Portfolio of 10 Questions for Organizational Analysis

This report is aimed to understand several management perspectives of a business organisation. It includes 10 questions from the question bank for organizational analysis. The introduction provides an overview of the organisations studied in each section. The questions cover topics such as exploring organisations, external analysis, internal analysis, exploring strategy, exploring quality and organizational change, and exploring performance and organizational change.

Assignment Information
Using this template submit a portfolio of 10 questions from question bank (maximum 8000
words). All your organisation analysis tools are to be included in the appendices.
Word count includes:
 Introduction
 All answered questions
 Conclusion
Word count does not include:
 Reference list
 Appendices
Portfolio requirements:
You are required to produce a portfolio of 10 answers from 15 questions. Sections
1& 6 are mandatory; sections 2, 3, 4 and 5 have optional questions.
Assignment tasks (follow very carefully and read the marking criterion 1-5):
 The use of this template is mandatory
 Introduction to include a brief summary of the organisations you will analysis
 Answer the following number of questions from each section
Section 1 Exploring Organisations Mandatory Answer all 3 questions
Section 2 External Analysis Optional Answer 1 question only
Section 3 Internal Analysis Optional Answer 3 questions only
Section 4 Exploring Strategy Optional Answer 1 question only
Section 5 Exploring quality and organisational
change
Optional Answer 1 question only
Section 6 Exploring performance and
organisational change
Mandatory Answer the one
question
 Conclude with a summary drawing together your research
 Compile a reference list of all your research sources (not included in word count)
 Include your organisations analysis tools in the appendices (not included in word count)

Individual Portfolio Answer Book
Individually Assessed Seminar Questions
Answers should be:
6000 words (maximum) for all 10 questions and introduction & conclusion
Times New Roman or Arial font
12-point text size
1.5 line spacing
Do not alter template formatting.

Portfolio Question Bank:
Section 1: Exploring Organisations (answer all three questions)
Question: What are Organisations (Answer all 7 sub-questions)
Providing real world examples discuss the following:
1. What are organisations?
2. What do organisations do?
3. What are they composed of?
4. How are organisations organised?
5. Are they all the same or are there differences?
6. If they are different in what way do they differ?
7. What are the reasons for the differences?
Question: Organisational Context
• Why is understanding the context within which an organisation operates important?
(Remember you should be using the literature to develop and support your answers)
Question:Strategic decision making and strategic frameworks Critically analyse the benefits strategic decision-makers would gain from utilising a
definitive strategic framework and following a specified strategy development and
deployment process? You are expected to provide an example(s) of a strategic framework.
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Section 2: External Analysis (answer 1 question only)
Question: PESTLE Analysis(answer all tasks)
• Critically evaluate why organisations perform PESTLE analysis?
• Carry out a PESTLE analysis of a manufacturing organisation of your choice?
• Discuss the results of your analysis and any conclusions you can make concerning the
organisations mid to long-term future.
• What trends might be useful to monitor as a performance indicator for strategic actions
the organisation might take?

• You are expected to use the PESTLE grids we used in the seminar and include in the
appendix section to support your answer.
Question: Porter’s 5 Force Analysis(answer all tasks) After a review of literature provide a brief critical overview of Porter’s Five Force model? Carry out a Porter’s Five Force analysis of amanufacturingorganisation of your choice
and record in the Appendix Section? Describe and discuss the results of your analysis including what it means to the
manufacturing organisation of your choice.
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Section 3: Internal Analysis (answer 3 questions only)
Question: McKinsey 7S Analysis Critically evaluate the McKinsey 7S model? Applying a real world example - discuss how it could be used in an organisational
change programme after a PESTLE and 5 Force Analysis had been completed?
Question:Product& Service Portfolio Analysis(answer both tasks)
Using a real world example: When considering the Boston Matrix explain what causes products and services to be
‘cash users’, ‘cash neutral’ or ‘cash generators’. Explain why an organisation might decide to keep providing a product or service long
after it has reached the decline and low return stage of the life cycle.
Question: Competitive Advantage, Porter’s Generic Strategies(answer all three tasks) Produce a table that records the features of the competitive positioning strategies of: Costa Coffee, Bang &Olufsen, Lidl and BMW. Where and why does each of these organisations fit in the Porter Generic Strategy
Model? Describe how each organisation sustains their competitive advantage.
Question: Value chain, Porter’s value chain(answer all tasks)
Select an organisation that you are familiar with.

