Internal Environment Internal Analysis
Internal Environment Internal Analysis
Companies have an aim of performing well compared to its competitors. A company has to have its own tactics of carrying out its activities in order to be the best. It is about doing the same thing in a different way and this is what brings success to a company. Through internal and external analysis, a company can determine and form their strategy. (Coutler, 2008). Organization’s internal environment refers to the factors within the organization that affect its operation. Internal environment analysis evaluates the resources, the company core competencies and strategic objectives. It looks at the mission and vision. The company is able to identify its strengths and weaknesses in order to take the necessary measures to correct the same through formulating strategic decisions in order to achieve its goals.
Cloudbiznet Solutions is a cloud computing company whose mission is to put the customer ahead and ensure they are served to their satisfaction. It also aims at becoming the world leading cloud company in ensuring that its customers get the best services they require on a daily basis. Its core values include: customer first, commitment, reliability, time-conscious and team work. The company will be established to meet customer needs through reaching them one on one as opposed to having customers seek support online, which most established cloud companies do. Most companies desire cloud services but lack of prompt support discourages them.
Having the company’s mission, vision and strategic objective in mind, an internal environmental analysis is carried out to determine how the company will beat the competitive world. In this analysis we consider what will help us support the customer to even go beyond their expectation. When we do this we will be able to retain them. We will also build a brand and a good reputation that will help us to acquire more and more customers. The factors looked at are categorized into tangible, intangible and human resource.
Technology an equipment
Being a cloud computing company, technology is a key factor to consider. This include both the software and the hardware. To offer the best services to the customer, powerful efficient equipment is required. This is to ensure the services are continuously up and running. We have researched on the reliable equipment suppliers that we will be working with. We have also identified the best softwares that are used to facilitate cloud services. These are software that are highly scalable, supports thousands of users and support redundancy. To make this technology effective, we will have a team of expertise to offer services to the customers whenever there is a request. We will ensure to do training to all the employees to understand how to use the technology to satisfy client, promote teamwork and maximize resource utilization
Having the right funds to start and run the business and to be able to generate money during the business life is quite important. The company has a goal of doubling its profits in the first sever years of operation. The owners should also be able to double their earnings at this time as well. For start, we will borrow funds from financial institutions whom we have already submitted our idea to them and have embraced it. Cloud computing is the way to go for companies. Having a well formulated cloud services business idea, many people will want to invest in it. We have made sure to have a concrete idea and already have people willing to put in money. We aim to acquire as many customers as possible with whom we will be able to realize good profits.
3. Strategic Position Plan
We aim to have our main office at the capital city, where most of the businesses operates. This will enable us to be reached by many and reach to many as well. We intent to offer physical support thus the need to be able to access many companies and individuals. We also intent to role out small support branches in various parts of the country to increase accessibility.
Network, Relationship And Reputation
Networking and good relationships with stakeholders and the outside world can greatly affect a business. Network refers to the number of people one is in touch with or how spread knowledge about the company is among the people. Building good relationship improves the company reputation. The stakeholders should be treated with respect. The company ought to treat everyone equally and fairly and be trustworthy. Improved working relationships make the business process smooth and give everyone a humble time to concentrate on their duties.
One of the greatest assets a company can possess is knowledge. This comes from a well trained team of expertise who can diligently deal with customer requests. The company is keen to have a resource team who will seek and maintain talent. Frequent trainings will be done to the team to improve their skills. The trainings will be all round to ensure that at any given time an employee can give an appropriate response to the clients instead of always pointing on one another. Competency results from collective and coordination of diverse production skills. (Barney & Hesterley, 2008). We will also ensure that we schedule award times to motivate the employees. The wards will be comparable to those give in the competitor companies.
Weaknesses And Strengths
Having done our internal analysis, we are able to identify our weak and strong points that we will have to work on to ensure that we meet our objectives.
An excellent team of expertise to support the client. Training will always be done to improve their skills
Proximity to businesses hence to customers
Well-designed marketing and support strategies
We are a start-up company. We may face challenges convincing some clients
Most Important Internal Environmental Factors
Technological and social factors are particularly key and relates to internal analysis. As discussed above, good relationship with stakeholders and the general public can shape the way our company will carry out its activities. Respect for everyone, fairness and being trustworthy bring about smooth operations within the organization. We will also be located where most of our potential customers are. Due to the ever dynamic technology, people will be seeking modern services that are affordable and reliable. This will definitely influence our choice of hardware and software as well the expertise to offer excellent services to clients.
