Organisational Capabilities Analysis Report for Missoma Ltd Company

This report provides a comprehensive analysis of Missoma Ltd's organisational capabilities, focusing on its ability to manage resources and meet customer demands within the fine jewellery industry. The analysis begins with an introduction to organisational capabilities, emphasizing their role in achieving competitive advantage and fostering customer loyalty. A literature review synthesizes relevant research on SWOT, TOWS, Porter's Five Forces, and PESTLE analyses, highlighting their application in evaluating internal and external environments. The report then provides a background of Missoma Ltd, a company specializing in 18ct gold and silver jewellery, detailing its business model and operational strategies. SWOT analysis is employed to assess Missoma's strengths, weaknesses, opportunities, and threats, followed by a TOWS matrix to identify strategic options. Porter's Five Forces framework is used to evaluate the competitive landscape, including the threat of new entrants, bargaining power of suppliers and buyers, threat of substitutes, and rivalry among existing players. The report concludes with recommendations based on the findings and a summary of the key insights.

ORGANISATIONAL
CAPABILITIES ANALYSIS

Table of Contents
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW................................................................................................................3
COMPANY BACKGROUND........................................................................................................5
SWOT..............................................................................................................................................5
TOWS..............................................................................................................................................6
PORTER..........................................................................................................................................7
PESTLE...........................................................................................................................................8
RECOMMENDATION...................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Organization capability is a company's ability to manage resources such as employees,
effectively to gain an advantage over competitor. Capabilities of organization majorly focus on
business ability to meet customers demand. It also helpful in achieve business objective and
achieve goal through develop knowledge and skills. Capability also provide competitive
advantage (Lee and Klassen, 2016). Customers relationship also develop and maintain by
capabilities of firm, so they also loyal about firm and reputation increase of organization. Firm
provide training and development programme to their employees and members to improve skills
and knowledge of them, so they easily command on customers needs and wants. Profit and sales
increase with capability of firm.
This report will be covers that pestle analysis to evaluate of external environment of
organization, SWOT analysis and it uses by organization to evaluate internal environment, porter
analysis helps to analyse competitive advantage.
LITERATURE REVIEW
According to Andrews and et.al., (2015) states that in relation to SWOT analysis, the
company must identifies there strength, so that they can enter into the market with full
preparation and also attract the interests of customers through their services and scheme. The
weakness which they had to worked on internally to manage their resources and can take an
opportunity to expand their business international market and the threats which arises between
the way can be easily beat through their competitive strategies and techniques.
Fainshmidt and et.al., (2016) argued that it is not necessary that there planned activities
always results in success of the organization. It depends upon the situation and the style which
the leaders are using to motivate their employees internally. If they guide the employees in the
wrong way it affects the liability and goodwill of the company and also result in bringing losses
to the company.
Heckmann and et.al., (2016) examined that in relation to external analysis such as
PESTLE there are various political, economic, social, technological, legal and environmental
factors which affects the working of the company externally. The factors resulting in bring
changes which is company adapts in right way are useful but it mainly restricts the company to
expand their business into international market.

Gebauer and et.al., (2017) criticised that in relation to organizational capabilities, they
mainly change their function and start promoting their business through digital marketing which
restrict company in various factors in context of expansion. Digital marketing are the boom of
the country and sometimes it affects the reputation of the company by resulting in causing fraud
or hack of their online sites and thus they distract the interest of the customers towards their
products and services.
Töytäri and Rajala, (2015) suggested that in case of PORTERS they help in analysing the
competition in the market through their buyer, supplier, threats of new entry and threats of
substitutes of product and services which the company are offering to the customers and the
matters related to industry revival. This helps company to analyse the marketing strategy and the
demand and needs of the customers towards such products and services. Customers always
demand such products which are of low prices and best quality and company had to produce
such products by keeping the needs of customers in mind.
As per Hussain and et.al., (2018) viewed that by making the appropriate use of Porter's it
results in bringing more wastage to the resources and also the demand of the supplier are changes
according to less availability of the resources. They charge high prices for such products and
services. It also affects the demand of the customers as the taste of customers are changing, and
they always demand new products in the market at low prices.
Fainshmidt and et.al., (2016) states that the organizational capabilities in context of
TOWS is related to committing any such threats which affects the company to stop their
productivity in the market regarding any such products but after facing such threat if the products
is different from the other products it results in bring more opportunity to the business but by
lacking their weakness in the company regarding funds they still manage to promote such
products as they carry the strong brand image in the market.
Heckmann and et.al., (2016) argued that sometimes the results arising from TOWS are
both accurate and the company can suffer huge losses regarding not planning accurate or not
guiding according both the capabilities of the employees. In this it majorly affects if employees
not make any such strategy to achieve gaols. This affects their working and also the reputation of
the company is also affected through the strategies and techniques which they are using to
achieving goals.