 Critically review value chain analysis? Produce a generic value chain model for the sector/industry of your organisation and
provide a short description of each value added stage. Now produce a detailed Porter’s Value Chain of your chosen organisations clearly
identifying key ‘primary and support’ activities. Make some suggestions of how to improve the cost effectiveness of some of the value
chain ‘primary’ and ‘support’ activities.
Question: Stakeholder Analysis(answer both tasks)
Select an organisation that you are familiar with. Critically review stakeholder analysis? Using appropriate tools and techniques conduct a current and future stakeholder
analysis for the chosen organisation. (Clearly identify the tools and techniques used to
identify relevant stakeholders) Use the stakeholder analysis grids used in the seminar to record and discuss your
findings
The current analysis should identify the main stakeholders today (Early 2018), whilst the
future analysis should identify potential new and emerging stakeholders.
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Section 4: Exploring Strategy(answer 1 question only)
Question: Scenario Review
Using real world examples discuss: Critically review scenario planning as a strategic planning tool? When analysing scenarios and using them as a strategic planning tool, why, is it
beneficial for planners to rank scenarios and identify commonness in possible futures
and potential pathways?
Question: Strategic Choice and Development
Using real world examples, discuss: Critically review strategic drift and what are the issues for managers when preventing
strategic drift?
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Section 5: Exploring Quality and Organisational Change(answer 1 question only)
Question:Quality Performance and Organisational Change
Research on Quality:
• Research the academic literature to find an article or paper that describes how an
organisation uses one (or more) of the quality concepts, tools or techniques.
• Write a summary of the article or paper and critically comment on it.
Question: Quality Gurus(answer both tasks)
Quality gurus: After conducting a review of literature provide a brief summary concerning the work of
the quality gurus we discussed in the seminar (The usual Gurus such as Demming, ). Then select one of the gurus, and provide a more detailed review of their work, paying
particular attention to the relevance of their work on the quality of products and services
today and the performance of the organisations that provide these products and
services.
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Section 6: Exploring Performance and Organisational Change(answer all question
tasks)
Question: Performance Management Systems and the Balanced Score Card
After conducting a review of the academic literature concerning Performance Management
and the Balanced Score Card:
Answer the following questions and discuss the issues. What is performance management? What is the Balanced Scorecard? Why is Balance Scorecard different to traditional performance management systems?
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End of Portfolio Question Bank

Answer Template
Introduction:
This report is aimed to understand several management perspectives of a business
organisation. Section one, five and six have no organisation particularly studied.
Section two focuses on the External Analysis where the company that has been taken to
study is IKEA, IKEA is a multinational furniture manufacturing and retailing company which
was established in 1943 and is headquartered in Netherlands. The focuses on the society
and culture of the country of operation while designing the ready-to-assemble furniture
with a modern twist (Franchisor.ikea.com, 2018).
In section three the internal environments of an business organisation is studied
with the help of Nokia, the company has always been the forerunner in developing new
technologies for the consumers until the company did not have the expertise to deal with
the Smartphone market (Surowiecki, 2013). For the last part of this section the
organisation that is studied is Amazon, e-commerce giant Amazon is one of the most
successful multinational e-commerce platform. The owner of the company, Jeff Bezos was
awarded the title of the richest man in 2017.
The company that is analyzed in the fourth section is Royal Dutch Shell, this oil and
Gas company that has been established in 1907. The organisation is the seventh largest
company in the world with annual revenue of 233.6 billion USD (2016). The company has
shown immense organisation strategy and management skills. The experts who served in
the management of the company developed the process of Study; scenario management
(Shell.com, 2018).

Section 1: (Answer all 3 questions)
Question: What are Organisations
1. An organisation is defined as an endeavour of a group of people who have agreed to
work with one another in order to attain the same aim and objective. Examples of an
organisation are: government of any country is an organisation, Microsoft, NASA,
European Union etc (Shafritz et al., 2015).
2. Depending upon the goal set by the people the organisation gets its own definition, for
example a business organisation is one that works towards earning revenue, like Apple
Inc, Google Inc etc. On the other hand, United Nations is an organisation that works
towards benefit of the countries who are a member of the UN. If a group of people want to
set up a business organisation (profit or non-profit) then they have to give the organisation
an entity and register it with the government of the particular country. But if a group of
women sit together to knit sweaters for charity their organisation do not need any
registration as the process is informal. An organisation is a team effort; it is not possible for
one person to run an organisation. One individual can lead by for an organisation to
operate it requires a group of people with certain agendas and goals to fulfil (Shafritz et al.,
2015).
3. An organisation is composed of a group of individuals and operations which run the
business towards the set goal. Depending upon the scale and the type of the organisation,
the size of the composition of the organisation varies. A government is composed of
several ministries who operate in order to keep their own agenda, a business unit is
composed of several operational units which is based on the type of business (product or
service), on the other hand, an academic organisation like a college is composed of
various sections or classes of subjects that are taught in the college (Dulewicz& Higgs,
2005).
4. Organisations are usually organised with a set of strategic management plan of actions
which further helps the organisation achieve its goal. Based on the scale and type of the
organisation the process is undertaken. For example: a manufacturing business
organisation is organised according to the operational departments like administration,
finance, factory employees, human resource etc. The functions of each of the departments
are different and together the operations of the organisation run in a smooth and hassle
free manner. Another example of an organisation is a medical centre or hospital where the
departments are organised according to their specifications and specialities (Shafritz et al.,
2015).
5. Organisations all over the world are similar yet are very different form one another. Each
and every organisation has their unique identity much like every individual human being.

