Macro Environmental Analysis

Melanie Verreault STMT-500 Strategic Management Analysis of Child and Family service of Timmins and District Word estimate 2,494 November 8, 2009 Tracy Hillier Table of Contents Introduction.. 3 External Situation.. 3 ingrained Situation 5 Five Forces Analysis Competitor Analysis 9 Objectives. 11 Conclusion 11 References 12 3 Introduction In 2000, CFSTD became the second social supporters organization in Ontario to amalgamate Childrens affable Health and Protection Services.An appreciation of CFSTD and its works can be obtained by visiting its website http//www. timmins fryfamily. org In companionship to gain a greater understanding of CFSTD, a strategical precaution analysis provide be completed. This goal go away be achieved by completing the following 1. an analysis of CFSTDs external and familiar situation 2. an evaluation of CFSTD by victimisation gatekeepers Five Forces poseur, and 3. an analysis of CFSTDs main(prenominal) rivalry. Based on this ratement, strat egic objectives testament be identified and recommended.External Situation As presented by Grant (2007), macroenvironmental meanss are beyond a truehearteds control. To adapt and remain competitive, a tighten must understand how these external influences affect the firms industry environment (p. 66). The six factors clashinging the endeavours of a firm are demographic, economic, political/legal, ecological, socio-cultural, and technology. Barney (2007) states an analysis of the external situation identifies a firms scathing threats and opportunities in its competitive environment (p. 1) and examines how competition in this environment is seeming to evolve and what implications that evolution has for the threats and opportunities a firm is facing (Ibid). The following outlines these factors and their level of influence on CFSTD. DemographicHigh The population of the city of Timmins can best be described as aging with a decrease in gestate rate. It is important to add that t he population of Native People migrating to the Timmins area from the James Bay coast is increasing.Since CFSTDs main reason for operating is to offer serve exclusively to youth under the age of xvi and their respective families, the demographic factor scores high. Without this, threats such as decrease in ministry funding and violence layoffs can occur. To 4 adapt to the changing demographic environment, CFSTD can implement new and creative initiatives by collaborating with other service providers. EconomicHigh The current economic situation has impacted most if non each(prenominal) of the world. As a result, government funding to transcriptions has been affected.Due to current budget cuts, CFSTD is facing threats of authority downsizing in various run, capping travel and other expenditures and suspending relevant personnel development initiatives. To respond to the changing economic environment, CFSTD can explore amalgamating programs and services, developing new partner ships and increasing its capacity in the volunteer sector. political specialty Whenever a new government is elected, changes to the jurisprudence can be anticipated. Amendments made to provincial decree such as the Child and Family Services Act impact CFSTDs routine. little terrors CFSTD can face repayable to the changing political environment are mostly cost and condemnation demanding development of new operation and administrative procedures, staff training in these areas, to name a few. However, developing and implementing new initiatives can ingeminate into opportunities for CFSTD with the influence of the political environment. EcologicalLow Although located in a city where extreme weather condition conditions are experienced such as harsh winters with abundant snowfalls, the ecological situation poses minimal impact on CFSTDs service delivery.Fortunately, with the implementation of videoconferencing services, travel to various areas is reduced. Thus, programming continu es to be offered to the client population. accessible/CulturalMedium CFSTDs culture encompasses a essenceized personnel, which is mostly female, with a regeneration in educational backgrounds, expertise and work experience. In addition, some of the personnel are fast start outing retirement. This factor can pose threats such as a delay in services offered to clients out-of-pocket to union issues, potential work stoppage, and a wealth of knowledge and expertise lost when veteran personnel retire.Should this be the case, an opportunity that CFSTD could explore, as menti one and only(a)d in an article by Dychtwald et al. (2004), is to create a culture that honors experience (p. 51), 5 that is, to offer flexible contracts to retiring staff who can step in at a secs notice by filling gaps and help bringing the next generation of leaders up to speed (p. 54). TechnologicalLow CFSTD ensures that new technological initiatives are implemented on a ceaseless basis. Potential threats co uld be additional staff training and resistance to endorsing new technological initiatives.Technology creates many opportunities such as improving efficiency of work practices and reducing overall costs. In sum, the DEPEST analysis indicates that demographic and economic factors significantly impact CFSTD while technological and ecological factors are minor influences. The socio-cultural and political factors entertain a mid-level effect on the organization. The external analysis points out the possible threats and opportunities that CFSTD faces. To complement this external analysis, an inbred assessment will follow.As throwawayd by Barney (2007), an indwelling analysis helps a firm observe its organizational strengths and weaknesses (p. 11). Furthermore, it will illustrate which of its imagerys and capabilities are likely to be sources of advantage and which of them are less likely to be sources of such advantages (Ibid). CFSTDs internal situation will be analyzed using the V RIO theoretical account. Internal Situation Barney (2007) states the VRIO framework is a structured in a series of four questions to be asked round the business activities in which a firm engages (p. 138).In addition, the answers to these questions determine whether a particular firm resource or capability is a strength or a weakness (Ibid). The following table summarizes the VRIO questions as they apply to CFSTD. 