative to capture the players’ interest persistently. William Hill has met this requirement by employee exceptionally qualified workforce. The entity had an expansive product portfolio. The above has sizeable implication on an entity risk. An expansive commodity array has diminished the potential risk of relying on the turnover of a single product. Accordingly, fluctuation of return from any product of the organization would have minimal implication on the entity profitability. This is a decisive aspect that investor appraise in any potential investment. Furthermore, the enormous product array has enabled the clientele attract diverse customers. Regardless of the entity’s expansion, it is vital to design products that complement each other. This will ensure that such products gain from synergy associated with a harmonized product portfolio. This body has widespread presence in Britain. Furthermore, William Hill has a presence in the leading European economies. This has given the entity a global presence. Globalization is an undertaking with benefit and cons. However, globalization for this entity is different since the entity needs minimal funds since it requires minimal funding to undertake that venture. William Hill avails most of its services via the internet. Evidently, the entity’s key potency is availing its merchandise online. Since 1998, William Hill has built-in the internet as a central scheme of availing its merchandise to the consumers. Consequently, the entity has gained access to an enormous clientele base. The entity integrated internet earlier than its competitors did; thus, giving the entity a head start over its rivals. Moreover, the entity utilizes apposite software ensuring security of over the net transactions. This is a critical aspect since it guarantees due meticulousness in effecting transactions. However, despite integrating internet in the provision of its product the entity does not offer all its merchandise online. Therefore, lacks of physical presence in certain nations limit its incomes. Physical presence of the entity globally will result in escalation of its turnover. However, the management should be shrewd in selecting the nations that they wish to have subsidiaries. William Hill should seek destination that record high tourist figures (Pahl & Richter 2007, 2). William Hill is a public entity consequently the entity can pool funding from diverse sources. The above has allowed the entity to issue an IPO to fund its operations. The form of this entity has allowed the entity to gather finances. The form of the organization complements the ambition of this entity, which seeks to dominate the gaming sector. Additionally, the government regulates public organization stringently, hence, limiting the chances of mismanagement. IPO allows the citizenry to own a stake the body. Consequently, this ensures that the clientele owns a proportion of William Hill. Such a strategy has enabled this organization to advance its clientele loyalty. Finally, the entity has numerous subsidiaries, which have enabled the entity not only diversify its merchandise but also to enlist in other budding markets. Notably, the ownership of the entity has changed severally previously allowing injection of financing. However, such trend makes investment in the body unsafe. Conversely, it reveals the manager ambitions ensure that William Hill succeeds (Pahl & Richter 2007, 2). Despite the accomplishment of the organization, the entity has certain weaknesses. However, the entity has instituted measures to solve the weaknesses. The speedy transformation in ownership in the organization has culminated in diminishing of funds. Therefore, William Hill eventually issued an IPO giving the entity steady shareholding hence limiting manipulation of the organization by myopic shareholders. Additionally, public shareholding has resulted in close stringent regulation by the government (Griffin 2007, 67). This entity has countless opportunities to expand its operations. The opportunities largely relate to utilization of digital devices to capture additional clientele. The development in mobile phone sector will have a sizeable implication on the entity fortunes. The entity ought to target availing its product on the cell phones. Availing their merchandise on mobile gadgets will require the entity to tailor product that suite mobile gadgets. Additionally, the entity will require physical presence in emerging economies that have an expanding middle class with surplus revenues to expend on leisure. Transformations in the commerce setting presents hurdles to entities, however, it also avails opportunities to the organization. Therefore, the administration should appraise the alterations, the environment and coin strategies to ensure William Hill capitalizes on the alterations. In this scenario, the management should tailor products that will fit the current digital sector, which is transforming swiftly. Capitalizing on the digital advancements that characterize the present economic environment would entail developing merchandise, which integrates the digital advancements. Despite the alteration to the economic setting, it is critical for the entity to uphold its principles. William Hills’ values makes are a marketing tool; hence, the new products should embrace the values that the entity seeks to uphold. Essentially, the product resulting from progress in the digital field should generate purchaser fulfilment. The nature of this industry is crucial to its expansion. William Hill can create countless products since the entity has enormous