STRATEGIC ANALYSIS

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11STRATEGIC ANALYSIS

STRATEGIC ANALYSIS

Contents

Executive summary 3

Introduction 3

Problem statement 4

Theoretical framework 4

Literature view 5

Research questions 6

Motivation 6

Project Summary 7

Project Details 8

Recommendation 11

Conclusion 12

Executive summary

Strategic analysis is an important economic factor that is of great significance on the organization market and business sector. For a long time, the organization and business sector have faced several challenges that need to be addressed to achieve maximum production in the private and public sector. In trying to analyze the available gaps in the organization, there have been setbacks majorly brought about by the lack of knowledge and insufficiency of records (Amaldoss & Jain, 2008). Additionally, strategic analysis is very significant to a country since it ensures that the philosophical concept togetherness and national unity is achieved. It is because this ensures that the available jobs in the market are equally distributed to all people irrespective of their ethnic background of financial status. Moreover, this process has to be done to have a specified record of the available gaps and opportunities in the economy.

Introduction

Airbnb Company, founded in August 2008 has been known as a marketplace that majorly does its transactions online.in San Francisco city of California where it was founded. Additionally, this company is owned by private entities that manage and benefit from the massive profits it makes. The company has its headquarters in San Francisco city of Colombia the Company focuses on making connections between travelers with people who can host them locally to provide hospitality services and other relevant directions. Additionally, the company makes it easy for people to advertise the available space they have so that they can earn the income I the form of rent. Also, the company gives the travelers to make a booking on their preferred unique local homes where they wish to stay. Airbnb as a website help people listing finding and renting lodgings in a wide range of countries. The company has gone ahead to have more than 1.5 million listings in close to 34 thousand cities and 198 countries across the world. Additionally, the company has a founding team that works like the board of management to spearhead its entire development agenda. Moreover, the financial base of this company is relatively stable due to the wide range of revenue sources it has.

Problem statement

Strategic analysis and human resource planning in developing countries is majorly influenced by the difference in salary levels alongside the economic status of the various job positions. The standard of shareholder participation regulates the future of the organizational evaluation and analysis mostly in the third world countries. An increase in the level of employee involvement in the organizational decision making processes. However, the major challenge facing strategic analysis is the underlying policies that have not been fully employed by counties. The project pepper, therefore, provides insights to the analysis of jobs as well as the sustainable planning for human resource.

Theoretical framework

Many of research on strategic analysis have been put in place in the record of the developing employment options in third world countries. The said readings have revealed the presence of maximum options that managers can put in place to enhance healthy relation. The employee relationship is determined by the underlying theories that determine the movement of the strike prices of the commodities. The analysis of jobs indicates that there is an association between the employees, employers, and other stakeholders. In the stakeholder relation, there is the use of critical engagement there is a need to generate higher returns to offset those prices of same goods alongside services that created in diverse states, not within America, this is to ensure that the employees and the employers have to employees have to work together. The evidence obtained from the various researches curried out in the area show that there is a maximum relationship in stakeholders in the markets assuming the extensive time decay. Studies carried out for understanding the connection between the stakeholders; trading has not however been able to get the affiliation which tends to bring the two variables together.

Therefore, in the act of testing the cogency stakeholder engagement theory, some models have been put in place. The methods usually are used depending on the kind of organization in question. The process has to be first employed after the relationship existing between the underlying challenges in the country’s employment sector has been identified. The technique is referred to like the call and the put ideal. The model is thus applied in establishing the connection that exists between the relationship and output of supplies ended in these marketplaces.

