Management Concepts Of Dynamic Rock - Essay Example

Dynamic Rock Management concepts Contents Executive summary ………………………………3 Introduction 3 Aims and objectives 3 Limitations of the report 4 Methodology 4 Findings and discussion 5 SWOT Analysis Porters’ five forces Ansoff’s Analysis Leadership styles Conclusion and recommendation 7 Appendix 9 References Executive summary Dynamic Rocks offers a range of rock climbing activities to the people from all walks of life at accessible rates. The strategies of the organization reveal that the organization has a vision of growth and development in the market. The organization being small faces difficulties of lack of human resources and cost benefits as compared to the large-scale organization. With a single supplier and being completely dependent on the customers, the organization faces both supplier and buyer powers. The scope of the organization in terms of facing economic threats is very limited, because the firm operates in a small scale and is dependent on a single supplier. The employees trust and believe the visions of the leader and are very motivated. This organization is rapidly expanding organization, which is becoming increasingly popular among its customers. With an extensive marketing plan the organization can surely become the most popular place for rock climbing activities in Swansea. Introduction: Dynamic rock is an organization established in the year 2004, with the aim of developing the indoor climbing center in the city of Swansea, United Kingdom. The company provides for the much-needed centre for the climbers from all over the country. This organization aims at providing the rock climbers with a friendly and accessible centre to pursue their passions. This organization is categorized under the Rock industries, with a small group of well-integrated staff members. (Dynamic rock, 2010) This dynamic organization has various opportunities and faces tough market competition. Under this paper we would try and analyze the strengths and weaknesses of the organization, we would provide a competitor analysis so as to understand the scope of the organization in the near future. Applying the theories of strategic planning and leadership styles we would analyze how the organization can strengthen its long-term position. Aims and objectives: The aim of this paper is the strategic analysis of the organization Dynamic Rock to understand the company’s position in the market. In order to achieve the aim, there are certain objectives: To identify the strengths, weaknesses of the organization with the help of the SWOT analysis of the organization. Application of the porter’s five forces and Ansoff’s theories on the structure of the strategic planning of the organization to understand the company’s position in the market. Understand the internal framework of the organization, in terms of its leaders and leader ship styles. To analyze how these factors influence the overall functioning of the organization. To establish responsive and proactive strategies so as to strengthen the long term position of the organization, for it to gain a sustainable competitive advantage. Limitations of the report: The report would have been more effective if the method of primary research among the customers would have been adopted. The customers’ views on the products and services offered by the organization would have been very accurate and would have provided an effective marketing strategy for the organization. Methodology: The paper aims at the strategic analysis of the organization Dynamic Rocks. SWOT analysis would be applied to for the detailed understanding of the structure of the organization. The theories of Porter’s five forces and Ansoff’s analysis would be applied for the analysis of the rock industry and the company’s position with respect of its competitors. The primary research would involve interviewing the employees of the organization to understand the hierarchal structure of the organization. Literature research would be applied in the project. A literature research involves reviewing all available information, which is called secondary data collection. The information includes information from the internal company data, trade publications, research papers, online database and other available sources. The advantages of collecting secondary data are: save time and money spent on the research, the information can be updated fast. The primary research would give the first hand information about the structure and the powers of the employees in the organization. The secondary research deals in the analysis of the existing works in this field. The project will also follow a descriptive approach. Different academic theories would be applied to the analysis of the organization. The academic principles and the theories will help us to evaluate minutely the problems the company in the competitive framework. Findings and discussion: One of the most important tools of the analysis of the internal and external environments of the organization is the SWOT analysis. It acts as the comprehensive analysis of the external and the internal environments of the organization. Apart from the Swot analysis we would apply the porter’s five forces model to analyze the external markets, followed by the Ansoff’s model to understand the internal strategies of the organization. Applying these theories to the structure of dynamic rocks we would analyze the company’s future. SWOT analysis: SWOT analysis helps in identifying the strengths, weaknesses, opportunities and the threats faced by the organization in the dynamic marketing environments. The understanding and the consideration of the environments is very important as it helps in formulation and implementation of the firms strategies. Dynamic rock is a very small and new organization in market. “Small businesses often begin with a single core competency and build their business and reputation on it.” (Kurtz, Mackenzie & Snow, 2007, p. 78). The strength of Dynamic rocks is that it has come up with a unique idea that may become popular among students and teenagers who have a passion for the rock climbing activities. The organization has worked hard towards developing the facility at the centre. This facility attracts many rock climbers to the organization. The weakness of the organization is the lack of human resources, due to the insufficient or the limited number of staff members. The scale of providing the facility is small therefore the company would be making lesser profit due to the high cost of maintenance of the facilities. The