BASA: Strategic Analysis of Organisational Environment Report

This report provides a strategic analysis of BASA, an adhesive industry company. It begins with an introduction to organisational strategy and its importance in adapting to environmental changes. The main body includes a macro-environmental analysis using the PESTLE framework, examining political, economic, social, technological, legal, and environmental factors influencing BASA. The report then assesses BASA's industry position using Porter's Five Forces model, analyzing competitive rivalry, supplier power, buyer power, threat of substitutes, and threat of new entrants. An internal analysis using SWOT is conducted to evaluate BASA's strengths, weaknesses, opportunities, and threats. Finally, the report explores stakeholder perspectives using stakeholder mapping to identify and prioritize key stakeholders. The conclusion summarizes the key findings, emphasizing the need for strategic adaptation in the adhesive industry. This report provides a comprehensive overview of strategic planning and analysis within the context of BASA's business operations.

Organisational
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Macro environment analysis of BASA...................................................................................1
Industry position.....................................................................................................................2
Internal resources and capabilities :.......................................................................................1
Stakeholder perspective:-.......................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Organisational strategy refers to policies which has to followed by managers of
organisation in order to achieve business objectives in effective and relevant manner. These
days, there are any changes which are taking place in external environment, so it is essential to
make policies through which changes of external environment can be maintained and this needs
changes in operations of organisation (Baker, 2014). This report is based on BASA which deals
in Adhesive industry. In this report there is discussion about techniques which is used to collect
information about macro environment, industry positioning, identification of resources and
capabilities and at last analysing stakeholders perceptive.
MAIN BODY
Macro environment analysis of BASA
Macro environment is the process of environmental scanning. It refers to all the factors
which lies outside the organisation and are generally uncontrollable. BASA will face the adverse
effect from external environment and it is crucial to make strategies for coping up with those
factors. It is basically a concept used by companies to track the environment in which they are
operating. Macro environment analysis of BASA is discussed below:-
 Political factors : These are the factors which which are determine by the influence of
the government of an economy on the business or an organisation. These factors deals
with the political stability of the country. These are all about how and to what degree a
government intervenes in the economy. BASA will face the factors like changes in
taxation policy, rules and regulations of government, etc. BASA will have to set
strategies in operating in such environments. They will respond to the current and
anticipated future legislations and adjust their marketing policies accordingly (Booth,
2015).
 Economic factors : The factors which determines the performance of an economy
which directly impacts upon a business for a long term. The effect can be positive or
negative. These factors are concerned with the profitability and financial stability of
the BASA. It includes exchange policies, bank rates, changes in currency, inflation ,
deflation, etc. BASA will have to deal with these factors very effectively and
1

efficiently such that they can maintain the financial stability of the company in the
market. They have a large impact on business to customer organisations.
 Social factors : The factors which studies the social environment of the market like
the culture, demographics, etc. are included in the social factors. These factors are
concerned with the demand and needs of the people. They involve the shared belief
and attitude of the population (Wagner, M. and Meyer, T. M., 2014). BASA will
conduct the careful analysis on market demand and needs. It is very important so that
the company can establish such policies which are essential meeting the changes
demands and preferences of customers. It further includes the population growth, age
distribution, gender discrimination, career attitudes, etc.
 Technological factors : There are some factors which influence the company due to
certain innovations in the technology or the way of working which can affect in favour
or adversely to a business unit. It is the most crucial factor in business concern. It
includes updated technologies in their operations (Brewster, 2017). BASA will use
strategies which will be updated and enhance the technological development and
advancement in their systems to overcome and gain the competitive advantage. It will
help BASA in deciding new ways of producing goods and services, improved logistic
channels, useful in communicating with target markets with the help of adopting
advanced technologies.
 Legal factors : There are certain laws that affect the business environment within a
country. It can be positive or negative and affects both internally and externally to a
business operation. These laws are different from country to country. It is concerned
with the rules, regulations and legislation of the country. BASA will operate in
accordance with the justified laws. This will help them to protect their organisation
with the legally bound agreements and contracts and also restricts the unfair practices.
It usually includes health and safety, equal opportunities, advertising standards,
consumer rights and laws, etc. If BASA will trade globally then it will become a very
tricky and crucial area to get right as each country has different set of rules and
regulations (Corbett, 2018).
 Environmental factor : Here, those factors are included which affect the business by
the surrounding environment of the business. These are generally concerned with the
2

natural calamities like flood, earthquake, etc. BASA can face a serious impact on their
association through this. They have become important for BASA due to increased
scarcity of resources like raw materials, population targets,etc. This will organisation
in meeting demands of customers who are expecting more and more ethical products.
Industry position
There is much competition in current market trends, so it is essential to make changes
which are taking place in external environment. There are some competitors, suppliers, etc.
which makes changes in business environment. In order to understand external environment
Porter's Five Force Model is discussed (Klettner, Clarke and Boersma, 2014.). It is a tool which
is used to analyse the intensity of competition in an industry and its profitability level by using
the five forces of industry. This is management technique which is used in order to analysis
position of BASA in industry. There are five factors which are discussed as under-
Competitive rivalry- As per this factor, there is discussion about competitors in industry.
This force is the major determinant of profitability and competition in an industry. In competitive
industry, firms have to compete for capturing the market share. As if there are more competitors
that there will be more competition and vice versa. Also, in case the products are perfect or close
substitutes of each other than also the competition level will be high.
Supplier Power- In this factor, there is discussion about suppliers power which is
important and crucial because they are the people who delivers raw material, semi fixed and
fixed goods to BASA. This helps to maintain quality and prices of product and services. In this
force, if the number of suppliers are more, than the power of suppliers will be less and in case of
less number of suppliers the power in the hand of suppliers will be more and will influence the
business as the suppliers can bargain more and less a per their number.
Buyer Power- Buyer are crucial component which helps to earn good profits and
revenue. In case there are more consumers, then it is tough for consumers to bargain on prices.
On the other hand, if the number of buyer are less that it will be easy for them to bargain and
control the price of the products. Hence it is essential to identify number of consumers of BASA,
so it is easy to attain long term sustainability in industry (Kono, 2016).
Threat of substitutes- In case there are more close substitute, then this is threat for
BASA. In case of BASA, there are no close substitute, so this helps to make long term existence
in industry because consumers have no choice of selecting brands. This situation is positive for
3

