Discuss about the Management and Business Context for Origin Energy Australia.
The effective management of the business process is regarded as one of the biggest challenges for all the organizations irrespective of the revenue and size. The internal as well as external environment of the organizations is constantly revolving that has affected the overall performance level of the organization (Ahearne et al., 2015). This essay aims to discuss several types of critical issues associated with the business and management context in an in-depth manner. The essay would also look to enhance the understanding of many contextual factors that can play significant role in the internal decision making process of the organization.
The essay has selected Origin Energy Australia for discussing different issues related to management and business context. An Australian energy company, Origin Energy deals with energy retailing, electricity generation and natural gas exploration. In 2015, the revenue level of Origin Energy was recorded around A$ 11,550 million. Presently, over 6000 employees are working Origin Energy (originenergy.com.au, 2017). The essay would illustrate all the key terms and relevant concepts related to the topic. It would also discuss all the prime domestic and international issues related to business and management context.
In the present competitive situation, businesses do not occur in the isolated environment. In fact, Origin Energy has persistent with different external environmental factors including political, economic, social, environmental, legal and technological. Thus, the PESTEL factors would help to assess the kind of issues Origin Energy has faced in order to conduct business effectively. Thus, it helps to analyze macro environmental factors in an effective manner. On the other hand, Porter five forces can be utilized for analyzing the industry in which Origin Energy conduct business (Anton, 2015). Therefore, it allows Origin Energy to identify all the key factors including competitive rivalry, bargaining power of the suppliers, bargaining power of the buyers, threat of substitutes and threat of new entrants in an effective manner. Porter five forces model segregated all the micro factors comprehensively. On the other hand, McKinsey 7S model evaluates the internal environmental forces associated with the business process of Origin Energy. It emphasizes the fact that no single aspect of the organization can be regarded under isolation. On the contrary, internal environmental analysis can be performed through the effective utilization of TOWS strategic alternative matrix and SWOT analysis. It helps to understand both positive and negative aspect of the business process.
Several intrinsic critical issues can be identified within the business process of Origin Energy. For instance, improper utilization of market research and poor market assessment often induces managers of Origin Energy to take risky decisions. In also increases the probability of ineffective monitoring of the competitors activities and poor selection of the suppliers, which can create major adverse impact on the overall effectiveness of the business procedure. In addition, economic downturn or unfavorable changes of the economy can also affect the effective fulfillment of all the responsibilities (Grünig & Kühn, 2015). Moreover, Origin Energy has to face different legislative guidelines that affect the way businesses are conducted in the market. Moreover, exploration of natural gas and logistics of energy is an extremely complex procedure that enhances the risk level associated with business procedure. Thus, Origin Energy has to take serious amount of risk in performing all the regular activities of the business in an effective manner. For that reason, management of Origin Energy needs to be extremely careful at the time of developing risk management strategies. Otherwise, not all the functions associated with the business process can be performed in an effective way. For that reason, management of Origin Energy has to focus on identifying different risk factors for assessing the business expansion in new countries (Paulin, Perrien & Ferguson, 2015). Management of Origin Energy would also have to focus on utilizing risk management matrix for categorizing the degree of risks such as moderate, minor, significant, negligible and severe, which will allow performing all the business activities in an efficient manner.
As per the article by Gerding et al. (2013), organizations also have to focus on identifying different domestic contextual factors for maintaining business environment. The contextual factors of the organizations include ownership and size, age of the organization, as it can be considered as critical determinants for successful completion of business. Moreover, Origin Energy also has to focus on assessing the functions such as new product development, customer management and others. The management of Origin Energy will have to focus on tactical priorities and strategic choices. It is crucial to utilize all the internal resources in such a way so that it can able to fulfill all the needs and requirements of the organization (Loorbach & Wijsman, 2013). Management of Origin Energy also have to focus on assessing the vital statistics like sales volume, profit level, number of employees working, etc. In addition, managers of Origin Energy have to assess the product life cycle in an effective way to understand growth, maturity and decline stage in an effective way. In the present competitive business environment, organizations need to focus on identifying the best possible way to enter into the foreign market. Hence, management of Origin Energy also has to focus on evaluating different ways of capturing major share of the market. As mentioned by Zou et al. (2014) profitability of organizations is positively correlated with the growth process. Hence, management of Origin Energy will have to focus on developing superior policies and procedures to achieve superior output. It is also important for the management to focus on developing clear aims and strategy for flawless execution of the operational process. It has been assessed that clear policies and procedures allows employees to understand their roles and responsibilities effectively, which eventually creates positive impact in eliminating all types of challenges associated with the business procedure. Moreover, it would also help Origin Energy to increase the employee engagement possibilities for performing all the activities associated with the business procedure. Finally, proper use of customer service is also critical to keep all the customers satisfied with the provided products and services. Thus, Origin Energy will also needs to focus on developing 24×7 customer service team for resolving any issue of the customers in an effective manner.
