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Strategic Management Frameworks and Tools

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Added on  2020/02/24

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This assignment delves into various strategic management frameworks and tools used by organizations to formulate and implement successful strategies. It examines frameworks such as Porter's Five Forces for analyzing industry competitiveness, McKinsey's 7S for understanding organizational structure and alignment, the Balanced Scorecard for performance measurement, and more. The assignment requires students to demonstrate their understanding of these concepts and apply them to real-world business situations.

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Running head: Company Assessment- Hunt Solutions
Company Assessment: Hunt Solutions
Strategic Management Tools

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Company Assessment P a g e | 1
Abstract:
This assignment provides a complete assessment of “Hunt Solutions”, an electrical
contracting company based in Perth and operating in Western Australia, Victoria &
Queensland. The study is being conducted keeping in mind various strategic management
tools considering both micro & macro environmental forces. The complete assessment of the
company is carried out by using some tools like 7-S framework, SWOT, Porter’s 5 forces
model, balanced score card& PESTLE analysis. Some industry insights are also highlighted
to understand the market potential and the competition in the sector. Some changes are
advised for the company after analysis of the same with a structured framework, at the end of
the analysis, a detailed organizational chart is proposed, which will reduce the unnecessary
costs of the company, because of which company was bleeding to death (unnecessary
functional heads) and keeping it lean in order to focus more on the servicing and after
servicing of clients.
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Company Assessment P a g e | 2
Table of Content:
Introduction:...............................................................................................................................4
Industry Insight:......................................................................................................................4
Service offering:.....................................................................................................................5
Strategic management tools:......................................................................................................5
7-S Framework.......................................................................................................................6
Shared values......................................................................................................................7
Vision..............................................................................................................................7
Values..............................................................................................................................7
Team Work......................................................................................................................7
Integrity...........................................................................................................................7
Win-Win..........................................................................................................................7
Commitment to work......................................................................................................8
Mission................................................................................................................................8
Mission statement for Hunt solutions.............................................................................8
Strategy...............................................................................................................................8
Systems...............................................................................................................................8
Skills...................................................................................................................................8
Staff.....................................................................................................................................9
Style....................................................................................................................................9
Structure..............................................................................................................................9
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Company Assessment P a g e | 3
Functional structure.........................................................................................................9
Division/Multi-division structure....................................................................................9
Flatarchy........................................................................................................................10
Matrix structure.............................................................................................................10
SWOT Analysis:...................................................................................................................11
Strength.............................................................................................................................11
Weakness..........................................................................................................................11
Opportunities....................................................................................................................11
Threats..............................................................................................................................11
Balanced Scorecard..............................................................................................................12
Financial Perspective........................................................................................................13
Internal business perspective............................................................................................13
Learning & Growth...........................................................................................................13
Customer perspective........................................................................................................13
Balanced scorecard for Hunt solutions.............................................................................14
Porter’s 5 forces model.........................................................................................................14
Threat of new entrant........................................................................................................15
Threat of substitutes..........................................................................................................15
Bargaining power of customers........................................................................................16
Bargaining power of suppliers..........................................................................................16
Porter analysis for Hunt solutions.................................................................................16

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Threat of new entrant.................................................................................................16
Threat of substitutes..................................................................................................16
Bargaining power of suppliers...................................................................................16
Bargaining power of buyers......................................................................................17
Industrial rivalry........................................................................................................17
PESTEL Anlysis...................................................................................................................17
Political.............................................................................................................................17
Economic..........................................................................................................................18
Social................................................................................................................................18
Environmental factors.......................................................................................................18
Technological............................................................................................................18
Legal factors..............................................................................................................18
Proposed Organizational Structure.......................................................................................19
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Company Assessment P a g e | 5
Table of Figures:
Figure 1 shows services offered at Hunt solution......................................................................5
Figure 2 shows strategic management tools...............................................................................6
Figure 3 shows 7-S framework..................................................................................................7
Figure 4 shows the present organization structure...................................................................10
Figure 5 shows SWOT for Hunt solution................................................................................12
Figure 6 shows BSC for Hunt solution....................................................................................14
Figure 7 shows model of porter forces.....................................................................................15
Figure 8 shows proposed organization structure based on division (geographic)...................19
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Company Assessment P a g e | 6
Introduction:
The company here under assessment is “Hunt Solutions”. It is a West-Australian company
established in the year 2010 with the goal of bringing innovation to energy and mining
sectors. Hunt solutions gets its expertise from 45 years of experience working in the field of
High voltage asset inspection and maintenance services. It has established its reputation in the
mind-set of network owners and delivery partners within the utility and energy sector as that
of an esteemed and accredited contractor (Hunt solutions, 2017).
