Management and Business Context

Question: Discuss about the Management and Business Context. Answer: Introduction Business process management (BPM) is a vast sector of management that influentially deals with the tools and techniques of enacting the business operational activities. Interpreting with the root causes of business performance turns out to be challenging for analysing business purposes. There are different kinds of processes for analysing business performance amongst which Data Envelopment Analysis is one. The concrete output of the analysis only becomes positive and effective when proper and relevant data are imputed, and some influential factors work as well (Naldi, Cennamo, Corbetta, Gomez?Mejia, 2013). The impact of context on the business performance has to be analysed only when we operationalize the material in the form of contextual factors. These factors are either generated in the corporate ambience or internal business environment. Contextual factors are relevant factors that act as parametric for the concerned situation like time, culture and operational activities of the business. The following essay focuses on the different theoretical backgrounds and the contextual factors that have been summarised (Bryman, Bell, 2015). The organization that has been taken into consideration is Harvey Norman, which is a techno service provider company. Harvey Norman Holdings is one of the vast retailers in Australia. As per its Company Profile, deal customers "sniff out arrangements at stores possessed or diversified by Harvey Norman Holdings." Strategic positioning of Harvey Norman The strategic position of Harvey Norman is certain in that the association can utilize bit of the general business in particular ranges, while holding tight to others, the remainder of which are depended upon to upgrade with the economy. The firm has a great deal of focal points and cash related resources, and is prepared for a positive future execution. Its 2009 execution had been extremely incredible considering the negative economy, however in 2010, not as much as stellar results were represented. The association seems, by all accounts, to be optimistic about the future as it should be. It seems like the economy is in recovery and Harvey Norman has different awesome things to progress. Theoretical background This part of the research focuses on four different streams of contextual factors of Harvey Norman, that have been identified to elaborate the framework to the mass generation. Context awareness There have been made a few methodologies how to join business handle demonstrating with the related affect ability to the specific situation. We consider the setting in connection to the client by presenting setting related information which ought to ensure that business forms turn out to be increasing "self-overseeing, programmed and limiting". Setting mindfulness ought to fundamentally be activated by the presentation of differing applied establishments like it is the situation with the "complex, versatile framework". This complex, versatile framework is to empower people of Harvey Norman that are communicating in the process to react rapidly to any remotely prompted change. Subsequently, changes in the earth are in the best case expected, and the business procedure is adjusted instantly (Bargiela-Chiappini, Nickerson, 2014). In reality, the four presented procedures of setting mindfulness (i.e. setting mining, setting displaying, setting scientific classifications for ventures, and setting mindfulness) assume an unmistakable part of each endeavour to enhance business forms (Armstrong, Taylor, 2014). Definition of contextual factors Scholarly writing needs of exact meanings of what is implied by contextual factors. Specialists characterised setting non-exclusively on an operational level: "Context is any data that can be used to portray the circumstance of an entity." Another more limited definition alluding to business was: The blend of all certain and express conditions that effect the situation of a structure can be named the context in which a business strategy is introduced. Gathering both definitions, it can be considered that context is any obvious and unequivocal information about conditions or conditions which influence a section. A particular ordinary for such a condition or situation is named as a contextual variable (Sarstedt, et al. 2014). Levels of contextual factors While analysing the scholastic writing on how contextual factors impact organisations, papers can be recognised by their attention on various corporate substances, be specific the entire organisation, its procedures, and its activities. Early information stayed ambiguous as it didn't choose the relationship between contextual factors and the affiliation clearly. This investigation was the essential who uncovered the reliance of a relationship on the specific situation and pointed out that it is persistently fundamental to consider the context. On the contrary, isolating a particular business condition like the threats to Harvey Norman. Later the research focuses on how context impacts business shapes. Typically a dumbfounding business process is picked, and certain impacts of pertinent factors on this framework are cleared up. The paper uncovers that exercises inside a strategy are influenced contrastingly by the same contextual factors. Two or three exercises are more touchy to cert ain extraordinary condition qualities than others. This is a fundamental learning while at the same time pondering an adjustment of the system in adjustment to a changed setting as every action must be poor down just (Majchrzak, Beath, Lim, and Chin, 2014). Performance of business processes influenced by contextual factors Identifying the purposes behind process varieties and reducing the purposes behind poor process execution or encouraging the reasons which improve the execution of the procedure is the primary point of exploring the specific circumstance. The principal class of execution pointers is identified with quality. These pointers measure the energy about things or relationship with judgments by watching components, for instance, the measure of flaws or the effort predicted that would expect forbidden quality. The pointless is connected with time. General KPIs indicate creating execution of a firm are for example to handle length or time to show. In the pointless notion are those KPIs which