6. All organisations are same in terms of the definition of organisation; they are composed
of a group of people. The differences in the organisation are primarily based on the
purpose of their being set up. And the secondary differences of organisations are based
on the size and type of organisation. This makes every organisation different form one
another and have its own unique identity. The name and the composition of every
organisation is different from one another (Shafritz et al., 2015).
7. The reason for the difference is to stand out from the rest of the similar organisation.
Every organisation has its own unique name, which is the official identity of the
organisation and every organisation is different (Dulewicz& Higgs, 2005).
Question: Organisational Context
It is important to understand the context within which an organisation works because it
will provide a rational explanation for the goals and objectives of the organisation. He
helps in assessing the kind of management the organisation will require in order to reach
its goal. It can be said that there are two kinds of organisational contexts: internal and
external. Organisational context is also important to understand in order to take effective
measures and to lead the organisation towards success and growth (Dulewicz& Higgs,
2005). There are several aspects of an organisation like culture, structure, performance,
development etc. All these aspects are based on the organisational context therefore it is
important to understand the context.
Question:Strategic decision making and strategic frameworks
In order to achieve the goals that have been set by the owners or higher management
of the organisation smaller objectives are built which helps in reaching the goal. While
formulating policies and making decisions it is important to follow a strategic framework
because of the following reasons:
 It will help the management stay focused to the goal
 A strategic framework will provide a definite path for growth and expansion of the
organisation in the future
 It will guide the management to have an organised plan of action
 Working within a strategic framework also provides the management to minimise
risk and also to deal with risk in a constructive way (Teece et al., 1999).

Some of the examples of strategic framework are: stakeholders approach
(Freeman&McVea, 2001) and balanced scorecard (Kaplan& Norton, 1996) etc. Depending
upon the internal and external business environment strategic frameworks can be used.

Section 2:(Answer 1 question only)
Question: PESTLE Analysis
A business organisation operates under two environments: internal and external.
While the internal business environments are under the control of the company, the
external business environments are not. These environments are factors that heavily
impact the operations of the business and hence an organisation should always be aware
of the changing dynamics of the factors of the business environment (Yüksel, 2012).
PESTEL analysis is a tool that is used by the management of the company to formulate
policies and make decisions regarding the external business environment. It gives a
holistic approach to the environment from various angles which the management should
consider while taking any decisions for the company. PESTLE is an acronym that stands
for Political, Economic, Social, Technological, Legal and Environmental. With the help
of this analytical tool business organisations can develop strategies to eliminate or at least
to minimize negative effects of these factors. PESTEL analysis of an organisation can help
the management understand the opportunities of the company which can help in
strengthening the competitive advantage of the business and gain an edge over the
competition in the market (Gupta, 2013).
In this report the PESTLE analysis of IKEA is going to be carried out:
Political: As a multinational organisation IKEA operates in more than 41 countries. The
company has to keep up with the government policies and political scenario f each nation
in order to carry out the business in the region smoothly. The revenue of the organisation
is directly dependent on the political scenario of the market. A number of political factors
such as government attitude towards the organisation, politicalstrength, the intensity of
bureaucracy, level of corruption, home market lobbying and import limitations in markets
etc can impact the operations of the business.
In a country which is politically instable a furniture manufacturing company have chances
of running at a loss as the trade policies of the government may not be favorable and can
also lead to supply chain disruption (Jonsson& Foss, 2011).
Economic: The situation of the economy in which the organisation operates impacts the
chances of earning profit in the country. The condition of the world economy also impacts
the business, for example: during the time of recession many companies faced several
economic issues, as the purchasing power of the people had reduced and hence there
was no scope for business. The economic trends in the country as well as the taxation
policies of the government effect the business operation. IKEA maintains a price list of the

