Organizational Risk Analysis and Strategy

The assignment involves analyzing organisational risk and strategy, including identifying internal and external factors that may cause risks or threats in the future. It requires a detailed examination of organisational capabilities, business innovativeness, total quality management, financial performance, social impact measurement, and stakeholder identification and analysis. The student must also consider crisis management strategies and work-level related human factors for enterprise architecture as organisational strategy.

Organisational
Strategies

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Macro environmental factors.......................................................................................................1
Industry position..........................................................................................................................2
Internal resources and capabilities...............................................................................................4
Stakeholder perspectives..............................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Organisational strategy is a sum of actions which is intended to achieve long term
objectives. Strategy is defined by plans which are required by involving in different company
levels. This report is based on Marks and Spencer, which is multinational clothing company
(Akgün and et. al., 2014). Their speciality is selling clothing products which is listed in London
stock exchange. This report is in regard with defining positive and negative aspects which came
on macro factors. Chosen organisation has described environmental factors and resources which
are relating with capabilities. Company has examined perspective of stakeholders which is lead
in organisation product. Different perspective is leading with the different situations are covered
below.
MAIN BODY
Macro environmental factors
Marks and Spencer is a British multinational company that specialises in food, clothing
and homemade products. It is listed on London Stock Exchange. It is the largest clothing retailer
in U.K. The company basically focuses on the quality of the items that it offers on the fair value.
It also accepts the return of unwanted items by giving the full cash refund, if the receipt has been
shown, no matter how long the item had been purchased.
Political factors:
The government has set rules and regulations to abide by, such as health and safety, risk
assessment and risk control. If companies do not comply with these regulations, then they will be
penalized and in some cases can be wound up. Marks and Spencer did not abide by the British
standards, thus, they were charged for neglecting health and safety regulations for their
employees. It is imperative, that the organisation should have marketing process to maintain
guidelines for determining prosperity of a product. It has a political scenario that do not have
serious threats. The tax system is being most attractive in most of developed countries with low
corporate and less taxes (Arvidson and Lyon, 2014).
Economic factors:
The UK is an open economy and it has been ranked fourth largest in the world. It is vital
to consider the economy in the long term as well as in short term. Issues such as inflation, GDP,
employment levels need to compasses the marketing plan so that strategies can be adopted and
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can adopt analytical skills. M & S is required to concentrate in fashion segment as young
generation spends most of their disposable income on clothing.
Social factors:
These factors influences the business the influence may vary country to country. Mark
and Spencer had to address various social factors such as attitudes, foreign products and services
the amount of money that can lead to population, morality and customer taste and preferences.
Taking all these factors organization need to cater the needs (Bell, Warren and Schroeder, 2014).
Technological factors:
Technologies are vital for the competitive advantage, that have major impact on the
globalization. M&S are more advanced in the use of the technology. This can be sustained that
Mark and Spencer do not have a loyalty card or the internet shopping available to them. This had
lag the technology that can be affected in a current positions.
Demographic factor:
This factor is related to the people which includes size, density, age, gender, occupation
etc. It is defined as a driving force which is connected with developing markets. Marks and
Spencer is leading in large and diverse demographics by offering opportunities and challenges in
business. They are having changing markets which is adjusted by marketing strategies. Further,
an organisation also consider certain other characteristics such as size, growth, age and gender
structure while choosing the area it will serve.
Ecological factors:
This factors is define by natural resources which are needed as inputs and affected in
marketing activities. Marks and Spencer is leading with clothing products which is concern with
environmental factors. For instance, employees of Marks and Spencer is to be aware about
world, air, water and pollution. Ecological environment is leading with renewable resources and
growing with shortage of resources. It is concern with increasing involvement in society and
implementing sustainability. Their positive impact came on consumer demands which is based
on friendly environment and having responsible product (Booth, 2015).
