Knowledge of Management Tools and Systems †MyAssignmenthelp.com

Question: Discuss about the Knowledge of Management Tools and Systems. Answer: Introduction This report aims to identify and resolve the issues regarding talent management and gaining necessary information or knowledge that are troubling the organization AureconSG to carry out their daily business operations in Singaporean Market. The chief purpose of this report is to shed light on the strength and possible weaknesses of the analytical model framework and tools to identify the limitations of them to identify the macro and micro environmental advantages and disadvantages of the business organization. In this report a research on the company along with the industry has been executed and relevant information on the business is also incorporated. AureconSG is an engineering consultancy firm that is headquartered at Australia and South Africa. The management of the organization has also expanded their business in the market of Singapore, New Zealand and Middle East. The operations or the services of the business organization includes digital advisory, management regarding environmental issues along with integrated planning to quench the needs of the numerous business organizations and the requirements of the government.l tools This section of the report discusses the advantages and disadvantages of using frameworks and models like VRIO, pestle and porter 5 to analyze various risk factors that AureconSG are experiencing or will face in future. Advantages and disadvantages of porter 5 model The framework porter 5 is a model that is used to get necessary information related to the attractiveness of the organization by identifying numerous forces of the industry by knowing the interacting among those to evaluate thelikelihood of the profitability within the industry (Albert and Grzeda 2015). In contemporary economy there has been a major change in the market from the 80s and the stability of the market got decreased in a significant manner. Porter 5 model has two chief inadequacies in this regard and one of them is present in its composition. It can be said that as a model that is static, porter 5 offers a snapshot of the industry in a wide scale and therefore it can be used to strategize for successfully attaining the short term goals. While strategizing for the long time, it can be said that porter 5 model will not be as helpful as it was for short term planning (Okanga and Drotskie 2015). Secondly, it can be said that when the management of the organization tries to apply the model to a specific business organization than on the whole industry that is a major mistake; and for that it would be helpful for the management use SWOT as an analytical tool (Melanderet al. 2016). To make strategic planning to run a business organization successfully it can be said that Vrio can be a useful tool. Vrio framework helps to get the relevant and important information to attain the competitive advantage in a market that is steeped with fierce rivalry (Albert and Grzeda 2015). Thus, it can be said that vrio framework helps the managements of the business organizations to examine the internal environment to locate the resources in oder to evaluate those. Therefore it can be said that the results attained from utilizing vrio framework can help the management to gain the necessary competitive advantage. To identify the disadvantages of using vrio framework it can be said that while analyzing the result breaks down into numerous segments and makes the process complex(Bertozzi, Ali and Gul 2016). It is seen that while creating efficiencies vrio as an analytical tool does not offer the management of the organization to relate each and every activities in a sequence that could lead to lose the sight of how many activities of the organization can actually relate to each other. Advantage and disadvantages of pestle Pestle framework is important to analyze and identify the opportunities and threats that the management of the organisation is facing in contemporary times. This framework is important as it helps the management to eradicate the issues that are challenging for the organisation and to develop the mode of business operation to ensure increased profitability and productivity (Erasmus et al. 2016). Pestle framework helps the management of the organisation to get relevant insight to get to know the macro environment. One of the major advantages of using pestle framework is that it direct and easy to understand. Apart from these, this particular framework allows the managements of various organisations to notice the environmental changes in a swift manner (Bertozzi, Ali and Gul 2016). To explain the limitations of pestle analysis it can be said that pestle analysis is to be done in a frequent manner and otherwise it would not be possible to identify the small changes in the macro environment that might appear harmful for the business organisation (Agwu and Onwuegbuzie 2017). The evaluation of the macro environment using pestle framework should be done in a way that is immensely critical and unbiased as otherwise it may lead to a wrong strategic decision making by the management of the organization (Bertozzi, Ali and Gul 2016). Apart from that, it can be said that pestle framework helps only to analyze the external environment