Business Strategy: Internal and External Analysis of Cordant People

This report analyzes the business strategy of Cordant People, a recruitment agency in North West England. It begins with an introduction to business strategy and its importance, followed by an examination of Cordant People's internal environment and capabilities using VRIO analysis, identifying valuable, rare, inimitable, and organized resources. The report then applies the McKinsey 7S model to assess the organization's capabilities. Next, it utilizes Porter's Five Forces model to analyze the competitive landscape in the UK recruitment market, focusing on threats of new entrants, bargaining power of suppliers and buyers, threat of substitutes, and competitive rivalry, offering strategies to improve the competitive edge. Finally, the report explores strategic planning using Porter's generic model, focusing on cost leadership and differentiation strategies to enhance business performance. The report concludes with a strategic management plan, including tangible and tactical priorities to improve performance.

Business strategy

Table of Contents
INTRODUCTION ..........................................................................................................................1
Task 2 ..............................................................................................................................................1
P2 Internal environment and capabilities of organisation...........................................................1
M2 Internal environment and capabilities of business organisation...........................................3
Task 3...............................................................................................................................................4
P3 Porter's five forces model uses by organisation in given market...........................................4
M3 Appropriate strategies to improve the competitive edge......................................................5
Task 4...............................................................................................................................................5
P4 Range of theories, concepts and models, interpret and device strategic planning.................5
M4 Strategic management plan that has tangible and tactical strategic priorities......................7
D2 Environmental and competitive analysis to produce a set of valid strategic objectives.......9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategy is the core function of business organisation which is used to run a business
effectively. Strategies are formulated by managers after understanding the problems of
organisation which helps to deal with critical situation and make profits. The administrator of
business organisation make careful business strategy that helps to attain organisational goals
effective goals (Bentley-Goode, Newton and Thompson, 2017). For understand the aspects
business strategy, Cordant People has been taken that is recruitment agency firm based
organisation in the North West England. This organisation supplies range of employees to the
education sector, from teaching staff to cleaners. This report covers different topics such as
internal capabilities of business, porter's five forces analysis that is used to gain competitive
advantages and company's strategic plans that helps to run a business successfully.
Task 2
P2 Internal environment and capabilities of organisation
Internal environment - This consider as composition of all elements which exists inside
the organisation by involving value system, management, physical resources, existing manpower
and corporate culture which helps to run a business successfully. This is important for
organisation to focus on internal capabilities which helps to define internal capabilities in order
to increase productivity (Favaro, Rangan and Hirsh, 2012). Cordant People is recruitment agency
which recruits people for education sector such as staff, cleaners, teachers etc. A part from this,
such agency also hire for companies who require employees to fill their vacancy in order to
increase productivity and profitability (About Cordant people recruitment, 2019).
VRIO Analysis - This reflects a tool which is used by management to analyse the
internal resources and capabilities for the purpose of gaining advantages. This framework is used
by Cordant People which helps to run a business successfully. The resources of business
organisation are as defined:
Organisational
capabilities
Valuable Rare Inimitable Organised
Skilled
Manpower
✔ ✘ ✘ ✘
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Market share ✔ ✔ ✘ ✘
Financial
resources
✔ ✔ ✔ ✘
Brand image ✔ ✔ ✔ ✔
Valuable – This element states valuable resources which is used to increase the
organisational productivity by involving all resources. For instance, Cordant People have
different types of major resources such as skilled manpower, market share, financial resource
and brand image which are valuable, helps to deal with situation and maintain the profits (Flouris
and Oswald, 2016). Skilled manpower, market share, financial resources and brand image are the
strength of Cordant people organisation where they plays important role in order to make easy
operations. Such resources are important for organisation which helps to deal with dynamic
environment and maintain the profitability.
Rare - This states the uniqueness of resources which are not easy to available in market
and required to perform operations. Skilled workers are not rare for Cordant People because in
business environment there are many recruitment agency which provides consultancy services
with the help of skilled Human resource and other skilled employees who understand the
requirement of their client and provide employees accordingly. A part from this market share,
financial resources and brand image are rare for competitors which helps to gain the
organisational capabilities by managing work effectively.
