Business Issue of Capstone Corporation - Case Study Example

Capstone Introduction Capstone Corporation is a United s (US) based organization involved in supplying essential support solutions and services to the US Federal government. The organization was founded is in the year 1986 and since then it has been engaged in delivering Information Technology (IT) related consulting services to the government department of the US Navy. Capstone has always concentrated on its commitment in order to maintain the competitive advantages among its competitors and to effectively cater the needs of its customers. Moreover, Capstone has been delivering its services and solutions more adequately in order to ensure its contribution towards the US security system to prevent any threats during emergency situations (1Capstone Corporation, 2014). Against this backdrop, the essay evaluates the impact of the company’s mission, vision, and primary stakeholders on its overall success. The essay further determines the external and internal environmental influencing its competitiveness and profitability. In addition, the essay measures the effectiveness of corporate governance and leadership within the company. Mission, Vision and Impact of the Stakeholders Capstone Corporation is a globally renowned solutions and services provider of IT services. The mission statement of the company involves integrating its competencies across the domain of training, information as well as management solutions and services to effectively meet the needs of its customers. Driven with the corporate mission, Capstone has been constantly involved in providing quality output in the information solutions, training solutions along with planning and operations (2Capstone Corporation, 2014). Porter Five Forces Analysis In order to determine the competitive position of Capstone Corporation, it will be vital to apply ‘Porter’s Five Force Model’. The elements of this model are aligned with the various factors related to the company which is described below. Figure 1: Porter’s Five Forces Bargaining Power of Supplier Capstone Corporation relies on its suppliers for the supply of quality technical services to the US Federal government. It has been recognized that the organization has built cordial relationships with its suppliers. Thus, it can be asserted that the bargaining power of its supplier is high (Karagiannopoulos et al., 2005). Bargaining Power of Consumer The bargaining power of buyers is rising within the industry in which Capstone Corporation operates owing to the increasing number of competitors within the industry. It has been identified that present customers of the company have become more quality conscious and price-sensitive. Thus, it can be asserted that the bargaining power of its consumers is relatively high within the industry (Karagiannopoulos et al., 2005). Competitive Rivalry In order to identify the competitive rivalry, it has been observed Capstone Corporation does not have higher threats from its competitors. This is due to the fact that the company is involved in operating its business activities prominent market players in the IT industry and there is no major competitors currently operating in the US market. Moreover, it has been revealed that Capstone Corporation has emphasized towards ensuring superior quality of its services in order to attain competitive advantage over its competitors. Thus, the level of competitive rivalry can be identified to be medium (Karagiannopoulos et al., 2005). Threats of Substitute Products and/ or Services With respect to the threat of substitute, the company may face severe challenges from other business consulting firms which may reduce the profitability of the company. Nevertheless, the degree of threat of substitutes can be considered to be low (Karagiannopoulos et al., 2005). Threats of New Entrance In case of threats of new entrance, it can be asserted that the company does not face any challenges from the new entrance. In this regard, it can be asserted that it will be very difficult for the new player to assure quality of services like Capstone Corporation. Thus, it can be identified that in case of IT industry the threat of new entrance is very low (Karagiannopoulos et al., 2005). Six Segments of the General Environment In order to determine the general environment of Capstone Corporation, it will be vital to apply the six segments of the environment these are illustrated below: Political Capstone operates across diverse geographical regions within the US. Owing to its widespread operations, the company has faced several threats from the political environment, particularly in terms of instability associated with the political condition of the nation. Thus, in order to reduce those threats Capstone Corporation has been constantly involved in closely monitoring the political factors influencing its operations (Koumparoulis, 2013). Economic The impact of the recent recession faced by the US has not spared Capstone Corporation as well. Despite the gloomy economic condition, the company has emphasized towards the favorable flow of capital and financial stability. Apart from this, the organization has reduced the cost of its employees and workers in order to stabilize the economic position in the US market (Koumparoulis, 2013). Social With respect to the social context, Capstone Corporation has introduced staff training and development program in order to motivate employees and retain a talented pool of workforce. At the same time, Capstone has increased the level of its competitiveness due to dedicated and highly trained workforce (Koumparoulis, 2013). Technology Technological advancement in the contemporary era has been a frequent process. Organizations worldwide are incorporating the latest technologies to enhance their performance. In this regards, Capstone Corporation has also emphasized towards incorporation of new and innovative information technology and solutions in order to enhance its quality of the services (Koumparoulis, 2013). Legal Surmounting challenge related to the variation in the legal environment is another major matter of concern for modern organizations. In this context, Capstone Corporation has maintained legality, morality, and ethics to ensure a healthy relationship with its employees and stakeholders and with the host nation (Koumparoulis, 2013). Environment In order to maintain the environmental protection, Capstone Corporation had concentrated on its financial stability and ecological environment (Koumparoulis, 2013). SWOT Analysis Strengths It has been determined that the company has cemented