Strategic Performance Management and Situational Analysis Report

This report provides a comprehensive analysis of strategic performance management and situational analysis, focusing on the case of Terra Mauricio LTD. The introduction defines performance management as a collaborative process between employees and managers to plan, monitor, and analyze employee contributions. The main body delves into strategic performance management, highlighting frameworks and indicators that support strategy formulation, employee development, and problem-solving. It explores strategies like monitoring employee performance, providing feedback, and offering training. The report then examines situational analysis, including SWOT and PESTLE analyses to identify internal and external factors affecting the company's performance. The SWOT analysis assesses strengths, weaknesses, opportunities, and threats. The PESTLE analysis evaluates political, economic, social, technological, legal, and environmental factors relevant to Terra Mauricio LTD's operations in the cane growing, milling, bottling, and retailing of alcohol products, as well as electricity production from coal. The conclusion summarizes the importance of situational analysis in enhancing performance and managing external advantages, emphasizing the utility of the SWOT and PESTLE models in strategic planning. The report utilizes several academic references to support its findings.

Performance
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Strategic performance management............................................................................................1
Situational analysis......................................................................................................................2
PESTLE analysis model..............................................................................................................2
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Performance management refers a process in which employees and managers collaborate
in order to make an effective plan, monitor in order to analysing contribution of employees and
their performance (Lakew, 2019). This study is going to show importance of strategic
performance management as well as situational analysis. It includes SWOT and PERSTLE
analysis which allows company in identifying impacts of business environmental factors on its
performance.
MAIN BODY
Strategic performance management
Strategic performance management is one of the main key of the success of an
organization as it includes: frameworks and indicators which can allow Terra Mauricio LTD,
largest companies listed on stock exchange in formulation of strategies. It can also makes its
employees able to gain strategic insight and develop themselves in a manner which can allow
them to solve any type of problem and take competitive advantages. There are several strategies
by which this company can mange performance of its employees and make them able to support
company in accomplishing their goals such as:
Monitoring employees’ performance: Measuring effectiveness of performance of employees is
one of the main step by which company can manage performance. With the help of effective key
performance indicators, company can measure performance of employees. It can allow them in
making performance appraisal easy and motivating employees by providing them rewards on the
basis of performance (Adler, 2018).
Feedback to employees: For an effective performance management, it is important for
employers to improve performance of employees and it can happen when employees know their
actual position in the company. With the help of feedback, employers can make all employees
aware about their performance and accordingly they can motivate them to improve.
Training to them: Training can help employees in strengthening their skills and knowledge
which can help them out in improving performance. By making an effective use of performance
appraisal and testing employees after training, employers can manage performance (Baird,
2017).
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Situational analysis
An organization is made up of business environment which includes some internal and
external factors. All these factors can affect company’s performance in both positive and in a
negative manner. So, it is important for Terra Mauricio LTD, company to analyse both factors.
With the help of SWOT analysis model, it can identify all internal factors and take advantages of
external opportunities accordingly (Adem, Çolak and Dağdeviren, 2018.).
SWOT analysis
Strengths:
 One of the main strength of this company is it makes an effective use of valuation metrics
which allows it to compare its position and overall value with others.
 It has string financial stability which also helps it out in increasing sale each year as
compare to previous year.
Weaknesses:
 One of the main weakness of this company is it lacks in innovation and creativity which
can create several problems and barriers in the path of its success.
Opportunities
 It can have growth opportunities in line with proposals and plans approved by the board
of directors.
Threats
 Increased competition is one of the main threats for this company which can take
advantages of competition.
PESTLE analysis model
It is already stated that business environment is made up of both internal and external
environment. For identifying internal environmental factors, companies make an effective use of
SWOT analysis model. On the other hand, for identifying major external environmental factors,
companies can make an effective use of PESTLE analysis model (Perera, 2017). With the help of
this model, Terra Mauricio Ltd who operates in 4 sectors and mainly specializes in cane
growing, milling, bottling and retailing of alcohol products and production of electricity of coals.
