Organisational Strategy: Challenges, Resources, and Competitive Environment Analysis

Organisational
Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Analyse the key challenges facing the company in the external environment in Europe...........3
Analyse the internal business situation and resources of the company in Europe......................4
Analyse the competitive environments of the company in Europe.............................................6
Strategic operations and directions could the company peruse for the future growth both in
Europe and international market.................................................................................................7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Organizational strategy refers to the set of actions which is used by organization for
achieving the organizational vision, mission and objectives for long time. With help of using
different strategies the profit, productivity and work efficiency of the organization are easily
increased. The company which is chosen for analysing the challenges faced by the organization
is Wizz air. Wizz air is a low cost career air line company and is headquartered in Hungary. The
company was established in 2003 and main aim of this company is to facilitate best services to
consumers at the time of travelling. Various challenges are described in this report which was
facing by the organization at the time of running their operational activities. This report are made
on the basis of secondary data which includes newspapers, journals, magazines and from other
sources. This report also covered on the basis of evaluating internal factors with in the
organization. This report are also prepared with help of using different methods which includes
PESTEL, SWOT, VRIO, Porters five force model and so on. This method is highly essential for
evaluate the competitor effectively.
TASK
Analyse the key challenges facing the company in the external environment in Europe
PESTEL analysis is a tool which is utilized by the organization for examining macro
external factors. These factors are highly responsible for decreasing or increasing the
productivity of organization in various aspects which are described below -
 Political – In this stage company faced various challenges in political manner (Bojadjiev,
2019). It includes government rules and regulations, political stability and taxation
system. In context to Wizz air, due to their global operational activities they faced
difficulties to manage the tax and policy system effectively. It leads to decrease the
productivity of company in political manner.
 Economical – It refers to those components which has a major impact on company's
departmental and operational functions economically (Kantabutra, 2020). It includes
organizational growth, unpredictable inflation and disposal income of consumers and so
on. In context to Wizz air, due to world wide service activities management decided to
maintain the price affordable and low. Because all customers has different income level
and with the help of this strategy of this strategy profit are easily increased.

 Social - It refers to those components which are responsible to influence the attitude,
desire and behaviour of customers (Kodama, 2019). It includes buying habits, population
growth and health consciousness. In context to Wizz air, management maintained
effective work culture in their company in the form of facilitating best service to
customers. In good work culture effective attitude are maintained by employees towards
consumers. All these elements are helpful for maintaining relations with users for long
time.
 Technological – It basically refers to those components which faced by company in form
of technology (Lestari, MUHDALIHA and Putra, 2020). It includes use of artificial
intelligence, communication systems and social media. In context to Wizz air, due to
high booking by customers in specific period management decided to use effective
payment system with help of using AI technology. In this technology payment are done
in fast manner and stress are also reduced for employees.
 Environmental – In this stage organization get affected naturally by the environment
which includes increasing pollution targets, shortage of raw materials and so on. In
context to Wizz air, management faced high difficulty in weather forecasting because in
weather forecasting equipments are not worked properly. It leads to enhance the ticket
cancellation chances of the customers which create threat for the profit of organization.
 Legal - It refers to the legal norms and government activities which affects the
organization legally and directly in their operational activities. In context to Wizz air,
management must follow the safety and advertising standards and wage system in thir
organization which was implemented by government. It leads to increase the productivity
of employees within the organization for long time.
Analyse the internal business situation and resources of the company in Europe
SWOT Analysis refers to the method or tool which is used by organization for identify
their strength, weakness, threat and opportunity which are described below -
Strength includes -
 Strong distribution management - Due to worldwide operational activities Wizz air has
the strong distribution network which leads to increase market share and profit of
organization easily.