6 TABLE 1 VRIO analysis of CFSTD RESOURCES CAPABILITIES VALUABLE RARE IMITABLE ORGANIZATION IMPORTANCE yearly funding Staff are remunerated for providing services covers capital costs for overall agency functioning. coin are ministry driven. YES NO NO YES High Technology Records agencys overall administrative tasks (i. e. reports). colloquy vehicle for staff. Video-conferencing services are available. YES NO YES YES Medium Personnel Certified employees providing expertise inservices to client population. YES YES NO YES High Quantitative and soft assurance measures Data collected through client surveys and agencys network enables the agency to identify the client needs, develop new programs and initiatives and ensures the client population is being adequately serviced. YES NO YES YES Medium Location Where services are provided for clients. Programming occurs in these various locations. YES NO YES YES Medium Services Multi-disciplinary agency providing a wide range of services to suit client population needs. YES YES NO YES High The findings of the VRIO analysis indicate which resources and capabilities are of significant importance to CFSTD. Ministry funding, is extremely relevant. Although provided on a quarterly basis, funding can change based on data regarding client 7 volume. CFSTD is bound to a funding formula which is reviewed on an annual basis by the government. Despite its potential for fluctuation, funding is a strength for CFSTD.Technology is a pertinent vehicle of communication. Technology permits CFSTD to offer specialized ser vices to clients that are not readily accessible in the North. CFSTD personnel present as a relevant resource. The diversity and expertise of the personnel is of great value, strength and rarity. Data is another noted strength. The gathered information, analyzed with evidenced-based qualitative and quantitative measures, enables CFSTD to assess the needs and pressure points and, in turn, develop proposals and implement new initiatives that will separate serve the client population.Services are also a relevant resource. CFSTD is the largest social service organisation within the area offering more than twenty programs and services that are unique and valuable. Annually, service enhancements hit the books place via the program review process. Furthermore, collaborative projects are occurring with other service providers to offer services that meet clientele needs. Currently, location resources are a weakness. CFSTD is facing a potential closure of one of its facilities due to the co nstant low number of young offenders coming into custody.CFSTD is communicating with the ministry at this time regarding next steps. Overall, the internal analysis of CFSTD clearly identifies areas of strength and weakness and those requiring improvement. It is important to analyze how and where CFSTD fits into the non-profit industry and determine the intensity of competition and profitability (in this industry, profit is viewed by client volume and ministry funding). In order to do so, an evaluation of CFSTD will be conducted using Porters Five Forces of Competition Framework. Five Forces AnalysisGrant (2007) states Porters basketball team forces of competition framework views the profitability of an industry as determined by five sources of competitive pressure (p. 71). The following table evaluates CFSTD with these five forces. 8 TABLE 2 Evaluation of CFSTD using Porters Five Forces FACTORS INDUSTRY Non-Profit Child and Family Social Services Organisations Threat of refreshful Entrants New government policy and/or amendments to legislation directly impact licensing requirements and overall service operations in social services organisations.Thus, new procedures are developed and new criteria must be met to receive allocation of funds and subsidies for programs and initiatives. Bargaining Power of Suppliers Unionized organisations are threatened by disagreements on job descriptions, training and worker performance, gum olibanum creating significant delays in service delivery and having an impact on funding. There is a threat of the collective dicker agreement review and negotiation turning into a strike thus halting service operations. Bargaining Power of Buyers Ministry allocated funds for program proposals regarding new initiatives that meet Ministry expectations.Other service providers looking to collaborate and develop new partnerships for Ministry driven initiatives in order to receive financial allocation. Threat of Substitute Products or Servic es Private firms offering similar services. New provincial initiative where psychiatrical services in the north will be offered via video-conference instead of face-to-face thus, decreasing the wait-time and wait-list for clients. New legislation regarding young offenders indicates that youth involved with the law are kept out of custody and instead back up in their local communities.Thus, the number of youth entering facilities has decreased to the point of facility closures. Rivalry Among alive Competitors Similar firms within the industry are competing for Ministry funds. Some firms are collaborating and creating partnerships on some initiatives thus dividing Ministry funds among them. The findings in this analysis reveal the most significant aspects of CFSTDs competitive environment. In his article, Porter (2008) note the strongest competitive force or forces determine the profitability of an industry and become the most important to system formulation (p. 0). Threat of ne w entrants and bargaining power of buyers are significant forces for CFSTD. Interesting enough, these forces pertain to the resembling entity government. More 9 proper(postnominal)ally, government legislation and funding influence CFSTDs course of action when it comes