4.1.

Understanding the organization and its context

The context is determined as internal and external. Understanding of the context

has been described through PESTEL and SWOT of table 1 & 2 below.

Element Factor
 Stability of a political system
 Governments view on business Governments legislation
 Public interest.
 Government actions influence the economic environment.
 Government is a major consumer of goods and services.
Political
 Funding, grants, and initiatives
 Market lobbying groups
 Wars and conflicts
 Geopolitical issues
  GDP (Nominal & PPP)
 Regulations like GST
 Interest rates.
 Tax structure / systemes.
 Current account deficits / surplus
 Fiscal deficit
 Capex from governments
 Inflation.
Economic  Funding options – Financial Institutions, Banks
 Currency exchange rates & volatility.
 Consumer discretionary income.
 Savings rates.
 National economies and trends
 Market and trade cycles
 Specific sector factors
 Customer/end-user drivers
 International trade and monetary issues
 Shifts in values and culture
 Increased literacy
 Technological awareness
 Banking on banks
 Increased per capita income
Sociological  Lifestyle trends
 Demographics
 Consumer attitudes and opinions
 Media views
 Law changes affecting social behaviors
 Advancement in design
 Automation tools growth
 High technology at low cost
 Digital technology growth
 Competing technology development
 Associated/Dependent technologies
 Replacement technology/Solutions
 Maturity of Technology
Technological  Information and communications
 Innovation potential
 Technology access, licensing, patents
 Intellectual property issues
 Global communication
 Social media use
 Smart world technology
 Smart world & Smart Grid Implementation
  Maturity of organization’s products/ services
 Technology legislation
 Regulatory bodies and processes
 Specific sector factors
 Government policy
Legal
 Employment and safety law
 Product safety issues
 Codes & Standards

 Seasonality or other weather issues

 Green issuses that affect the environment
Environmental  Energy consumption
 Rubbish, waste and its disposal
 Force majeure issues

SWOT

Strength (S) Weakness (W)

 Strong Top Management /  Very big team

Leadership  Lack of experience Formatted: Font color: Red

 Strong / Robust technology  Weak marketing

backup  High inventory
 Expertise in all lines of  Limited customer base
INTERNAL business 
 Young and motivated team
 Nil borrowing
 Quick & strategic decision
making in response to
market dynamics
 Strong customer focus

Opportunity (O) Threat Factors (T)

 Lean organization leads to;  High technology imports

EXTERNAL o Flexibility in products &  Skill development velocity
Services  Increased competition
o Quick response to  Technology leakage
customer needs
  Low level of competition  Attrition
 High growth potential

Further to the PESTEL and SWOT the internal and External detailed as below;

Internal Issues
1. Structure of the organization
2. Roles within the organization
3. Availability of reliable qualified and competent work force
4. Stability of workforce
5. Staff retention Impact of unionization
6. Staff competency levels
7. Contractual arrangements with customer-beneficial
8. Payment terms from customers
9. Expansion of customer base
10. Overall strength of business to support funding needs
11. Relationship with investors
12. Credit terms available
13. Service level agreements with customers
14. Culture within the organization
15. External providers competence and availability
16. Culture within the organization
17. Governance, Policies, objectives
18. Strategies
19. Resources
20. Knowledge
21. Technologies
22. Information systems
23. Decision making processes
24. Relationships with interested parties
25. Perceptions/values of interested parties
26. Standards, guidelines and models adopted
27. Contractual relationships
28. Potential conflicts
29. Processes for resolving conflicts
30. Social customs
31. Management’s abilities
32. Priorities
33. Database skills
34. Root cause analysis abilities
35. Improvement tools and abilities to apply
36. Ability to motivate workforce
37. Project management expertise – new offices
38. Understanding and experience in implementing ISO 9001:2015
39. Co-operation of workforce
External Issues
1. Political, economic, social, technological, legal and regulatory
2. Operating Permits becoming tighter on emission levels
3. Overall economic performance in the country
4. Competitive environment
5. Economic plans for future -– etcetc.
6. The nature and impact of economy on market
7. Customer demographic
8. General levels of consumer confidence
9. Customer expectation
10. Standardization and certification within the industry
11. Regulation within the industry generally
12. Trade associations and lobbying powers
13. Impact on neighbors.
14. Contractual arrangements – generally within the sector
15. Competitive environment – overall low cost of entry into the market
16. Legislation
17. Regulation within the industry
18. Countries environmental requirements affecting products and service
19. Technology advances
20. Standardization and certification within the industry
21. Client consideration of bringing expertise in-house
22. Client working environment other trades working alongside us,
23. Client configuration changes during installation
24. Relationships with external interested parties
25. Perceptions/values of external interested parties
26. Key drivers and trends
27. Workforce culture within the sector and country
28. Construction delays
29. External inspections/audits
30. Availability of raw materials
31. Power cuts in countries
32. Availability of external providers – machinery maintenance etc.

4.2. Understanding the needs and expectations of interested parties

Needs and expectations of interested parties, and external and internal issues
relevant to the purpose and strategic direction has been determined as table 3
below;

INTERESTED PARTIES NEEDS AND EXPECTATIONS

Government agencies Environmental protection, Ethical behavior,
Compliance with statutory and regulatory
requirements
Executive Board Good financial performance, legal
compliance/avoidance of fines, Governance
Society No complaints relating to : noise, parking, health and
safety, pollution, waste, employment, No
interference/ disturbance to daily life style
Law enforcers/ Regulators Identification of applicable statutory and regulatory
requirements for the products and services provided,
understanding of the requirements, application within
the QMS, and update/ maintenance of them
Customers Value for money, high quality, expectations for design
innovation, on time, low-cost, quick response,
installation expertise, health and
safety/EMS
Regulatory and Certification Application of requirements within the standard
bodies requirements

Bank/Finance Good financial performance of the organization, Brand

value, Market capitalization
Employees Professional development, prompt payment health
and safety, work/ life balance, employment security
Insurers No claims/prompt payment/risk management
External providers Prompt payment, health and safety, work relationship
Trade Unions Compliance (employment law)

Thereby achieved by; Risk Management, Change Management, Internal Audit,

Management Review and Documented Information