The service offering of the firm starts from scratch activities like scoping and design to
complex processes like construction & surveying ranging all over from Western Australia to
Victoria and Queensland, 45 years of combined Australian and international expertise, best
practices, market leading skill sets helps the company stay ahead of the curve and meet
client’s expectations & demand (Hunt solutions, 2017).
The USP of the company is providing quality, safe, environmental friendly, value-added
services to clients which is kind of no match to what competitors have been doing. The
company is ISO certified and has also been certified by renowned SAI global in 2013 (Hunt
solutions, 2017).
Industry Insight:
According to IBIS World, the electrical servicing industry has been facing challenges for
quite some time, this state however is improving owing to investment in housing &
commercial spaces providing ample space for the contracting work to notch up the growth
curve. The industry is supposed to grow at a rate of 2% until 2020 taking the revenue up to $
21.4Bn. The industry generates 70% of its revenue from repair work, maintenance and
installation activities in non-residential and residential property markets and the remaining
pie from work in industrial & engineering markets. The demand from heavy industrial &
non-building construction might decline for the time being, but at the same time contractors
working in energy, resources, telecom & telecommunications infrastructure market is going
to expand. Thus making the industry space look attractive. Another insight, the demand for
electricians, service engineers have increased exponentially owing to high tech electronics
being deployed on mines & subsidiary operations (ECD, 2017)

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Company Assessment P a g e | 7
Service offering:
Figure 1 shows services offered at Hunt solution
Strategic management tools:
The world is changing and so are the conditions of companies across the world, more the
uncertainty in economic condition of any country same is the fate of companies (Jacob,
2015). In order to keep a check on the progress, its company’s life cycle, growth trajectory,
companies keeps on assessing themselves on various parameters to stay ahead of the race and
be a step ahead of any economic downturn. In order to do so, companies keep on expanding
into different markets, work on their product features, distribution strategy, make the product
more appealing to the customers, work on the pricing strategy to lure more customers,
designing, customer engagement and so on. Therefore, managers/members/executives of the
companies keep looking for suitable tools to analyze the internal & external cost of
product/services, product costs, get market information, analyzing customers preferences his
needs and wishes, predict and assess organization’s performance as well to ensure
competitive advantage in production and servicing activities (Jacob, 2015).
High voltage utility maintenance
Asset maintenance programs
Power line construction
Thermographic & corona surveys
Transmission maintenance
Equipment testing & tagging
Streetlight maintenance
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Company Assessment P a g e | 8
Let’s take few definitions of strategic management from renowned authors to enhance
understanding of the topic before delving into the actual tools:
Strategic management is the process of managing the pursuit of organizational mission at the
same time keeping a track of its relationship to its market environment (Higgins & Vincze,
1993)
Strategic management is the continuous learning process which helps or attempts to fit the
organization with the changing environment in the most advantageous way (Digman, 1997).
Strategic management can be defined as a set of decisions & actions resulting in the
formulation & implementation of strategies designed to achieve the end objectives of the
organization (Pearce & Robinson, 2004).
This shows the importance of strategic management for the company, all the decisions
company takes, or the strategy it builds for sustainable business model forms the core of
strategic management.
Figure 2 shows strategic management tools (Jarzabkowski & Kaplan, 2015)
Using some of these tools complete assessment of the company will be done.