Industry position
Industry position is a strategic formulation which is consider by position and base
relating to competitors. This examines strategies which are related to competition and leading
with successful amounts in implementing plans. An organisation position is determine in order to
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market demands, market leaders and followers which is linked with a break down aim. Marks
and Spencer is leading with the principles and for analysing the market position of the company,
Porter's Fiver Forces is used to give details on the following elements:
Level of competition: There is always a fierce competition in retail sector. The reason
behind this extreme competition is that companies look for opportunities to diversify their
business into non-core fields, thereby adding more to the existing competition. M&S deals in
more than one segment viz. Food, apparel and household products therefore, the company is
exposed to extreme competition to survive in the market. It face competition from supermarkets
like Tesco, Asda, Sainsbury and apparel retailers such as Topshop, Zara, John Lewis etc. The
past history of marketing strategies applied by M&S shows that it has always worked its way to
sustain in the competition by providing good of high quality which is also value for money.
However, it has started to reduce the prices so that all categories of people can buy its products.
This price cutting is causing a serious risk to its brand.
Threat of substitutes: M&S has serious competition who are selling similar products
such as food and clothes. Therefore, the items of food can be substituted with the products of its
rival Waitrose, while people may find substitution of clothes in John Lewis and Peter Jones.
Apart from this, Tesco and Asda sell home-made products but at lower prices so it is a serious
threat for M&S to put more efforts to attract more and more customers.
Threat of new entrants: The threat of new entrants is low because it requires a huge
amount to invest to make the brand famous and form successful chain of stores. Further, the new
entrant should give an innovative idea to survive in the market. Companies like M&S, have
already established its business in more than one segment to capture the market and earn
customer loyalty. Therefore, without sufficient knowledge or experience of operating business in
these markets would be a barrier for new entrants. Hence, M&S has low threat of new entrants.
Bargaining power of buyers: The bargaining power of buyers is high in retail sector of
UK. It has huge number of buyers and when the number is this huge, then companies have to
make strategies, fix the prices etc. according to the demand and requirements of the customer. As
companies like Tesco, Asda, John Lewis etc. are there in the UK market that provides the
alternatives at lesser price and with good quality. Therefore, M&S, has to set the prices by
considering the willingness of customers to pay for its products and also by taking into account
the price offered by its rivals.
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Bargaining power of suppliers: The is quite low. M&S is a listed company which has
tremendous turnover and thereby, the suppliers wants to see their goods on its outlets to reach the
large customer base. Moreover, this company sells its own branded items. This means that it
buys the raw materials and not finished goods, which provides a favourable margin.
Internal resources and capabilities
Internal resources and capabilities show how effectively an organization utilise funds by
complying with standards to survive in the global competition and creating more demand for the
company. Marks and Spencer measures this value from the product performance and customer
attribution. It is a unique advantage which is considered as core competencies. They are
concerned with SWOT analysis in which company gather related information about resources
and their capabilities. Chosen organisation is representing core competencies which is based on
identifying opportunities and gap in resources. SWOT frame work is made by accepting
simplicity and power which lay developing strategy with spreading widely is define below
(Gilliland, Kotzé and van der Merwe, 2015).
Strength: Company is leading positive attributes which is gaining development in an
organisation. Marks and Spencer is exploring possibility with new efforts and gain success in
context. Excellent knowledge, education and skills define employees working ability. This
capability of employees turns with higher growth in an organisation. Marks and Spencer is
leading with best competitive advantage which impact came positively on business.
Weaknesses: The weaknesses are that, it is a common perception of people that M&S
sells its products at high price which makes them lose their interest and buy the products of its
competitors. Moreover, the financial performance of the company is not good and it depends too
much on UK markets, which make the local market vulnerable. Further, high recalls shake the
customer's confidence.
Opportunities: Marks and Spencer is leading with best opportunities for future trends and
building reputation in market. It has plans to invest in other countries for expanding its business.
