Developing a strategic leadership plan is a compass for Vengile’s managers to steer the company toward future growth, as emphasized by Kreutzer (2019). This entails devising a growth plan that may commence with short-term objectives, but a comprehensive leadership plan necessitates actionable steps to attain those specific goals. Given the current need for transformation amid endemic challenges and global economic crises, a leadership strategic plan is indispensable to ensure the company is heading in the right direction.
To this end, the transformational leadership theory becomes instrumental, facilitating collaboration among leaders to formulate and determine future objectives. Subsequently, leaders brainstorm sessions to create detailed, incremental steps that foster continuous progress.
The organization’s resources encompass financial assets, asset ownership, patents, and goodwill. Additionally, the company relies on its human resources, collaborating with management and supervisors to attain leadership objectives. These internal resources have been invaluable. However, their future utility is uncertain due to intense competition within the US software development sector and the company’s workforce training, retention, and management approaches, as Nirwana et al. (2023) illustrated.
The company’s internal environment includes diverse components, such as male and female employees, digital machinery, and marketers, all contributing to management’s pursuit of competitive advantage. Hence, the internal environment comprises resources that the organization can directly employ and control. This underscores the interrelation between the organization’s strategies and its governance structure. The company strongly emphasizes IT governance, which provides a framework for aligning its IT strategies with broader business objectives. It follows a formal model to yield quantifiable outcomes.
The role of PESTEL analysis is pivotal in evaluating the company’s position and its external environment, comprising various factors.
Influence from the political arena extends to government policies and their level of involvement in the economy, as indicated by Nirwana et al. (2023). This encompasses matters like IT regulations, software export guidelines, and priorities in terms of business support. Political decisions can impact a company’s choices, affecting employee training, healthcare benefits, and infrastructure quality.
Economic factors encompass interest rates, tax policies, the country’s economic development, and inflationary pressures. Government spending and unemployment rates also influence Vengile Soft’s future policy planning.
Social factors delve into cultural dimensions, including a country’s population growth and demographic characteristics, such as gender, race, age, career aspirations, lifestyle preferences, safety considerations, and objectives, as highlighted by Kreutzer (2019). For instance, immigration regulations and diversity issues necessitate equitable policies to cater to people’s needs and balance work and leisure activities.
Technological factors encompass environmental and ecological aspects, which impact barriers to entry in the software industry, minimum production efficiency, and the company’s outsourcing decisions. Additionally, they include considerations such as R&D activity and the level of automation.
Legal factors encapsulate the country’s legal environment, where recent legal changes can influence managerial behavior. For example, age discrimination and disability regulations prevent discriminatory practices within the organization, while adhering to legislated minimum wage increases is imperative, as articulated by Gostin et al. (2019).
Environmental factors encompass elements related to climate change and regional weather patterns. Environmental shifts, driven by issues like global warming, necessitate heightened ecological awareness among managers to navigate this external factor effectively.
Porter’s Five Forces serves as a valuable business model that aids the chosen company in shaping its management strategy to boost revenue. This comprehensive tool provides insights into the IT industry, offering a profound understanding of its structural dynamics and growth drivers, as Scott (2023) illuminated.
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