ORGANISATIONAL THEORY, STRUCTURE AND DESIGN

MARCH 2023 EXAMINATION

ANSWER 1.
INTRODUCTION
Adapting to a changing business environment is critical for any company's survival and
success. To remain competitive, a company must be aware of the various external factors that
can affect its operations. The PESTEL analysis is a useful tool for businesses to understand
the various political, economic, sociocultural, technological, environmental, and legal factors
that can have an impact on their operations. In this context, we will perform a PESTEL
analysis on a beverage company to better understand how these external factors can affect the
company's business environment.

CONCEPT AND APPLICATION

In order for 'Orange Spot' to successfully adapt to its changing business environment, it
should focus on the following three aspects of its business environment:
Customer needs and preferences: 'Orange Spot' should be aware of its customers' changing
needs and preferences. It should conduct market research to identify these shifts and adjust its
product offerings as needed.
Competition: 'Orange Spot' should be aware of its competitors' strategies. It should look for
ways to differentiate itself and improve its competitive position.
Advances in technology: 'Orange Spot' should embrace new technologies and adapt them to
its business model. To stay ahead of the curve and innovative, it should invest in research and
development.

Now, let's do a PESTEL analysis of a beverage company to provide more context:

Political factors: This refers to the impact of government policies and regulations on the
business. For example, the government may levy taxes on sugary drinks, which could have an
impact on a beverage company's profitability.
Economic factors: The overall economic environment and its impact on business. Inflation,
unemployment rates, and consumer spending habits can all have an impact on a beverage
company's sales.
Sociocultural factors: These are the social and cultural influences on consumer behaviour.
For example, changing health and wellness trends may result in a decrease in sales of sugary
drinks.
Technological factors: This refers to technological advancements and how they affect
business. New manufacturing technologies, for example, may increase efficiency and lower
costs.
Environmental factors: This refers to the impact of environmental factors on business, such
as climate change and natural disasters. Droughts and other extreme weather events, for
example, may affect the availability of certain ingredients, thereby affecting beverage
production.
Legal factors: This refers to laws and regulations that impact the business. For instance, the
company may be required to follow food safety regulations or intellectual property laws.
A beverage company can make informed decisions about how to adapt to its changing
business environment and remain competitive by taking into account all of these factors.

CONCLUSION
Finally, in order to adapt and remain competitive, a company must be aware of the various
external factors that can impact its business environment. A PESTEL analysis can help a
company understand the various political, economic, sociocultural, technological,
environmental, and legal factors that can affect its business environment. A company can
position itself for success and growth in a changing business environment by focusing on these
aspects and being adaptable.

ANSWER 2
INTRODUCTION
Organizational analysis is a critical process for any company to use in order to understand its
strengths and weaknesses, identify areas for improvement, and leverage its resources and
capabilities to gain a competitive advantage. The VRIO framework is a useful tool for
analysing a company's resources and capabilities and determining which ones provide a
competitive advantage. In this context, we'll talk about how an organisational analysis can help
an e-commerce company and go over the VRIO framework.

CONCEPT AND APPLICATION

A thorough organisational analysis can benefit the e-commerce company in a variety of ways.
For starters, it can aid in the identification of organisational strengths and weaknesses. This
data can be used to make informed decisions about areas that need to be improved as well as
areas where the company can gain a competitive advantage. Furthermore, organisational
analysis can assist in identifying any inefficiencies or bottlenecks in the organization's
processes, which can then be addressed in order to improve productivity and profitability.
The VRIO framework is a useful tool in this context for analysing the organization's
resources and capabilities. VRIO is an acronym that stands for Value, Rarity, Imitability, and
Organization. It is used to assess a company's resources and capabilities and determine their
potential impact on its competitive advantage.
Value: This refers to the value that a resource or capability provides to the company. It is
critical to determine which resources and capabilities are valuable to the organisation and
which are not. Non-valuable resources can be eliminated to reduce costs, while valuable
resources can help the company gain a competitive advantage.
Rarity: This refers to the scarcity of a resource or capability. Rare and difficult-to-obtain
resources and capabilities can help a company gain a competitive advantage.
Imitability: This refers to the degree of difficulty in replicating a resource or capability.
Resources and capabilities that are difficult to replicate can contribute to a company's long-
term competitive advantage.
Organization: This refers to how the company organises and manages its resources and
capabilities. A company that manages its resources and capabilities in an organised and
efficient manner can gain a competitive advantage.
Using the VRIO framework, James Jenson can determine which e-commerce company
resources and capabilities provide a competitive advantage and which do not. This can assist
the company in prioritising and allocating resources to resources that provide a competitive
advantage. It can also assist the company in determining where it needs to invest to strengthen
its competitive position.

CONCLUSION
Finally, conducting an organisational analysis and utilising the VRIO framework can assist an
e-commerce company in identifying its strengths and weaknesses, evaluating its resources and
capabilities, and leveraging them to gain a competitive advantage. By identifying the
company's valuable, rare, difficult to imitate, and well-organized resources and capabilities,
the company can develop strategies to strengthen its competitive position. This can assist the
company in achieving long-term success and growth in the ever-changing e-commerce
industry.