Inimitable – This states that when an organisation faces difficulties in order to search a
equivalent or substitute product is consider as inimitable which helps organisation to increase
capabilities. In context to Cordant people, market share of such company are inimitable for other
firms because it is largest organisation that offers job to people and get positive feedback which
is difficult for other organisation to get such attention. This resources grab the high market share
with the help of others which helps to increase the organisational capabilities effectively
(Halvorson and Rach, 2012).
Organise – Proper arrangement and utilisation of resources are important for business
organisation which processes to high productivity and profitability. In context to Cordant People,
managers organise and utilise all resources except financial resources which can be a reason of
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low profitability. Herein, managers need to utilise the financial and other resources properly
which can helps to get the high organisational capabilities.
M2 Internal environment and capabilities of business organisation
Internal environment is connected with internal business activities of a business
organisation that states the strength and weakness of business. Management should analysis the
internal environment which remove the obstacle and increase production level. The management
of Cordant People organisation are using another model to know the capabilities of organisation
that are as defined:
Mckinsey 7s model - Such model was introduced by Mckinsey who states hhow an
organisation can increase their capabilities by maintaining soft and hard elements. This model
covers 7 aspects which is defined as:
Strategy - To operate a business systematically formulation of strategy is important
which helps to deal with difficulties and increase profits. Strategies are used to face the problems
and attain future goals. For instance, Cordant Poeple is using supply chain services in which it
offers different of services by understanding the needs of people.
Structure - This structure states that how an organisation divided at an organisational
level. The classification of organisational level helps to attain the decided goals within specified
period. For instance, Cordant People classified its business activities in to three team that are
finding need of employees, advertisement and HR team. Finding need of employees team finds
the needs of employees in business organisation and their qualification, advertisement team uses
different activities to gather the pool of application who needs of jobs and HR team is
responsible for selecting the best employees by taking interview which helps to increase the
market share and organisational productivity.
Style - This aspect is related with cultural style and achieving organisational goals by
adopting proper style. This is used by Cordant People, in which manager come up with new
ideas and thoughts which helps to deal with typical situation (Hawkey, 2017).
Staff - This states that an organisation always be aware with overall capabilities of its
team and skill set of employees which helps to take challenges accordingly. In context to
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Cordant people, has productive and experienced staff which helps to perform all task effectively
and compete the goals.
Shared values - This states that organisation should focus on internal culture and
external work that helps to keep away from risk a business. At workplace of Cordant people,
managers set their distinct shared values which helps to mitigate the risk and work effectively
which leads to high productivity.
Skill - This aspects is used by organisation or recruit the skilled and capable employees
in their organisation which increases the production of business entity. In context to Cordant
People organisation, skilled employees are recruited by Human resources for education sector
that helps to increase the organisational capabilities effectively (Jeanpert and Paché, 2016).
Task 3
P3 Porter's five forces model uses by organisation in given market
Porter's five forces is consider as holistic strategy that is used to take strategic decisions
for the purpose of eliminating competition. Business organisation focusing on their business
which helps to compete with other positively. Organisation uses porter's five forces in order to
take competitive advantages. The porter's analysis in context to Cordant people are as defined:
Threat of new entrants – It refers as entry of new market which increases the
competition in business market. In UK market, there is entry of new market is low because to
establish new business, there is need to arrange or invest huge amounts, trust of people, human
resources which is not easy. This is beneficial for Cordant People organisation who recruits
employees for education sector that low competition and risk in business market which helps to
increase the productivity by taking competitive advantages (Karami, 2016).
Bargaining power of suppliers – This states the purchasing power of suppliers who
provide products and services to needed organisation. The bargaining power of suppliers in UK's
recruitment market is high because there are few recruitment agency who provide employees to
education sector for running their institutes and companies well that give competitive advantages
to business organisation.
Bargaining power of buyers – In UK, the bargaining power of buyers is low in
education sector due to having low recruitment agency and many education institution who need
staff and cleaners. This is beneficial for Cordant People organisation as it can charge high
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amounts from education sector and companies who needs employees for their organisation. This
organisation provide skilled and competent employees which helps to get attention of other
sectors to obtain employees from such consultancy which helps to take competitive advantages.