opportunities of the firm are that it is based on a unique idea and can easily develop a customer base for itself. The firm can stand out in the market place due to its competency of offering unique services at lower prices. However, the high cost facilities provided at lower costs would not be sustainable in the long run. At some point the firm may have to increase its price of the facilities, which can lead to a price competition with the other competitors. With the idea of indoor rock climbing getting popular among the youth the firm may also have to face competition from the other substitute firms in the market. (Dynamic rock, February 2006). The Swot analysis helps us to understand the overall standing of the organization, however the strategic planning needs a more advanced analysis as the Porter’s five forces and the Ansoff’s analysis. Porter’s five forces: The five forces of Porter is another way to analyze the external environment of the company. The Porter’s five forces model deals the position of the company in relation to the other firms in the industry. The Porter’s five forces are Buyer Power, Supplier Power, Rivalry, barriers to entry and Threat of Substitutes. (Porter’s five process, 2010). The firm currently is dependent on a single supplier for the availability of its products. This is a treat for the organization as it has an impact on the cost of the inputs; moreover it does not let the organization gain advantageous position by product differentiation. This organization is completely dependent upon the power of the buyer and thus the company will face a relatively higher buyer power. The threat of the substitutes in the market is very high. Though the company has come up with a unique idea the popularity of the indoor rock climbing facilities can draw a huge competition in the market. Being an entertainment industry the firm faces the regulations of the safety that are to be followed. The government before granting license to any such firms makes it sure that the security standards are met. This has been the greatest challenge for a small organization like the Dynamic rocks before entering the market. The presence of big companies like the ‘rock climbing company’ and the ‘wild country’ in the United Kingdom poses good amount of rivalry for the organization. Ansoff’s analysis: The Ansoff’s analysis depicts the strategies of the companies in the case of the products and the markets. This helps in understanding the existing and new products of the organization. The firms strategise according to the portfolio. (Ansoff’s matrix, 2010). In this case, Dynamic rocks have been trying to capture the local market of Swansea. The organization aims at becoming popular at the local level so as to have a patent group of regular local customers. The company provides for accessible indoor climbing for all ages, which is a new concept in the city. The organization is looking forward for penetrating into the drilling, blasting and site construction business. However the main attraction of the organization remains the indoor rock climbing facilities. Leadership styles in the organization: Leaders are required in all fields and areas. Though most firms have a hierarchal system with managers at each level, it is very important for the organizations to have leaders to inspire and motivate the workers of the system. (Define leadership-Understanding it for your career growth, n.d). For the firm Dynamic rocks, the results of the leadership styles and motivational activities are analyzed by interviewing the employees and the owners of the organization. All the employees directly report to the owner of the organization. The owner acts as the leader in the organization. He has a vision for the development and growth of the organization and shares this vision with the employees. There is a mutual harmonious relationship between the employees and the leader. The key in this mutual relationship is trust, it is very important for the people to trust their leader’s visions. The employees trust their leader. Conclusion and recommendations: The analysis of the internal and external conditions of the organization Dynamic Rock reveals that the organization has a great future in the market. The UK indoor rock climbing industry is a yet to be explored, therefore the organization has a fresh market from which it can reap benefits. The organization operates in a small scale set up therefore the cost advantage of the large-scale industries is absent in the organization. The organization needs to set up effective marketing strategies so as to capture the local market. The organization even needs to plan special strategies for attracting customers from different age groups. Generation of Revenue is the only measure through which the organization can grow and make a mark in the market. The organization needs to be very prompt and innovative with its strategies so as to meet the market needs and fight competition. Appendix Questionnaire: 1. Whom do you report to? 2. What is the team size of your organization? 3. How often do you interact with each other to solve problems? a. Rarely b. Often c. Regularly 4. Do you consider your manager as your leader? a. Yes b. No 5. Does he communicate with you on a regular basis? a. yes b. No 6. How often do you communicate your problems to your leader? a. Never b. Rarely c. Most of the times d. Regularly 7. Do you have a vision for the future of this organization? a. Yes b. No 8. How do handle a crisis at workplace? a. Individual expertise b. By working in a group as a team. 9. How often the motivational and personal assistance programs are undertaken at your organization? 10. Are you satisfied working in Dynamic Rocks? a. Yes b. No References Dynamic rock (2010). About us. Available at: http://www.dynamicrock.co.uk/about_us.html (Accessed on June 28.06.2010). Kurtz, Mackenzie & Snow (2007). Contemporary marketing. Nelson education ltd. United States. Dynamic rock (February 5, 2006). Dynamic rock is open. Available at: http://www.dynamicrock.co.uk/progress_report5.htm (Accessed on June 28, 2010). Porters five forces (2010). Quick mba. Strategic management. Available at: http://www.quickmba.com/strategy/porter.shtml (Accessed on June 29, 2010). Ansoff’s matrix (2010). Quick mba. Strategic management. Available at: http://www.quickmba.com/strategy/matrix/ansoff/ (Accessed on June 29, 2010). Define leadership-Understanding it for your career growth.(n.d). Career success for newbies. Com. Available at: http://www.career-success-for-newbies.com/define-leadership.html (Accessed on June 12, 2010) Read More