analyze an organization (klF)

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1.0 Introduction This report will explore the analysis of GKN. It will investigate the internal and external business environment which will comprise of five different sections. The first section will consists of the external environment which will be the Pestel-C analysis and Porters Five Forces Framework. The second section will involve the resources in the company which are the human, technological and financial factors. The third section comprises of the competencies and capabilities of GKN. The fourth section will be the SWOT analysis. Finally the last section will be the conclusion of the report. 1.1 Introduction to the company GKN is known for the engineering and technology they provide for vehicles, agriculture, construction equipment, aircrafts and aero engines to the world's major manufacturers. They are currently 40,000 people working within GKN companies and joint ventures. GKN PLC The company is categorizes in five different aspects to their operations: * Driveline - this is design and manufacturing of Driveline systems for vehicles components. * Sinister metals - this is producing of powder metal components. * Diversified Business Group- this comprises of six different business. * OffHighway- supplies a range of components and systems to industries i.e. agriculture, forestry, construction and mining. * Emitec- designs and manufactures metal substrates, which support the catalyst in catalytic converters used in automotive exhaust systems. * Aerospace- designs and manufacture metal alloy structures and special products such as canopy systems, aircraft transparencies and de-icing system. 2.0 External Environment This section will involve the analysis of GKN's external environment. It is important to examine this, as the environment can have a direct impact on GKN's business whether this is negative or positive influence.


2.2.4 Threat of substitutes As GKN produce specialized products there are no alternative products that are cheaper that can be used therefore face very little competition and have a great deal of market share. As GKN have differentiated their products they have reduced the threat of substitute products. 2.2.5 Threat of competitive rivalry between existing players. GKN do have a large market share in their industry, however do not have a monopoly which is firstly illegal and secondly competition can be seen healthy for a firms external environment, however firms have gained a competitive advantage as competitors are offering the same concept of production as GKN which can harm the firm slightly, however as GKN has expanded to other areas apart for aerospace they still have a competitive advantage amongst other competitors. 3.0 Internal Analysis 3.1 Resources 3.1.1 Human Resources GKN gives great importance to its human resource department, which gives them a great edge over their competitors. The company encourages their employees to fulfil their potential for the benefit of both them selves and the organisation. Also GKN inspires groups and individual for outstanding performances, efforts highly recognised and rewarded. In order to raise team work and individual achievements the company aims in empowerment. As Earl Rezendes, compensation manager at GKN automotive claimed the company motivates its employees to use the methods of self serve as that way they get more information and they come back with questions. That way you empower the work force. The company wants to put capability in the hands of its managers and employees for more value added work. 3.1.2 Technological GKN'S technical excellence is relied on by the world's leading civil and military automotive and aerospace manufacturers.


with a cv joint contract worth £56million Threats 300 jobs are to be expected by the end of 2006 in an automotive plant in America this can lower staff morale. Staff members may start looking for other jobs if they think they might lose there jobs The gkns aerospace plant faces tough competition from France and Germany for the manufacture of large scale wing structures Gkn supply general motors, general motors have had slow car sales if this carries on they may need to cut supplies. 5.0 Conclusion For the external environment analysis, the most effective tool was the pest analysis; we found this helpful as it allowed us to focus on the political and legal influences. SWOT analysis was also used in order to analyze both the internal and external forces. This helped us compare the two environments, which was the reason for the use of this tool. After completing a full analysis of both the internal and external environment of our assigned company, GKN plc, many conclusions have been reached regarding the environment, in which the company operates. In our analysis of both the internal and external environment of GKN PLC, many different areas of the company were studied and researched, as well as the industry in which they operate. This research along with our chosen tools of analysis was very successful in establishing that GKN, has opted to dedicate much time, effort and resources into ensuring all aspects of their business environment coincide with the aspirations and goals of the company in general. The dedication given working within GKN'S strategic business environment appears to have been very successful and this is clear through the high profits made annually, in addition to the continual expansion of the company into different areas of business, as well the growth within their current trades.

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