Strategic management provides business direction through analysis and assessment for organisational growth. Uncertain business environment develops operational turnaround and ethical discharge through shift in strategy. This essay assess the impact in context of COVD 19 with key importance on internal and external analysis on organisational sustainability.
Organizational sustainability refers to using leadership, global insights for the challenge faced by the organization. COVID 19 is an infectious virus that is caused by coronavirus declared as a pandemic in March (WHO, 2020). It has impacted the world causing loss of business, uncertainty in the environment. The internal and external analysis provides a holistic picture of the organization's environment and developing a strategy that allows the organization to succeed. This essay highlights the importance of internal and external analysis in process of strategic management and its impact on sustainability in the context of volatility due to COVID 19. The impact of COVID-19 on the world economy has been significant has a profound impact on corporate social responsibility. The shift in consumer demand of the product and consumption and wellness of stakeholders are prime changes that have a positive impact on the CSR objectives of the company.
External and internal analyses are the primary steps in the strategic management process. The development of strategy consistent with goals will help in navigating uncertainty and provide a business perspective to the organization. Scaling and encompassing leaders will develop creativity in the organization. Contingency theory is a fit between the external environment and the firm (He, 2020). The electronic commerce activities, environment scanning and strategic planning, decision making, and resource allocation as part of the planning process. Corporate governance for strategy formulation by the board members will facilitate management. Technological integration and innovation will help in COVID-19 for economies of scale. Analysing the usability, customer experience, and level of integration of technology in the business process target market and organizational environment address the use of disruptive technology such as AI, ML, and block chain for digitalization of operations and user experience (Lexis Nexis, 2020). Privacy norms and intellectual property may attract infringement for a multinational company. Environmental factors related to climate change, pollution level, and accelerating environment regulation by the government with analysts on renewable resource protection with legislative regulation and regulatory reporting guidelines. The determination of economies of scale research and development opportunities is related to business labour cost estimation as per firm cavity to pick differentiation as a multi-country strategy or global strategy (Lexis Nexis, 2020)
The internal analysis looks at the wider business environment as part of business functioning and operations. External analysis such as PESTLE identifies external threats and opportunity for business assessment for sustainability. SWOT as internal analysis help in identifying current strength and using the same to overcome weakness and managing business enterprises (Hill, 2015). The identification of competitive rivalry, and government regulation and legal landscape impacts strategic leverage for outsourcing, offshoring on business environment favourability and readiness of resources and regulation. The business uncertainty and unprecedented situation has caused the business to pivot and sustain its operation. The use of technological advancement for business will help in leveraging advantage for business opportunity assessment and environment analysis to assess the favourable and non-favourable environment. Internal analysis is important for supplier networks, business ability to use existing resources for differentiation and expansion. Volatility and uncertainty stem from high magnitude impact that will be long term for all business operations in the event such as Black Swan (Maud, 2019). Agility with maintaining organizational demand through aligning business operations ensure recovery for business operations. The company can establish it's a strategy based on its external and internal analysis. Understanding industry attractions through five force model will help in business strategic exist from loss-making operations and entry in sub-optimal business line. Business activities, legal and environmental support has risen post-COVID with consumer awareness and shift to the digitization and sustainable operations (We forum, 2020). Understanding core competence is crucial for organizations to develop products and services for managing a business position for the industry. The emergence of business competence is impacted due to COVID 19 with an impact on supply chain network and social distancing norms that have made business unviable. COVID 19 has led to adaptive risk management for business operations with a focus on internal resource strengthening and identifying core capabilities. Growth assessment and corporate strategy on business cost and industry growth rate evaluation will determine quality and customer service. Industry growth lifecycle and economic forecast are an estimation of firm turnaround or disinvestment
Adapting to sustainable business practices will promote superior performance for both market and environmental perspective. Business profitability is the end product of business objectives by the firm. Following ethical conduct will ensure the firm’s non-reliance on the business prospect for managing operations. Option as outsourcing and offshoring present lucrative cost-cutting operation but simultaneously leverage risk on the ethical conduct. The outcome approach in ethics conducts present an ethical dilemma based on the utilitarian approach. CSR practice of the triple bottom line will reduce operational inefficiencies. Corporate sustainability depends on the effectiveness of the firm action to industry level organization. Organization capability in developing organization contingency fit for firm performance assists in determining the strategy for expansion, diversification. The firm's external environment is characterized by organizational performance. Developing on fit single strategy is not significant as volatility and consumer demand is wide and differentiated. Company strategy formulation on market feasibility and business scale and growth is determined in the operating structure and variable factors impacting its business continuity (Chernev, 2018). The societal impact such as demographic changes and adaptability will require a firm to train employee and development market fit and reassessment and allocation of resources. The ongoing pandemic has led to a change in structural income and business value chain through optimizing top management decisions. Evaluating capital resources, an employee by organization structure has a direct impact on business costs. Consumer demand culture attributes depict loyalty and customer base for the product.