7S
Framework SWOT PESTEL Porters
forces
Balanced
scorecard
Value chain
analysis
Cost benefit
analysis
Critical
success
factors
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Company Assessment P a g e | 9
7-S Framework
These days the complexities of organization are making it really difficult to have an
understanding of how one company is greater than the other or bigger and so on; hence 7-S
framework is one of the best tools which help in understanding the organization. The
framework can be broken down into 7 unique elements.
Figure 3 shows 7-S framework (Singh, 2013)
Shared values
As the name indicates, shared values are all about VMV (value, mission, vision) of the
company. The company thrives and grows onto the shared values, the legacy is built on these
values and are carried forward generation and generation
They are also called as superordinate goals as they are the core values of the company and are
deeply rooted in the corporate culture and ethic of the company (Choo, 2013)
In the same light we can see shared values of Hunt solutions:

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Company Assessment P a g e | 10
Vision: We work hard every day, every hour to become world’s most respected contractual
service provider.
Values: These are principles or beliefs that guide any organization behavior towards
fulfilment. They are paramount beliefs the companies breathe in every day. (Significance of
values, 2017)
Team Work- We at Hunt solution believe in team work and belief that no work is impossible
if the entire team is putting in collective efforts.
Integrity: We at uphold solutions are believe in high standards of integrity in all our actions.
Win-Win: We create an environment of win-win for every service we provide, we truly
believe in creating synergies and customer satisfaction for our clients.
Commitment to work: We at hunt solution are constantly thriving to bring in best practices
for our clients, we hire some of the best talent in the industry who are always willing to put in
extra amounts of hard work to go that extra mile.
Mission: A company’s mission statement basically defines its culture, values, ethics, and
fundamental goals and how we apply them to individual stakeholders. It also reveals what a
company does, why it does it and how it does. Company’s stakeholders –Boards members,
employees, shareholders, distributors, community, etc. use this statement to align their goals
with that of the company (Breznik, Dermol & Sirca, 2014)
Mission statement for Hunt solutions
We strongly value and insist on providing quality, safe, environmental friendly, value added
focussed services strongly aimed at meeting client’s need & want
Strategy: It can be understood as actions a company plans to adjust itself according to the
external environment (The manager). To expand further, as explained in the earlier
paragraphs, companies are functioning in areas of utmost uncertainty, so they have to keep on
reworking and re-looking at their strategies to stay ahead of the curve and avoid losses (Eden
& Ackermann, 2013)
Strategy that hunt solution is employing is about being customer centric and provide round
the clock solution to its partners. This would though require hiring a few additional hands,
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Company Assessment P a g e | 11
but the opportunity cost attached to that is immeasurable. We are also working on designing a
standard set of service protocols for every business enquiry we get in, this will help us in
focussing on the SLA (Service level agreements).
Systems: In organizations, the word systems can also be interchangeably used as information
systems, it is predominantly what all tools the managers or employees use or have to attend to
formal or informal in order to stay ahead of the competition and so on. The 7-S notion of
systems part of information systems also include other systems such as strategic planning,
capital budgeting, recruitment, financial planning & controlling, performance appraisal etc.
(Kral & Kralova, 2016)
Application of Systems in hunt solutions:
Service delivery: SLA of 24 hours as soon as the query drops in
Capacity building
Flexibility in the system
Creating database and smart information systems
Controlling systems to have an information on new technological changes.
Skills: According to 7-S framework, skills mean distinctive capabilities or dominating
attributes a company has which distinguishes it from its competitors or the entire ecosystem.
It can also be understood as skills the organization has and it has synergized it into something
extraordinary that sets the firm completely apart from other players in the ecosystem, because
of which the company is able to do well exceedingly (Alshaher, 2013)
At hunt solutions the gathered knowledge and expertise of 45 years of working in the field of
asset management and maintenance services as put us apart in the heads of our customers.
