The intent of this study extensively analyse the of all time germinating concern environment which the Aberdeen metropolis council find itself in. In order to understand this environment a PESTE analysis was undertaken, after which a figure a figure of issues impacting the organisation was identified. These chief alteration drivers were funding, demographics and leading. Recommendations were made on how the council can strategically turn to these issues and accomplish its vision.
This study looks at the concern environment which the influences issues that affect the Aberdeen metropolis council. With limited fiscal resources the metropolis council is forced to prioritize aims and place the cardinal strategic issues. The work focuses on the designation of the cardinal alteration drivers utilizing a strategic direction tool.
1.2 Purposes and aims
This study comprises of four major parts get downing with the general overview of the Aberdeen metropolis council in order to understand the organisations construction its nucleus values, missions and visions. Following this is PESTE type analysis which will help the apprehension of the of all time germinating concern environment which the organisation finds itself in. Next is the prioritised chief alteration drivers which will be discussed based on the determination of the external environmental analysis. Decisions will so be drawn and recommendations offered on how the organisation can strategically turn to the arising issues.
2.0 The Aberdeen metropolis council
The Aberdeen metropolis council is responsible for all the local authorities services in Aberdeen and they are the largest employer in the country with approximately 11,000 employees.
The council ‘s services are designed around vicinity countries, which are responsible for presenting frontline services to clients. The neighbourhood countries cover north, South and cardinal parts of the metropolis and are supported by strategic leading, uninterrupted betterment and resource direction.
To present high quality, customer-focused services that to the full satisfy the clients ‘ demands, better their quality of life and assist them accomplish their possible.
To show effectual execution of best value and keep the councils unity at all times by being accountable for our actions.
To present successful, inclusive and sustainable relationship with the local, national and planetary spouses.
2.3 Mission statement
“ We will be recognised within the metropolis and more widely, as being a taking council in northern Europe. We will present high quality, focused service to our clients show our unity and answerability in the chase of best value and develop successful relationships with our spouses, leting every one of us to positively victimize testimonial to all communities of Aberdeen ”
( hypertext transfer protocol: //www.aberdeencity.gov.uk/ACCI/web/site/CouncilDepartments/cdp_Corp_Directors.asp )
3.0 Strategic direction tool
There are several tools that can be used, but before the designation of these tools it would be appropriate to specify the external environment where this tool would be applied.
There are two types of external environment the macro environment and the micro environment.
The macro environment looks at influences in the far environment such political, economic, societal, technological and ecological influences while the micro includes influence in the close environment including consumers, clients, providers, competition and other of import stakeholders.
The macro environment has several benefits which is the ground why it is traveling to be used in this study.
It helps cut down hazard
Enables leaders to concentrate attending on strategic alteration
Additions organisations consciousness of their environmental influences and tendencies
Facilitates strategic leaders to better resource allotment determinations.
( Strachan, 2008 )
The macro analysis has its restrictions, they are as follows
The alterations in the macro environment can be complex and unpredictable doing it impossible for the organisation to react to alter.
3.1 PESTE analysis
Majority of the council members in power in the Aberdeen metropolis council are from Liberal Democrat and Scottish national party. These council member will be watching for the involvement of their parties even as they are working for the metropolis council
Aberdeen has developed a good relationship with the European Union over the old ages as a consequence of the nautical involvement that they portion.
The Aberdeen metropolis council is under the direct control of the Scots authorities intending that any alteration in statute law or authorities is traveling to hold an consequence on the councils personal businesss
The Aberdeen metropolis council is presently running on limited financess. On 14 Feb, 2008, the City Council set its budget, against the background of an highly tight fiscal colony from the Scots Government.
The presence of oil on the North Sea has led to an oil induced wealth in Aberdeen, conventional ‘ income/employment multiplier effects is wholly satisfactory and is greatly strengthened by an enlightening analysis of frequently ignored supplanting and disincentive effects.
The analysis of income/wealth distribution effects ( McNicoll, Iain,1990 )
Aberdeen is reliant on oil ; if the oil runs dry at any point the effects on Aberdeen could be terrible.
The council has drawn up a 20-year scheme for the metropolis, in the hope of modeling Aberdeen into “ a taking Centre of the new economic system ” . ( hypertext transfer protocol: //news.bbc.co.uk/1/hi/business/3236703.stm )
The Aberdeen metropolis council has made several attempts in their command to beginning for financess e.g. The creative activity of the economic development squad whose is responsibleA for the publicity of Aberdeen City and part locally, nationally and internationally for the intents of:
Attracting concern and leisure tourers.