furniture based on the idea of affordability of the target market of the country. The
economic condition of a market is also an important as it directly impacts the pricing
decisions taken by the company in particular country.
Social: As the company operates in a lot of countries it is important to understand the
virtues and principles of the ethics in the country while conducting business operation.
Previously IKEA has been under the radar for communications issue; the company has
immediately recognized the mistake and has formally apologized. Social trends and
culture has an impact on the purchasing habits on the people, for example furniture that is
used in traditional Indian houses will not be found in a traditional Russian household. The
company focuses on the preferences and choice of the target market of a region while
designing the furniture in order to cater to the requirements of the customers of various
regions of operation (Jonsson, 2008).
Technological: Technology has enabled business organisations to reach marvellous
heights, from manufacturing to reach out to the consumers on a personal level; technology
has impacted heavily on the way IKEA operates. IKEA has launched their online retail
store for the customers; technology has also permitted in online payment or mobile
payment facilities which facilitate the company to serve the customers better. Social media
is a big promotional platform that is offered by technological advances and IKEA uses this
platform to promote the brand and business.
Legal: IKEA has to follow the rules and regulations of the country of operation, before
starting or expanding the business the company must analyze the trade laws, labor laws
etc so that the company can maintain the operational cost to the minimum. If the rules and
regulation of the country do not agree with the policies and terms of the company the
organisation should not expand in the region. For example though India is a lucrative
market, IKEA would need to produce at least 30% of its inventory in India as per the rules
of the Indian government (Koumparoulis, 2013).
Environmental: The organisation has undertaken the Triple bottom line business model
and strives for a sustainable future. The company recognizes its responsibilities towards
the people and the environment and has several corporate social responsibility (CSR)
activities. IKEA has focused on climate change, energy conservation as well as renewable
energy source.
The organisation has developed global strategies in order to survive in the
competitive international market. The design of the furniture is modern yet have traditional
and cultural touch specific to the country, which popularizes the brand. Use of technology
has made the process of customer service also easy for the organisation.

In order to monitor the performance of the company in the specific region IKEA
must pay attention to the sales volume and the popularity of the brand among the target
market (Ho, 2014).

Section 3:(Answer 3 questions only)
Question: McKinsey 7S Analysis
The internal business environment is under the control of the organisation, the
company can manipulate the impact of the factors of the environment in order to achieve
strength and advantage over the competitors in the market. The business organisations
always strive to use the opportunities and the strength of the in order to overcome the
weakness and the threats. The McKinsey 7-S framework was developed by Tom Peters
and Robert Waterman during the 1980s. These people worked as consultants with the
McKinsey & Company consulting firm. The 7S model is an effective management tool that
analyses the internal business environment factors while making policies and decisions of
the company. Effectiveness and efficiency of the internal business organisation can be
analyzed with the help of this framework (Singh, 2013).
The 7S in this diagnostic model refer to the seven elements or factors that are present in
the internal business environment that begin with the letter of the alphabet ‘S’. In order to
be successful in the business, the organisation has to align these factors. The element in
his model has been divided in two sections Hard and Soft (Chong &Preece 2014).
Hard elements are: Strategy, Structure and System these factors are easier to recognize
and define hence the management can directly control them.
 Strategy: is the process by which an organisation plans the course of action in
order to reach its goal. But in this model strategy is said to good if it is aligned with
the other factors of this framework.
 Structure: The way an organisation composition is segmented and divided
according to the operations of the business is the organisational structure. It
represents the accountability of the organisation and its operations.
 Systems: this is the process and the procedures that are used by an organisation
in order to conduct the operations of the business (Ravanfar, 2015).
Soft elements are difficult to analyze and understand ad define due to their nature of
existence:
 Skills: the capabilities and the expertise of that the company have in terms of
human resource are the skills of the organization, a company must focus on the
strength and help the people to learn and develop their skills,
 Staff: Recruitment, training, motivation and reward are some of the factors
associated with the Human resource of the organisation.