We have some of the most knowledgeable players in the industry who have earned a
reputation for themselves working with us, it sets the tone of our skills and thus we are
assumed in a different headspace in comparison to our competitors.
Staff: Good to know information, staff is nothing but just synonymous to “People”. It was
termed staff to fit into the 7-S framework and thus it has to do with the motivation, attitudes,
and aspirations of the people working with the company.
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Company Assessment P a g e | 12
At hunt solution the Staff is highly skilled with domain expertise and extremely customer
centric. We at hunt solution only employs staff who are looking for a long term commitment
towards the company and are supremely motivated. In my opinion staff is one of the most
important characteristic of any organization, can also be called as preamble to the company.
Style: Style derives its meaning from how the organization is, every organization has a very
distinctive style, some are individual contributor role types, and others are teamwork and so
on. So it defines how the organization wants to lead its business process and the teams to be.
In case of hunt solution the style is more of a team based rather than individual contributor
role, the reason of which can be attributed to its industry space in the service industry, we at
hunt solution become contractors for our partners and have to provide them with round the
clock services in terms of asset maintenance and so the collective team work makes a better
sense rather than working independently.
Structure: Organization structure basically refers to how information flows in the system, it
outlines how work and responsibilities are delegated and controlled at various levels. Each
company has a different organizational structure suiting its business requirement and
functionalities. It also defines how a company is shaped. And throws light on the
responsibilities of company employees. It is a visual depiction of how a company is shaped
and how it can move in the best possible way forward to achieve its objectives (Feurer &
Chaharbaghi, 1997). There are primarily four types of structures which are followed namely:
Functional structure: This is one of the most common structures for small to mid-sized
companies, it breaks down the hierarchy on the basis of functions, keeping function of the
workforce at the core of heart. Dividing the department on the basis of sales, marketing,
operations, technology, etc. is one example of functional structure type.
Division/Multi-division structure: This is commonly used by large scale companies who are
working in various divisions with individual P& L heads taking control of entire business
systems and processes. This type of structure does not have a single president controlling all
the activities rather they have one president of its individual division.
Flatarchy: It’s a new concept, which is followed by the new age companies who do not
believe in the hierarchy system and thus follows Flatarchy. It gives its employees an

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Company Assessment P a g e | 13
autonomy to work and has a flat chain of command, it also helps in faster implementation and
execution of an assigned task.
Matrix structure: As the name says it, it’s the most confusing structure of all. Employees
working on matrix structure are prone to have work responsibilities in more than one business
function, as the employees are divided among different managers, division or department
(Guadalupe, Li & Wulf, 2013)
Present organizational structure of Hunt solution:
Figure 4 showing the present organization structure
It is clearly visible from the above structure that Hunt solution follows Functional structure
hierarchial system, with different functional heads like T&D, Finance, Marketing & sales,
HR & service delivery. Each team has its own segmented department under the head
followed by individual teams. This structure in my opinion is not well suited for Hunt
solution, I would recommend more of a divisional structure as the company works in
different divisions and has specialized in those business functions, so having a separate
division for every business vertical would make more sense to the profitability and would
also make the organization lean and get rid of unnecessary functions which are not so
relevant to our industry. This recommendation is keeping in the mind the Structure of an
CEO
Marketing &
Sales Manager
Sales Customer
services
Service delivery
Manager
Line managers Line supervisors
HR
Recruitment
specialist Admin
T&D Manager
Design Development
Finance
Manager
Accounting Purchase
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Company Assessment P a g e | 14
organization from 7S framework, wherein the importance of structure in the organization is
emphasized, keeping the same in mind and looking at present company structure and
assessing the same on structure framework, a leaner and a geographical divisional structure
will be more beneficial for the company
SWOT Analysis:
SWOT analysis is a fundamental tool which is used by almost every organization to
understand its strength and weakness and also helps them in identifying what opportunities
lay for them with keeping the threats in mind as well. Any company which uses SWOT keeps
on doing this exercise on an annual basis, as that is what would give them a fair assessment
of the company from time to time. Working on the SWOT also in turn helps them to focus on
the weakness and turn them into strength, and side by side explore the opportunity in store for
them and keep avoiding the threats by using preventive measures. This tool was found by
Albert S. Humphrey in the year 1960 and was used as the first tool for strategy planning &
implementation (Kotler, Berger & Bickhoff, 2016)
Additional info, SWOT analysis can also be called as an Internal external analysis tool, the
reason being strength and weakness is internal to the company while opportunity and threats
are external hence the reasoning behind an alternate name IE matrix (Fazeli & Taherikia,
2016)
Let’s see what individual factors can be brought onto the table while doing SWOT analysis:
Strength
Advantage the company has
USP of the company
What does the market perceive our strength as
What is that one thing/many things we do better than our competitors
Weakness
What are the pain points for the clients
What is the reason for drop in sales
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Company Assessment P a g e | 15
How are competitors are seeing as our weakness
Opportunities
What are the recent trends in the industry
What new areas or market are coming up
Changes in government policy related to our work line
Changes in social patterns, lifestyles, demographics etc.