Change in Labour supply and exchange rate on capital intensive business are factors for company location and operations for profitability and cash flow required for continued operations. Selling of loss-making strategy and buyout and retrenchment are part of the extreme measures to consolidate operation and for business continuity. The dominance of e-business and the power of the internet has transformed business reach to a global level with the internet as connectivity and speed by offering a medium for distribution channels will increase for resilience to uncertainty. Lynch (2019) described SWOT analysis is the identification of the company's internal strengths and weaknesses in understanding the competitive landscape in company strategy formulation. Pricing brand core activities assigning on the resource gap. A company having a strong employee skillset can utilize its weakness or diversification through using the capability gap for innovation Target market identification will help the firm in the strategic management process for mobilizing resources known vulnerabilities and risk. The assessment of technological forces impact business practice due to economic fluctuations. The interest rate, recessionary environment possess a decline in consumer spending. The business has to comply with the regulator environment for operations with an advertisement, distribution, and licensing. Business structuring and changes in the country analysis will help in the utilization of resources for market expansion, entry strategies. Porters five force analysis in the industry lifecycle will help in restructuring the company to maintain the company lifecycle (Motohashi, 2015) Market attractiveness through the five forces model is important for company innovation, pricing strategies, and product portfolio mix as part of the external analysis (He, 2015). It acts as a powerful response against distribution channels, market size, and consumer loyalty for product assessment in the industry. SWOT analysis is important in cosmetic positioning for identifying vulnerabilities.
Corporate commitment and suitable competitive advantage through internal and external analysis framework provide transparency and realignment of KPI for performance outcomes. Business growth strategies are determined on the area of operations, business synergy, and company effectiveness for growth prospects on business objectives as trends in the industry. COVID 19 has largely resulted in the suspension of operations and impacted all sectors with drastic revenue loss for the hospitality, aviation, and retail industry (Weforum, 2020). Strategic management cannot be implemented without the classification of internal and external analysis. The triple bottom line of sustainability for integrating people by defining purpose empowering stakeholders. The impact of COVID 19 has resulted in integrating sustainability in everyday operations for the community benefit from “business as usual” (Masud, 2019). Business integration for growth is characterized for identification on the horizontal, vertical, and strategic alliance for operations. Company transformation and structuring for an alliance for capital infusion and using the company s strength to advantage as the strategy is a win-win situation for both the enterprise. Unrelated expansion in risk-taking and expansion creating a lack of flexibility. Company scope and expansion for design, software, manufacturing can be strong as part of the value chain with the ecosystem to bind the customer. Business expansion based on BCG analysis for company products will estimate the relative market share and discontinuing the product. The company comparison of the product shows the product experience curve. Assessment for question marks shows product rebranding and failure to maintain product growth will relative market growth. Business effectiveness and responsibility of stakeholders are critical as stakeholders of the company. Agency problem relates to company stakeholders failed to act in the best interest of the firm. Short-sightedness in operations by business stakeholders need to business operation such as diversification for increasing revenue. According to Motohashi (2015) states the performance of management and successful implementation is related to aligning business goals with those of shareholders. Customers, suppliers, government body investors have regulatory and business interests in company operations. Ethical considerations integrate external and internal stakeholders to create a productive organization. Management ethics reinforced by management will create an organization through the decision-making process. Applying the utilitarian approach of ethics and apply formal codes of conduct and maintaining society's perspective will sustain the firm as a socially responsible firm. Social responsibility has transformed business practice ineffectiveness and identifying priorities through linking business objectives and social responsibility closely with the core business. Manufacturing companies have transformed production capacity for use of personal protective equipment. Business dominant stagey is dominated by the market or environment by resource mobilization through internal capabilities on innovation and economic performance organization can safeguard legal compliance strategy is imperative. Hitt (2016) argued strategy imperative is defined as proactive management for action planning and monitoring for value creation by internal capability assessment.
Lynch (2019) analyzed the initial development, internationalization in synergy enable MNC to develop sustainability practice in the long run. The contingency theory draws the idea for no single approach to manage an organization. The development of a strategy based on situation organization attains a competitive advantage for effective dealing in the customer.
The impact on organization sustainability is strong with business ethics and corporate structure will see a shift towards the ethical process in decision making. The use of competitive advantage and the use of the internet as a distribution model will develop the global reach of the product. The industry trend for organizations aims to quantify factors by establishing industry control. Favorability of location by capital requirements will help in designing price, product differentiation as supplier threats will inflate the cost and availability of product assembling in the market. Internal analysis impact a high degree of consolidation that requires a change in process, with firms developing a risk management plan and developing a robust communication strategy. Internal analysis is important for the response on distribution channels, market size, and consumer loyalty for product assessment in the industry.
The strategic analysis on basement of opportunities and internal strength will guide morale thinking process for suitability and social responsibility with growing consumer dead to address predict changes and implementation The impact of COVID 19 is higher on oragnizatioanl sustainability with key importance on internal and external analysis. The impact on organizational sustainability due in the uncertain environment of COVID 19 highlights business social responsibility and triple bottom line objective to navigate the business in stakeholder interest.
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Hitt, A.R., Ireland, D.R., Hoskisson, E.R. (2016). Strategic Management: Concepts: Competitiveness and Globalization. Cengage learning
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Masud, K.A., Rashid, H.M., Khan, T., Bae, S.,& Kim, D.J. (2019). Organizational Strategy and Corporate Social Responsibility: The Mediating Effect of Triple Bottom Line.16(22), 14-34. International Journal of Research and public health. DOI: 10.3390/ijerph16224559
Motohashi, K. (2015). Global business strategy – Multinational corporations venturing into an emerging market. Springer publication
WHO. (2020). CORONAVIRUS. Retrieved from https://www.who.int/emergencies/diseases/novel-coronavirus-2019
Weforum. (2020). How the great COVID-19 reset can help firms build a sustainable future. Retrieved from https://www.weforum.org/agenda/2020/05/the-covid-19-reset-sustainability/
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