Literature view

Zott, (2013) argues that strategic analysis and organizational evaluation a major contributor to regional development. The issue comes out as the author includes the significance of strategic analysis and the need to plan for the human resources. Clarity is made that the need for this association is purely based on the sound will of any country to accomplish its economic goals. He continues to clarify the peripheral inferences of good organizational coordination, citing that it is very important in certifying that a country’s image is sustained, and an issue that can increase the level of recognition by other units. Caswell, (2008) conditions that this kind of undertaking is one of the few interventions that is compulsory to be positive and to be promoted highly among the stakeholders of any country. Additionally, Caswell gives explicit rationalization measures that are meant to spearhead the quest for good job evaluation and proper planning for the available human resource. Furthermore, McAfee, (2008) states in his article that in making any step towards the realization of defined developmental change, something that he makes clear in the second chapter of the same publication. Making reference to the tremendous development in the business sector, he explains and considers organizational evaluation as the dominant influence that determines the direction of a country, region, continent or the whole globe. Madani, (2011) argues that the managers are the key stakeholders that determine the kind of organizational returns that they would wish to achieve in their organizations; this is because they have the power.

Research questions

My research seeks to provide an answer to the following question through an analysis of the existing literature and secondary data analysis which are of great significance for the development of the entire judicial system of a county.

  • What is strategic analysis

  • How does strategic analysis impact on the social-economic development of an organization?

  • What are the implications of poor management to an organization?

  • What factors have contributed to the changing organizational structures?

Motivation

The key motivation for the proposed research topic has been derived from the economic growth has been experienced regarding the unstable organizational systems in the third world countries. Consequently, there has been an improvement in the legal frameworks and diplomatic frameworks contributed to the positive bilateral trade relationship between organizations. Strategic analysis has immensely contributed to the economic growth not only in the United States but also in the entire globe, which has contributed to the improvement in the world’s economic value. Moreover, the trading relationship between organizations has been considered as an essential element in improving the legal scope. Inmate culture of male adults as a social basis enhances proper judgment processes. In conclusion, the findings from the study contribute positively to both the policy development and academic enhancements in the economy. Other than the policy development, the findings provide a basis for the research development on the topic.

Project Summary

The project is geared towards achieving a competitive market to enhance clarity on the qualifications that the people have to put in place in ensuring that the organizational business is not only competitive but also cognizant of the fact that an effective evaluation and strategic analysis is at all cost significant in the aspect of making every public position available for everybody who can qualify for the positions. Additionally, it is also important to ensure that human resource is sustained and made available across the globe. That helps spread the precious man power thought the globe.

How the organization address the four generic building blocks of competitive advantage: efficiency, quality, innovation, and customer responsiveness.

The company focuses on its online operation system to be able to get first-hand information and also receive the direct complements as well as complaints from its customers. Additionally, the company embraces a holistic decision making process that enhances efficient implementation of ideas. Additionally, the company also employs qualified personnel and also uses technologically advanced machinery.

Distinctive competencies of Airbnb Company.

Airbnb Company receives much attention from a wide rand of customers who are evenly distributed globally. It also makes much profit alongside providing quality and essential services in an efficient and reliable manner that maintains its reputation. Additionally, Airbnb Company does not face a challenge in storage or expiry of commodities. It is because of the nature of a business that it has involved in that majorly focuses on service delivery as compared to commodity production that sometimes faces challenges in delays of supply or even expiry of goods which are perishable.

Does the organization have a differentiation strategy?

Airbnb has more than one strategies of differentiation. However, the company focuses on Business Incentive use as its main development strategy. This is a strategy that has been used for long by county governments. Airbnb Company also uses it to encourage their clients. Besides, a healthy job analysis helps a nation in promoting its employees; this is because the institution will have a clear way to determine the senior employees without any issue emerging. In this context, transition into leadership position does not get subjective by single interest but rather a collective though of all the participants

Why the organization should go global

Airbnb Company operates not only in the United States but also in other countries both within the American continent and Europe. Therefore, it is important for the company to scale its operations to match international standards in a bid to outdoing its competitors. Additionally, the company has to expand its market in order to make more profits. This can only be done by looking for other opportunities globally.

