assignment
Running head: ORGANIZATIONAL CHALLENGES 1
ORGANIZATIONAL CHALLENGES 3
Organizational Challenges
Venkatasai Peram
Cloud computing (ITS-532-04)
Dr. Robin Slayers
University of the Cumberland’s
02/02/2020
Every organization has got challenges that affect its continuity. The problems can affect the profitability of the company as well as minimize its competitiveness. Some challenges can either be internal or external. It depends on the environment and the setup of the organization. Some of the problems that are likely to affect the competitive advantage of the company are a focus, cost leadership, and differentiation. For a company to be successful and be competitive out there, they first need to focus on these three factors. The company can come up with different strategies that will help it balance the three elements. Some other factors that affect the organization are franchising and chaining (Blome, Bennett, & Page, 2010).
One of the critical challenges that affect most organizations out there is the cost of leadership. Any company can adopt the cost of administration only by devising the best strategy. The problems arise when the cost leader in the organization comes up with a plan of offering products at a lower cost. The aim of this is to be competitive and be more profitable. The cost leader, in this case, has the role of withstanding all the pressure from competing organizations. They want to come up with a way of achieving an economic scale. For instance, the organization's cost leaders went ahead and introduced low costs to their products. They wanted to attract more customers as well as gain a competitive advantage. They did not keep in mind that it would create a negative impact later.
As they proceeded with their daily schedules, a different software company erupted and introduced the same services. They offered the products at a relatively lower price. The cost leader, in this case, was unable to convince the management to reduce the cost of the product. Already the company was not that stable and was incurring multiple losses due to the new company (Vass & Gustavsson, 2017). The company ended up losing its competitive advantage as well as incurring losses. The cost leaders were forced to go home as the company hired new cost leaders. The other thing that the company focused on was to introduce an online system where they would sell their products. It was an easy way that would attract many clients as well as be a step ahead of their competitors. Through the use of online, they came up with the cloud computing services that were meant for storing necessary data.
The other challenge that the organization was lack of proper storage systems. The company was still using the traditional methods of storing information as well as passing information. The biggest, in this case, is that the company loses a lot of information. It is not easy for them to trace every detail. The company will end losing essential information hence losing many clients. If the company loses clients, it is likely to incur any losses. The company will also have a less competitive advantage due to negative feedback from the people. The company, in this case, introduced the use of cloud computing. Cloud computing is critical in that it offers modern ways of storing information (Gephart & Marsick, 2016). The company is less likely to lose any information since it’s stored in a central database. The customers are assured of quality services hence increasing their profitability and increasing the company's competitive advantage.
Blome, W. W., Bennett, S., & Page, T. F. (2010). Organizational challenges to implementing attachment-based practices in public child welfare agencies: An example using the Circle of Security® model. Journal of Public Child Welfare, 4(4), 427-449.
Vass, S., & Gustavsson, T. K. (2017). Challenges when implementing BIM for industry change. Construction management and economics, 35(10), 597-610.
Gephart, M. A., & Marsick, V. J. (2016). Using Strategic Leverage Through Learning© to Address Organizational Challenges. Strategic Organizational Learning (pp. 163-176). Springer, Berlin, Heidelberg.