On the other hand, Van Der Aalst (2013) proper assessment of international contextual factors are also essential for developing effective business environment. In the present context, globalization is regarded as one of the most powerful international factors that can induce businesses to changes the operational procedure. Globalization has increased the level of competition for Origin Energy in a major way. It has encouraged Origin Energy to focus on high level of technological adaptation, high cost and services of goods and target market. Now, management of Origin Energy needs to possess required amount of knowledge to identify the best available technology for the organization. The push in technological factors can actually revolved the way activities associated with the operational procedure of Origin Energy is conducted in the market (Dumas et al., 2013). For that reason, management of Origin Energy will have to include technological dimension at the time of setting up goals and objectives. It has been assessed that maturity level of the industry can also have major impact on the way businesses have been conducted in the international market. Majority of the time, it has been illustrated that lawsuits in two different countries is completely different from each other. For that reason, management of Origin Energy will have to be competent enough to make some necessary adjustment for maximizing the impact of operational procedure. Moreover, international businesses also have to focus on conducting different activities for the well-being of the community (Geppert, Matten & Williams, 2016). For instance, Origin Energy will have to focus on minimizing usage natural resources for completing the business procedure. It would also have to focus on planting trees, providing necessary foods and education to orphans so that the society as whole can improve with time.
As illustrated by vom Brocke, Zelt and Schmiedel (2016) business structure is another important contextual factor that can have impact on the overall business procedure. Over the years, many activities of Origin Energy are affected by different external and internal contextual factors. It has induced Origin Energy to maintain high division of labor and high level of decentralization within the internal departments. As a result, it has affected the communicational procedure of the organization, which created confusion in the way all the activities associated with the business will have to be performed. Thus, it has also affected the interpersonal relationship among the employees in a major way. Thus, management of Origin Energy will have to be extremely careful at the time of utilizing all the internal and external factors for maximizing the efficiency of the operational procedure.
Conclusion:
The utilization of contextual factors of businesses is extremely important for achieving all the aims and objectives successfully. All the contextual factors can have significant impact on the way businesses have been conducted in the global market. For that reason, managers need to assess all the macroeconomic and microeconomic factors so that it can able to achieve consistent growth in the global market. Moreover, organizations also have to focus on assessing all the risk factors for developing effective counter strategies for realizing all the aims and objectives in an effective manner.
References:
Ahearne, M., Jelinek, R., Mathieu, J., Rapp, A., & Schillewaert, N. (2015). A Longitudinal examination of individual, organizational and contextual factors on technology adoption and job performance. In Creating and Delivering Value in Marketing (pp. 171-171). Springer International Publishing.
Anton, R. (2015). An Integrated Strategy Framework (ISF) for Combining Porter’s 5-Forces, Diamond, PESTEL, and SWOT Analysis.
Dumas, M., La Rosa, M., Mendling, J., & Reijers, H. A. (2013). Fundamentals of business process management (Vol. 1, p. 2). Heidelberg: Springer.
Geppert, M., Matten, D., & Williams, K. (Eds.). (2016). Challenges for European management in a global context: Experiences from Britain and Germany. Springer.
Gerding, D., Kennedy, B., Lyon, M., Rego, J., & Taylor, E. (2013). Designing Innovative Corporate Water Risk Management Strategies from an Ecosystem Services Perspective.
Grünig, R., & Kühn, R. (2015). Global Environmental Analysis. In The Strategy Planning Process (pp. 89-96). Springer Berlin Heidelberg.
Loorbach, D., & Wijsman, K. (2013). Business transition management: exploring a new role for business in sustainability transitions. Journal of cleaner production, 45, 20-28.
originenergy.com.au (2017). Originenergy.com.au. Retrieved 15 April 2017, from https://www.originenergy.com.au
Paulin, M., Perrien, J., & Ferguson, R. (2015). Organizational Culture in a Professional Business to Business Service Context: Implications for Business Performance and Long-Term Relationships in Mexican Commercial Banking. In Proceedings of the 1998 Multicultural Marketing Conference (pp. 478-478). Springer International Publishing.
Van Der Aalst, W. M. (2013). Business process management: a comprehensive survey. ISRN Software Engineering, 2013.
vom Brocke, J., Zelt, S., & Schmiedel, T. (2016). On the role of context in business process management. International Journal of Information Management, 36(3), 486-495.
Zou, W., Kumaraswamy, M., Chung, J., & Wong, J. (2014). Identifying the critical success factors for relationship management in PPP projects. International Journal of Project Management, 32(2), 265-274.
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