its strong position in the US market, which has offered it with increased competitive traction. Apart from this, strong financial performance has been a core competence for the Capstone in the US market context. Moreover, skilled and efficient workforce is another key strength of the Capstone Corporation. Weaknesses With respect to the weaknesses associated with Capstone, it has been ascertained that the company has operations only in the US market. Correspondingly, the increased dependence on the domestic market can be termed as a major weakness of the company (3Capstone Corporation, 2014). Opportunities In the current business environment, several business organizations are increasingly involved in expanding its business beyond the national boundary to overseas market. In this regard, Capstone Corporation can devise strategies to expand its operations beyond the US to other countries of the world to exploit the untapped opportunities Threats In this regard, it has been revealed that Capstone had faced several internal and external challenges due to poor environmental condition in the US during the natural disaster situation, which can be considered as a threat to the organization. In addition, economic downturn faced by the US has significant impact on the performance of the company. Notably, any such recession in the future may have a disruptive influence on the operation of the company (3Capstone Corporation, 2014). Competitiveness and Profitability In order to enhance the competitiveness and profitability of the organization, Capstone Corporation has incorporated crisis action and adaptive planning strategy in its operations. Apart from this, the company had also concentrated on training and development of its employees’ directed towards enhancing their skills and knowledge to ensure greater competitiveness and increased profitability. Moreover, by ensuring quality services, ethical and legal norm, Capstone Corporation has maintained its competitive advantages (3Capstone Corporation, 2014). Communication Plan Communication is one of the most essential attributes of an organization. Through integrated communication process organizations can increase its brand loyalty, market share and can maintain competitive advantages. With reference to these factors, it can be recommended that Capstone can improve its effectiveness and efficiency through maintaining integrated communication with its stakeholders. In this regard, Capstone should analyze the responses of the stakeholders, in order to satisfy their needs and demand along with preferences (Barker et al., 2012). Corporate Governance It has been recognized that Capstone Corporation has maintained effective corporate governance mechanisms in its business operations. The corporate governance mechanisms within the company rest on the three fundamental pillars including integrity, respect and responsiveness. In this regard, Capstone Corporation has been firmly concentrated on ensuring equal rights and treatment for its employees and shareholders. In addition, the company has been engaged in maintaining an organizational culture where every individual within the company are motivated and the interest of shareholders is preserved. The company has established a clear distinction between designation hold by the manager and the corresponding authority assigned to them (OECD, 2004). Leadership Leadership is a key factor for an organization. A good leader can lead an organization towards the success path. In addition, leaders can influence the organizational performance, employees’ effectiveness and create a unique identity for the organization in a competitive market situation. Notably, the leaders within Capstone have revealed their firm commitment towards enhancing the performance of the company. Nevertheless, it can be recommended that the company will need to practice strategic decision making in order to maintain the consistency in terms of performance. The situational leadership style would be to be effective solutions for the leaders within the company for dealing with the current complex business environment (Graeff, 1997) Ethics Maintaining ethical practice is one of the most essential requirements for the organizations in the contemporary environment In this regard, it can be affirmed that trust is the foundation a business. In order to enhance the level of trust with the employees’ and stakeholder organizations should maintain privacy of their clients’ information. In accordance with the notions presented by Pitcairn & Phillips (2014), it can be affirmed that through understanding the ethical and legal necessities organizations can improve its goodwill (Pitcairn & Phillips, 2014). Moreover, it can be apparently asserted that Capstone has been widely involved in ethical practice which can be apparent from its strategies towards its stakeholders. Conclusion It has been revealed that Capstone Corporation has maintained its competitive advantages in the US market through its quality services and by the co-operation of the stakeholders. Thus, in order to conclude the topic, it can be evidently asserted that through the integrated communication process, effective corporate governance strategy along with effective leadership and ethical practice can ensure its profitability and long term sustainability in the global market. References Barker, N. Valos, M. & Shimp, T. A. (2012). Integrated marketing communications. United States: Cengage Learning. 1Capstone Corporation. (2014). Company profile. Retrieved from http://www.capstonecorp.com/who-we-are/company-profile 2Capstone Corporation. (2014). Message from our CEO. Retrieved from http://www.capstonecorp.com/who-we-are/message-from-our-ceo 3Capstone Corporation. (2014). Strategy, plans, & operations. Retrieved from http://www.capstonecorp.com/what-we-do/strategy-plans-operations-spo Graeff, C. L. (1997). Evolution of situational leadership theory: a critical review. Leadership Quarterly, 8(2), 153-170. Karagiannopoulos, G. D., Georgopoulos, N., & Nikolopoulos, K. (2014). Fathoming Porter’s five forces model in the internet era. Emerald Group Publishing Limited, 7(6), 66-76. Karagiannopoulos, G. D., Georgopoulos, N., & Nikolopoulos, K. (2014). Fathoming Porter’s five forces model in the internet era. Emerald Group Publishing Limited, 7(6), 66-76. OECD. (2004). OECD principles of corporate governance. Retrieved from http://www.oecd.org/corporate/ca/corporategovernanceprinciples/31557724.pdf Pitcairn, M. S. L., & Phillips, K. A., (2014). Ethics, laws, and adolescents: confidentiality, reporting, and conflict. VISTAS Online, 71-74. Read More