1.0 local consumers for broadband Internet services and

1.0     Introduction

 

The Catapult Communication Ltd. is a New Zealand Internet service provider offering the local consumers for broadband Internet services and bundled mobile services. Aiming to become the leader in the mobile market in New Zealand, Catapult recent management system needs to be reorganized consistently according to industry intense competition. The reality is that there are myriad alternatives of Internet service providers in New Zealand such as Flip, Slingshot, Spark and Orcon (“Broadband Providers NZ |Review & Ratings – Canstar Blue”, n.d.). The competition forces from these prominent businesses could threaten the status of Catapult in the marketplace. As Catapult begins to look for solutions, the practice of strategic management throughout the process is important by using the strategy formulation to create strategies and strategy implementation to put the strategies into action. Hence, Catapult needs to build a good team of working professionals to accomplish its mission, objectives and strategies with the help of human resource management. Good human resource management will support organization to achieve goals and provide a better return to the organization in terms of Return on Investment (ROI) (“Importance of HRM for Organizational Success”, n.d.).

2.0     Strategic Management

           

 

 

Figure 1: Strategic Management Process

 

Adapted from Management: Foundations and Applications (p. 208) by J. R. Schermerhorn Jr. 2014, Australia John Wiley & Sons. Copyright 2002 by John Wiley and Sons Inc. Reprinted with permission.

 

Strategic management is a fundamental aspect for businesses to have a clear organizational structure with resilience to potential threats and opportunities in the current market (Bhattacharyya, 2016). The feature of strategic management can be applied step-by-step using strategic management process. The ongoing process of strategic management should begin with analyzing the business current goals and objectives (Schermerhorn, Davaidson, Woods, Simon, Poole and McBarron, 2014). This is crucial to identify initiatives that could help the business grow. The process then continues with the environmental scanning to collect information that helps business to analyze the internal and external factors influencing the organization (“Strategic Management Process – Meaning, its Steps and Components”, n.d.). Then, the business should select new strategies that are excellent for the business’ future. After the three phases of strategy formulation in the strategic management process, the business should put the strategies into action in the next two stages of strategy implementation, which are implementing the strategies and evaluating the achievements of the strategies regularly. This process is really beneficial to be implemented in every business because around 95% of employees do not understand its organization’s strategy, which makes the organization objectives difficult to be achieved in the short-term period (Sage, n.d.).

   

Formerly, Catapult has accomplished many achievements in the broadband market with many loyal customers. However, the intense competition in the market has created opportunities for other broadband businesses to exploit the Catapult great achievement. Thus, it is vital for the Catapult to transform its strategic management with new and different concepts in meeting the customers’ current demand.  The strategy formed is then used to facilitate the organization system to achieve competitive advantage. Competitive advantage helps business to be sustainable and unique to appeal the customers (J. Bodwell, 2003).

 

The past Catapult competitive advantage of providing low-cost broadband service has gained significant market share. In the long-term perspective, this competitive advantage becomes obsolete with other great deals being offered from other Internet broadband competitors plus mobile broadband services in a single package. To maintain competitively, Catapult should apply Porter’s Five Forces Analysis in the organization to determine the industry structure and the level of competition in the industry (Jurevicius, 2013).

 

 

 

 

 

 

 

 

 

 

 

Figure 2: Porter’s Five Forces Analysis

 

Adapted from Five Forces by Michael Porter — Fundamentals Through Graphics, In Mason Myers Blog, 2013, Retrieved January 24, 2017, from http://masonmyers.com/five-forces-michael-porter-business-fundamentals/. Adapted with permission. 

 

Catapult has to gather information about the industry competitiveness based on the five factors. Firstly, the threat of new entry of Internet service provider in the industry is high, as the demand for the Internet has increased continuously in New Zealand. Based on the World Internet Project New Zealand report, the percentage of Internet users in New Zealand has risen from 82% in 2007 to slightly over 90% in 2013 and 2015 (Smith, Bell, Miller & Crothers, 2016). Therefore, Catapult has to offer distinctive and special services to differentiate them from other competitors and new entrants. Next, Catapult has encountered with increasing cost from the existing contractors for the installation of the connection, which has lead to the high bargaining power of suppliers. This has affected the Catapult profits because it has to pay more for the contractor services. In addition, the buyers that are interested to have a satisfactory performance of Internet services will demand and seek a lower price but higher quality services. This will create buyers with high bargaining power that are sensitive to price changes. When the competitors are changing their prices, the consumers will substitute services from high rate to more affordable rate. This occurs in the intense competition of high rivalry among existing competitors. To overcome this situation, Catapult needs to have high loyalty customers to retain their customers even though the risks from other competitors plan are harming their profit.

 

 

 

 

 

 

 

 

Figure 3: SWOT Analysis

Adapted from Management: Foundations and Applications (p. 208) by J. R. Schermerhorn Jr. 2014, Australia John Wiley & Sons. Copyright 2002 by John Wiley and Sons Inc. Reprinted with permission.

