Pension Fund SWOT Analysis & Strategy - Essay Example

Introduction More than thousands of years the word culture is conceptualized by philosophers, historians, sociologists and anthropologists. In addition, a set of beliefs, values, norms and thinking for behavior of all members of society and their common understandings of each other is called culture. However, cannot be defined accurately but it can be felt and sensed. Likewise, an organization has its own culture, rules and regulations to follow. Organizations are like societies; therefore, they have their own parameters. If the rules, regulations and parameters are followed strictly and the productivity outcome is excellent, the organization has strong organizational culture. Otherwise, the organizational culture is weak, it is not implemented strongly, or there are weaknesses in set parameters. Significant benefits are obtainable through strong organizational culture. Nonetheless, it is possible when the fundamental of survival structured on ability of an organization regarding changing and acquiring. Thus, strong culture is a liability for an organization (Mobley, Lena and Kate, 128-139). However, strong culture requires SWOT analysis of all the stakeholders of an organization. Five significant external and internal factors There are five significant external factors, which influence positively or negatively the environment of an organization. 1. Customers: The customers of an organization are the core external target of an organization. The customers can be pursued through marketing, and attractive corporate knowledge. An organization needs clients to sell its products; therefore, it is necessary to increase clients. Moreover, strong client’s organization attachment is mandatory. 2. Government: The government is another significant outside factor, which influences an organization. The laws of government regarding shipping, packaging and product development plays an important role for the expansion of business. If the regulations of government were business friendly, it would affect margin of profit positively. Apart from local government laws, international regulations also affected the growth of business, positively, or negatively. 3. Economy: The organization must be efficient to manage the economy to handle competently external and internal expenditures. In addition, the understanding of economic helps to target new markets. 4. Competition: The target markets and ways of business are attached to competitive environment. The organization can decide to enter in a less competitive market or can chose to enter directly in a full competitive market. The market planning of an organization is a decisive factor for success and failure. Clearly, the planning is devised according to competitors’ moves. 5. The public rating: If an organization, fails to gain public support or falls into a scandal it would lose significant business. Public relation professionals are hired to influence public opinion regarding the reputation of an organization. Similarly, five environmental factors affect the internal environment of an organization. They are following: 1. Organizational resources: factors like management techniques, good will, and reputation of company, decision-making models, procedures, and systems are organizational resources. 2. Technology: proprietary knowledge, technological skills, patents, licenses, procedures, computers, IT etc. are technological factors. 3. HRM: hiring and decide the ability of an employee through monitoring, dichotomize sales people, engineers, IT people etc. management and supervision of working environment. 4. Physical resources: buildings, vehicles, inventories, land, equipments and plants are physical resources. 5. Financial capital: the availability of new equity, debt capacity, cash flow in sales and purchase and other related dimensions. If an organization does not have skilled staff, it would exhibit weak leadership of the organization. Poor leaders are unable to recognize talent among workers. Moreover, due to their own weak performance and inadequate skill they hesitate to point out employees’ mistake and weak-spots. On the contrary, strong and potential leadership motivate weak and unskilled staff to improve. However, if the leader is capable, efficient and has all the qualities of leadership and the employees are hesitant to respond by their effective working it would be a sign of intolerable behavior. There are no reasons have been found so far that why employees behave in queer and unacceptable manners. There behavior is unsafe, and illegal. They not only hesitate to act their own but also they hesitate to report their superiors. Their behavior is just like a bystander and against the loyalty and honesty of job (MIT, et al., 1). It is important to monitor internal and external environment of an organization along with people. In addition, the monitoring process is infinite (Luecke, 55-61). Thus, it will be possible to keep up with rapidly changing environment. Moreover, an