What are some of the good opportunities to spot on
Potential of a new product or services
Threats
Roadblocks the company is facing
Change in technology/ making the existing technology go out of the business
What are the competitors doing
Any weakness be a threat to the firm.
Any unstable political or economic condition
Let’s do the SWOT for Hunt solutions
Figure 5 showing SWOT for Hunt solution
Strength
45 years of experience at hand
Round the clock service provider
Extremely well managed service partners
Weakness
Greater turnaround time
Attrition leading to further employee demotivation
Limited market space
Opportunity
BUsiness sector expanding
Local govt focussing on the local players rather than MNC
Faster than the competitors in adopting new tech
Threat
Electrical companie building their own servicing teams
Growing competiotn is leading to reduction in the business pie

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Balanced Scorecard: The balanced scorecard was conceptualized and made popular by Dr
Robert Kaplan & David Norton in the early 90’s and since then the firms around the globe
have been using this strategic management tool to consistently improve their internal business
functions and trying to control the business outcomes. It is used to measure and provide
important feedback to the organizations (Gibbons & Kaplan, 2015) .It is used by the
organization to:
Communicate what organization are trying to establish
Keep in alignment day to day work with the strategy or goals/objectives with the
strategy
Monitor and measure progress towards strategic targets
Prioritize projects, products and services and keep them in alignment with the strategy
of the firm.
It also answers 4 questions which can then be linked to the pillars of the balanced scorecard:
How customers/clients see the firm-Customer perspective
How can we improve/excel at what we have been doing-Internal perspective
How can we keep on improving and create and add value to the firm-Innovation &
learning perspective
How do our shareholders look at us- Financial perspective
Let’s see each of them individually; later we will apply to Hunt solutions:
Financial Perspective:
As the word suggests, it ultimately measures the return it gives to its shareholders. In any
business the key factor is managing finance and in order to do so, timely and accurate
financial data is must and should do a proper analysis. The management decides to look into
our books before taking any strategic step and hence financial perspective is one of the most
pivotal perspective of the balanced scorecard. It helps in identifying what the return on
capital employed, cash flow, profitability of the project, forecasting projected figures, etc.
(Sainaghi, Philips & Corti, 2013)
Internal business perspective:
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Company Assessment P a g e | 17
It has to do with how fast our internal business processes are, how quickly a consumer
concern is addressed and a problem at hand is tackled. It helps us in identifying the loopholes
in our existing process, finding lacunae in our SLA (Service level agreements) and so on.