 Style: This is the way in which the management of the organisation leads the
people towards the collective goal. The leadership style that is incorporated by the
management.
 Shared Values: This element forms the fundaments of the framework, they are the
values and principles that help develop guidelines for the people associated with
the organisation. This helps the company from an image (Ravanfar, 2015).
Nokia is a company that is going through a change and the changes can be
incorporated with the help of these factors, for example: After the company has been
taken over by Microsoft there is a change in the organisation structure as well as in the
style of the management, to keep up with the technological advances the skills of the R&D
of the company has to evolve in order to compete in the market (Singh, 2013).
Question:Competitive Advantage, Porter’s Generic Strategies
In the book Competitive Advantage: Creating and Sustaining Superior Performance,
Michael Porter explains the three ways in which a company can gain competitive
advantage over the competition in the market. Competitors pose the biggest threat to any
organisation and hence companies are in constant look out for strategies which will help
the brand get an edge over the competitors. Cost leadership, differentiation and focus are
the three methods that are explained by Porter (Tanwar, 2013).
Company competitive positioning strategies
Costa Coffee The company claims to sell the best Italian
coffee. They call themselves as Italian
coffee masters
Bang &Olufsen This company operates in the technology
industry and targets a niche market, the
company positions itself as a high-end;
luxury item which adorns with elegant
designs to match up with the decorations
of elaborate interiors
Lidl This German company is a chain of super
market that positions itself as the best
quality with the most affordable price.
BMW This car manufacturing company positions
itself as an organisation that is constantly

in pursuit to outdo itself in terms of
technology, quality and customer service.
Costa Coffee fits in the differentiation segment of the porter’s generic framework,
the company claims to be selling the best authentic Italian coffee, which makes it different
from other competitors like Starbucks. This makes a simple product like coffee attractive
and interesting as Italian coffee is considered to be high quality and best in taste the
organisation uses this aspect to be highlighted as this is what makes the organisation
stand out of the crowd from the competition . One of the most important aspects of
undertaking such a strategy is that the company has to continuously provide the
customers with high-quality product and services or else the image can be used against
the company and the company may have to face bad reputation. With a strong supply
chain and customer service along with a range of goodwill in the industry the company
continues to maintain its position (Teeratansirikool et al. 2013).
Bang &Olufsen on the other hand uses the cost focus as the competitive advantage
strategy; the company targets a niche market for gaining competitive advantage. The
company used best technology, elegant designs and captivating performance. The
organisation invests a lot of the revenue in the research and development department
hence mainatianing the position with the catering the niche market. The company can also
change target market to a younger audience in order to broader the horizon (D. Banker et
al., 2014).
On the other hand, Lidl uses cost leadership strategy in order to maintain the
position in the market. They claim to provide the consumers with the best grocery products
at the most affordable price. The company aims to increase the market by lowering the
prices of the products, while still making a reasonable profit on each sale because of the
reduced costs. The company has a large turnover and a chain of stores which enables
them to stock items and sell them at a low price (Wicker et al., 2015).
BMW uses the differentiation focus strategy in order to gain competitive advantage.
It ensures that the product and service that they provide their customers are of the best
quality and the company is continuously evolving its technology in order to meet the
requirements of the customers. Providing the customers with best services is the strategy
used by the company to ensure differentiation focus (D. Banker et al., 2014).

Question: Stakeholder Analysis
Stakeholders are people or a group of people who are directly or indirectly
impacted by the operations of an organisation. Stakeholders can be segmented in two
parts: internal and external. Internal stakeholders are the people who are directly involved
with the operations of the business like the employees, owners and the management of
the organisation. On the other hand, the external shareholders are the ones who are not
directly impacted by the operations of the business like customers, shareholders,
government, suppliers, creditors and the society (Varvasovszky & Brugha, 2000).
Organisations have to decide upon the priorities while developing policies
and making decisions of the business, shareholder analysis helps the organisation
priorities the group of the people who are the most important in the strategic management
of the business. With the help of the shareholder analysis framework the company can
collect information which can be analyzed to decide whose interests should be given
importance when formulating and incorporating business strategies and policies
(Varvasovszky & Brugha, 2000).
Amazon is a company that has established itself as a forerunner in the
internet based, e-commerce industry. The stakeholder analysis of the company is as
follows

Meet their needs
Government
Shareholders
Key players
Board of directors
Customers
Least important
Strategic partners
Show consideration
Employees
Suppliers
Retailers
Power
Influence
Figure: Current stakeholder analysis of Amazon
Source: Author’s creation
The organization’s owner has repeatedly emphasized on the customer centric
approach that the company has towards the business operation. Jeff Bezos has
mentioned that the company focuses on the need and requirement of the customers
before developing a policy or taking any decisions. Over the years the organisation has
come up with several e-commerce services that serve various target markets but the
company remains true to the commitment they have towards the customers. Therefore it
can be said that the customers are considered to the most important stakeholder of the
company as all the policies and decisions are made kept in mind the need and
requirement of the consumers. The board of directors consists of the owner and the high
management and they are also in the key player category as they are the people who are
mostly impacted with the profit or loss of the company (Olander, 2007).
In the future the company can add the employees in the key players list as the
company has a good record of lower rate of employee turnover, the company ensures that

the people who work for the company have their interests aligned with that of the objective
of the company. The organisation focuses on the skill development and work-life balance
of the employees so that the people are also on the other hand remain committed to the
company.