Strategic alliances that may benefit Airbnb Company

Airbnb Company has the capacity to manage its own operations. However, there are instances where it can face challenges in its operation. Therefore, the company can have a strategic alliance with a flight company that will be responsible for transporting their customers. This will reduce communication problems as it makes the whole process simpler. Besides, the company can as well lie with hotels in order to accommodate their customers. However, this can only take a short period of time as the company improves.

The major problems or potential problems Airbnb Company should address?

  • Housing shortage: the housing problem influences the amount of profit made by the company. Therefore, in addressing this by building other accommodation buildings, the company’s revenue collection will increase.

  • Information delays: delays in information may cause disorganization in the company. To address this, there is need for a clear communication system that is operated by qualified personnel.

  • Food inadequacy: the problem of enough food may be detrimental if not sorted out. However, this can only be addressed by having clear records of the number of visitors then making appropriate orders.

Project Details

The Airbnb Company has a lot of strengths as well as weaknesses. Moreover, it has become a global company that operates under international standards. To begin with, the strategic location of the company places it o the global map hence making it

Mission Statement

  • To do the right thing all the time, by bringing inspiration through exceeding expectations in all endeavors by working as a team to achieve a common goal together a unified family

  • We dedicate ourselves in bringing happiness through instilling integrity and honesty among us.

Core Values

Airbnb Company believes in embracing and driving change through pursuing growth and learning by building open and honest communication in our band.

SWOT Analysis

Strengths

  • Successful marketing strategies

  • Excellent staff with strong understanding of the existing market

  • Good internal communications

  • Reputation for innovations

  • Good strategic location

  • Good market research.

Weaknesses

  • Challenges in management

  • Struggling in meeting deadlines

  • Inadequate capital

  • High cost of rentals

  • Poor internal focus of the enterprise

Opportunities

  • High number of staffs

  • High customer demand

  • Lack of substitute products in the market

  • High number of suppliers

  • Customer loyalty

  • Rising prices of inputs

  • High cost of production

  • High saturated markets

  • Competitors produce similar products

  • High rise in inflation

  • High number of competitors

In conclusion, the Airbnb Enterprises can use the weaknesses and the strengths to improve its overall performance. It should adopt a system that will make it take advantage of the opportunities and use the weakness and threats to improve its performance (Yoo & Lee, 2011). Through the Airbnb enterprise SWOT Analysis, the company can determine its weakness and threats need to be addressed before they can make significant changes in their existing products. Therefore, it is very important for the organization to review its SWOT Analysis before the introduction of a new product on the market.

PESTEL analysis

  1. just like in any other nation, the political differences in the United States are a major challenge to the operation of the company. Furthermore, the global political instability is al.so a challenge as the company operates in several countries. Moreover, political policies differ from country to country, making it difficult to harmonize into one operation system. Political:

  2. although the economy of the United States has greatly recovered in the last decade, it had a lot of implications to the operation of the company. For instance, the fluctuating rates of taxations made it difficult for the company to monitor its financial records. Additionally, other imposed taxes led to increase in the prices of other inputs, labor and other services. Economic:

  3. the company faces a lot of social challenges as it operates in a lot of countries. Besides, these countries contain different people who possess different social structures and beliefs. For this reason, the company has had to customize their operations to suit every social grouping and country. Social:

  4. with the increasing global advancement in technology, the company has had to undergo tremendous development in the recent past. Additionally, this kind of advancement is geared towards meeting the international standards to make the company at par with its competitors. Technological:

  5. with the global focus on climate change and environmental sustainability, the company has had to realign its operations in accordance to the United Nations framework on climate change. However, this has come with it a lot of challenges to the company’s operations. Environmental:

  6. the world has in the recent past shifted into a legal system of doing things. Moreover, this move has been attributed to the increasing human right activism. However, for companies like Airbnb, legalization of other operations poses negative economic implications.Legal:

PESTEL analysis chat

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Focus on economic development and resource use. Improves revenue collection

Focus on technological advancement and innovation.