Internal business perspective can be directly co-related to our business success, better our
process the chances of success are higher and so on. In order to satisfy the insatiate needs and
demands of our stakeholders the process we apply becomes a part of internal business process
(Asgari & Darestani, 2017)
Learning & Growth:
It is the most valuable component in balanced scorecard, it encompasses what values,
cultures, skills and capabilities, our organization should have in order to excel what we have
been doing. The training imparted, the leadership, succession planning, T&D everything
encompasses under learning and growth. Firms should not take learning and growth as an
additional cost, but on the contrary, seek measures to work towards this parameter, as this is
what in the end keep our clients happy and satisfied (Valmohammadi & Ahmadi, 2015)
Customer perspective:
“Customer is the king”, it’s the most prevalent statement which is used in any sales or service
organization. Companies keep changing the business strategies and process around the
customer choice, his likes and dislikes, to make services/products according to his taste and
preferences. The direct correlation between customer and finance makes this perspective all
the more important. The customer lifecycle management thus becomes really important as
they do have a good share of voice and are the biggest promoters of any business (Keyes,
2016)
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Company Assessment P a g e | 18
Balanced scorecard for Hunt solutions:
Objective Goals Indicators Initiatives
Financial
Perspective
Increase in
Profitability
ROI
Increase the
profitability
by 20%
Financial
statements &
books of
accounts
Repeat
business
Increase in the
contractual
tenure
Customer
Perspective
To have delighted
customers
Decrease the
customer
escalation to
10% of the
overall
Grievance
handling
Customer
dropouts
Customer
feedback
24 hour
support
Supervision by
a senior staff
Sign off on the
service
feedback form
Internal
business
Perspective
To reduce TAT
and SLA
Reduce the
time to
address
customer
issue to 24
hours instead
of earlier 48
hours
Analysis if
customer
record from
the CRM
Redesign the Service
level agreement and a
service blueprint for
the entire business
process
Learning & Have almost 80% Certification Increased Hire technical

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Company Assessment P a g e | 19
growth of the workforce
competent with the
services of the
company.
Increase the
number of training
to 5 in a month for
the employees
and tests for
the workforce
service
engineers on
the board
experts/Technical head
for training and
development of the
workforce.
Figure 6 showing BSC for Hunt solution
Porter’s 5 forces model: This model is a statistical tool which is used to analyze competition
within the industry, it helps in determining the attractiveness of the industry in terms of its
profitability. An attractive industry would be the one where the PORTER forces shows an
increase in the overall productivity and unattractive would be the one which reduces the
overall productivity and such a competition could also be termed as pure competition. This
model is a refers to microenvironment forces, that is the forces which are close to the firm
and business can reassess the entire strategy by reworking on them (Miller, Vandome & John,
2011)
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Company Assessment P a g e | 20
Figure 7 shows model of porter forces (Nguyen, 2017)
Threat of new entrant: This force has a simple logic behind it, the industries which have
higher profitability will definitely attract more and more firms entering the industry space as
the profit pie is much and the industry is unsaturated. Now this force can also be controlled
by a lot of factors on the likes of political forces, government regulations, policies, licensing,
patent, rights, brand equity etc. (Moreno, Ramon & Perles, 2016)
It is also interesting to note, that more difficult the barriers of entry are the chances of new
entrant are minimal and vice versa
Threat of substitutes: This force’s threat is self-explanatory , more the chances of a
product/service to be substituted more the threat of substitution become, for example if a task
can be done by a tool , in future if a technology comes which removes the existence of tools
and let a big machine do the task , the threat increases(Takata, 2016). It can also be
understood as a different technology trying to solve the same economic need. Some of the
factors which contribute towards this can be:
Buyer’s propensity to substitute
Buyer switching cost
Competitive
rivalry
Threat of
new
entrant
Bargaining
power of
customers
Threat of
substitution
Bargaining
power of
suppliers
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Company Assessment P a g e | 21
Ease of substitution
Perceived product differentiation
Availability of close substitute
Bargaining power of customers: This deals with the power a customer holds for a
particular product or service and at the same time how many buyers are there for the same
product/service, the buyer power is high if they have many alternatives and vice versa low if
the alternatives are bare minimum (Dasilva & Las casas, 2017) Other factors like switching
cost also play a pivotal role in this force. Some of the factors towards this force can be:
Buyer switching cost
Buyer information availability
Advantage of industry product over other
Dependency on existing channels of distributers etc.
