ANALYSIS OF NEW BUSINESS

Analysis Of New Business



Analysis Of New Business

Introduction

The importance of considering the external environmental forces and their impact on an Organisation and the managers within has been a hot topic of discussion for many years. Most of the leading management experts have discussed this topic at some time or other and some have even developed tools that enable today's managers to analyse the extent of impact that could brought about by these external factors.

Tools such as the SWOT analysis introduced by Albert Humphrey and his research team at Stanford Research Institute, the PESTLE Analysis introduced by Frances Aguilar and the 05 Forces model and Porters Diamond introduced by Michael Porter of the Harvard Business School were created with the express purpose of providing a framework for scanning and analyzing the external environment of a business.

Taking the above into consideration this paper would seek to explain how “The external environment directly affects what a manager does” in the current context.

What is a Managers responsibility

“Management is the attainment of organizational goals in an effective efficient manner through planning, organizing, leading & controlling and organizations resources.” (Samson & Daft, 2005)However, it is also true that “The world of organizations & management is changing. Rapid environmental changes are causing fundamental transformations that have dramatic impact on the manager's job.”(Samson & Daft, 2005)In order for an organization to survive and thrive in this ever changing world, the manager of today has to transform the organization into a “learning” organization where all levels of the organization have an added responsibility of identifying and solving problems.

The manager of today is tasked with creating a vision for the future and ensuring that it is widely understood, accepted and imprinted throughout all levels of the organization.

Therefore the aspect of leading has become the most important of the four criteria of a manager's responsibility and this article will continue concentrating on the “affects the external environment has on a leaders actions”3.0Characteristics of a good LeaderRosabeth Moss Kanter in her 2004 book Confidence: How Winning Streaks and Losing Streaks Begin and End lists Accountability, collaboration and initiative, acting on mistakes and dealing effectively with adversity as part of a great leader's character.

To this end a leader needs to identify what external factors would influence the performance of the organization and then devise strategies within to overcome adverse factors and capitalize on complementary factors always keeping in mind that these same factors keep changing from day-to-day.

Therefore, the observation by Daniel A Wren in 1979 that “Managers today face the ultimate paradox: keeping everything running efficiently and profitably while at the same time changing everything” gives an indication of the complexity of a leader's task.

Reflective piece on usefulness of Porter's Five Forces model.

Given that firm's profitability is influenced by the profitability of an industry it is crucial to analyse it. I assume that such an audit would follow PESTLE (it provides macro-environmental analysis, which 5F lacks) and SWOT analyses, and would be done by a company in order to establish ...