to service implementation and development. However, in the non-profit industry, there is dual influence occurring. Funding, for instance is service/client driven. Thus, if CFSTDs client volume is high, funding forecasts are at a higher level. Another significant factor is the bargaining power of suppliers.In this case, it is the firms personnel. Similar to the government, staffing poses as a threat and/or opportunity. The mountain of CFSTD is to offer services to clients in order to promote well-being and safety. This goal cannot be achieved without the expertise and efforts offered by CFSTD employees. Although Porters model is better served in the profit industry, it has validity in the non-profit sector. It identi fies the fundamentals and constraints of CFSTD all the while permitting CFSTD to have a certain degree of flexibility and creativity in this prescribed environment.In sum, Porters model is good to predict changes of profitability. In the case of CFSTD, profitability is a conclave of funding with client and service volume. How can CFSTD predict the competitive moves rivals are likely to initiate? one(a) opening move is to conduct a competitor analysis. The following will examine how information regarding rivals can serve in predicting behaviour. Competitor Analysis Grant (2007) notes that competitor analysis is an intra-industry analysis involving a systematic approach of information gathering that makes clear what information is required and for what purposes it will be used.The objective is to understand ones rival (p. 107). At present, there are social services firms offering similar services to CFSTD. This paper focuses on the competitor most similar to CFSTD Kunuwanimano Chi ld and Family Services (KCFS). More details intimately KCFS can be found at their website http//www. kunuwanimano. com The tool selected to complete this analysis is Porters four-part framework for predicting competitive behaviour. The following table outlines these details. 10 TABLE 3 Analysis of KCFS Factor CommentsStrategy * KCFS focuses on delivering small fry welfare and mental health services to First Nations barbarianren within their catchment area and work collaboratively with the communities they service. * Children and families will be cared for by the biotic community and inherit the skills, knowledge and cultural traditions that will be provided by community members (www. kunuwanimano. com) * Approaches to working with youth and families guided by the seven sacred teachings. Objectives * Develop a service model respecting the inherit authority for child protection matters. Develop policies and procedures and protocols with service providers and First Nations communi ties that will address decision-making regarding child protection matters. * Obtain Ministry designation to offer mandated services. Assumptions * All First Nations people want to obtain services from KCFS. * All First Nations people want to inherit and learn traditional, cultural skills, customs and knowledge. Resources and Capabilities Strengths * Culturally specific services offered by staff with Native ancestry. * Ability to service eleven Native communities.Weaknesses * No child welfare designation. * Collaboration with service providers in order to develop protocols, policies and procedures. * Frequent changes in personnel. Currently, KCFS is at a standstill in obtaining its designation due to their unwillingness to collaborate with similar community service providers. In order for a firm to obtain designation from the Ministry, supervision by a similar firm is required. KCFS refuses to have CFSTD as their supervisor. Based on the above-mentioned, CFSTD can predict the foll owing 11 KCFS will not obtain its designation for several years and thus will not take over CFSTDs Native client population * There is a probability that many of CFSTDs Native clients will choose to remain as clients of CFSTD, and * CFSTD will remain as the leading organisation in child welfare services for the Timmins area. It is important to note that CFSTD continues its efforts to work with KCFS, in most part, to no avail. This framework has enabled CFSTD to assess key components of KCFS in order to make future predictions. ObjectivesBased on the various analyses completed in this paper, recommended strategic objectives are for CFSTD to * Develop and implement a performance appraisal tool that encompasses competency modeling and that is congruent with CFSTDs strategic plan * Develop a contingency plan with the Ministry in the possibility of the closure of one of CFSTDs locations * Research and identify a framework such as management innovation that can be applied agency wide and that is in alignment with CFSTDs strategic plan, and * Develop and implement a plan to recruit qualified Native professionals.Conclusion Overall, the analyses completed in this paper have allowed us to better understand CFSTD. Now, we can appreciate how CFSTD is doing, what is working well, what requires enhancing and what directions CFSTD plans on press release into in the near future. 12 References Barney, J. B. (2007). Chapter 1 What is strategy? In Gaining and sustaining competitive advantage (3rd ed. , pp. 1-16). Upper buck River, NJ Prentice-Hall. Barney, J.B. (2007). Chapter 5 Evaluating firm strengths and weaknesses. In Gaining and sustaining competitive advantage (3rd ed. , pp. 127-169). Upper Saddle River, NJ Prentice-Hall Inc. Dychtwald, K. , Erickson, T. , & Morison, B. (2004). Its time to retire retirement. Harvard Business Review, 82(3), 48-57. http//library. athabascau. ca/mbadrr/STMT-500/ Chapter 5-Evaluating firm strengths and weaknesses. pdf Grant, R. M. (2007). Contemporary strategy analysis (6th ed. ). Malden, MA Blackwell Publishing. Kunuwanimano Child and Family Services (2009). Retrieved November 7, 2009, from http//www. kunuwanimano. com . Porter, M. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1), 78-93. http//0-search. ebscohost. com. aupac. lib. athab ascau. ca/login. aspx? direct=trueAuthType=url, ip,uiddb=bthAN=28000138site=ehost-live