Modern Business Organization Swot Analysis

A modern business organisation must be flexible and grow in an organic way that responds quickly to change. Both human element and competitive strategy might help in a modern business organisation. Human elements include cultures, decision making, organisation structure, communication, motivation and team, while competitive strategy include PESTEL analysis, SWOT analysis, organisational structure, competitive strategy and Porter’s five forces. However, competitive strategy is more important than the human elements in a modern business organisation. Competitive strategy is concerned with doing things better than the rivals. Having focused and clear strategy is important for the success of a business, and without a well-defined strategy, businesses

It is important to choose a structure that helps the company operate efficiently and to achieve the organization’s objectives and aims and make best use of resources and people. Vertically structured or a tall structure have narrow spans of supervision where there is CEO at the top making decisions and then delegating authority to the lower-level managers. Horizontal structured or a flat structure has wide spans of supervision and where the high-level managers is handling the day-to-day tasks and normally interact with front-line employees and customer. Thus, a flat structure is better compare to a tall structure because horizontal structured businesses tend to have the best employees morale, which means that there will have lesser red tape while dealing with any

Porter suggested these three generic business strategies that could be adopted in order to gain competitive advantage. The strategies relate to the extent to which the scope of a business and activities are narrow versus broad and the extent to which a business seeks to differentiate its products. From this he developed the idea that there are 3 generic strategies which a firm can use to maintain and develop competitive advantages such as cost leadership, differentiation and focus.

Cost leadership is being the lowest cost producer in the industry as a whole. Differentiation strategy is the exploitation of a service or product which is believed to be distinctive or unique. Focus strategy is restricting activities to only the part of the market through providing services or goods at lower cost or providing a differentiated service or