. Airbnb has a reduced political influence due to the diverse line of operations

STRATEGIC ANALYSIS 4STRATEGIC ANALYSIS 5

Airbnb PESTEL analysis

STRATEGIC ANALYSIS 6

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. The company enhances environmental sustainability

Promotes legal structures since that is one of its basis of operation

STRATEGIC ANALYSIS 11

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Increases social relations as it focuses on interactions

TWOS Analysis

Uniting the strength and weaknesses of the company value chain with the opportunities and threats associated with the company’s environment, developed the suggestions bellow and recommendations of actions that Airbnb might undertake to build a strong strategy.

STRENGTHS

  • Enhance environmental sustainability

  • Expanding the market

  • Using the COMAC covenant to gain for better aircrafts

WEAKNESSES

  • Attain self-satisfaction with the loops in the market system.

  • Feedback provision by focusing on passengers’ complaints

  • Competitors produce similar products

  • High rise in inflation

  • High number of competitors

S/T STRATEGY

  • Provision of better and competitive prices as well as packages.

  • Feedback provision for customer complaint.

W/T STRATEGY

  • Increasing the number of personnel

  • Enhance inclusivity by promoting ideas from different people.

Stakeholder Analysis

In every large corporation, the implementation of decisions requiring strategic organizational planning is not only on the managers’ vision or say but rather the stakeholders’ expectations. Based on the arms of the organization or dimensions, the number of these partakers varies. This is so, because there is inevitable conflict of decisions as obviously expectations from the different stakeholders will be different. The decisions therefore shall need to be based on categorizing all the various stakeholders and identifying the stakeholders’ interests and power in influencing the company’s strategies when implementing a major decision.

Based on the importance in terms of empowerment in reaching the company’s decisions each stakeholder contributes in influencing in some way, the final decisions that shall be made by Airbnb by either supporting or opposing a strategy. Based on the contribution value to the company, these decisions are made. There is need to identify and consider the key stakeholders;
Grey lock Partners and Sequoia Capital, among others. They are the major players in making key strategic decisions. They usually act upon the ‘thrive’ of the company. Of great importance is also the major stakeholders that know the life and direction of the company who are Brian Chesky, Joe Gebbia as heads of management. Any decision needs to be thoroughly discussed analysed and agreed upon by all these stakeholders.

Stakeholder analysis table

Stakeholder

Stakeholder needs and expectations

Organization’s requirement from the stakeholder

Management

  • Adequate returns

  • Business expansion

  • Commitment

  • Accountability

Employees

  • Timey remuneration

  • Health working conditions

  • Security

  • Commitment

  • Time management

Customers

  • Quality services

  • Security

  • Timely payments

  • Rating reports

Stakeholder Mapping

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Level of interest

It clarifies the position of all the stakeholders and how the dimensions of power and interest are reflected upon them.

Minimal Effort

Non Competitors

Keep informed

Customer base

Keep Satisfied

Major Inter boundary Institutions i.e European Union

Key Players/Key Stakeholders.

Company’s Management

Some stakeholders though should be kept satisfied such as major players like international mergers such as European Union, United Nations. The amount of power held here is very much high and has the influence on strategic decisions made by the company. It had no effect from these parties, such as when Airbnb purchases Accoleo, which was a clone of the site but developed and situated in Germany. Such a situation is usually common for large corporation where they take stake in other companies to reduce competition and to increase revenue.

Porter’s Five Force Analysis

This is mainly to assess the environmental factors that might affect the airline industry’s profitability. These five force analysis is in order to analyse the supplier bargaining power, buyer
bargaining power, threats of substitutes, rivalry among competitors.

Bargaining power of suppliers.

The bargaining power is considered high as the industry is dominated by few but increasingly growing powerful competitors. Switching costs to others would be inevitably incurring high additional costs.