data and apposite staff. Notably, success in this industry demands a sizeable amount of originality. This presents an opportunity since it allows William Hill to boost its revenues by product creation (Griffin 2007, 67). Despite the entity dominance in this market and the exemplary results in 2010, which revealed considerable improvement in turnover and earnings, the entity faces certain threats. The entity operates in a competitive market which changes rapidly. Consequently, the management cannot be complacent in its undertaking. William Hill has numerous subsidiaries whose reports are combined with those of the parent organization. Management of such an entity presents considerable hurdles. William Hill has partnered with Playtech, a strategic collaboration aimed at enhancing the body’s market niche. Such partnership represents the entity’s dependency on the entity. Subsequently, failure of the internet would impact sizeably on the entity output. It is essential for William Hill to establish a balance between the product it offers online and the rest. This will considerably diminish the entity’s risk. Overall, technological advancements and competitor based in England pose the utmost hurdle to the realization of these entities objectives. However, the talented staffs have ensured that they institute timely strategies to diffuse the above threat (Griffin 2007, 67). According to the above SWOT analysis, it is evident to conclude that the entity has countless strengths that emanate from William Hill brand, the staff, the structural setup of the entity and the collaboration instituted. Additionally, the entity has few weaknesses namely the capital structure and dependency on the internet in availing its services. Despite the risk emanating from dependency on the internet, digital advancements provide enormous potential for this entity to capture additional clientele. Finally, competition and internet disruption would create a considerable threat to the fortune of this entity. STEEPLE analysis This is an analysis that requires scrutiny of certain factor that can alter an entity’s market and revenues allowing the entity to predict tendencies. Social The global community is embracing digital advancements rapidly. Consequently, it is crucial for the William Hill to acknowledge this factor and evaluate the opportunities that emanate from such development. Additionally, development may also bear depressing implications on William Hill. Overall, appraisal of digital advancements reveals that they will have phenomenal impact on this industry. Evidently, gambling has developed enormously. As such, this industry has seen an escalation in earnings despite the economic downturn. Preference for gambling coupled with diversified products and an expanding middle class resulted in spurring of William Hill’s income (Kew, Stredwick & Chartered Institute of Personnel and Development 2005, P. 205). Technological Digital advancements have had colossal implication on the fortunes of this entity since late 1990s. This resulted in enormous investment by the entity in websites and other online avenues that will advance earnings. Notably, the entity has collaborated with Playtech thus, giving the entity an apposite marketing network. This market network has resulted in a diverse clientele base. Integration of digital advancements promptly is a constituent of the overall entity’s strategic plan. The plan accentuates digital advancement will assist the entity to capture enormous potential clients. As such, William Hill seeks to tailor products, which will harness the opportunities emanating from mobile records (Kew, Stredwick & Chartered Institute of Personnel and Development 2005, P. 206). Economic The economy is on a downturn: consequently, countless firms have performed weakly. Conversely, William Hill has maintained exemplary performance over this period. This reveals that the entity has instituted proper measure to diffuse the adverse impacts of a receding economy. Therefore, despite the receding economy the entity will maintain the exceptional results. However, improvements in this factor will present an addition boost to this entity (Kew, Stredwick & Chartered Institute of Personnel and Development 2005, P. 205). Political Politics have minimal impacts on this entity. However, politics may have minimal impact since the entity is public and has numerous shareholders. Accordingly, the government must ascertain the security of the investments made by citizenry. Consequently, the administration may intervene if fear arises on any mismanagement. Overall, politics will have minimal effect except when there are abnormal transactions. Legal From inception, legal aspects have influenced this entity considerably. On inception, gambling was illegal and the entity operated in false pretence. Currently, the statutes provide detailed regulation on this trade. The legislation provides guidance on how entities in this sector should undertake their activities and consequent penalties for infringement of the relevant statutes. Currently, the stability witnessed in relation to gambling law has spurred this sector since they have diminished malpractices. Environmental The business setting relating to this industry has enabled William Hill to perform sublimely. Growth of the middle class segment has resulted in additional clientele willing to expend their income in recreational activities. However, any entity aspiring to capture new consumers must strategize adequately. The strategy will entail marking and product expansion. The current environment will