Bargaining power of suppliers: This is one of the most important force and can also be
termed as a market of inputs, The dependency of raw materials by firms in case of few
suppliers can increase the bargaining power of the suppliers and vice versa in case of large
supplier base (Safari, Farhang & Rajabzadehyazadi, 2016) Some other factors which can play
important role are:
Supplier concentration
Impact of raw materials on the cost and differentiation.
Presence of substitute inputs
Supplier competition.
Porter analysis of Hunt solutions:
Threat of new entrant
The threat of new entrant can be considered as medium to high owing to a lot of
potential in the electrical contracting market and a large market being untapped.
Some of the industries are also doing horizontal integration of business and thus
expanding into electrical contracting business.

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Franchise option is also available as government has opened the market to foreign
players.
Threat of substitutes
Substitutes for these kind of services already existed in market from small to large
players already there, most of the service providers primarily provide more or less the
same kind of services with just little variation to offer.
From a customer perspective the option can be to go to a nearby service provider,
which despite being many in numbers but the big players are in a way dominating
them as the small firms are not able to match up to the cost reduction done by larger
firms to bleed the market.
Result: Threat of substitutes is low hence market attractiveness is high
Bargaining power of suppliers
For players like company owned the bargaining power of the suppliers is less owing
to the reason that the OEM parts (manufacturers) provide and control the inventory.
For the remaining ecosystem the bargaining power is moderate
Result: Bargaining power of suppliers being moderate, makes the industry
attractiveness moderate.
Bargaining power of buyers:
There are a lot of service providers which the buyers can switch onto these days due
to open government policies and least regulation hence making it easier for buyers to
move from one service provider to other.
Some of the service providers like (wilken, KP electric & ausgrid) are providing
exclusive offers to the partners and offering multiple servicing schemes making the
bargaining power of buyers as High.
Result: Bargaining power of buyers is high hence the industry attractiveness is LOW
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Company Assessment P a g e | 23
Industrial rivalry:
According to IBIS world(Australian research company), the industry has faced
challenges in the last few years, but improved investment into housing and
commercial spaces has put life back into the industry
Bigger and multi business division companies are benefitting from investing into
mining and infra markets, on the other hand a lot of small companies are facing a hard
time in shaping the regular flow of work, hence smaller companies are in a situation
Hahn electrical ,CEQ Australia & KP electric are leading the race and giving a tough
time to small players
Result: Threat from the rivals is High hence industry attractiveness is low.
PESTEL Analysis:
PESTEL framework analysis macro-environmental forces which can affect business
operation, profitability, sustainability (Gamble & Thompson, 2014). This framework has 6
forces which have to be studied in order to understand this model.
Political: This is all about how government intervenes in the functioning of the industry, it
has to do with government policies favourable or not for doing the business, overseas,
market, trade relation with other countries, political stability, taxation structure,
environmental laws etc. Thus it is clear that political forces play an important role in
analysing future and present strategy of a given firm (Rothaermel, 2015)
Analysis of Hunt solutions:
Australia has been operated on a 2 streamed economy for the last 5 years, with much
growth towards the resource sector, which clearly outweighs the poor condition of
economic trade; similar trend is followed for electrical contracting services.
The Government seems favourable and positive towards the growth of industry due to
its open policies and trade agreements with neighbouring areas.
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Company Assessment P a g e | 24
Economic: Economic factors have a large impact on how the organization works and its
profitability. Some of the factors include-interest rates, economic growth, exchange rates,
inflation, disposable income, etc. A lot of these factors can be further broken down in macro
and micro environment, micro uses the disposable income criteria to analyse the economic
condition of the country and thus the businesses (Ho, 2014).
Analysis of Hunt solutions:
The industry seems to grow at a rate of 2% until 2020, estimating revenue of $21.4Bn,
so the economic condition seems to be okay.
Inflation is not a big factor in the Australian economy and hence the electrical
services can have a good run.