COMPANY BACKGROUND
Organisational capability in respect of company is to manage their employees and also
fulfill the needs and demands of their customers at large scale. Present report is based on
Missoma Ltd company which deals in fine and elegant jewellery. This company is run by two
sister Marisa and Sophie and there mother also joined their business Michele by whose starting
word the company name is formed as Missoma. Missioma is the small business enterprises they
are specialized in providing the 18ct - gold and silver rated jewellery to their customers and also
to attract the customers towards their products they provide customized jewellery to their clients
with fast delivery of services.
Thus, the company is engaged with small number of employees carrying their operational
activities and also produces goods through online at large scale, this helps them to establish and
organize various capability of the employees in the small scale. This helps them to get more
productive results and also enhances their stability and reputation in the market for longer terms.
(Gebauer and et.al., 2017). To analyse the capacity of the company, they need to be more
focused on their goals and objectives of the company and also their vision and mission are clear
and favourable, so that it emphasis the stability of their internal team to fulfill it within the
accumulated time and efforts.
SWOT
Swot analysis is a tool that Missomma ltd. Used to evaluate internal environment and
condition of organization because this environment direct put impact on missoma's performance.
It impacts on regular basis. Burt it is controllable that means organization evaluate this tool, and
then they can control. SWOT stands for S- strength, W- weakness, O -opportunity and T- threats.
Strength :-
 Missomma has strength that its is very reputed brand of designer jewellery, and they
provide jewellery to people at affordable price so it is a strength of this organization.
Through this It markets share is also very high compare than other competitors.
 It uses the latest technology to improve performance and operations of organization so
this strength helps to enhance service experience and customers also attract.
Weakness :-

 Missoma Ltd has less supply chain that means it delivers jewellery in limited area so it is
a weakness because they have not strong and huge supply chain. It affects to profit and
demand of organization.
 It majors weakness is that Missomma Ltd do not spend more money on research of
market to understand of wants and needs of customers. So it also affected to sales of
organization.
Opportunities :-
 Missomma ltd has opportunity to expand business and operation in other country and
take place in emerging market. If it expands their business and it strategies in different
market so these opportunity increase reputation and profit of organization.
 They have opportunity to increase and develop chain of supply. If it develops this chain
so customers get satisfaction, and they get product easily (Phadermrod, Crowder and
Wills, 2019). It can increase their profit also through this opportunity.
Threats :-
 Increasing competition is a major threat of organization and because day by day new
competitors enter in market with same product and same size.
 Government policies and taxation can affect business operation of Missomma Ltd and it
is also a big threat for organization.
TOWS
TOWS represents the threats, opportunities, weakness and strength of the Missoma Ltd
company
Threats If the Missoma Ltd company not fulfill the needs and demand of
the customers and not produce such products according to the
needs and demand of the customers, it results in bringing
competitors in the market and it affects their goodwill and status in
case of expanding their business into different sectors (Building
organization Capability, 2019).
Opportunities By having the products according to the demand of the customer
such as if they demand over customized products and Missoma Ltd
company produce such product it results in brining more