affect William Hill constructively. Regulations introduced in America have resulted in decline in gambling in that market. Ethical Gambling is exceedingly dependent on the faith of entity providing services. Consequently, the laws there are certain ethical requirements of entity in this industry. However, the relevant ethical standards will have negligible implication on this entity since they seek to entrench the values that William Hill upholds. PEST analysis This model bear certain similarity to the steeple analysis, however, it appraises fewer factors. The factors include: Political As earlier stipulated, politics have negligible implications on William Hill’s market. However, political goodwill enhances businesses in entirety. Since William Hill is a public entity, which suffered incidence of mismanagement it will encounter countless regulation and monitoring. The intervention aimed at protecting investment of small-scale shareholder that lost during takeovers (Applegate & Johnsen 2007, p. 28). Economic This business seems immune to the implication of the present economic forces. The above is attributable to a broad clientele base. Furthermore, the online availability of William Hill’s merchandise has diffused the impacts of a receding economy. However, improvement in the financial world will have negligible consequences on the entity. Creativity, product differentiation and promotion will spur growth of William Hill’s turnover (Green & Williams 1997, p. 164). Social Social aspects have enormous implication on gambling since it is a recreation activity. Gambling has displayed immunity to recession due to its social aspects. Additionally, massive utilization mobile gadget will influence the fortunes of this entity considerably. Hence, it is imperative for the entity to tailor products to suit clients that utilize mobile gadgets (Green & Williams 1997, p. 164). Technological Evidently, the entity is reliant on online clientele. This poses a sizeable risk to the entity since the entity would vary drastically if internet interruption occurred. Therefore, it is critical that William Hill establishes a balance in revenues vulnerable to fluctuation due to internet interruption and those immune from this hitch (Green & Williams 1997, p. 165). Balanced scorecard This model develops a means to evaluate the realization of set objectives. This model predominately appraises accomplishment of strategic goals. This is an all-encompassing tool, which seeks to ensure organizational improvements on all fronts. The tool utilizes the entity’s mission to enhance competitive lead. William Hill mission is to guarantee client contentment by allowing the consumer to win countless times. Optimization of clientele’ value will denote realization of the above objective. Certainly, this tool provides an alternative means to assess performance improvement rather than financial indicators. This tool will assist William Hill to appraise qualitative improvement, which financial indicator cannot evaluate. This tool will evaluate tactical, communication and assessment systems (Niven 2006, p. 2). William Hill largely appraises its performance based on finances. Conversely, such an organization is multifaceted where progress in performance culminates from diverse factors. In establishing a scorecard, the management should initially establish apt factors to employ to gauge performance. Balanced scorecard for William Hill Strategy maps Strategic objectives Performance measures Initiatives Financial Increase shareholder value Increase operating profit Shareholder value Cost Revenue Takeover a competitor Customer Maintain and expand market proportion Boost brand image Market share Brand awareness Expansion in Africa and southern Asia Internal process Create more product Improve current product Additional products Diversified product portfolio Learning growth Optimize the workforce Retrain employees Productivity index Refresher programs Staff optimization evaluation Retraining Rich picture model Though this model is unpopular, it helps to illustrate relations between assortments of objects. This tool finds ready use in systems development. However, William Hill also has diverse systems. Subsequently, it is vital to establishing solutions to certain hitches. Experts apply this tool to represent a problematic situation. Subsequently, the factors that trigger the problem are identified. This model suits situations requiring resolution of hitches, which result from interface of several factors. William Hill is an entity that faces multiple problems. Consequently, this model would enable resolution of these hitches (Bell 1996, p.74). References Applegate, E & Johnsen, A 2007, Cases in advertising and marketing management: real situations for tomorrow's managers, Rowman & Littlefield, Maryland. Bell, S 1996, Learning with information system: Learning cycles in information system development, Routledge, New York. Funding universe, ND, William Hill Organization Limited. Viewed 29 November, 2011 Griffin, R 2007, Fundamentals of Management, Cengage Learning, Boston. Kew, J Stredwick, J & Chartered Institute of Personnel and Development 2005, Business environment: managing in a strategic context, CIPD Publishing, Great Britain. Niven, R 2006, Balanced scorecard step-by-step: maximizing performance and maintaining results, John Wiley and Sons, New Jersey. Pahl, N & Richter, A 2007, SWOT Analysis - Idea, Methodology And A Practical Approach, GRIN Verlag, Germany. William, T & Green, A 1997, The business approach to training, Gower Publishing, Ltd, Britain. Read More