and does not help to gather information that other analyzing tools or frameworks provide(Okanga and Drotskie 2015). A pestle analysis is hugely dependent on the accumulated data of the researcher that is variable. Apart from that pestle analysis is also dependent on the predictions and assumptions that is not always accurate(Melanderet al. 20 16). Thus it can be said that pestle analysis would not be adequate to analyze the factors to successfully run the operations of Aurecon as well as for other business organizations. Hence, it can be said that the managing body of AureconSg can utilize the analytical tools like VUCA, 7s and various dynamic capability frameworks rather than porter 5, pestle and vrio framework. This particular framework or strategy can be utilized for defining the soft and difficult elements that are inherent in the management of the businesses. These elements that are difficult can be identified and explained and the implication of those elements is a fact that can surely be manipulated (Albert and Grzeda 2015). For an example, it can be said that the management of AureconSg has implemented the strategies without introducing latest technologies in the workplace that can depend on the system and the structure of the business organization. It can be said that IT system and the formal business process of a particular organization can be tagged as the difficult elements and on the other hand, the intangible factors that administer the business organization can be labeled as soft elements (Melanderet al. 2016). The economists and business analysts opines that without the presence of the hard elements a business organization would not be able to develop further. It can also be s aid that the soft elements of a business organization is also important just as the hard elements are; because the soft elements define the values and cultures of the business organization, which are applied in the soft elements. It is seen that the major aspects of those application of 7s strategy is that each and every element that are present in a business organization has to be interrelated. Thus it can surely be said that absence of any of these elements can make a business organization crumble down to pieces and in the particular case of AureconSG it can be said that the soft elements implications are done as effectively as the staffs, values and skills are present as asset of the company (Melanderet al. 2016). It can be aid that the reason behind the success that the management of Aurecon has achieved is because, the management of the organization depends on the professional skills of the workforce. The Blue Ocean strategy is applied in the business organization so that it can effectively identify a business that experiences lesser pressure than the competitors of the organization who are operating in the same market (Okanga and Drotskie 2015). It can also be said that Blue Ocean identifies which business organizations pricing strategy is not implemented in the market of operation. It is seen that Blue Oceans application in numerous business organizations and industries across the global market is significant. The utility of this strategy is not at all restrained to any specific type of business and it can be seen as one o the major and effective strategies that can define most of the managements of the business organizations. In contemporary market where the rivalry is fierce, it is seen thatthe managements of the business organizations can operate with a lot of pressure from the rival business organizations to get more market share. The overall production of a business organiz ation can face some challenges while applying the pressure of the pricing. Thus this types of situations can define the ways which the management of AureconSG can choose to fight the market pressure. In this particular context, blue ocean strategies can provide various growth opportunities in the market of operation and these opportunities significantly help to get more market share than the rival organizations in the same business. In the particular case of AureconSG it is seen that the management of the organization experiences somewhat lesser threats in the market of operation because they are currently one of the best engineering consultancy agencies in the market of Singapore. Apart from that, professional skills of their workforce are much superior to the capability of the workers of the other rival organizations operating in the same market. It is a matter of fact that,AureconSG currently facing fierce rivalries from business organizations like Deloitte, KPMG and PricewaterhouseCoopers that operate in the same market where AureconSg operates. This is because the other organizations do not have the necessary resources to compete with an organization like AureconSG. The managements of business organizations to create a strategic leadership for the business utilize VUCA framework. it is a matter of fact that nowadays every business organizations will be needing to use VUCA framework to analyze the uncertainty, complexity, volatility and the ambiguity that are present in the business operation. It can be said that inadequacy of the predictability might be emerged from the chiefly for the presence of various external factors of the business operation. Itcan be said that in majority times the