Section4: (Answer 1 question only)
Question: Scenario Review
Business environments are continuously growing complex with the changing
dynamics in the industry and the market. According to Ameret al. (2013), Scenario
planning encourages strategic planning and organisation that helps in minimizing the risk
and overcoming the limitations of the company. There are several strategic planning and
management tools that can be implemented by the management scenario planning is an
instrument that has its unique feature as it considers a wide range of possibilities and
provides in-depth details of the situation. Scenarios are regarded as one of the most
valuable instruments at the disposal that helps to create for probable opportunities and
scope for the organisation. Scenario planning is a structure process of the company to
think and decide for its future.
As stated by Schoemaker et al. (2013), in the process of scenario planning facts
and perception go hand in hand to develop a balance in between the two aspects in order
to ensure that the future of the company is secure and progressive. The process starts
with the perception of the management regarding the changes that are going to take place
in the external business environment and how these changes might impact a particular
issue. This helps the management to list a bunch of aspects that will be impacted heavily
or uncertainly, these aspects further provides a base to the management to develop a
case for the future. Economics, psychology, politics and demographics are some of the
factors that play a key role in scenario planning. The aim in scenario planning is to draft
the restrictions of the organisation rather than talk about all the plausible outcomes. The
idea of the process is to confront the management’s perspective regarding several future
narratives before defining and constructing the problemssystematically (Schoemaker et al.,
2013).
Some of the advantages of the process are:
 It helps the company recognize its opportunities and scope ahead so that these can
be utilized to overcome a potential risk or threat in the industry
 It helps the company to allocate the resources at disposal better so that in the future
these resources can yield better performance and can play more efficient roles in
achieving the goal of the organisation
 The most important advantage of implementing this process is reducing the level of
risk associated with the process.
Limitations of Scenario planning:
 It is a time consuming process as the process of prediction takes a lot analysis and
understanding which takes time.

 In case of unforeseen circumstances such as natural disaster or economic
depression the plan may have to be redesigned as the predictions may not be
accurate because of the irregularities (Stewart et al., 2013).
Since the early 1970s Royal Dutch Shell has been implementing the process to
predict the future of their business and the services that the company has to offer. As the
organisation operates under the oil and gas industry the company has to keep up with the
ever changing dynamics of the business environment, therefore the company has been
popular for using this method of strategic management. Pierre Wack developed the
method for the company and had been leading the scenario management division of the
organisation. The process has helped the company to overcome some of the most difficult
times of the oil and gas industry such as the 1973 energy crisis, the more rigorous price
shock of 1979, the fall down of the oil market in 1986 etc. The oil and gas industry has
always been under criticism for the impact the operations of the business have on the
environment and the increasing pressure on companies to address environmental and
social problems has also been dealt with the help of scenario planning strategies. Shell
has a separate scenario management department where people analyze the trends of the
business and develop plans for the future. The organisation has not only developed
organisational strategies it has also developed many corporate social responsibility
policies as well to keep up with the impact the company has on the environment and the
society (Shell.com, 2018).
Thus it can be concluded form the above discussion that with the help of future
prediction of the external business environmental factors and analyzing the predictions
with facts, business organisations can develop strategic management plans for the future
of the company. It is a process that will not only provide the company an idea regarding
the future it will also help the organisation to grow and expand and work towards the goals
and objectives set by the management. It is a time consuming process as the strategies
require a holistic approach from the perspective of future progress as it prepares the
company for uncertain situations. With the rapidly changing dynamics of the internal
business market this process has gained more and more popularity among the corporate.

