Value-Added Support Strategy: Internal Environmental Analysis - Essay Sample

Introduction

Value-added support strategy is part of the organizational execution strategy that achieves the guiding, market-entry, adaptive, and competitive approach and enables the achievement of the service provision strategies (Karim & Arif-Uz-Zaman, 2013). More importantly, the internal environmental analysis provides the organizational profile, strength, and weakness, as well as its competitive relevance (Croce, Marti & Murtinu, 2013). Internal environmental analysis has to be compared with the needs of the strategies which are chosen for the formulation phase of the strategic management procedures. When the strength and weakness are compared, the result can demonstrate areas that need change or maintenance (Barquet, De Oliveira, Amigo, Cunha & Rozenfeld, 2013). The value-added support areas such as culture, structure, and the needed resources which correspond to the demand of the maintenance strategies are carried out. While for the areas that are not enough to undertake the chosen strategy, the change tactics are introduced.

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Role of Strategy Formulation

The strategy formulation depends on the understanding of the situation, that is, the proper understanding of the data generated throughout the process of the situational analysis. The value-adding execution strategies are formulated to create market entry, adaptive, and competitive tactics to occur (Karim & Arif-Uz-Zaman, 2013). Strategy formulation and value-adding support strategy are interrelated and are connected to the strategic control (Croce et al., 2013). Therefore, the organizational leadership plays an integral role in the provision of proper understanding the resource allocation and how it is connected to the strategy.

The modern strategy focuses on the strategy formulation, and it is given more attention while linking it to the organizational performance than the implementation process (Campbell, Reyes-Picknell & Kim, 2015). It is worth noting that, a dialogue is the most empowering concept in the organization, therefore, when it is used, workers have input into the strategy formulation leading to the development of ownership which makes every worker more dedicated to the execution of the strategy.

Building Blocks Structures

There are a few important organizational designs which make the essential building blocks for every organization. The following are the designs that form the building blocks;

Functional Structure Strategic

Functional structure of an organization is always categorized depending on the functional area or specialty (Barquet et al., 2013). For instance, there can be different departments of the organization such as the health department, accounting department, human resource department, accounting, marketing department, and administration department, among others. Generally, all the leaders in every department will have to report to the Chief Executive Officer (CEO) of the organization (Campbell et al., 2015).

Advantages

The staff in all the organizational departments is managed by someone with competence and experience in the specialty, and the person can properly understand and evaluate the work of the staff (Barquet et al., 2013). Again the staff has the freedom of moving up within their area of work, hence the opportunity for the staff to have job security and stay longer working for the organization. Additionally, employees can cooperate with others in the area of work; thus, the opportunity to share knowledge and experience and lateral job move to learn new skills within the organization (Croce et al., 2013). Further advantages include; establishing a high level of specialization, foster effectiveness, and centralized decision making and control.

Disadvantages

Despite all the advantages of the functional structure of the organization, the structure as well encounters several disadvantages including; making the coordination very difficult in the organization, limiting the progress of the general managers, enhances the slow thinking and narrow specialization and finally make horizontal communication very difficult in the organization (Campbell et al., 2015).

Divisional Structure Strategic

Divisional structure in an organization assists in organizing activities of the company around the market, geographical, and the product and services. Every division consists of a complete set of purposes (Croce et al., 2013). The strategy is important for making a decision and clustered at the division level. The approach is important when the organization has several markets or products.

Advantages

The strategy also allows the employment of different strategies within the divisions. It promotes developed local responsiveness as well as placing more emphasis on the region or the organizational product and service (Barquet et al., 2013). It enhances the coordination of within a division. The strategy as well promotes accountability and responsibility. Finally, it helps in developing the general managers.

Disadvantages

The division structure strategy forms an obstacle in maintaining a perpetual reputation of the organization (Croce et al., 2013). It adds more layers in the management. The strategy also duplicates functions and services for the workers, needs carefully established rules and guidelines for decision making, and forms high competition for the resources.

Matrix Structure Strategy

The matrix structure is a structure whereby, the reporting relationships are set up as a matrix rather than the outdated hierarchy (Karim & Arif-Uz-Zaman, 2013). Conventionally, workers have double reporting relationships, thus to both the production manager and the functional manager.

Advantages

Matrix structure strategy helps in developing functional expertise and enables the diversity of both the product and project expansion (Campbell et al., 2015). The strategy also effective utilization of the functional expertise, promotes quick developments of the product, and enhances inventions and innovations for the organization.

Disadvantages

The strategy causes problems in the management, as well as making communications and coordination difficult. The strategy also demands negotiation and responsibility-sharing among the employees. Finally, the strategy promotes confusions on priorities for the organization.

Strategic Thinking Map

The Community Blood Center of the Carolinas (CBCC) is a member of the American Blood Center (ABC). The organization encountered several internal weaknesses, strength, opportunities, and threats.

Internal Strength

CBCC is determined to serve the demand of patients, health care providers, and blood donors in the region. Ten area hospitals committed to coordinate to foster and assist the community-based blood organizations. The health care providers could have enough blood to suitably meet the demand of the patients in the community (Barquet et al., 2013). The board members comprise of the business leaders and the medical experts. Donor and sponsor high satisfaction level and the organization gave donors choices of areas they gave blood.

Internal Weakness

The collected blood was less than the projected amount. The cost of blood collection was higher than the projected (Croce et al., 2013). There was little awareness about the CBCC in the community. The budgeted money could deplete in the following year. Due to the high cost, the board decided to erase the marketing budget. The staffs that were specialized in the service delivery were underutilized, and they could find work somewhere (Campbell et al., 2015). Finally, the staff was retrenched, and there was a lack of long-term strategy.

External Threats

Despite the high population in the US, only a few people donated the blood. Red Cross harmonized their prices, leading to high competition (Barquet et al., 2013). There was an increase in the level of blood testing, thereby reducing the eligible blood donors. Finally, there were problems with artificial blood replacement.

References

Barquet, A. P. B., de Oliveira, M. G., Amigo, C. R., Cunha, V. P., & Rozenfeld, H. (2013). Employing the business model concept to support the adoption of product-service systems (PSS). Industrial Marketing Management, 42(5), 693-704.

Campbell, J. D., Reyes-Picknell, J. V., & Kim, H. S. (2015). Uptime: Strategies for excellence in maintenance management. Productivity Press.

Croce, A., Marti, J., & Murtinu, S. (2013). The impact of venture capital on the productivity growth of European entrepreneurial firms:'Screening'or 'value added'effect?. Journal of Business Venturing, 28(4), 489-510.

Karim, A., & Arif-Uz-Zaman, K. (2013). A methodology for effective implementation of lean strategies and its performance evaluation in manufacturing organizations. Business Process Management Journal, 19(1), 169-196.