Threat of substitutes – This is connected with substitution of product and services
which can use in place of other that impacts on business organisation. In UK, the threat of
substitute is high as people are employed by walk in, online websites and through referral which
can reduce the value of Cordant people recruitment agency which also reduces the productivity
and profitability of organisation (Lardi, 2013).
Competitive rivalry – In UK, the competition rivalry is high as there are many
competitors of Cordant People such as Bluefire consultants recruitment agency, Proactive
Personnel Ltd. Etc. who also recruits the people for other organisation and education sector. This
helps to fill the vacancy by recruiting best and skilled staff who helps to increase the level of
education. To face this competition management need to focus on their strategies and services
which can attract the people and increase market share of company (McGrath 2013).
M3 Appropriate strategies to improve the competitive edge
Strategies are prepared by management by evaluating needs and wants of people that
helps to make a business profitable. Manager or business organisation should formulate effective
strategies which helps to deal with changes and increase the productivity. For instance, Cordant
People is recruitment agency that hire the staffs, administrator, cleaners, teachers etc. for
education sector (Österle, 2013). The management of such organisation formulate effective
strategies which improves the competitive edge in market. By using porter's five forces strategy
respective company gain the competitive advantages. By using this strategy it has been defined
that Cordant people organisation should focus on competitive rivalry and threat of substitute
which can improve the business performance and production level in regards of recruiting
employees. Moreover, this is appropriate strategy which can be used by Cordant people company
in order to have competitive advantages.
Task 4
P4 Range of theories, concepts and models, interpret and device strategic planning
Strategic planning means a strategy or direction which is used by business organisation to
make right decisions by allocating resources and capital. This helps to increase the market share
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and brand image of company. In other words strategic planning is a process where leaders
determine their vision and mission to make good future by attaining business goals. The Cordant
people is facing low business performance situation due to having low strategies and plans to
complete the goals. (Peng, 2016). To improve the business performance and making strategic
decision following theories and models are used by Cordant People that are as described:
Porter's generic model – This model was given by Michael Porter that states the direction for
business organisation and make high profits. In this model organisation adopt a strategies which
helps to gain the competitive advantages effectively. The description of four strategies are as
defined:
Cost leadership strategy – This strategy is used by business organisation to attain their
objectives by becoming lowest cost producer in business sector. Such as cost leadership
strategy is adopted by Cordant people who provides employees or education staff by charging
low prices which helps to increase the high market share of company. This benefits such
company to attracts more education sector and companies and fill their vacant profits in order to
increase productivity (Sørensen, 2012) .
Differentiation strategy – By using this strategy organisation can increase its market
share and brand image in target market segment. This is important for business organisation to
provide unique products and services which can attracts people more and increases business
activities. This strategy can opt by Cordant People recruitment firm by providing unique services
and highly skilled and competent staff to education sector and other that can increase the
business performance as well as market share.
Focus strategy - This strategy states that organisation should focus on cost and
differentiation in niche market which helps to increase the market share and brand image of a
company. This leads to attainment in business goals and objectives. In context to Cordant
People, management can opt this strategy by providing skilled employees at low cost which can
build to strong loyalty to education sector and companies and also increase profitability
(Spender, 2014).
From the above strategy, the strategic planner of Cordant People has opt focus strategy
which is appropriate and relevant strategy that helps to increase the market share and brand
image of respective company. By providing this services organisation should focus on their
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business activities which helps to increase the customer base. By applying this strategy market
share and brand image of company can be increase which helps to make higher profits.
Bowman strategy clock model – This model is used by business firm to analyse the
competition and performance. This model is given by Cliff Bowman and David Faulkner that
states the eight position of company. This model is used by Cordant People recruitment firm that
are as elaborated:
Monopoly pricing: This refers company's position as the monopoly leader in business
market as they are only one who offers the specific type of products so they can charge prices as
they wants. Cordant People can enjoy this position by providing specific and competent
employees in monopolistic market (Verbeke, 2013).
Loss of market share: If business organisation is not able to provide the products and
services according the customers then it face loss of market share position. In context to Cordant
people, market share can be reduced if not providing skilled and competent staff to education
sector, resulting loss of profit margin and business opportunities.