BASA's for growth and development. Especially in those case where the buyer found easily the
substitute for the products that they want to purchase.
Threat of new entrants- New entrances in adhesive industry is easy so this situation is
danger for growth and development of BASA. It is important to make changes in business
operations in order to deal with new rivalries and provide satisfaction to consumers. As the
amount of capital required in this product line is low, so other companies can easily start this
business and can become a threat to BASA.
Internal resources and capabilities :
The capability and resources of a company can be better understood with the help of
SWOT analysis which focuses over evaluating the capabilities that a company have which
support in further growth. This internal affect to a company can be assessed with the help of
analysing the strengths and weaknesses of BASA. And the threats and opportunities as the
external factors provides the knowledge of external things going outside business and analysing
those resources that how much control over them does the business have. So, internal resources
and capabilities of BASA can be analysed with the help of SWOT which work over four major
area that are explained below:
 Strength:- The biggest strength is that products in which BASA deals is a daily used
product and is of higher demand among customers, hence its demand doesn't get slow
down in market (Nankervis and et. al., 2016). Apart from this it also offer a variety of
consumer chemicals to sort out various daily routine problems such as adhesives,
sealants, construction chemical, waterproofing etc. In addition to this, BASA has a
large customer base and their skilled employees are the strength of this business and
these helps in the proper running and successful working of the business.
 Weakness:- One of the greatest weakness for BASA is each product require to
perform lot of research to foster innovation or bring on new product as these sort of
chemicals have side effects. There are very limited or almost nil offers are present in
front of its customers. Others making the same product as BASA does but bringing up
something new will make BASA to stand in the market.
 Threat:- Entry barrier for adhesive company is relatively higher which also promote
leaders to enter into market which increase the competition among one another. Apart
from this another major issues or threat in front of BASA is that people doesn't get
4

influenced by the promotional strategies. Also, the business needs low cost to enter in
the market and upcoming of other firms in the market will lead to increase in the
prices of the raw material suppliers which can be a threat to the company.
 Opportunity:- The customer demand toward purchasing of wooden product is
relatively higher and also increasing day by day which is an opportunity for BASA
being a part of adhesive industry (Piercy, 2014). Apart from this another opportunity
present in front of BASA is to offer waterproof products to its customers.
Stakeholder perspective:-
In order to identify the stakeholder perspective, BASA must use a model named as
stakeholder mapping which focuses toward identifying and prioritizing the stakeholders as per
their value and importance toward organisational growth. This work over four phases which are
as explained below:
 Identifying:- The first and foremost step in mapping process in which a group of
stakeholders are determined and enlisted. Under this step BASA will be able to
determine group of people that are belong to company and interested in its objectives.
 Analysing:- Once all the stakeholders have been analysed under identifying step next
is to perform an analysis over that list in order to analyse the importance of
stakeholders on the basis of their impact over business objective.
 Mapping:- After analysing the importance or value offered by stakeholder next step in
stakeholder mapping model is to map the stakeholder on the bases of their usefulness
to determine for their engagement in business operations. It provide an option to
BASA of comparison among its stakeholders (Waddington, 2014).
 Prioritizing:- Last step work toward ranking the stakeholders on the bases of their
importance and benefit which is predicted from the mapping of stakeholders. This
support BASA to determine the stakeholder which are essential to involve in their
operations that help in improving their current operations as well as function
performed by them.
CONCLUSION
From the above discussion, it is concluded that in adhesive industry, there is requirement
of changes which are important and crucial for getting success. With the help of PEST analysis,
5

it is easy to understand changes which are taking place in external environment. Porter's five
model helps to analyse position of organisation in industry and strategies which helps to improve
position. In order to analyse internal strength and weakness of organisation which is important to
make unique identity in industry. At last there is discussion about stake holders' mapping model
helps to provide knowledge about perception of stakeholders.
6

REFERENCES
Books and Journals
Baker, M. J., 2014. Marketing strategy and management. Macmillan International Higher
Education.
Booth, S. A., 2015. Crisis management strategy: Competition and change in modern enterprises.
Routledge.
Brewster, C., 2017. The integration of human resource management and corporate strategy. In
Policy and practice in European human resource management (pp. 22-35). Routledge.
Corbett, J. S., 2018. Some principles of maritime strategy. BoD–Books on Demand.
Klettner, A., Clarke, T. and Boersma, M., 2014. The governance of corporate sustainability:
Empirical insights into the development, leadership and implementation of responsible
business strategy. Journal of Business Ethics.122(1). pp.145-165.
Kono, T., 2016. Strategy and structure of Japanese enterprises. Routledge.
Nankervis and et. al., 2016. Human resource management: strategy and practice. Cengage AU.
Piercy, N., 2014. Marketing Organisation (RLE Marketing). Routledge.
Waddington, C. H., 2014. The strategy of the genes. Routledge.
Wagner, M. and Meyer, T. M., 2014. Which issues do parties emphasise? Salience strategies and
party organisation in multiparty systems. West European Politics.37(5). pp.1019-1045.
7