organization needs to change continuously to solve external and internal issues (Burnes, 78-85). Marketing Strengths 1. The quality and reputation of brands 2. Original service or product 3. The business site which is easy to access for customers 4. Marketing expertise and specialty Marketing Weaknesses 1. Insufficient online existence 2. Competitors are stronger in distribution 3. Vague product demarcation as compare to competing products (Riley) Strength of Sales 1. Excellent association with clients 2. Excellent communication skills 3. Resourceful marketing strategies 4. Adequate staff with sufficient knowledge about product line Weaknesses of sales A. Problems of cash flow B. Out of date market research data C. Unskilled staff D. Poor communication skill (Queensland Government) Strength of finance 1. To understand the local environment 2. Personal amalgamation with locals 3. Known as local company people prefer to buy from us Weaknesses of finance 1. Corporate policies hamper efforts to diversify local business 2. No local growth of sales. Management strengths 1. Special qualities 2. Personal resources 3. Uniqueness 4. Achievements Management Weaknesses 1. Avoidance 2. Lack of confidence 3. Negative work habits 4. Fear of communication. Strengths of HRM 1. Have numerous solutions and past example of HRM planning efforts to cope with different issues 2. Equipped with tools such as training manual and interview guide to enhance human resources activities 3. To provide confidence to employees of oneness Weaknesses of HRM 1. To obtain lucid and measurable performance levels lack of responsibilities of managers and employees 2. The implementation of old and rotten HRM policies and practices 3. Lack of communication with employees Strength of R&D 1. Efficiency and expertise in technical issues 2. Integration with industries 3. Workforce diversity R&D Weaknesses 1. Insufficient capital and resources 2. Slow moving in fast technological atmosphere 3. Research and development expanding opportunities Strengths of IT 1. Advantages 2. Resources 3. Alignment with new technologies Weaknesses of IT 1. Lack of understanding of new technologies 2. Demands 3. Lack of qualified staff (Patrick, 57-62) Strengths of production 1. Stability 2. Efficiency 3. Raw material availability Weaknesses of production 1. Production of unwanted goods 2. Less room for growth due to maturity 3. Energy deficiency However, in SWOT analysis there are also threats and opportunities. The understanding of threats determines possible future prospective. Threats and opportunities are external environmental factors. The evaluation of obstacles, competitors, changing technology, cash flow or debt is the understanding of threats. Likewise, the possible favorable opportunities are positive change in government policies, expansion in markets, and transformation of lifestyle, population growth or positive trend change (JRC European Commission). Nonetheless, just understanding the threats and opportunities is not enough. The ability to turn your weaknesses into strength and the quality to hold opportunities and tackling and minimizing threats is the sign of strong organization. The organization must have potential leaders, loyal workers, and powerful HRM to cope with all the difficulties (JRC European Commission). There are some suggestions, which may help to improve the overall situation of an organization. 1. The organization must have the ability to increase value with significant approach. 2. Achieve synergy by exploiting resources of organization. 3. The customers and owners are the major stakeholders try to fulfill their requirements. Works Cited Beal, Reginald M.: Competing Effectively: Environmental Scanning, Competitive Strategy, and Organizational Performance in Small Manufacturing Firms. In: Journal of Small Business Management, Jan 2000. Burnes, Bernard. Managing change: A strategic approach to organizational dynamics. Financial Times/Prentice Hall, 2004 JRC European Commission: http://forlearn.jrc.ec.europa.eu/guide/4_methodology/meth_swot-analysis.htm Riley, Jim. "Marketing - SWOT analysis and marketing." tutor2u | Economics | Business Studies | Politics | Sociology | History | Law | Marketing | Accounting | Business Strategy. Tutor2u.net, 23 Sept. 2012. Web. 8 June 2013. . Luecke, Richard. Managing change and transition. Vol. 3. Harvard Business Press, 2003. MIT, Mary Rowe, Linda Wilcox Howard HMS, and Gadlin NIH. "Dealing with—or Reporting—“Unacceptable” Behavior (With additional thoughts about the “Bystander Effect”)." Journal of the International Ombudsman Association 2.1 (2009): 1-24. Patrick, Francis S. "Getting out from between Parkinson's rock and Murphy's hard place." PM NETWORK 13 (1999): 57-62. Mobley, William H., Lena Wang, and Kate Fang. "Organizational culture: measuring and developing it in your organization." Harvard Business Review China 3 (2005): 128-139. Thompson, John L.: Strategic Management. Awareness and Change. International Thomson Business Press. London 1997. Read More