Social: It can also be termed as socio-cultural factors, and are the areas which shows the
sacred belief and attitude of the population. Some of the factors include –population growth,
age distribution, and health consciousness and so on (Mohapatra & Choudhary, 2016).
Analysis of Hunt solution
Australian population has grown by an estimate of 1.6% during the year ended Dec
2016, the current population being 24,385,600 people.
The Australians are rapidly moving towards urban population, with 89% of people
living in urban areas making the scope of services unfathomable.
Keeping these points in mind the social conditions seem favorable and encouraging as
well.
Environmental factors: This factor has recently come at the forefront as the raw materials
are depleting at an alarming rate, pollution increase, carbon footprint, etc., this woken up the
authorities to take care of the environment, and now more and more consumers are
demanding environmental friendly services/products/practices to be followed (Bell &
Rochford, 2016).
Analysis of Hunt solutions:
At hunt solutions it’s our vision to provide environmental clean services, thus it works
majorly in our favor as to what is being required.

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Company Assessment P a g e | 25
The electrical contracting solution and the asset maintenance services are strongly
value based on environmentally friendly practices.
Remaining factors in the PESTEL analysis are:
Technological factors: These include aspect like R& D activity, automation,
technology incentives and the rate at which the technology is replacing itself (Gupta,
2017). These factors are also responsible for determining the barriers to entry and
hence are important to analyze. In this case, however, tech forces are not being
changed rapidly hence skipping analyzing Hunt solution under the technological force
Legal factors: These include certain laws on the likes of consumer law,
discrimination law, antitrust law, environmental law, etc., which can also affect how
the company operates and its costs (Cong, 2015
Proposed Organization Structure:
Figure 8 shows proposed organization structure based on division (geographic)
The organization structure showed above is after assessing the company on 7S Framework
(Structure), it has been found that functional division structure was not very successful due to
multiple customer complaints and the limited bandwidth of the company to tackle them, as
CEO
Western Australia
Transmission
Maintenancce
Streetlight
maintenance
Asset
maintenance
Power line
construction
Victoria
Transmission Asset
Maintenance
Power line
construction
Queensland
Thermographic &
corona surveys Streetlight
CMO HR Manager
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Company Assessment P a g e | 26
the resources were lying unutilized in some other function of the business. Hence, dividing
the entire organization into geographic division and then handling any customer
issues/concern/query makes more sense to the business and at the same time it expedites the
entire service process.
The entire area will further be divided on the basis of the service, each of which will have its
own, depending on the demand in that particular domain, with a space for quick extension of
other service within a span of 1 month as well. The division will further have their own team
of:
Sales & customer success managers
Service engineers
Training & development officer
As discussed earlier, while explaining the present organization structure of Hunt solution, I in
the capacity of CEO, would get into a multi divisional structure and divide the business on
the basis of geographic area in order to cater the specific needs of the location and driving
individual P&L from it. Some of the improvement over the earlier structure is:
Division of the entire business on the basis of geography, it reduces irrelevant cost
heads and hence we can focus on these profit centres.(7S Framework, using Structure)
Independent P&L heads for each geographical area rather than one single president
for the entire firm, better to have area managers responsible for their own area.(7S
Framework)
Individual sales, service, tech team for each area makes the service more intense,
focussed, customer centric and will eventually become our USP.(SWOT)
Centralized marketing to support all the areas helps to reduce humongous cost which
goes into marketing, and also makes sense to control the marketing activities from the
corporate office rather than having a marketing function at regional offices. (SWOT,
Porter 5 forces model)
T&D officer is important in this line of business, as I mentioned earlier the quality of
service manager has to be the USP of the firm and this will be ensured by regional
T&D managers.(SWOT, Skills from 7S framework)
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Company Assessment P a g e | 27
Being a service company, the important thing is to have a quality of service engineers
which will be ensured at the corporate level before hiring a candidate and later with
the T&D manager at the territory level.(BSC & 7S framework)
Hence, I would like to conclude my report in the light of the points I mentioned using
different strategic management tools.
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Company Assessment P a g e | 28
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