Section 5: (Answer 1 question only)
Section 5: Exploring Quality and Organisational Change
The ideas and concepts of quality management can be applied to any type of
business organisation of all types and sizes. As stated by Jiménez-Jiménez et al., (2015),
quality means in business is to have the best and improved performance. In order to
maintain the quality of the organisational change, there are mainly three components to
follow, quality control, quality assurance and quality improvement. In the article
namedTotal quality management, corporate social responsibility and performance in
the hotel industry, by Benavides-Velasco and others, they commented about Total
Quality Management and Corporate Social responsibility in the hotel sector. In a hospitality
organisation, Total Quality Management (TQM) is a set of practices gathered in a place
throughout all the departments in order to ensure that the hospitality sector can meet the
guests' requirements. Through quality management, an organisation always tries to
exceed the customers' needs and it wants to bring a good change. TQM is one such tool
or concept of quality management and it focuses on process control and measurement as
it is a way of continuous improvement. TQM is associated with the primary elements like
graphs, charts, tools that help the organisation to set up the programme of management
quality (Goetsch& Davis, 2014). TQM has its foundation of activities like meeting the
requirement of the customers, reducing the improvement of cycle times, reducing the
products and service costs, line management ownership, recognition and celebration,
focus on processes, specific corporation and improvement of teams. Within a hospitality
sector, TQM has a few principles such as Plan, Do, Check and Act. The plan is associated
with drive and direct focus on the work process, Do stage is deploying the work to
participates, Check is associated with reviewing the concept and Act is the way of
recognising and communicates all processes (Allen&Kilmann, 2015). Top management of
the hospitality sector learns to commit to quality management process as an organisation
takes TQM is one of the strategies of the organisation. The hospitality organisation
assesses the culture of the workplace and it identifies the principles and core values. The
hospitality sector tries to identify the demands of the customers and they also align the
services to meet the demands (Oakland, 2014). TQM strives for systematic measurement
and it also focuses on continuous improvement process. TQM helps to improve the team
of the staffs and it helps to improve the cross-functional process of management. TQM
improves, maintain and attain the standards of a workplace. In case of the hospitality
organisation, it makes the relationship with suppliers' partnership. It has a service
relationship with internal customers and TQM never compromises with quality.
Management of hospitality organisation first takes the commitment from the staffs and the

management also focuses on quality of improvement of culture. It tries to focus on
improving the co-operation process of the employees. The management of the
organisation tries to focus on customers' requirements and effective control is laid down
(Acock, 2013). In addition, if the organisation has not been sceptical about improving the
operating system, the management can focus on leadership system to bring change in
organisational quality. TQM can improve in three major mechanisms, first one is about
preventing mistakes, detection of early prevention and mistakes must not recur.
In the article of Total Quality Management and Corporate Social Responsibility,
authors tried to create a relationship between these two independent variables to show the
performance changes in the hotel industry. These two variables help the hospitality sector
to generate the sustainable competitive advantage. This article is based on primary data
gathered from 141 Spanish hotels. Quality in the hospitality sector is one of the key factors
to gain the competitive advantage and it can guarantee profitability, productivity and
customer loyalty. On the other side, the development of CSR poses benefits to the
organisation on economic, environmental and social factors. This article mainly focuses on
the impact of TQM on the stakeholders of the hospitality sector to find out the result on
them, mostly based on leadership, strategy, partnership, employees, resources and
services as well as products. According to Benavides-Velasco, Quintana-
García&Marchante-Lara (2014), organisations try to expand the scope and decision-
making process beyond the several consequences of the external and internal factors to
have the sustainable wealth. This study brings out the fact that TQM and CSR are
corporate strategies to increase the value of the organisation. This article discusses that
the CSR and TQM have a positive impact on the quality of the organisation on two most
important stakeholders' customers and employees. Quality management does not have
the direct link up with society's satisfaction as it has a relationship with the organisation.
There is a growing concern of the quality management in hospitality sector apart from
mining and manufacturing sectors as it contributes the pollution and wastes. It is proved
that adaptation of the TQM approach on hospitality organisation can improve the capability
of the organisation to make benefits of the stakeholders.

Section 6: (Answer the one question)
Question: Performance Management Systems and the Balanced Score Card
Performance management is one of the duties of the human resource department
of an organisation. The way the employees of a company perform reflects the profitability
and the future success of the company. The performance of the employee depends on a
lot of factors: work environment, work culture, motivation form the leaders, commitment of
the employee towards the job etc. Efficiency and effectiveness of the skills of the
employee drives the day to day operation of the business. Depending on the nature of the
work the human resource department measures the performance based on the skills and
expertise which are required to perfume the task. Based on the measurement employees
are given bonuses, appraisals, promotions etc (Gerrish, 2016).
Performance management is a collective responsibility of both the employees and
employers to make sure that there is constant development in the jobs and responsibilities
allocated to the employees, which is essential to achieve the goals and objectives of the
organisation.
It is a strategic management system which comprises of devices and instruments
for effective management of organisational performance (De Waal, 2013). The HR
department should have a clear way of measuring the performance, feedbacks from both
the management and the employee is one of the ways companies can incorporate to
measure performance. Some of the key factors of performance management that an
organisation should keep in mind are the clarity, definition, quality of the procedure. The
process is not only advantageous for the employers to understand the efficiency of the
people it is also acts as a reality check for the employees as the result of the measurement
showcases the attributes that they are strong at which they can use to overcome the
aspects that they are week in (Bach, 2013).
According to the model of performance management the behavior of an individual
in the work place is dependent on organisational structure and situational conditions;
whereas attributes like skills and expertise build individual behavior which further leads to
objective results. Performance management provides career opportunities for the
employees as the promotional process also begins by calculating the efficiency of the
employee. Some of the tools that are used for performance management are 360 degree
feedback, benchmarking, balance score card etc.
Here are some of the advantages of performance management:
 It helps the management to set targets and motivate the people to achieve the
target

