Question
Task One Strategic planning meeting report
As your report is being prepared for a formal senior management meeting, it should be written in formal business report format and style.
Your report is to be provided to where the main priority is to discuss implementing the new business strategy. The team is made up of mainly operational managers who have limited knowledge and understanding of the
connections between organisational structure, strategy, and the wider business environment so the CEO has asked that your report should include an understanding of the connections between organisational structure, strategy, and the business operating environment.
The report must therefore include:
an evaluation of the advantages and disadvantages of two different types of organisational structures in different types of organisations, the range of products, services and customers associated with each, and how they link to organisational purpose. (AC 1.1)
an analysis of the way in which organisational strategy should be linked to products, services, customers and revenue (AC 1.2)
an analysis of the current and ongoing impact on organisations of the range of external factors and trends. (AC 1.3)
an assessment of two current issues and causes that identify key priorities within organisations that will affect product/service delivery, and the impact this may have on people practice and solutions. (AC 1.4 & AC 3.3)
an explanation of the ways in which people practices can impact on organisational systems and structures, and therefore affect the effective employment, management and development of people (AC1.5)
an exploration of the impact that technology has on people, work and working practices, and the current and emerging scale of the use of technology within organisations. (AC 1.6)
Solution
Table of Contents
Task 1- Strategic Meeting Report 2
1.2 How Organisational Strategy should be linked to products, services, customers and revenue. 5
1.3 Current and ongoing impact on organisations of the range of external factors and trends 8
3.3 Impact on People practice and solutions 11
Task 1- Strategic Meeting Report
1.0 Background of report
In this report, an evaluation of the link of organisation structure, set strategies and business environment has been evaluated. This has been based on the BMC organisation case study which operate in Manchester having interests in Leeds, London, Nottingham and Glasgow. The rationale of this is informed by CIPD HR Professional Map 2018 which identify a core knowledge as including people practice (CIPD, 2021). Adoption the definition in CIPD (2021a), people practices include adopting a set of activities as evidenced in the employee life cycle and controlling their implication to the organisation. This is appropriately attained through putting a priority on collaboration, managing stakeholders interests, facilitation, consultation and capacity development. COVID-19 pandemic has significantly contributed to alternation of the people practice improving strategic management strategies. An appropriate case study is in Personnel Today (2021) evidencing 40% of contemporary entities as leveraging on fresh guidance to achieve dynamic strategy to manage the employees skills demands, noting areas to embrace change as a best practice.
1.1 Advantages and disadvantages of two different types of organisational structures in different organisations; range of products, services and customers associated with each, and how they link to organisational purpose
Adopting the definition of Personnel Today (2009), an organisation structure represent an outline of how specific activities are directed for achieving organisation goals. A tall and flat organisation structure can be considered.
Tall Structure
This is also identified as a hierarchical structure BBC (2021) where leaders and layers of management and business characterised with a narrow span of control and limited number of subordinates/staff. A good example of organisation using tall structure is McDonalds organisation (McDonalds, 2021) as illustrated in figure 1;
Figure 1: McDonalds Tall Organisation Structure
The advantages of this structure entails an elaborate assigned roles and reporting structure. The outcome of this is effectiveness in people practices such as succession plan, resourcing hence employees increased commitment, motivation and retention. Also, SHRM (2021) identify an increased loyalty of the employees through a respect of seniority integrated as organisation culture, departmental operations and organisation in entirety. Contrary to the advantages, their disadvantages entail slagged approach to changes in their market of operation, miscommunication, cost intensive supporting all the positions in the hierarchy. Further, Groysberg et al. (2018) note that hierarchical structure leads to disconnection of the different stakeholders in the set of levels impacting the scope of collaboration beyond the teams scope.
In regard to products, services and customers linked to tall structure, they include businesses possessing less products but sold in high-level volumes. Further, in regard to purposes, tall structure guarantees heightened control harnessed in overall organisation design, quality, processing and distribution of products and services. A case example is in McDonalds tall organisation providing fast foods, they have global franchises with their food products and services highly demanded. Senior management control all the other franchises in their provision of services, products quality, facilities and distributors engaged.
Flat Structure
As opposed to hierarchical structure, flat has less layers of management with the managers having a broad range of control with majority of the subordinates and a short chain of command existing. As evidenced in CIPD (2021b) in a flat structure, there lacks a complex superiority in this form of structure. Its popularity is evidenced in the technical field and require an intense innovation and making decisions. For instance, in Apple, Google, Facebook and HP operate a flat structure as shown in figure 2.
Figure 2:A summary of Apple Flat Structure
Source: BRM (2021)
For advantages of flat structure, this entail a high-level decision-making process in entire organisation. The outcome of this is reduction of bureaucracy impacting innovation and success. Further, team-work and coordinating with speedy engagement is attained with less demands amongst the middle-level management lowering the entire overheads. For disadvantages, Dźwigoł (2017) note that the employees roles are not elaborate, lowering sustainable development of organisations and limited executive decisions hence failure to maintain the focus to main organisation objectives.
In regard to products, services and customers linked with flat structure, they are appropriately relevant for new organisations with tight operations. The structure is aligned with an entity core role evidenced by its use specifically when innovativeness is intended to be pursued. Further, contrary to hierarchy organisation structure with immense layers, a flat structure is characterised by less layers indicating clients access products and services promptly. According to Forbes (2018), this harness the scope of efficiencies increasing performance of an entity.
1.2 How Organisational Strategy should be linked to products, services, customers and revenue
In order for an organisation to achieve long-term goals, organisation strategy is instrumental. In the provided Avado Notes, while quoting Johnson et al. (1999), strategy is identified as the direction and scope of an organisation over the long term. This achieves advantage for the organisation by its configuration of resources in a changing environment for meeting needs of markets and fulfilment of entire stakeholder expectations.
Products and services are instrumental in establishing an organisation strategy. For instance, in multinationals such as General Motors and DuPont, their business units are characterised by good structure which harness their competitiveness (Kaplan & Norton, 2006). Further, for McDonalds, their operations in the food industry contribute to use of technology and embracing flexibility as sustainable practice. The Porter’s 5 forces analysis is applicable to demonstrate the linkage of products and services and strategy (Kabeyi, 2018). The Avado 5 forces analysis is as shown in figure 3;
Figure 3: Porter’s 5 Forces Tool
Source: Avado Notes
Further, to link the organisation strategy with the products and services, the VRIO Framework is similarly applicable (Malik, 2018). As illustrated in figure 4, this represent the aspects of Value, Rarity, Imitability and Organisation. The rationale of this is ensuring clients satisfaction is achieved with a leverage on competitive advantage in their market of operations evident.
Figure 4: VRIO Framework, Organisation strategy and customers
Source: Malik (2018)
In regard to revenues, strategy adopted in an entity is harnessed by the view that it ought to contribute to improvement of an entity revenues. In line with Evens et al. (2017), the strategy ought to harness income generated in an entity by improving their performance. This is affirmed in Malcolm Baldrige National Quality Award Technique which is used in linking the strategy with revenues. This assists an entity to promote level of innovation and achieving their mission and vision and as such high-level revenues. Appropriate measures, analysis, and knowledge management with entire processes are put into account.
To summarise, for BMC’s case study, strategic management planning harness the scope of an organisation strategy linking to products, services, clients and revenues. This appropriately use Balanced Scorecard (Quesado et al., 2018). This is by evaluating objectives, measures and set initiatives as illustrated in table 1;
Table 1: BMC Balanced Scorecard
1.3 Current and ongoing impact on organisations of the range of external factors and trends
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