fear to accept the reality makes the organization to fail production wise. In this way the managements of the business organizations can look at their present and future condition that can be analyzed utilizing VUCA framework. Particularly for Aurecon, it canbe said that application of VUCA as an analytical tool would help the management to to retain the competitive advantage and for an example, it can be said that various factors that may appear to be volatile for the organization are financial condition of Singapore and the infrastructure of the company. These isues add to the realization of the factors of uncertainty that are present in the economy. Thus for an example, it can be said that the financial condition of Singapore is good but there are ample chances that it may drop significantly. Thus it would be useful to consider the factors that may contribute to the decrease in the productivity and the profitability of the business organization. it can be said that the ventures full of uncertainty in which sectors the management of Aurecon needs to work on are the changes in the laws of the country they are operating. Therefore it would be important to diversify the products they are offering in the mar ket and also to make sure that the policies of the organizations are kept unchanged. Volatility 1 Nature of change required 2 Score based on Aurecon: 3 Complexity 1 Creation of confused environment 2 Score based on Aurecon: 2 Uncertainty 1 Acceptance of uncertainty 2 Score based on Aurecon: 4 Ambiguity 1 Gain experience from the uncertainty 2 Score based on Aurecon: 5 Table 1: VUCA analysis It can be said that the dynamic capability of the business organizations mean the ability of the managements of the business organizations to change and sustain the basic resources of the company. Dynamic capability might be linked with ability of the management to reconfigure, integrate and to build the internal and external changes and level of competencies of the organization. in the way in which the management adapts to the market of operation can very well describe the required factors for effective management or the business organization. It is experienced that the idea of dynamic capabilities is somewhat likewise to the notion of operational capabilities. Comparing and constrastingAureconSG with its rival organization Alpha consultancy firm that has fierce rivalry with AureconSg and currently the business of Alpha is going pretty well in the market of Singapore. Alpha as a business organization was established in the year of 1995 and has secured a share in the market of engineering consultancy since then and earned a reputation in the market of Singapore. The managing body of Alpha have utilized various analytical tools like 7s, Blue Ocean and VUCA framework to successfully identify the internal and external factors that may harm or challenge the business organization in future along with using analytical tools like pestle swot and vrio framework(Bertozzi, Ali and Gul 2016). Thus it can be said that the management of Alpha gains a competitive advantage in the market in this way and they can secure more productivity and profitability in the oddest times. The management of Alpha engineering have applied 7s strategic tool to locate the capabilities that the organization process along with the other competitors in the market of operation. It can be said that the values and cultures of the business organization helps to believe that the policies of the organization are inclined to deliver quality service and products to their customers to achieve a good reputation in the market of operation (Okanga and Drotskie 2015). The interrelation between all the factors of the company actually helps the management to get to know the capabilities of the workforce and the management and it is seen that the effectiveness of the workforce of Alpha is commendable (Mauree and Geneletti 2017). It can surely be said that it is necessary for the management to make sure that they develop the competency of their workers in a way so that it can help them to gain the competitive advantage over their rivals in the market. The primary effort that the management o f the organization has put in is to understand the intangible forces and so that the management can improve their system of doing business. It can be said that the organizations developing the system of doing business can effectively help the organization to acquire the deserved recognition in the market of operation and that can ensure the success of the organization. Alpha engineering has already experienced various challenges in the market of Singapore and thus the management of the organization currently solely depends on applying the VUCA framework to focus more on the reputation of the organization. unlike the management of Aurecon, the management of Alpha does not have the required resources or capability but the organization faces volatility factors significantly (Mauree and Geneletti 2017). It can be said that Alphas business only operates in the market of Singapore and that gives them a competitive advantage being a domestic company. The factor of complexity states that the way that the management of Alpha chooses to carry out their operation. It is a matter of fact that the management of Alpha made it harder to ensure more