Low price and low added value: In this strategy, the prices of products are set low
relatively that helps Cordant People to take competitive advantages efficiently.
Low price: In this strategy Cordant People has to keep its prices low than other
recruitment in target market that helps to get high competitive advantages effectively.
Hybrid: This strategy is very effective that states the added value of products and
services. In context to Cordant people organisation need to focus on its services at low process
which create good image of business industry.
Differentiation: To opt such strategy Cordant People need to focus on quality of
products which is skilled and experienced staff to cleaners that can helps to capture high market
share and competitive advantages effectively (Verweire, 2014).
Focused differentiation: In this strategy can be adopted by Cordant people by providing
higly competent and capable staff to education sector at high prices which helps to miantain the
high market segment position in business market.
Risky high margin: This strategy can be used by Cordant People organisation by
charging high prices for its products and services. This is highly risky strategy to adopt that can
create risk for organisation (Williams, 2016).
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M4 Strategic management plan that has tangible and tactical strategic priorities
The management of Cordant People recruitment firm prepare a strategic management
plan that are as defined:
Procedure Description
Vision To become largest recruiter company.
Mission To drive skilled and talented employees.
Objectives To capture high market share by 2021 and
become best recruiter agency.
Strategy Cordant People manager will focus on such
strategy:
 Digital marketing
 Differentiation and low cost
 Best services
Tactics Cordant People are using marketing mix as
tactics such as:
Product: To hire the skilled and competent
staff for education sector.
Price: economic pricing strategy is adopted by
managers of such agency.
Place: Such services are provided in UK.
Promotion: Managers are using you tube,
social media, own website etc. to recruit the
employees.
Physical evidence: Competent and skilled
staff in education sector will helps to improve
education system.
Process: Supply chain process is going to be
used by organisation in order to supply
employees.
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People: Marketing manager, customer
services, staff and cleaners.
Evaluation To analyse the performance of recruitment
agency benchmarking tool is used by
organisation that will helps to improve the
performance.
D2 Environmental and competitive analysis to produce a set of valid strategic objectives
Business strategy and plan of business organisation are consider as important strategies
which helps to attain the organisational goals effectively (Zairi, 2012). Different types of
strategies are applied by Cordant People which help to increase the productivity and market
share. Moreover, by using focus strategy it get competitive advantages effectively.
CONCLUSION
From the report it can be concluded that business strategy is important for running a
business that helps to maintain the productivity of a business. Porter's five forces are used by
business organisation to take the competitive advantages effectively. To know the capabilities of
business organisation VRIO analysis should be done which helps to defined that competency and
capability of a business.
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REFERENCES
Books and Journals
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Hawkey, J., 2017. Exit Strategy Planning: Grooming your business for sale or succession.
Routledge.
Jeanpert, S. and Paché, G., 2016. Successful multi-channel strategy: mixing marketing and
logistical issues. Journal of Business Strategy. 37(2). pp.12-19.
Karami, A., 2016. Strategy formulation in entrepreneurial firms. Routledge.
Lardi, K., 2013. Social media strategy: A step-by-step guide to building your social business. vdf
Hochschulverlag AG.
McGrath, R. G., 2013. The end of competitive advantage: How to keep your strategy moving as
fast as your business. Harvard Business Review Press.
Österle, H., 2013. Business in the information age: heading for new processes. Springer Science
& Business Media.
Peng, M. W., 2016. Global business. Cengage Learning.
Sørensen, H. E., 2012. Business Development: a market-oriented perspective (Vol. 1, p. 26).
Chichester: Wiley.
Spender, J. C., 2014. Business strategy: Managing uncertainty, opportunity, and enterprise.
Oxford University Press.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Verweire, K., 2014. Strategy implementation. Routledge.
Williams, S., 2016. Business intelligence strategy and big data analytics: a general management
perspective. Morgan Kaufmann.
Zairi, M., 2012. Measuring performance for business results. Springer Science & Business
Media.
Online
About Cordant people recruitment. 2019. Available through:
<https://cordantpeople.com/about/>
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