Alton Organisation Situation Analysis - Report Example

Alton Organisation Situation Analysis Report Name: Course: Tutor: Institution: Date: Table of Contents Table of Contents 2 Table of Figures 3 Executive Summary 4 1.0 Business Description 5 2.0 Market Analysis 5 2.1 Target Consumers 5 2.2 Market Share 6 2.3 Competitors Analysis 7 2.4 Suppliers Management 7 3.0 Employer- Employee Relationships 8 4.0 Finance and Record keeping 9 4.1 Sources of Finance 9 4.2 Record Keeping System 9 5.0 Government Regulations 10 6.0 SWOT analysis and Recommendations 11 6.1 Analysis 11 6.2 Recommendations 11 Appendices 13 Appendix 1: Interview Scripts 13 Appendix 2: Survey Questionnaire 14 Appendix 3: Direct Contact Sheet 15 Bibliography 16 Table of Figures Figure 1.0: Alton Market Share………………………………………………………………..6 Figure 2.0: Alton Management Structure………………………………………………………8 Executive Summary The report offers a situational analysis review of the Alton organization, a market competitor in the UK electronics industry. The organization, with retail outlets in Manchester, Cardiff and Norwich has a partnership ownership system, with a total of seven active partners. Through interviews, personal observation and surveys on its operations coupled with secondary data analysis, this report evaluates the organizational market structure, competition, as well as governing regulation. Further, it reviews its internal systems through a SWOT analysis and subsequently recommends branding and labelling as the key strategic alternatives for long term gains. 1.0 Business Description This report reviews the Alton business organization. The organization was established in 2001 and has its headquarters at Manchester City. Majorly, the business serves as a retail outlet for electronic products ranging from phones, electric gadgets to computer accessories. Thus, the organization has a wide range of products providing its consumers with variety. An interview session with the organizational CEO Mr. Alven, established that the organization is based on the principles and values of serving the society with technology products and accessories for increased overall economic growth. Further, the CEO informed that the organization has a vision of expanding into other key cities in the UK such as Liverpool and London. The organization serves in the highly competitive electronics industry where technology developments as well as globalization have increased market players (Shiuh-Kao Chiang 27). However, despite the ever increasing competition, a porters five forces analysis on the industry establishes its growth potential with an increasing demand base, expected to project into the future. The organization is owned on a partnership legal structure (Payne and Whitfield 7). In this regard, it has 7 respective partners all whom are active partners in its operations and are actively involved in its operational and strategic management aspects. In it expansion strategy, the organization has established its influence and services in a range of cities in the UK including three outlets in Manchester, 2 at Cardiff and one at Norwich. Based on this growth and expansion trend and with its operations in the market lasting 15 years by 2014, it is apparent that the organization is on its growth stage in the business lifecycle. In the recent half decade, the organizational reputation and influence in the market has drastically increased with 4 of the total 6 outlets being established within this period. As such, a situational analysis as well as comments from interviews collected from the industry stakeholders indicates that the organization has an increased growth potential and capability. 2.0 Market Analysis 2.1 Target Consumers The organization as already argued under the business description segment serves in the electronics industry in the UK. As such, this illustrates that the corporation serves consumers seeking new technology electronic gadgets. A study by Chih-Hai Yang and Chia-Hui (477) established that the electronics industry was increasingly developing and expanding with increase globalization. As such, Kozmetsky and Yue (394) argued that the industry continued to experience and gain an increased consumer base. Traditionally, the electronics industry was a reserve f0r the young population, with the older generation having minimal knowledge on its operations. However, this trend has caged and drastically reversed in the last decade. In this regard, as Forman and Segaar (211) evidenced, the society global social structures have changed, with changing economic trends and lifestyles. Therefore, this has expanded the overall electronics market base, to incorporate both young and old in the society. Therefore, a review of Alton Organization consumer base, demonstrates its diversity. Surveys conducted on the respective organizational outlets, revealed that besides targeting final products consumers, the organization targets other business such s repair shops and outlets. As such, it supplies the accessories spare parts to these business ventures that in turn avail them to the final consumers through technological and electronic gadgets repairs. 