productivity as they are in the uncertainty zone. The good signs are that experience can be gathered over time and in the manner they are moving orward nowadays they will surely become a leading company in Singaporean market. thus a VUCA framework is present on the scale of 0 to 5. Volatility 1 Changing economic condition Score based on Alpha: 5 Complexity 1 Nature of approaching work Score based on Alpha: 2 Uncertainty 1 Lack of prediction Score based on Alpha: 4 Ambiguity 1 Opportunities for recognition in the local market Score based on Alpha: 5 Table 2 VUCA analysis The above analysis shows that Aurecon is less successful in the market of Singapore due to several factors. The Porters Model analysis shows that the engineering sector of Sinagpore is extremely competitive with emergence of resident companies like Alpha. Alpha being a Singaporean company would obviously get more preference from the government of Singapore. Moreover, the Alpha would have more knowledge about the market opportunities (VUCA analysis) which would allow it to make more strategically appropriate decision making compared to foreign engineering companies like Aurecon. This analysis shows that Aurecon suffers from several weaknesses like obtaining of preferential benefits from the government of Singapore and limited knowledge about the market compared to the resident Singaporean companies. These factors attribute to limited success of Aurecon in the market of Singapore compared to its resident market, Australia. The pricing of Aurecon is high due to several reason which can be again attribuited to its foreign origin. First, the company operates in both Australia and Singapore which means that the company has to pay taxes to both the governments. For example, the tax policies in Singapore, the resident companies enjoy tax benefits like Avoidance of Double Taxation Agreement which non-resident companies do not enjoy (Iras.gov.sg, 2018). This means that Aurecon has to pay a tax of 30 percent to the Australian Government and another high rate of tax to the government of Singapore. These high expenditures of taxation add to the cost of production of the company which is expressed through its high pricing. Moreover, the cost of complying with the legal frameworks of both Australia and Singapore (PESTLE) furthers ups the pricing of the company. The resident Singaporean companies like Alpha are able to keep their prices low due to the tax concessions they enjoy from the Singaporean government. These differences of advantages enjoyed by the Singaporean companies in contrast to the foreign companies result in the high pricing for the latter. The foreign companies like Aurecon are less effective, productive and efficient compared to their resident Singaporean counterparts. As pointed out in the VUCA framework, the foreign companies like Aurecon have limited knowledge of the Singaporean market and their high tax expenditure add to their costs of operations. They as a result have to charge high prices for their services to diversify their massive costs of operations. The Singaporean companies on the other hand can keep their charges comparatively low owing their lowered cost of production due to tax concessions. The customers in Singapore as result find the service offers of resident Singaporean companies like Alpha more profitable. Moreover, resident companies have more knowledge about the cultural perceptions of the client companies like Singapore. This comparison clearly points out that the foreign companies like Aurecon are less productive and efficient in the Singaporean market owing to their high costs of operations, limited knowledge and customer support (Austrade.gov.au, 2018) The organizational structural differences also attribute to the limited efficiency of the foreign companies in Singapore compared to the resident Singaporean companies like Alpha. The foreign companies like Aurecon have tall organizational structure as shown below (Aurecongroup.com, 2018). The structure assigns one single line of business to control the vast market of Middle East and Asia. This resource allocation cannot exploit the vast market of Asia successfully. This hinders smooth decision making in terms of booming markets like Singapore in these companies. This lack of dynamic decision making results in inefficient operations in foreign companies like Aurecon. They do not want to change because their tall structure actually support their multinational operations. Aurecon can learn from foreign companies belonging to diverse industries to adapt to the market conditions of Singapore. The company should bring about innovations in its organizational structure and adapt to market needs. The company can also adopt the ways in which pharmaceutical companies, of which majority are of foreign origin have adapted to Asian markets like India (Blue Ocean Strategies). They should use cheaper manufacturing models adapted to the Singaporean market requirements to create new value chains. They use the introduce products based on the clients requirements of Singapore and conduct analysis like 7S and Blue Ocean Strategy as shown above. Conclusion It can be said that the acceptance of AureconSG is immense in the market of Singapore and they can sustain their competitiveness in Sigapore. 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