Organizational Strategy And Leadership

Organizational Strategy And Leadership
ORGANIZATIONAL STRATEGY AND LEADERSHIP
System04116
4/1/2019
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ORGANIZATIONAL STRATEGY AND LEADERSHIP
Contents
Introduction......................................................................................................................................2
Background of an organization........................................................................................................2
Porter’s five forces analysis.............................................................................................................6
Threat of new entrants..................................................................................................................6
Bargaining power of suppliers.....................................................................................................6
Bargaining power of buyers.........................................................................................................7
Threat from substitute products...................................................................................................8
Rivalry among the existing players..............................................................................................8
SWOT analysis................................................................................................................................9
Strength........................................................................................................................................9
Weaknesses................................................................................................................................10
Opportunities..............................................................................................................................11
Threats........................................................................................................................................12
Future expectation of information technology industry................................................................12
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
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ORGANIZATIONAL STRATEGY AND LEADERSHIP
Introduction
This report discusses about where the IT industry are now in relation to the external environment
and industry structure currently facing. For this report, “Atlassian” company is chosen. This
report covers how profitable the Atlassian Company currently is and what are the factors driving
that profitability. It is also discussed how will these factors change in the future and what will be
the effects of these changes on profitability of Atlassian.
The various frameworks such as PESTEL analysis, Porters five forces analysis and SWOT
analysis is used to find the key variables within the industry and its impact on the performance
and profitability of the Atlassian. PESTEL analysis is the best method for analyzing and
evaluating the variables within external environment and the impact of these environments
within the industry. The factors, which are involved in PESTEL analysis, are political, economic,
social, technological, environmental and legal.
Another framework is Porters five forces model that is also used for situational analysis of an
Atlassian IT industry. This porters five forces model consists of fears of new entrants, supplier’s
bargaining power, buyer’s bargaining power, fear of substitute and competition. These forces
help in identifying the key factors that are most expected to have effect on the Information
Technology industry’s profitability.
It is mandatory that every company needs to do SWOT analysis to know their company and its
capabilities. The SWOT analysis of Atlassian is done for knowing the strength, weaknesses,
opportunities and threats of this company. The helps in improving the performance and achieve
goals in an efficient time with more effectiveness (Rees, 2015).
Background of an organization
Atlassian is one of a leading Australian Information Technology and software Company that
develops items for software developers, content management and project managers. It is famous
for its Jira, problem tracking application and its team collaboration, Hipchat, Bitbucket, wiki
product confluence and JIRA. It attends over 1,35,000 clients. It has their global offices in seven
countries across the world. they have 4000+ applications in their marketplace. The company also
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ORGANIZATIONAL STRATEGY AND LEADERSHIP
provides additional tools for software developers such as Fisheye, clover, crowd, bamboo, source
tree. The company conducts its business through its subsidiaries including Atlassian Pty Ltd and
Atlassian, inc.
PESTEL analysis
The analysis of PESTEL is a tactical tool to identify or evaluate an external situation of the
company. The variations in an external environment factors have direct effect on Atlassian
Corporation Plc and other players in the information technology services.
1. Political: political factor play an important role in identifying the factors, which can
affect the Atlassian corporation Plc’ effectiveness for long period in a definite market.
Atlassian corporation plc is functioning in IT and software industry in more than 12
nations and represent itself to various kinds of political system risks and political
environment. Conflict within Australia ruling liberal general coalition will increase
labor’s popularity in future of the 2019 voting that has impact on the Australian IT
industry. The government has unrestrained its corporate taxes cuts and they are extremely
improbably to be invigorated ahead of 2019 voting (Santander, 2019). The risk score in
IT industry of Australia is 1.5 moderate over the coming year that affect the IT industry.
The Atlassian corporation plc strictly analyzed the subsequent factors before coming or
capitalizing in a specific market:
 Risk of military attack in Australia
 Level of exploitation especially the regulations in technology industry
 Trade regulations and trade tariffs related to technology
 Government and intervention in industry of information technology and software
by Australia government
 Work week regulation for Australian IT industries
2. Economic: Atlassian corporation plc use nation’s economic factor for example; inflation,
growth rate and economic indicators of industry such as information technology industry
growth rate, consumer expenditure etc. to estimate the growth path of IT segment but also
that of the company. The economy of Australia is a big mixed market economy which is
not favorable for the IT sectors and affect the business operations of IT I industry. The
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