opportunity to expand their business into international market and
attract more customer towards their services which they are
offering.
Weakness There sales can be result in less if they not fulfill the demand of the
customer according to their need. As it results in more wastages of
products which causes loss to the economy and their resources
(Gebauer and et.al., 2017).
Strength Missoma Ltd company is successful as through their scheme and
discount which attract the customers towards their products.
PORTER FIVE FORCES
Threat of New Entrants - Low threat
The threat of new entrants in sector of retail bring the innovation in Missoma Ltd. group
plc. by reducing cost and lowering price strategy. The Missoma Ltd. faces high threat from new
entrants, but they build an effective barrier in order to safeguard their competitive edge. The
economies of scale are very difficult to achieve in the Manufacturing industry (Browne, Nuttall
and Stadlen, 2016). Also, this makes the new entrants' production expensive as supplying 18
carat gold and silver jewellery is not affordable deal for many new entrants, and they do not
lower the cost. Also, the requirement of capital is very high in retail industry and it is difficult for
new entrants to set high expenditure while entering into industry of retail.
Bargaining Power of Suppliers - Very low threat
The suppliers in Manufacturing in industry have less control on prices and this make the
power of bargaining of suppliers weak. Also, the suppliers have less differentiated and low cost
of switching (Hu, Chen, and Yang, eds., 2016). The suppliers are not in dominant position and
their cost margin is very low. Along with it forward integration makes bargaining power of
suppliers weaker. Therefore, the Missoma Ltd. plc is an important customer for suppliers, and
they charge reasonable price while supplying raw materials to them for further manufacturing.
Bargaining Power of Buyers - Very high threat
The bargaining power of buyers are very high with the industry in which the company
Missoma Ltd. group plc prevails. As there is a vast variety of companies available in this

industry which enables buyers many varieties of jewellery (Wilson, Silva, and Ricardson,
2015). Also, the buyers are more price sensitive and the products of Missoma Ltd. group are
easily found in different brands of competitors at lower prices. Therefore, the industry and
companies such as Missoma ltd. of Manufacturing jewellery has very high threat with buyers.
Threat from Substitute Products - very high
The availability of substitutes of manufacturing industry in which Missoma Ltd. group
plc operates is very high. Also, the substitutes which are available in manufacturing industry are
better in quality for which they charge more prices and becomes far expensive than their
products (Richardson, Kelley, and James, 2015). So, there are chances that buyer can shift to
available substitute products but are very high because of the lower prices of these products are
available in market.
Rivalry among the existing players - High threat
The manufacturing industry is facing from high threat due to many competitive rivalries
are prevailing in this industry (Elkins Jarrett, and Skinner, 2018). Missoma Ltd. always need to
make innovation in their jewellery product which helps them in standing alone in front of rivalry
firms. Also, the fixed cost of manufacturing industry is high. This make the company to push
within industry to their fullest. Along with it high competitive reduces the demand of Missoma
Ltd. as there is numerous companies available in industry of manufacturing.
PESTLE
Pestle analysis is a tool that use by Missoma Ltd. to analyse external environment of
organization. It influences to organizational performance and direct affected to profitability.
PESTLE stands for P- political, E- economic, S- social, T- technological, L- legal and E –
environmental.
Political :- this factor play significant role because Missoma operate in many countries,
and they have to face many political environment. Government interfere majorly in this
organization because gold and silver jewellery manufacturing organization has to follow many
rules. They have to follow and adopt legislation related to employment and wages (Gebauer,
2017). Government also change rules and regulation frequently related to designer industries and
all these things affect to organizational performance.
Economic :- inflation, exchange and labour rate put effect Missoma Ltd. because these
rates are not stable, and they operate business at global level. Labour rate greatly affected to

organization because they have to produce large quantity of designer jewellery and that consume
more labour. Due to increase labour rate Missoma has to pay more money to them and it
increases cost of ornaments. Inflation rate increasing day by day and this thing affect to profit of
organization. Due to raise exchange rate Missoma Ltd. reduce their export.
Social :- Missoma focus on this factor majorly and it start online delivery of small to big
jewellery because It evaluates that in UK population there are peopler are more busy in their
work, and they have less time to shop, travel and visit market. So they provide delivery of
product online that make easy to shopping online with internet for customers. Missoma Ltd.'s
profit affected due to online delivery because small deliveries are considered to be ineffective
and expensive.
Technological :- day by day technology and innovation increasing and Missoma Ltd. has
to adopt technology according to other company and countries because different people of
different country use their jewellery. So technology helps to provide readily products anytime to
customers (Rastogi and Trivedi, 2016). Organization produce more product with less time and
cost but frequently adoption of technology consume more cost and time, and they also have to
provide training to employees.
Environmental :- environmental factor influencing to Missoma Ltd. because it is a
designer jewellery business. So they make demand of paper packaging that can easily recycled.
New environmental trend facing the designer industry is consumer demand for zero waste
increasingly becomes one of the greatest environment challenges facing by Missoma Ltd.. These
demand of customers put effect on profit of Missoma Ltd..
Legal :- this factor includes all laws such as employment law, discrimination, health and
safety, data protection and intellectual property law. All these laws helps in provide protection to
employees. But in organization has to change tool of safety for labour so Missoma Ltd. has to
invest more money to install it (Widya Yudha, Tjahjono and Kolios, 2018). These policies and
legislations also directly impact the performance of Missoma Ltd.
RECOMMENDATION
From the above study, it can be recommended to the company that to maintain the
organizational capability analysis in Missoma Ltd they had to organize various training sessions
to helps employees to gain knowledge in jewellery field and also they develop more creative
ideas in their working. As the demand of the customers are changing and the company which