Bargaining power of buyers

It is fairly moderate because the customers mostly have a loyal base in Airbnb. But there has been an increase in the number of companies getting into the industry that which shall affect the propensity of the company to develop fair share and competitive market prices.

Threat of substitution

It is low since less companies are able to get venture into the unknown the market has been defined by players like Airbnb therefore for another new company to come and embrace new strategies and survive may be a tough task.

Rivalry among competitors

Rivalry among competitors for Airbnb is growing increasingly high and therefore there shall be need for the company to develop strategies to curb the incoming force altogether if it is to maintain their competitiveness.

Threat of new entrants

This is fairy moderate but growing with time as the market can be perfectly replicated by some players which might a source of concern for the company.

Resources and Competencies

Moreover, as the norm with every large company, there exist various resources that they are managing with their special competencies in order to build a proper strategy. Despite the fact that there is the huge possibility for substantial growth and potential within the industry there are a lot of strategic issues faced by the company going forward. Airbnb lacks as sustainable competitive advantage going forward as it faces a huge influx of new players in the industry and also faces multiple legal and trust issues in the market. Therefore, the company must address these issues moving forward or risk losing its competitive position in the industry.

Besides, with nearly 120 million dollars in venture funding to date, most of Airbnb’s growth has been attributed to its heavy investment in infrastructure. Moreover, by devoting resources through the Google Display Network, the company has got several advantages. Nonetheless, by attracting customers through compelling ads that introduced its services as an entirely new way to travel the world, improving website infrastructure also contributes significantly; Airbnb currently enjoys a financial stability that shall enable it to expand its current market share of users.

Internal Analysis

This one mainly involves Airbnb evaluating its distinct characteristics; these are characteristics that lay out the mark for the company. They include aspects like; competition tendencies, the company’s capabilities and the resources that it boasts. An internal analysis therefore usually seeks to identify and reinforce interests and contribution towards the organization’s vision, mission, objectives and the laid down strategies. The resources that Airbnb employs to ensure that the activities and processes go on smoothly may be in distinct categories that include;

  • Financial resources.

  • Intangible resources.

  • Human resources.

  • Physical assets.

Since resources are the inputs for an organization’s capabilities it’s only common that they are given the utmost importance whenever. Therefore, Airbnb should ensure that it is able to effectively and efficiently transform its resources into outputs in the form accommodation services that it provides. The services should be of high quality capabilities and highly competitive in the market.

VRIO analysis

This is a framework that is used by the company in order to analyze the internal resources and capabilities in a way that is in the interest of having a competitive edge over the other competitors that Airbnb has in the market. The factors that are mainly identified as being important in Airbnb developing an even more competitive advantage include;

  • Resources must be rare.

  • They must be imperfectly imitable

  • They should have a value placed upon them

  • They should not be substitutable.

This aspect would come into play if Airbnb would be able to acquire resources that only a few other players would be able to acquire themselves giving them a competitive advantage, however this competitive advantage may be temporary. Competitive parity would exist if the other companies are able to acquire the other resources. However, in spite of this, Airbnb should not neglect the resources that are valuable but common at the same time. This is because these are still very important.

Valuable

Resources are valuable if they enable the company to be able to exploit different opportunities. They are also valuable if they assist in developing a great and appreciating customer value. It is usually important to constantly check the value of resources as internal and external conditions can easily affect them

Costly to imitate

If a resource can easily be acquired by the other competitors, then Airbnb should be ready to identify such and tread carefully. This is because those that do not have such can imitate such resources through direct imitation and/or providing a comparable product in the form of substitution.

Possess Value

The set-up of Airbnb should be in such a way that the management processes, organizational culture and work ethic seeks to ensure that that the value of the rare, costly to imitate, valuable resources is very efficiently ensured.

Value chain analysis

Firm infrastructure

decisions that are effective are taken through support systems as well as administrative coordinations

HR management

The need for human work force in all the departments of the company is solved.

Technology development

High standard equipment supply that seeks to advance the technology of the whole system.