think the costs of a firm like Harvey Norman (Ostrom, 2015). However, there is no strong right confirmation about the effect of contextual factors on certain execution pointers. Past research takes allegorically a couple or just a singular execution pointer. Regardless the guide of process mining, the procedure activities are seen before the effects of perceived contextual variables on the plan time of each development are down by using real systems. Thus, the running with subsections look at suggested solicitations and characteristics of understandable discovers shaping (Loorbach, and Wijsman, 2013). Changing condition of the industry The lagging economy is accountable for a modification in industry conditions, in any occasion to a certain extent. It creates the impression that purchasers are less disposed to purchase electronic and family items when they lose their work or are low on cash. Credit is in like manner on press so paying little mind to the likelihood that customers need to spend, they will in all probability be not able do accordingly. It could be a direct result of the effect of high advance expenses. Moreover, the business gives direct indication towards recovery until the economy gains ground. Clearly, while that is the circumstance, the industry has in like manner been decently impacted by the economy. The things sold in this part are without a doubt required by customers. The changing conditions could appear, in every way, to be temporary however as the GFC continue influencing the straggling leftovers of the world interestingly with the Australian economy and that is hard to comment. Relevant works A first mentionable review of relevant components, despite the fact that not with any association with business forms, has been given. A portion of the highlighted contextual factors (e.g. possession, assets, authority) discovered passageway in later examinations of distinguishing fitting setting measurement and classifications (Al Ariss, Cascio, Paauwe, 2014). As of now in the early phases of the recognisable proof and bunching of relevant factors, specialists came to the accord that it is valuable to separate between setting elements that are inside and outer of the organisation. There is an assortment of various relevant factors that are referred to in writing and which give subcategories of the outer and inside measurement. The range of various measurements and qualities is moderately expensive as it extends from the business sort and regularising elements inside the association to the accessibility individually skill of workers and distinctive item qualities. Also, there are additional factors which are hard to quantify, for example, client desires conduct. Also, there is a propensity inside the writing to make utilisation of the PESTEL structure (shortened form for political, financial, social, mechanical, environmental and lawful) with a specific end goal. To group logical elements all the deliberately finished with the inspiration t o receive a well-established structure which can sort elements from a large-scale natural point of view. Another intriguing and solid normal for logical elements is the element of every setting variable (Christopher, 2015). Because of the reality that the outside condition is thought to be quick changing, the variety and unpredictability of logical components ought not to be ignored, and organisations are very much encouraged to have this segment in consideration. This diverse perspectives and cases of contextual factors demonstrate that a great deal of research has been directed in this field. Notwithstanding, a stringent and far-reaching approach of how to bunch and assess relevant components in a sensible and clear way is as yet absent. Hence, the creators structure, which is developed in the following segment, addresses this shortcoming (Boons, Ldeke-Freund, 2013). Framework of the contextual influence and its practical application The primary perspective is the evaluation whether the logical component affects execution. This can be viewed as one of the principle challenges while applying the structure to certifiable cases because logical considers frequently correspond with each other and, like this, can just barely be assessed on an independent premise. Another essential angle is the recurrence of the portrayed examination which relies on upon the level of an element of a logical variable. The level of element states how frequently a specific logical element changes its characteristics (i.e. the all the more often the relevant factors do as such, the more dynamic they are). Indeed, even in such a basic procedure, there are now various relevant elements which may significantly affect the execution of this business procedure. For each measurement and setting sort, one important case of a logical component is recorded which may affect execution or is influential and, consequently, requires setting mindfulness. T he rundown is commendable and does not claim to finish as the reason for existing is to show general materialism of the structure. For reasons of lucidity and fathomability, the system is connected. As demonstrated by the investigation of these two relevant factors, logical elements have different perspectives which could be fused in their investigation. In any case, a more profound examination would go long ways past the motivation behind this case as it would not improve the comprehension of the structure (Schneider, Spieth, 2013). In order to make use of contextual factors on the business strategy of the concerned firm, the analysis of the company helps out to formulate the perfect pitch. Porters five force analysis and PESTLE analysis are the key sources to make the appropriate use of the contextual factors. Lagging economy of the company is one such context that needs special attention to overcome it with best possible policies. The interactivity with customers and demand analysis helps the company to figure out strategic planning of the business infrastructure. Conclusion This paper has shown another structure that serves to get a review of contextual variables that impacts on the execution of systems. Methodology to dissect handle execution (e.g. DEA) can be furnished with satisfactory information utilizing the structure. In this way, DEA examinations pick deal with productivity that can be performed with and without a specific contextual variable. Controls of the paper which