2.2 Market Share The consumer base diversification offers the organization a competitive base over other market competitors (Kouvelis 209). Consequently, in areas of its influence such as Manchester and Cardiff, the organization has an overall 25% market share compared to other industry competitors. This is as evidenced by primary research surveys that evaluated on the consumers loyalty to the respective electronic outlets within their respective regions. This can be demonstrated with the pie chart below. Figure 1.0: Aton Market Share 2.3 Competitors Analysis As the market share analysis above demonstrates, the organization faces market competition from organizations emanating from both within the respective markets regions as well as foreign investments into the UK electronics industry. Among the key organizational competitors in the industry are the well established Samsung and HP Companies. These organizations besides manufacturing the electronic gadgets have their retail outlets across Europe and USA. As such, they avail their own products and accessories onto the market (Mukherjee and Patel 76). Due to their large capital bases and economies of scale, they supply such products at relatively lower prices that Alton organization, making them relatively competitive. However, a major limitation for these competitors in their stock limitation. Due to their allegiance to manufacturers, they only stock brands from the manufacturer, consequently denying them the stock variety merit, a virtue present in the Alton organization. The organization has its key competitive advantage over established competitors due to its stock variety, attracting diverse consumer bases (Olaru 208). 2.4 Suppliers Management Finally, an additional market characteristic for the organization is its strong supply base. The organization has a supply base from which is acquire its products directly from the manufacturers. As such, this considerably reduces the influence and role of third party stakeholders, who increase acquisition costs as a reflection by Simm, Masters and Wallingford (38) illustrates. As such, direct contacts with the accessories and products manufacturers not only reduce on organizational acquisition lead times, but also on the overall products acquisition costs. 3.0 Employer- Employee Relationships Through my part time working at the organizations Manchester outlet over the summer break; I gathered information on the respective organizational management structure. In this regard, I established that the organizations headed by the CEO, a professional in technology developments and research, who is also part of the 7 partners owning it. The CEO besides overseeing on the operational activities of the respective outlets liaises with other partners through providing them with regular updates on organizational performance. Moreover, the CEO is entrusted and mandated with the execution of strategic alternatives and recommendations developed by the partners. Moreover, I established that the rest of the six partners head each of the 6 organizational outlets as the respective outlets managers. In this regard, each one of them is mandated with the responsibility of supervising the daily operations of the stores to ensure that they conform and align with the overall organizational goals and objectives (Bellizzi and Hasty 157). Other support staffs in the organization are the respective outlets employees who serve as the direct links between the organization and its consumers. In this regard, the organization employs individuals with skills in sales, customer services and technology experts, in a bid to improve its customer services and relations. A sketch of the organizational management hierarchy is represented below. Figure 2.0: Alton Management Structure 4.0 Finance and Record keeping 4.1 Sources of Finance As already established, Alton organization is a partnership. Yescombe (23) argued that for partnerships their main source of finances is the partners’ contribution as stipulated in the partnership deed. Similarly, Alton’s main financial source is its partner’s contribution. In their appropriation of capital contribution, the partners contributed equal amounts of cash in that each of them acquires equal losses or profit shares developed by the organization on annual bases. However, personal partners’ contributions would not suffice the business endeavours to expand its market influence in other UK electronics industry market locations. As such, the organization, through its existing capital base, acquired finances from financial organizations in the market. In particular, the organization acquired a loan from the Barclay Bank UK as an expansion funding initiative. 4.2 Record Keeping System In order to facilitate financial prudence and transparency, as Broadbent, Jacobs and Laughlin (567) enumerated, the organization instituted a finance, accounting and record keeping department. The department has employee representatives in each of the 6 outlets. As such, each of them document financial transactions in their respective stores and submit them to the headquarters on a weekly basis. In pursuant to these, the head office prepares financial cash flow records on a monthly basis. Moreover, organizational balance sheets as well as the profit and loss accounts are prepared annually to allow for financial performance evaluation by both the management and market regulators such s the UK government. The development of these records and financial statements allow and enable the partners evaluate the overall performance of the corporation with respect to its strategic goals and objectives (Gupta 82). As such, Combe (24) stated that such financial records serve as benchmarks through which actual performances are evaluated against forecast and corrective measures instituted for future performance efficiencies increment. Moreover, the reports play a significant role in enumerating individual outlets performances. S such, the management establishes markets and areas in which to increase their venture. For instance, an interview with the Cardiff outlet manager established that the corporation developed its decision to open up a second outlet in the town based on the profit and gains achieved by its first outlet. 