Procurement

Communication, information technology as well as the integration of knowledge.

STRATEGIC ANALYSIS 17Primary objectives.

The increase in the rate of revenue collection.

Technological advancement

Increase in production alongside better quality services.

Improved levels of stakeholder participation in decision making processes.

well established international network and system of operation

This is a process where Airbnb would identify the activities that provide primary support and then analyze these activities to be able to ensure lowering of costs and also increase differentiation. It is used to analyze the firm’s internal activities and identify which ones are the most valuable to the firm and which ones could be improved to ensure that the firm maintains a competitive advantage.

Benchmarking

This would involve Airbnb being able to identify the boxes that tick for multi nationals in terms of high quality performance and best practices. From this it can be easy to borrow such quality practices and apply them where needed in the company. The dimensions that might be checked and compared may include time, cost. Input output relationship. This is usually a continuous process that the company should employ to ensure that the competitive advantage is maintained.

Resource and competence table

Resource

Resource type

Competences

Capability

Employees

A health employee community helps the company make more profits.

Put more effort to generate returns for the company

Financial- tangible

Capital helps the company in meeting its financial needs.

Reduces loaning rates as well as settle bills.

Machinery

Physical- tangible

The machinery is used to reproduce resources hence, returns.

Reduce time wasting and production cost

Airbnb website

Technological – tangible

Online booking and checking

Time saving and cost effective.

Annual strategic analysis table

Annual percentage improvement

The percentage improvement in each year of the strategic plan

STRATEGIC ANALYSIS 18

Recommendation

The managing chain approach can be applied in the Airbnb enterprise workplace, by ensuring that the changes of the organization behavior are implemented. To Airbnb Company, there is the need for the organization to use the modern technology to enhance its performance (Dasu &Tong, 2010.
Through the utilization of the modern technology, the company can access a large area of a battle field. It makes the organization focuses on the enemy and also rebels who cannot be accessed through the use modern weapons. As such, the organization would be developing a new base of supporters and at the same keeping the old ones.
An established fighting band such as Airbnb enterprise can respond to the disruptive enemies in many ways. The first option could be to channel the weapons to their enemies. Secondly, Airbnb enterprise can manage disruptive enemy through the acquisition of their weapons.
The organization is compelled to develop inter-organizational relationships so has to enable their research and outsourcing of critical information about the enemy (Dutta & Radner, 2009). However, the use of information technology needed can facilitate a smooth flow of information between the Airbnb enterprise bands. It can allow the flow of information across the organizational boundaries thus having an impact on the shared information to the band members.

The company Airbnb should be able to ensure that the management and organization activities are in tandem with Airbnb’s mission, vision and goals at any time. Customer satisfaction, cost effective production and maintaining a competitive advantage over its other competitors should be of higher priority.

Conclusion

Previous revisions on the investments decision on strategic analysis have taken benefit to using the diverse checks the way it has been convened in the paper. The two major tests which have majorly been used comprise the call and place as well as the organizational structures. The objective of the tests was to discover the connection between the managers and the stakeholders. The earlier readings were major derives its supposition from the time mutual association. Many of the stakeholders have fallen victims of the shock that hit their economy severally (Biem & Caswell, 2008). For that reason, it has been good for them to build a well-identified strategic plan. In the study, I explored the strategic analysis as a factor in options trading in organizations where I employed the use of various economic tests such as the call and put implied volatility model tests. In summary, it is imperative to comprehend and appreciate the fact that managerial or any other form of relation may be of great importance to any organization.

Bibliography

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McAfee, R.P., Mialon, H.M. and Mialon, S.H., 2008. Private v. public antitrust enforcement: A strategic analysis. Journal of Public Economics,92(10), pp.1863-1875.

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Zott, C. and Amit, R., 2013. The business model: A theoretically anchored robust construct for strategic analysis. Strategic Organization11(4), pp.403-411.