fulfill the needs and demand of the customers in better way they are attracted towards such
services and scheme. Thus, they had to bring more creative products in their previous products or
upcoming products. This helps them to bring more employees in their company and also
enhance their communication skill with their employees to gather information and solve
problems which they occur at the time of working.
CONCLUSION
From the above study it can be concluded that Organizational focus on improving their
core competencies regarding producing the quality products in the market which retain their
stability for longer period. They organize various programs and concerts and also bring new
technology so that they can set some goals and target to be achieved in better way. The
organization shall focus more on fulfilling the demand of women by providing the elegant
jewellery to attract more customers towards their product. They carry the strong brand image
which results in favours of getting more profits.

REFERENCES
Books and journals
Andrews and et.al., 2015. Organizational capability in the public sector: A configurational
approach. Journal of Public Administration Research and Theory. 26(2). pp.239-258.
Browne, J., Nuttall, R. and Stadlen, T., 2016. Connect: How companies succeed by engaging
radically with society. Random House.
Elkins Jarrett, S. and Skinner, N., 2018. Can You Run Your Business With Blood, Sweat, and
Tears? Volume I: Blood. Business Expert Press.
Fainshmidt and et.al., 2016. Dynamic capabilities and organizational performance: a meta‐
analytic evaluation and extension. Journal of Management Studies. 53(8). pp.1348-1380.
Gebauer and et.al., 2017. Organizational capabilities for pay-per-use services in product-oriented
companies. International Journal of Production Economics. 192. pp.157-168.
Gebauer, H. And et.al., 2017. Organizational capabilities for pay-per-use services in product-
oriented companies. International Journal of Production Economics. 192. pp.157-168.
Heckmann and et.al., 2016. Organizational capacity for change, change experience, and change
project performance. Journal of Business Research. 69(2). pp.777-784.
Hu, Z., Chen, X. and Yang, Z. eds., 2016. Research Frontiers on the International Marketing
Strategies of Chinese Brands. Routledge.
Hussain and et.al., 2018. An organizational capability perspective on multi-unit
franchising. Small Business Economics. 50(4). pp.717-727.
Lee, S.Y. and Klassen, R.D., 2016. Firms’ response to climate change: The interplay of business
uncertainty and organizational capabilities. Business Strategy and the Environment.
25(8). pp.577-592.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management. 44. pp.194-203.
Rastogi, N.I.T.A.N.K. and Trivedi, M.K., 2016. PESTLE technique–a tool to identify external
risks in construction projects. International Research Journal of Engineering and
Technology (IRJET). 3(1). pp.384-388.
Richardson, N., Kelley, N. and James, J., 2015. Customer-centric marketing: Supporting
sustainability in the digital age. Kogan Page Publishers.
Töytäri, P. and Rajala, R., 2015. Value-based selling: An organizational capability
perspective. Industrial Marketing Management. 45. pp.101-112.
Widya Yudha, S., Tjahjono, B. and Kolios, A., 2018. A PESTLE policy mapping and
stakeholder analysis of Indonesia’s fossil fuel energy industry. Energies. 11(5). p.1272.
Wilson, K.E., Silva, F. and Ricardson, D., 2015. Social Impact Investment: Building the
Evidence Base. Available at SSRN 2562082.
Online
Building organization Capability. 2019. [Online]. Available through:
<https://www.apm.org.uk/resources/find-a-resource/building-organisational-capability/>.