Also, it has developed its website for facilitating online shopping for its customers. Apart from
this, they have plans to introduce new market segments to earn more profits. (Gourova and
Toteva, 2014).
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Threats: M&S is already facing extreme threat as its competitors are offering products at
lesser price. It is a global company, therefore, it is exposed to political threats of different
countries. Also, the government policies affect the company's operation.
Stakeholder perspectives
Perspective of stakeholder is necessary for any business which lead satisfaction. It is kind
of survey that collect valuable information which helps in improving performance. This is based
on identifying effectiveness and implementation which is addressed subsequently by employees.
Perception is required by an organisation in order to lead effectively in market operations. This
perception is determined by interest which came in business within or outside organisation.
Employee Perspective: Perceptive of an employee is define by various employees who
are working in an organisation. Their perception is leading with improving quality work and
performance towards clothing product. Marks and Spencer is providing proper training to
employees for making expert performance. They are making quality improvement which is
beneficial for product of business (Knight, 2014).
Government perspective: Government intervention is determined by their rules,
regulations, policies etc. The perspective of government is important to survive in the market by
making products in accordance standards and policies of government. M&S is making products
as per the guidelines of the government, which is making it famous and acceptable by the
customers.
Supplier perception: Supplier perspective is determined by particular relation which is
made by customer in order to find out view point of customers on product. Perception is based in
regarding with constraints product which is tangible and intangible. Collection of information in
regarding with customer is useful for an organisation which is helpful for identifying needs and
wants.
Owner perspective: Owner perspective is necessary for an organisation which is define
by how much variations are required in product. Their perception is formulated by employees in
order to make beneficial for business. An organisation is making attraction of wide range of
customers which is based on describing particular perception.
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CONCLUSION
From the above mentioned report, it is concluded that this organisation is doing good in
the UK market and has built a strong brand image. Further, it keeps collecting the required
information which may affect its business in positive and negative way on clothing and other
segments. Further, company has implemented many strategies for its sustainability in the market.
Further, to understand the market standing, methods like STP, SWOT, PESTLE etc. is used.
Along with this, there are many stakeholders that contribute to the company, and the opinions
and perceptions of various stakeholders are important for a company. Along with this, an
organization should also analyse the internal and external factors, that may cause a risk or threat
in future for the entity.
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REFERENCES
Books and Journals
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innovativeness between total quality management and financial performance.
International Journal of Production Research. 52(3). pp.888-901.
Arvidson, M. and Lyon, F., 2014. Social impact measurement and non-profit organisations:
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and Nonprofit Organizations. 25(4). pp.869-886.
Bell, E., Warren, S. and Schroeder, J. E. Eds., 2014. The Routledge companion to visual
organization. Routledge.
Booth, S. A., 2015. Crisis management strategy: Competition and change in modern enterprises.
Routledge.
Cserháti, G. and Szabó, L., 2014. The relationship between success criteria and success factors in
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Gilliland, S., Kotzé, P. and van der Merwe, A., 2015, October. Work level related human factors
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Gourova, E. and Toteva, K., 2014, April. Design of knowledge management systems. In
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(VikingPLoP)(p. 3). ACM.
Knight, J., 2014. Strategic planning for school managers. Routledge.
Lancaster, S. and Di Milia, L., 2014. Organisational support for employee learning: An
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657.
Murphy, M. E., 2014. Implementing innovation: a stakeholder competency-based approach for
BIM. Construction Innovation. 14(4). pp.433-452.
Pasquinelli, C., 2014. Branding as urban collective strategy-making: The formation of
NewcastleGateshead’s organisational identity. Urban Studies. 51(4). pp.727-743.
Su, S., Baird, K. and Schoch, H., 2015. The moderating effect of organisational life cycle stages
on the association between the interactive and diagnostic approaches to using controls
with organisational performance. Management Accounting Research. 26. pp.40-53.
Wang, W., Liu, W. and Mingers, J., 2015. A systemic method for organisational stakeholder
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Online
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