5.0 Government Regulations The organization operates under the regulation and supervision of the UK government. Operating under the electronics implies that the organization has to comply with a range of regulations. For instance as Marker, Petterson, McEvoy and Stephenson (35) argued, the UK government, in pursuant to consumer rights activists campaigns complied and developed the conflict minerals regulations. In this regard, organizations supplying products into the industry must verify that such raw materials and minerals used in manufacturing the electronic products and accessories are conflict free. This includes the development of a sustainable supply chain through which the origin and source of the materials can be assessed. Moreover, the organizations in the industry are offered with clearance certificate upon verification of the material sources. A further regulation is on taxation. The UK government, just like other s across the globe, acquires their large revenue proportions form taxes. As such, the organization, upon developing its annual financial records, is required to pay taxes to the UK government through its tax and revenue collection agencies. Other regulations abiding the organization are on employment and that require the corporation to offer minimum legal set wages to its employees as well as the offering of paid offs as stipulated under the UK employment and rights Act 1996 (Lorenzon and Coles 133). 6.0 SWOT analysis and Recommendations 6.1 Analysis In order to establish the organizational competitiveness as well as its ability to exert influence in the market into the future, this report reviews the organizational SWOT analysis. The use of the SWO analysis tool, as an internal systems analysis guide as Brooks, Heffner and Henderson (23) in a review of a SWOT analysis for asocial media business argued, it enhances business systems critical review. In this regard, Pahl and Richter (37) argued that through a SWOT analysis, analysts establish not only the internal systems, but also the integration between an organizations internal and external component. A strength analysis on the organization establishes its management efficiency. As already outlined, the organization is a partnership with seven actively involved partners. As such, consulting among such partners is easy allowing for a relatively quick decision making. As such this offers it the desired market flexibility and adaptability in the electronics industry. However, the organization has a key weakness in its low capital base. Despite the loan form Barclays bank UK the organization lacks additional capital sources subsequently reducing its expansion strategy vigour and influence. Nevertheless, the growing and increasing expanding electronics industry both in the UK and on the global platform exposes the organization to increased expansion opportunities. In this regard, as enumerated in the report analysis, the industry is experiencing the development and growth of support sectors such as the repairs sector. Consequently, this offers the organization increased consumer bases expansion into the future, reducing competition on the current consumer base. Although the organization has an increased growth and development opportunity, the development of international organizations outlets poses a major threat to its existence into the future. Bruce, Moore and Birtwistle (150) stated that Majority of the multinational electronics manufacturers are investing in retail outlets as a means of reaching out to their consumer bases. Thus, this poses a threat to Alton, which relies on the market gap to gain influence. 6.2 Recommendations Based on the above SWOT analysis, this report deduces that the organization faces an extinction threat with increased multinational corporations’ retail outlets development. Therefore, in order to enhance its increased influence, the organization should adopt branding and labelling. Instead of supplying other organizational brands, it should seek right to label and brand the accessories. Labelling as Holmes (154) argued increases an organizational reputation and influence in the market. Therefore, the adoption of its own Alton brands and labels will reduce the influence of the multinational corporation retail outlets through developing its new market niche and consumer loyalty to its own product labels, rather than the already existing market labels (Edwards 19). Appendices Appendix 1: Interview Scripts Questions to the CEO 1. What are your organization mission, vision and value principles? 2. What makes Alton competitive over others in the retail electronics industry? 3. What are the organizational key strategic goals and objectives? 4. What should consumers expect from the organization in the future? Questions to Outlet Mangers 1. Which outlet do you manage? 2. How are you and other outlet managers involved in strategic decision making? 3. What initiatives have you developed to enhance your outlet success and support of the overall organizational goals? 4. What are your future recommendations for the organization in the future? Appendix 2: Survey Questionnaire 1. Are you familiar with Alton Organization? …………………………………………… 2. If yes, do you rate Alton Organization as Competitive Enough? Why? 3. What are the key strengths and weaknesses you identify in the organizational system? Kindly explain each 4. Do you project the organization will remain sustainable into the future? Why? 5. What are your recommendations to the executive management? Appendix 3: Direct Contact Sheet Contact Approach Contacted individuals Dates Part Time employment Worked in the head office Manchester retail outlet 2013 summer break Telephone calls Contacted the Company CEO for a telephone interview May 2014 Emails Contacted the six outlets managers on interview requests March 2014 Survey Contacted the government revenue agency as well as consumers for their opinions on the industry and Alton Company review March-May 2014 Bibliography Bellizzi, Joseph A., and Ronald W. Hasty. "The Effects of Hiring Decisions on the Level of Discipline used in Response to Poor Performance." Management Decision 38.3 (2000): 154-9. Broadbent, Jane, Kerry Jacobs, and Richard Laughlin. "Organisational Resistance Strategies to Unwanted Accounting and Finance Changes: The Case of General Medical Practice in the UK." Accounting, Auditing & Accountability Journal 14.5 (2001): 565-86. Brooks, Gail, Alan Heffner, and Dave Henderson. 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