The Forces Affect an Organization
The forces affect an organization
Introduction
With an increasingly competitive and dynamic business world, anyone organizations want to be successful, managers must make and develop appropriate business strategies. Strategy is the direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations. ( Johnson, Scholes, Whittington, 2009:3). It does not happen by itself automatically and depends on people, especially the managers who decide and conduct strategy. This is called “strategic management”. In effect, Strategic management can be divided into three elements, shows in the figure below:
Source: based on G.Johnson, K. Scholes, Exploring Corporate Strategy, 7th edition, financial times.
The figure shows that the three components of strategic management in line: first do the strategic analysis, then choose the appropriate strategic choice and putting strategy in action at the end. Thus, strategic analysis is essential first step to the strategic management. It refers to the analyzing the strength of businesses' position and understanding the important forces that may influence that position. According to Johnson&Scholes (2005), strategic analysis is concerned with understanding the relationship between the different forces affecting the organization and its choice of strategies. For the organization, business environment is what gives their survival. In order to understand the complexity in the outside world, organizations have to analyze their external environment. Besides, internal strategic capabilities are also important for organizations. It focuses on unique capabilities for each organization that can be difficult to copy by others. Therefore, there are two main forces affecting an organization: external business environment and internal strategic capability. In this essay, I intend to find out
Introduction
With an increasingly competitive and dynamic business world, anyone organizations want to be successful, managers must make and develop appropriate business strategies. Strategy is the direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations. ( Johnson, Scholes, Whittington, 2009:3). It does not happen by itself automatically and depends on people, especially the managers who decide and conduct strategy. This is called “strategic management”. In effect, Strategic management can be divided into three elements, shows in the figure below:
Source: based on G.Johnson, K. Scholes, Exploring Corporate Strategy, 7th edition, financial times.
The figure shows that the three components of strategic management in line: first do the strategic analysis, then choose the appropriate strategic choice and putting strategy in action at the end. Thus, strategic analysis is essential first step to the strategic management. It refers to the analyzing the strength of businesses' position and understanding the important forces that may influence that position. According to Johnson&Scholes (2005), strategic analysis is concerned with understanding the relationship between the different forces affecting the organization and its choice of strategies. For the organization, business environment is what gives their survival. In order to understand the complexity in the outside world, organizations have to analyze their external environment. Besides, internal strategic capabilities are also important for organizations. It focuses on unique capabilities for each organization that can be difficult to copy by others. Therefore, there are two main forces affecting an organization: external business environment and internal strategic capability. In this essay, I intend to find out