ANSWER 3 (a).
INTRODUCTION
Reema understands the importance of understanding and differentiating business strategies at
various levels as an HR expert for an automotive company. The division of an organization's
strategy at various levels ensures that the company's resources and capabilities are optimised
to achieve its strategic goals. However, Reema's boss cannot see how this bifurcation is
possible. As a result, she has been tasked with giving a presentation on the various strategic
management aspects of the company. This essay will explain how Reema will divide the
organization's strategy into three levels and elaborate on the role of HR experts in developing
and implementing strategies in this context. Reema can divide the organization's strategy into
three distinct levels: the corporate level, the business level, and the functional level. The
corporate level strategy focuses on the company's overall direction, including its vision,
mission, and goals. It entails deciding what business the company should be in, allocating
resources among different business units, and entering new markets. Reema can assess the
company's current business portfolio and determine whether to expand or divest specific
businesses in order to align with the company's overall strategic direction.
Reema's role as an HR expert is critical in developing and implementing effective strategies
that are aligned with the company's overall goals and objectives. She can collaborate with
other company functional areas such as finance, marketing, and operations to ensure that
strategies are integrated and optimised across the organisation. She can also advise senior
management on how to develop and implement strategies that are in line with the company's
culture, values, and long-term goals.

CONCEPT AND APPLICATION

Reema can bifurcate the organization's strategy at three separate levels:

Corporate Level Strategy: This level of strategy focuses on the company's overall direction,
including its vision, mission, and goals. It entails deciding what business the company should
be in, allocating resources among different business units, and entering new markets. Reema
can assess the company's current business portfolio and determine whether to expand or
divest specific businesses in order to align with the company's overall strategic direction.
Business Level Strategy: This strategy is concerned with how to compete in specific markets
or industries. It entails deciding how to distinguish the company's products or services from
competitors, how to price products or services, and how to target specific customer segments.
Reema can assess the company's market position and choose the best strategy, such as cost
leadership, differentiation, or focus, to gain a competitive advantage.
Functional Level Strategy: This level of strategy focuses on how to improve the efficiency
and effectiveness of specific functional areas within the company, such as human resources,
operations, and marketing. It entails making decisions about how to allocate resources within
these functional areas, how to improve processes, and how to develop and retain talent. Reema
can analyse the company's functional areas and determine the best strategy for optimising
resources and capabilities in these areas, such as implementing new HR policies, implementing
new technology, or improving supply chain management.
By bifurcating the organization's strategy at these three separate levels, Reema can ensure that
the company's strategies are aligned with its overall goals and objectives, and that resources
are allocated effectively to achieve those objectives.

CONCLUSION
To summarise, bifurcating an organization's strategy at different levels is both feasible and
required for organisations to develop comprehensive strategies that address various aspects of
their operations. Companies can ensure that their resources and capabilities are optimised to
achieve their strategic objectives by bifurcating the strategy at the corporate, business, and
functional levels. HR experts like Reema are critical in assisting organisations in developing
and implementing effective strategies that are in line with their overall goals and objectives.
They can collaborate with other departments within the company to ensure that strategies are
integrated and optimised throughout the organisation, as well as provide insights and
recommendations to senior management on how to develop and implement strategies that are
consistent with the company's culture, values, and long-term goals.

ANSWER 3 (b).

INTRODUCTION
To achieve their goals and objectives in today's business environment, organisations must
develop and implement effective strategies. Reema understands the importance of
understanding and differentiating business strategies at various levels as an HR expert for an
automotive company. Her boss, on the other hand, may not fully comprehend how this
bifurcation is possible. As a result, Reema has been tasked with giving a presentation on the
company's various strategic management aspects. Reema will outline various types of
strategies that the company can consider in order to achieve its objectives in this presentation.
Reema can consider various strategies in order to create a comprehensive strategic plan that is
in line with the company's overall goals and objectives. Corporate strategy, business unit
strategy, functional strategy, competitive strategy, and operational strategy are examples of
these strategies.
These strategies can be used by Reema to create a comprehensive strategic plan that maximises
the company's success. Reema can assist the company in achieving its long-term goals and
objectives by understanding and differentiating business strategies at various levels.

CONCEPT AND APPLICATION

Reema plays a critical role in developing and implementing strategies that align with the
company's overall goals and objectives as an HR expert for an automotive company. As a
strategist, her job entails identifying the company's strengths, weaknesses, opportunities, and
threats in order to develop a strategic plan that maximises the company's success.

There are various types of strategies that Reema can consider, including:
Corporate strategy: It is concerned with the overall direction and scope of the company. It
includes mergers and acquisitions, diversification, and resource allocation decisions across the
company's various business units.
Business Unit Strategy: This strategy focuses on the performance of a specific business unit,
such as product development, marketing, and operations. It seeks to identify opportunities to
increase revenue, decrease costs, and increase profitability.
Functional Strategy: This strategy focuses on specific company functions such as human
resources, marketing, and finance. Its goal is to ensure that each function is aligned with the
overall goals and objectives of the company.
Competitive strategy: It is concerned with how the company can gain a competitive advantage
in the marketplace. It entails determining the company's unique selling proposition and
developing strategies to distinguish the company's products or services from those of
competitors.
Operational Strategy: This strategy focuses on the company's day-to-day operations. It aims
to boost efficiency, cut costs, and boost productivity.

These strategies can be used by Reema to create a comprehensive strategic plan that aligns with
the company's overall goals and objectives. Reema can assist the company in achieving long-
term success by understanding and differentiating business strategies at various levels.

CONCLUSION
In conclusion, developing and implementing effective strategies is crucial for organizations to
achieve their goals and objectives. Reema understands the importance of differentiating
business strategies at various levels as an HR expert for an automotive company. Reema can
develop a comprehensive strategic plan that aligns with the company's overall goals and
objectives by considering various types of strategies such as corporate strategy, business unit
strategy, functional strategy, competitive strategy, and operational strategy. This will aid the
company's long-term success in a competitive business environment.