Internal And External Context Essay

1243 Words5 Pages
To understand an organisation, one should first be able to appreciate the importance of an organisation’s internal and external context, suggesting a relevant definition of this term is required. The internal and external context of an organisation can be defined as “issues that are relevant to its purpose and its strategic direction and that affect its ability to achieve the intended result(s) of its quality management system.” (ISO 9001:2015, cited in Tricker, 2017, p.198). This requires organisations to consider their internal and external contexts and to manage change processes to effectively improve results (Fonseca and Domingues, 2017). The ISO 9001:2015 (cited in Fonseca and Domingues, 2017) suggest the internal contexts of an organisation…show more content…
Organisational culture is defined as “the set of beliefs, values and assumptions that members of an organization share in common.” (Rao, Rao and Sivaramakrishna, 2008, p. 448). Handy (1985) characterised organisational culture into four types of structure- the Greek Temple, the Spider’s Web, the Cluster and the Matrix. These are often referred to as Role Culture, Power Culture, Person Culture and Task Culture. It could be argued that the description of Role Culture, as relying on committees, structures, schedules and analysis (Rao, Rao and Sivaramakrishna, 2008) is the most applicable to a retail organisation. Although these are the four main types of organisational culture, a criticism of Handy’s work is that more than one type of culture usually exists within the same organisation, moreover, organisations usually change over time- suggesting their organisational culture may also change. As culture appears to be an ever-expanding research area and retail appears to be an ever-changing culture, it may be more applicable to analyse the culture of Next Plc via the 7-S Framework, developed by The McKinsey Organisation (Waterman, Peters and Phillips, 1980). This model asks seven questions, focusing on the style, structure, skills, systems, strategy, staff and shared values of the organisation. As a retail store, the strategy of Next Plc is based largely on their products and meeting customer-needs; to achieve this, customers can order products online and in-store, reserve products and receive text message notifications when their order is ready for collection. Next Plc has a divisional organisational structure- although most of their stores are in the United Kingdom and Ireland, they have 200 stores in Europe, Asia and the Middle East. They can therefore be considered as a tall structure with multiple levels of staff. The systems used include employee recruitment and development, managing customer relationships and
Get Access