 It encourages regular performance review which further helps in recognizing the
scope of improvement.
 It helps in the detection of problem areas which might be causing operational
issues.
 It ensures better resource allocation
 The process ensures that the measurement procedure is unbiased and clear to the
employees so that they do not develop any grudges against promotions or
appraisals
 It increases awareness of production or service delivery and also increases greater
participation in policy choices in areas where performance can be measured.
 It develops accountability for the resources, power, and authority approved to
perform the assignment that is delegated (Shields et al. 2015).
Balanced scorecard: There are several instruments to manage and measure the
performance of the employees balance scorecard is one such strategic management tool
implemented by business organisations. The balance scorecard also helps in
understanding and analyzing the organization’s performance towards the achievement of
its strategic goals. It is a feedback tool and not a strategy or a quality framework (Nikolaou
&Tsalis, 2013). This process is implemented to have several outcomes:
 To attain calculated and planned goals of the organisation.
 To improve the quality of the performance with the resources at disposal.
 To eradicate the aspects that do not have any value added impact.
 To understand and align the customers’ requirement and expectation with their
experience with the product or service that is offered by the company.
 To monitor the improvement process of the organisation.
 To assess the procedure of changes.
 To maintain a consistent process of improvement and development in the
organisation to keep up with the dynamics of the industry.
 To ensure that the company has an image of credibility and reliability
(Reefke&Trocchi, 2013)
There are four perspective of a balanced scorecard: the financial performance of
the company, to what level are the customers of the company satisfied with the product or
service, internal processes( how efficient is the business in terms of using the resources)
and organisational capacity (capability of the resources in terms of knowledge, innovation
and allocation (Sainaghi et al., 2013).

Balance Scorecard is different to traditional performance management systems
because it not only measure the performance of the employees but it provides an holistic
approach towards measurement and balance of the operations of the business with the
help of other tools like six sigma and lean production etc. It provides a balance in between
how the organisation perceives itself and how the other stakeholder of the company
perceives it. It offers a balance in between the expectation and the experience (Hoque,
2014).

Conclusion:
It can be thus concluded from the above discussion is that an organisation is
basically a conglomeration of a group of people who have the same goal. An organisation
does not necessarily have to be a business enterprise it can be any group of having the
same goals and objectives. Furthermore in the assignment, the business environments in
which any business organisation operates is discussed in the section two and three, the
PESTEL analysis helps the company to understand the dynamics of the external business
environment, this is essential as they impact the organisation operation and the rate of
change in these factors are also not under the control of the company. In the third section
to understand the impact and the importance of the internal environment, McKinsey 7S
model is analysed, it highlights the importance of having all the internal factors aligned with
one another in order to attain success. This model unifies all the factors and elaborates
and emphasises on collective importance on each of these factors that make up the
internal environment. The Porter’s generic strategy is used to understand how the
companies can used their internal resources in order to gain competitive advantage as
competition is one of the major threats of an organisation. There are three ways described
by porter with the help of which an organisation can strive to gain an edge over the
competitions. Lastly as internal analysis stakeholders are studied in order understand the
priorities of a company. The fourth section deals with strategic planning and the model that
is analysed is scenario planning which uses facts and predictions to strategies for the
future. Total quality management is discussed in the fifth section; it is a holistic approach
of continuous improvement of various sections of the business operation. Lastly
performance management is the process by which a company can assess the
effectiveness and the efficiency of the resources, balance scorecard is a tool that is used
in the process but it has a more holistic approach than any other performance
management tool.

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Appendices:
Appendix 1:
Figure: Pestel Grid
Source:(Gupta, 2013)

Appendix 2:
Figure: 7s model of McKinsey
Source: (Ravanfar, 2015)

Appendix 3:
Figure: Porter’s generic strategy framework
Source: (Kim, 2004)

Appendix 4:
Figure: Stakeholder analysis (power-interest matrix)
Source: (Yang, 2014)

Appendix 5:
Figure: Scenario cone showing multiple possibilities
Source: (Amer et al. 2013)

Appendix 6:
Figure: Structure of a Balanced Scorecard
Source: (Kaplan & Norton, 1996)