may in like way demonstrate the potential for future research is illuminated in the running way. Promptly, there is no course of how to determine a particular contextual variable. Along these lines, the quality and measure of saw cognizant parts rely upon the procedure information of the client of the structure. The unmistakable proposed setting sorts can manage relationship to potential honest to goodness segments (Schneider, and Spieth, 2013). References Bryman, A., Bell, E. (2015).Business research methods. Oxford University Press, USA. Naldi, L., Cennamo, C., Corbetta, G., Gomez?Mejia, L. (2013). Preserving socioemotional wealth in family firms: Asset or liability The moderating role of business context.Entrepreneurship Theory and Practice,37(6), 1341-1360. Bargiela-Chiappini, F., Nickerson, C. R. (2014).Writing business: Genres, media and discourses. Routledge. Armstrong, M., Taylor, S. (2014).Armstrong's Handbook of human resource management practice. Kogan Page Publishers. Sarstedt, M., Ringle, C. M., Smith, D., Reams, R., Hair, J. F. (2014). Partial least squares structural equation modelling (PLS-SEM): A useful tool for family business researchers.Journal of Family Business Strategy,5(1), 105-115. Majchrzak, A., Beath, C. M., Lim, R., Chin, W. (2014). Managing client dialogues during information systems design to facilitate client learning. Ostrom, A. L., Parasuraman, A., Bowen, D. E., Patricio, L., Voss, C. A. (2015). Service research priorities in a rapidly changing context.Journal of Service Research,18(2), 127-159. Loorbach, D., Wijsman, K. (2013). Business transition management: exploring a new role for business in sustainability transitions.Journal of cleaner production,45, 20-28. Al Ariss, A., Cascio, W. F., Paauwe, J. (2014). Talent management: Current theories and future research directions.Journal of World Business,49(2), 173-179. Christopher, M. (2016).Logistics supply chain management. Pearson UK. Boons, F., Ldeke-Freund, F. (2013). Business models for sustainable innovation: state-of-the-art and steps towards a research agenda.Journal of Cleaner Production,45, 9-19. Schneider, S., Spieth, P. (2013). Business model innovation: Towards an integrated future research agenda.International Journal of Innovation Management,17(01), 1340001. Management and Business Context Question: Discuss about theManagement and Business Context. Answer: Introduction Globalization has brought about a revolution in the world of business, entrusting them to form various complex business structures and adopting diversified strategies(Wheelen Hunger, 2011). Traditionally business formed strategies on basis of intuitions but contemporary tools and techniques in management have increased scope and information available to businesses such that they are able to make more informed decisions. For making any business strategy or decision, organization makes internal and external evaluation of situations and thereafter assesses potential risks prior to applying a strategy. Internal analysis of businesses includes internal and external functions to form a Business Model Canvas to recognize the key business functions. Businesses combine external and internal analysis to arrive at a SWOT and TOWS analysis for itself which helps it to take significant business decisions(Phadtare, 2010). The scope of this essay is to be able to explain major domestic and interna tional contextual factors that impact business structures and strategy, utilizing key terms, theories and concepts from management. Analysis Businesses of various types depend solely on their internal functions to capitalize on opportunity from external environment. Key internal functions that drive businesses are operations, finance, marketing and human resources. Operations consist of the key production, servicing functions of business. Finance is concerned with securing and allocating of resources of businesses. Finance helps account for all the monetary and financial transactions of the firm such that it is able to meet its financial goals or revenue generation targets. Marketing is involved with promoting, selling of products and services to targeted customer segment and thereafter servicing the same(Cantwell, 2010). Marketing is the key revenue earning function for the business. Human resource consists of managing the people within the organization, who perform the several key functions. Businesses in order to increase productivity and effectiveness implement High Performance Work Practices (HPWP). The concepts incr ease employee engagement by combining knowledge, information, power and reward systems for employees to increase productivity. All the four business functions are interconnected to each and other. Business Model Canvas includes the fundamental blocks that drives business functions and hence performance. They consist of Value Propositions, Customer Segment, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Cost Structures and Key Partners(Stacey, 2007). While the internal business functions are supplied primarily by organizations, external business functions are often outsourced to increased productivity. External business functions as tax filling, recruitment and selection, advertising and public relations. These external functions come under the purview of internal functions itself and hence are managed by them. Business can be of various types depending upon their ownership structures, all world over and across various economies. In Australia, businesses are sole trader, partnership, company or trusts types. In Sole proprietorship requires the least type of legal and tax requirements and is operated generally by a single owner. A sole trader can easily conduct business with the help of a Tax File Number. In partnership, more than two people come together to form a company. They generally receive income jointly from the business and a partnership is required to file its Tax File Number (TFN) for filling of business returns. Partners in a partnership firm pays tax on the basis of their appropriated incomes. A company is a business structure that requires continuous administrative costs and it needs to have its separate bank accounts(Katsikeas, 2006). A company needs to file for annual tax returns and has owners, who are responsible for running of the company. Every business registered as a co mpany needs to adhere to strict standards provided by the Corporation Act,2001 for reporting of