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So, with the PESTLE, it can identify current political, economic, environmental and social
factors and situations regarding to the sector in which it operates. All these factors are:
Political: In this context, it is stated that political stability of the Mauritius is an
effective as they help businessmen in developing their businesses. They do not take participation
in corruption activities. On the other hand, it is also stated that laws which country enforces in
regards to alcohol can create some problems for this company. There are several countries that
prohibit companies from selling alcohol. There is a fixed time of selling such kind of products.
So, it can be said that political factor has both positive and negative impacts on the performance
of Terra company.
Economic: Economic condition of the country in which company operates also play an
important role as it can also affect the performance of Terra to the great extent. An effective
economic condition can help company in employing skilled workforce and paying them as per
the law. It is stated that economic system of Mauritius is currently operational. The rate of GDP
growth ca has positive effects on its performance. But on the other hand, it is stated that there is a
high tax on sugar cane building and alcohol products. This high interest rates can decrease profit
margin of Terra company.
Social: It includes several factors like needs and demands of people of the country,
income status of people, lifestyle of people etc. In this context, it is stated that people of this
country are fond of sugar cane and it can be beneficial for Terra Company. By providing them
qualitative products, it can increase its sales and can also attract wider range of customers (Fozer
and et. al., 2017). It is also stated that changing lifestyle of people can also have positive affect
on it. There are several people with the age group of 18-30 who love to do party and clubbing
and by supplying packaged alcohol products it can increase sales.
Technological: In this context, it can be said that it can have both positive and negative
impacts. It is stated that there are several companies in Mauritius who sell alcohol and other
products and also specializes in building cane. They make an effective use fo technology which
is increasing competition. This intensity of competition can snatch several opportunities from
Terra. But with the help of financial stability it can invest in technological tools and can make a
strong position in the market.
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Legal: There are several rules and laws have been developed regarding employees and
food safety. As per the rules of employment, it is important for this company to not discriminate
their employees on the basis of age, gender, ethnicity and others. By following all laws like
health and safety, food standards it can take competitive advantages.
Environmental: In this context, it can be said that for building and growing cane, there
is a requirement of an effective weather condition. Weather condition is one of the main factors
which can affect performance and growing of cane. In this context, it is stated that weather
condition of Mauritius is good and effective. In addition, it can also be said tat people of this
country prefers to buy products from those companies who are committed with sustainability and
follow all environmental rules or laws (Sanjeepan, 2017). So, it is important for this company to
focus on following all environmental laws.
CONCLUSION
From the above study it has been summarized that situational analysis played a vital role
in improving performance and managing them as well. With the help of SWOT analysis model
companies identify their own strengths and weaknesses which help them out in taking
competitive and other external advantages. Further, it has also shown importance of PESTLE
model which help companies in evaluating external business environmental factors.
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REFERENCES
Books and Journals:
Adem, A., Çolak, A. and Dağdeviren, M., 2018. An integrated model using SWOT analysis and
Hesitant fuzzy linguistic term set for evaluation occupational safety risks in life cycle of
wind turbine. Safety science. 106. pp.184-190.
Adler, R.W., 2018. Strategic performance management: Accounting for organizational control.
Taylor & Francis.
Baird, K., 2017. The effectiveness of strategic performance measurement systems. International
journal of productivity and performance management.
Fozer, D. and et. al., 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS
process alternatives. Journal of cleaner production, 147, pp.75-85.
Lakew, Y., 2019. Examining Supply Chain Performace Of Selected Breweries In Ethiopia Using
Scor Model (The Case Of Bgi And Habesha Brewery SC) (Doctoral dissertation, Addis
Ababa University).
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Sanjeepan, N., 2017. Strategic Analysis and Strategic Planning for Commercial Banking (An
Analysis based a Commercial Bank operating in Sri Lanka).
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