Here, the number of competitors, the target market and the distribution of population will greatly influence our internal strategic plans. Knowing how many companies we will be up against, how the have established themselves will help us in determining how much funds we will need to start and be able to compete with them. It will also help us in planning our internal structure that can do their best to take advantage of available opportunities. The target market on the other hand will guide us in understanding the needs of potential customers and be able to plan ourselves well to support them. This will determine the technology to acquire in terms of equipment and expertise. Population distribution will affect our strategic location and influence marketing techniques.
We will have to keep an eye on economic trends and government regulations. Laws and regulatory changes affect business operations. We will need to consider government regulations for starting a business. This might affect importation of equipment, countries to partner with and will also require us to put aside money for acquiring permits and licenses. This will definitely affect our starting funds. Economic trends such as inflation, rates of employment and interest rates will determine how we will plan ourselves to respond to risks and also to take advantage opportunities.
This is an assessment that will help us understand our competitors in depth; to know how they are structured, how they perform their activities and how they are likely to respond to threats when there is any. This will enable us to understand their strengths and weaknesses so that we can take advancement and perform better that them. Cloudbiznet Solutions is driven by the fact that the already existing cloud companies offer very poor support to the customers leaving them suffering. We intend to reach the client not only through online support but through phone calls, one-on-one chats and site visits. A 24-hour support will be incorporated.
Every employee will be trained on basic aspects of all services to enable them respond to requests appropriately before the right person implements. They will also receive awards frequently to motivate them in their work. In most companies, a sales person do not have an idea of technical stuff and if a technical person is not within the customer will be ask to wait or call the following day. This is quite discouraging if the matter is agent Also, population distribution has changed ever since they got established. We intend to take advantage of the current distribution to locate ourselves at the most appropriate place. Since we are a start-up company, we will be able to research and acquire the modern best technology as opposed to what they have. Our new energy will also enable us to put all effort to ensure that the company picks up to attain its goals. The fact that Cloudbiznet Solution is motivated by the discouragements from the existing companies makes it stand a higher chance of performing much better.
Organizational Structure And Its Effects On Performance
Depending on how the hierarchy is formulated a company will have various departments and it will also determine reporting within the organization. Cloudbiznet Solutions will compose of the CEO, CTO, Managers (Human Resource, Sales and Marketing and Accounts). This means that we will have five departments which are IT, Human Resource, Sales and Marketing and Accounts. The divisions will ensure that every aspect of the business is represented for smooth operations. It will also enhance organized reporting as well as promote good relationships. Since each department have a manager, they will be able to perform their dedicated operations with the manager ensuring that the projects run to completion. Managers will also conduct appraisals within their units and schedule awards. Without a well organized structure means poor relationships, poor prioritization, no gaols and targets and therefore no company success
Cloudbiznet Competitive Position
The company seeks to offer better services to the customer. The services should be efficient, reliable and affordable. As discussed earlier, customer is our top priority. Being an servicer provider company, a lot of support will be expected from our customers. Every customer is happy when the get the service they requested for and use them to meet their needs. Outages and down times frustrate the client and especially when they do not receive any communication about the cause or how it will be solved. They end up making a lot of losses due to such cases and maybe it was as a result of a careless act from an employee. This has been witnessed from several service providers.
Caring about client needs will enable us enable us to build our trust among them as well as build a brand and a good reputation. We will be able to on-board many clients and retain them. We have talked about how we will offer outstanding support. This will come about from building a team of expertise through frequent trainings. This is to enable the client to appreciate the money they will be putting into our services. We will charge reasonably to ensure that we make reasonable profits and do not overcharge the client. Some companies have been known to overcharge yet still deliver mediocre services because they do not care about customer satisfaction hence losing clients and ending up falling. A company has competitive advantage if it can create more economic value as compared to other firms. Barney (2007).
Barney, J. (2007), Gaining sustaining competitive advantage. 3rd Edition. Prentice Hall.
Barney, J. & Hesterley, W. (2008), Strategic Management and Competitive Advantage. Prentice Hall.
Coulter, M. (2008), Strategic management in action. 4th Edition. New Jersey. Pearson Education.