A situational analysis should explain and examine the internal and external environment that affect an organization’s development. It is a means by which it can identify its weaknesses and strengths and relate them to threats and external opportunities. The cleaning organization created by Abu faced many drawbacks and found its way up to development and growth. The identified problem resulted from the cleaners’ abuse of their working tools, poor performance, and availability (Khan et al., 2020). Other significant threats also resulted from competitors and fear of losing their sales and potential customers to the new companies.
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Dimension and criteria
In Abu’s company, the primary dimension of business was mainly based on his sales and the expansion of the business. He also considers the satisfaction of customers’ needs as one of the main dimensions of the company as he mentions that the customer is the king and must be attended to as he requires (Vasilopoulou & Talving, 2019). Therefore, the dimensions of the business environment include the technological, social, competitive, political, and economic, among other internal and external environmental factors facing the organization.
Some environmental factors that affected the growth of Monster’s Sdn Bhd (MSB) cleaning company included geographical or natural characteristics, social and cultural factors, and environmental demographics, economic factors. In the cleaning company, the competitive environmental factors significantly affected the business and exposed it to threats and fear of losing its sales, customers, and workers. The economic and environmental factors also affected the company mainly because Abu’s company customers were sensitive to pricing. The emergence of new competitors offering lower prices and discounts exposed the company to the risk of losing its potential customers.
The company’s business performance indicated an increase in profit and revenue for the business from 2017 to 2019 in Cheras. It is also evident that customer complaints increased randomly from 15 cases in 2017 to 60 points in 2019. As reviewed in the exhibits projected to measure how the company is functioning, it is evident that Abu projected the revenue for the years 2020 and 2021 with confidence that the demand is there. The revenue decreased from 40% in 2021 to 30% in 2022 in Cheras, which indicated that the business was not succeeding and that the company’s threats had probably taken effect.
For the cleaning company to identify the problems and threats facing it, it had to compare the data from its company. The problem identification of how the cleaners violated their work when they were not supervised has raised the alarm for Abu to find a way in which he will handle such situations. Abu should find appropriate ways to boost his company’s growth (Phadermrod, 2019). This can be done by training his employees more to ensure job satisfaction and rewarding them. Making them feel valued by making them participate in the business decision-making as this will improve their work performance and reduce customer complaints is also important (Wang & Wang, 2020). He also should consider making quality products and set affordable prices to ensure his customers are not lured into the competitors’ cheap services and products.
Khan, W., Malik, U., Ghazanfar, M. A., Azam, M. A., Alyoubi, K. H., & Alfakeeh, A. S. (2020). Predicting stock market trends using machine learning algorithms via public sentiment and political situation analysis. Soft Computing, 24(15), 11019-11043.
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44, 194-203.
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Vasilopoulou, S., & Talving, L. (2019). Opportunity or threat? Public attitudes towards EU freedom of movement. Journal of European Public Policy, 26(6), 805-823.
Wang, J., & Wang, Z. (2020). Strengths, weaknesses, opportunities and threats (Swot) analysis of china’s prevention and control strategy for the covid-19 epidemic. International Journal of Environmental Research and Public Health, 17(7), 2235.