 

The environment of Catapult can be further examined internally and externally using the SWOT analysis. As one of the strengths of Catapult is on ‘no-hold calling’ in the Sales Team, Sarah should aim to meet this goal continues to make it become the core competencies of the business. The core competencies could be developed into the competitive advantages for the organization to be benefited in the future. Then, it could be manipulated to prevent the future threat of the Catapult, which includes the entry of many Internet service provider businesses. Whereas the weaknesses of Catapult that has prevented the business from achieving its mission is the extensive duration needed to manage consumer enquiries. The daily practice of Catapult that requires continuous interaction between the employees and the consumers should be improved to current technology in order to decrease the ‘noise’ between them. The opportunity of recent technology for communication should be utilized by Catapult to engage with the consumers in all possible ways such as e-mail, website and phone number.

3.0     Human Resource

 

Next, the crucial reformation for the Catapult to gain a competitive edge in the fast-changing environment is to deal with the human resource management. Human resource management is aiming to value and develop employees by enhancing employee engagement in the business (Schermerhorn, Davaidson, Woods, Simon, Poole and McBarron, 2014). A good human resource could only be achieved when the organization follows the human resource process, which are attracting potential employees, developing the quality workforce and encouraging employees’ engagement.

 

 

 

 

 

 

 

 

Figure 4: Human Resource Process

 

The Catapult’s current status creates insight into the need of recruiting employees for the future growth of the business. This is associated with the first step of human resource planning where the process is used to meet current and future human resource needs (Koch, 2015). The number of human resources available in the Technical Team of Catapult is inadequate to tolerate the increasing number of customers’ enquiries. Even though the current employees in the Technical Team are skillfully experienced but the demand for employees with new skills, ideas and talent are crucial to organization’s success. The recruitment process should begin by analyzing vacant position based on job description and specification prior to attract applicants by advertising. After the employees have been selectively recruited from several interview phases, the new employees should experience regular training for the workplace satisfaction and productivity. Training is the second step of human resource process, which focuses on the ability of the employees to create and share their knowledge during the training course to increase employee engagement in their respective teams (Schlenker, 2016). Lack of training in an organization has caused almost 75% workers unable to achieve their full potential at work due to insufficient development activities for engagement (Gutierrez, 2016).

 

The third step of human resource process is to engage employees to become the company’s best assets for development. Engagement can be defined as a state of positive work-related attitudes, which could lead to a high level of commitment, energy and satisfaction of the job tasks. Based on Aberdeen Group study, fostering employee engagement has helped the business to increase their annual revenue by over 25% (Minkara & M. Moon, 2015). This could occur, as the business performance is associated with the employment relationship in the workplace and the employees’ relationship with the customers.

 

            When Catapult has practiced effective human resource process by recruiting best employees, designing an effective training program and successful retention program, Catapult is able to gain a competitive advantage in term of its human resource management. These benefits Catapult in term of competing with a business that still struggling to maintain their workforce motivation and retention. An example of good human resource management can be taken from Specialty Cabinets Company who able to rapidly expanded its operation from two persons to 28 employees in short period (Recruiting and Selecting Employees, 2018). This is because Specialty Cabinets Company has focused to recruit employees with expertise and skills in carpeting in order to set them as the base strength of the new small business. Therefore, it is proven good human resource management is crucial for the business future.

 

In order for Catapult to fully maximize the human resource management effectiveness into the business, Sarah should work on improving job satisfaction as well as increasing employee engagement. Offering employees incentive based on their individual performances is a common approach used by managers to motivate and increase employee job’s satisfaction (Ogbonnaya, Daniels & Nielsen, 2017). However, the incentive scheme managed by Barbara Thompson is fraudulent to the employees since it used the group sales performance as the standard of allocating commission despite their individual achievements. According to Herzberg’s Two Factor Theory, the motivation factor that leads to a job satisfaction in the workplace occurs when manager recognizes the employees’ effort and performance by rewarding appropriate amount of commission corresponding to their workload. Improving job satisfaction in the workplace is an important factor for Catapult to retain their employees. This is because of around 50% of organization view employee retention as the problem in human resource management (Bhatia, 2017).

4.0     Conclusion

 

            In conclusion, Catapult future performance is generally dependent on the practice of strategic management and human resource management. The strategic management has emerged in response to the need for challenging worldwide business environment. It is concerned with the competitive advantage of the business using the tools of Porter’s Five Forces Analysis and SWOT Analysis. Therefore, it is recommended for the Catapult to formulate and implement strategies suitable for changing the environment of the market to create competitive advantage. In terms of human resource management, it assists the business to make a quality strategic decision with the help of skilled human capital. The Herzberg’s Two Factor Theory should become the guide to creating a quality workforce with high job satisfaction and engagement. Catapult is suggested to evaluate regularly their employees’ performance to attain organizational goals objectives eventually.