its memebers and ASIC. A company has limited liability, but in case of directors they can personally responsible by the Corporation Act (2001). An incorporated association on the other hand is a registered legal entity having a minimum of five members. Profits of its activities are generally reinvested into the organization. Cooperatives require a minimum of five shareholders who have equal voting rights. All members have equal vested interest in functioning of the business. All these businesses need to design and adopt appropriate strategy for its functioning and maintaining their competitive advantage. Strategies for these companies are generally formed by assessing and combining of internal functions, internal and external analysis of all prevailing situations(Cravens, 2006). While internal functions help a business to perform an analysis or understanding of external business environment is crucial for a business operations. External analysis for a business included analyzing industry and countrys perspective for strategy formation. In order to analyze broader macro environmental conditions a PESTEL analysis of the firm is undertake. PESTEL is an abbreviated form for political, economic, social, technological, environmental and legal factor analysis prevailing within the country(Zalengera, 2014). PESTEL analysis is useful for domestic as well as internal business scenarios as it helps formulate appropriate strategies for the company with the legislative framework accounting for other policies as well. A business also undertakes environmental analysis for the industry within which it is operational. Porters five forces analysis provides a comprehensive understanding of the industry factors that function within the industry to help companies take a decisive strategy. The five forces can be analyzed as industry rivalry, threat from new entrant, threat from substitute products, bargaining power of suppliers and bargaining power of buyers all exert powerful influences on a business strategic decisions(Grundy, 2006). While these forces influential forces on the companys products, their analysis helps arriving at appropriate product strategies for the overall business. On the other hand McKinseys 7S framework which is a model for organizational analysis tool that is used to strategically monitor internal situations prevalent within an organization and changes them accordingly(de Kluyver, 2010). The theory states that all 7S within an organization namely Strategy, Structure, Systems, staff, Style and Skills needs to be realigned to achieve high level of performance for the organization. The physical aspects of the framework are referred to as the hard aspect whereas non-physical aspect is often called the soft aspect. It is by matching of these hard aspects into the soft aspects that a business effectiveness is established. McKinsey is helps analyze internal framework of an organization so as to able to combine internal and external factors to arrive at an appropriate strategy for the business(Slater, 2006). Business strategies cannot be solely based on either internal or external analysis for businesses and a combination of both can help design appropriate strategy. On the basis of analysis of external and internal environment a Strength and Weakness analysis of the business is arrived at, which helps in evaluating possible Opportunities and Threats for the business. Thus, a firm in SWOT analysis capitalizes on its strengths forms strategies on its opportunities overcomes weaknesses and tries to convert possible threats into opportunities as well. Another contemporary approach to forming strategies of the firm is by TOWS analysis, where external factors as opportunities and threats are matched with internal capabilities(Watkins, 2007). Matching of internal capabilities as strengths and weaknesses are then done to provide high opportunities for the business also analyze the critical threats in capabilities. TOWS is a revised and contemporary approach compared to SWOT analysis, as it help s combine internal, external analysis with internal functions to render effectiveness to the overall strategic implementation. When a business of any structure operates within the domestic market an internal and external analysis and matching the same to internal functions helps in designing and application of suitable strategy. But in case of a global organization a firm needs to have a comprehensive risk assessment of the global scenario is required, prior to arriving at a strategic decision. Risks in international scenario can arise from a number of factors as political, economic, social, technological, environmental and legal. Risk analysis using a matrix will help understand which risks to avoid, mitigate or adopt(Xu, 2006). Strategies for the company in internal businesses needs a comprehensive analysis of risk management as well in additional to above internal external analysis and matching them to internal functions. Conclusion Businesses in order to develop and design strategies for them utilize a diversified range of complex theories and functions. Strategy suitability for a business is matched or optimized when a business is able to undertake proper internal and external analysis along with its exiting internal functions. One of the best methods to develop and adopt business strategies for a firm is to undertake with the help of TOWS analysis. It not only helps highlight existing capabilities and opportunities but gaps in capabilities from strengths and weaknesses. Combing McKinseys framework along with external analysis tools helps built foundation for concrete strategies for any type of business. But when a business is operational in international scenario, it must also have a comprehensive risks assessment plan. Risk assessment will curve a way for a successful strategy whereas avoiding it might lead to overall failure for the business. All strategies are intended to make the business more competitive and efficient in its processes, such that it is able to become an industry leader. References Cantwell, J. D. (2010). An evolutionary approach to understanding international business activity: The co-evolution of MNEs and the institutional environment. . Journal of International Business Studies, 567-586. Cravens, D. a. (2006). Strategic marketing (Vol. 7). New York: McGraw-Hill. de Kluyver, C. (2010). 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