Five Competitive Forces That Shape Organisation

Question1: Analyse the effectiveness of a range of strategies which an organization could use to improve engagement with its employees. Using an organization of your knowledge, comment on how the company has implemented employee engagement techniques. Answer1: The strategies and their effectiveness which the organisation use to improve employee engagement are as under. Fringe benefits: Along with the salary, companies provide additional benefits to its employees like fuel expenses, communication expenses, utility services, housing etc. This can be one of the good strategies depending upon the demography of the employees. (Luthans et al, 2002). Work environment: Companies provide a friendly and an open work environment to the employees to add to their comfort while in office. It add to the overall happiness and satisfaction to the employee in the long run. (Luthans et al, 2002). Bonus and rewards: Organisations generally have programs to recognise the exceptional work done by the employees by providing them bonus and awards which not only motivates them but also instils a sense of competition among employees. (Kompaso et al, 2010). Extra-curricular activities: Companies organize sports meets, informal get-togethers and outings for employees for them to unwind and de-stress themselves from day to day work. This is very important as it gives employees a sense of togetherness and unity. (Kompaso et al, 2010). Southwest airlines is one such employer who have implemented the employee engagement strategies really well. Employee recognition program: Under this, they recognize and rewards the exceptional hard work the employee has done in addition to the roles and responsibilities provided to him. (Czaplewski et al, 2001). Biennial survey: They carry out surveys to gather feedback and suggestions from the employees on a biennial basis and on the basis of these, they make improvements and changes to the modus operandi of the organisation. (Czaplewski et al, 2001). Trainings: Southwest airlines carries out a number of training programs for its professional and customers from time to time. This not only enhance the skills and knowledge but also engage employees and the customer together. (Czaplewski et al, 2001). Employees are provided with the same concern, respect and care by the leadership. There is no discrimination on any basis. Southwest airlines believe that what you give to the employees is what your employees give to the customers. (Czaplewski et al, 2001). Question2: Explain each element of porters Five Forces Analysis. Apply each element of Porters Five Forces Analysis to an organisation of your choice. Answer2: Porters five forces with their explanation is as below. Bargaining power of the suppliers. In a market where either there are very few suppliers or the supplier is having a monopoly of certain product, the supplier enjoys the bargaining power over the buyer. It is high-demand and low-supply situation. (Porter et al, 2008). Threat of substitute. Whenever there is a product which is low on supply but is high on demand, the price tends to shoot up. To avoid such a problem, buyers generally look for the alternative product which is easily available and is lower on cost. This poses as a threat to the existing product. (Porter et al, 2008). Bargaining power of the buyers. With the availability of more than one product in the market and many suppliers to cater to the demand, buyers enjoy the bargaining power and benefit from the competition. (Porter et al, 2008). Threat of new entrants. Market scenario which is profitable for suppliers and manufacturers as a result of high demand from buyers always tends to attract new entrants who would want to take their share of the pie. This poses a threat to the existing manufacturers and products. (Porter et al, 2008). Competitive rivalry. In a market where there are many suppliers who offers similar products and service, there bound to have competition. To survive and thrive in such a situation, suppliers often comes up with offering additional benefits and try to gain as many buyers as they can. (Porter et al, 2008). Porters five forces can be explained by taking an example of Wal-Mart. Bargaining power of the suppliers. Wal-Mart holds a lot of market and being associated with it is beneficial to its suppliers. This gives Wal-Mart more bargaining power. It also have suppliers who are large in themselves and have more bargaining power than the small suppliers. (Gold et al, 2004). Threat of substitute. Wal-Mart who boasts of its robust business model which provides great variety to the customers at the lowest price. This can hardly be substituted by any competitor in the market. Although, there is a little competition provided by the online stores who provide convenience with great price. (Senauer et al, 2010). Bargaining power of the buyers. As Wal-Mart is having huge market share and is still unique in providing convenience and lower price, buyers have almost no bargaining power. If they move to a competitor, they would lose either lower price or the convenience. (Gold et al, 2004). Threat of new entrant. Wal-Mart enjoys such a position in the market which cannot be threatened by any new entrant provided the value it provides to the customers and the brand it has established. (Senauer et al, 2010). Competitive rivalry. There are three main competitors to the Wal-Mart in the market as of now. They are Sears, Target and K Mart. Target is the strongest of the three in retail sector. They have grown tremendously over the years in the domestic markets and promises a good rival to Wal-Mart in future. (Senauer et al, 2010). References: Czaplewski, A. J., Ferguson, J. M., Milliman, J. F. 2001. Southwest Airlines: How internal marketing pilots success. Marketing Management, 10(3), 14-17. Porter, M. E. 2008. The five competitive forces that shape strategy. Harvard business review, 86(1), 25-40. Gold, M. A., Godsey, L. D., Josiah, S. J. 2004. Markets and marketing strategies for agroforestry specialty products in North America. Agroforestry systems, 61(1-3), 371-384. Senauer, B., Seltzer, J. 2010. The changing face of food retailing. Choices, 25(4). Kompaso, S. M., Sridevi, M. S. 2010. Employee engagement: The key to improving performance. International Journal of Business and Management, 5(12), p89. Luthans, F., Peterson, S. J. 2002. Employee engagement and manager self-efficacy. Journal of management development, 21(5), 376-387.