Attracting and retaining a skilled work force to prolong and develop the economic system
Attracting concerns and inward investing to the country
Promoting concern expertness to aim national and international markets ( www.aberdeencity.gov.uk/acc_data/committee % 20reports/cs_pol_r3c_050419.pdf )
5 ) Freeze on revenue enhancement.
With the cardinal authorities cut downing the financess of the local authorization they besides put a freezing on revenue enhancement to deter an addition in the revenue enhancement. Due to the fact that the local governments have been left on their ain to beginning for financess the enticement to increase the already high revenue enhancement paid by the citizens of their local communities is high. The freezing aid to maintain the revenue enhancement rate at a minimal degree.
6 ) Tourism is another major beginning of income for the Aberdeen metropolis council. Undertaking are undertaken to guarantee that Aberdeen remains attractive to pull adequate international attending e.g. the metropolis council has partnered with Peacock Visual Arts. To innovatively plan the humanistic disciplines Centre right in the bosom of the metropolis by integrating the development into a sunkenA Victorian garden and has been described as ‘visionary ‘ and ‘iconic ‘ .
The new Union Terrace Gardens Centre will pull over 200,000 visitants per twelvemonth to the North-east. Within its 3,200 square meters it will host activities crossing the modern-day humanistic disciplines and house galleries, printmaking, telecasting and dance studios, workshops and an instruction suite. It aims to be an international Centre of excellence for engagement and instruction in the modern-day humanistic disciplines every bit good as a North-east place for the originative industries.
The economic benefit that the new Centre will convey has besides been welcomed ; pulling development support from Scots Enterprise Grampian in acknowledgment of the projected ?4 million the Centre will convey yearly to the local economic system. ( www.aberdeencity.gov.uk/acc_data/committee % 20reports/cs_pol_r3c_050419.pdf )
7 ) Workers and direction at Aberdeen City Council have clashed over programs to present a national equal wage strategy. Under the strategy, which was agreed six old ages ago, it has been estimated that about 2,000 workers at the authorization face a cut in their wages. This, he said, may be due to the “ tight ” labor market in the metropolis. ( hypertext transfer protocol: //news.bbc.co.uk/1/hi/scotland/4175964.stm )
The Aberdeen metropolis council is seeking to construct a metropolis of cultural diverseness. Aberdeen future vision is that by 2010 is for people whom live and work in Aberdeen will back up and observe cultural diverseness and portion a committedness to societal justness. The program is for Aberdeen metropolis council to supply better and more relevant services for people from minority cultural backgrounds. All citizens of Aberdeen are to advance community coherence, transverse cultural contact and an consciousness of racial equality and diverseness. ( Aberdeen metropolis council,2007 )
The recent addition in adolescent gestations besides has its consequence on the council ‘s pocket as there is an addition in the figure of claimants.
The fresh endowment enterprise attracted a batch of international pupils to Scotland and Aberdeen has a felt the impact of this as there are two reputable universities in the metropolis. It is up to the council to maintain a close oculus on these new pupils guaranting their stay is a stress free 1.
Emigration of households with immature childs to Aberdeenshire due to high cost of lodging. This implies that the council is losing another major beginning of financess which is the schools, the households with childs are traveling out of the metropolis so the figure of pupils in the local schools will diminish. The Aberdeen metropolis council has to pay attending to the issue of lodging and its elevation cost. Housing across the UK as a whole has become less low-cost and it is being rumoured that there might be a clang in the belongings market. This state of affairs that Aberdeen metropolis finds itself in is a direct effect of that.
The Aberdeen metropolis council in partnership with the Grampian constabulary has done a great occupation in keeping a low degree of offense in Aberdeen metropolis and its environments.
Some parts of the Aberdeen population are still populating below the poorness line. The metropolis council has to turn to the issue so as to cut down the figure of unemployed claimant which has been lifting.
With the present of two outstanding universities in Aberdeen, technological research and development is a uninterrupted procedure in the metropolis. Workshops and seminar reexamining technological issues are held on a regular footing. This allows for discovery in life scientific disciplines.
The cyberspace has been made readily available by the metropolis council at the local library leting people who do non hold internet connexion in their places to hold entree to information.
3 ) A ?4m programme replacing street visible radiations in Aberdeen has been launched. Aberdeen City Council hopes what is claimed to be the biggest modernization strategy of all time launched in the metropolis will salvage money in the long term. Every twelvemonth about 250 are cut down because of corrosion, so all are being replaced. Energy efficient lanterns are besides being installed as the council aims to salvage ?140,000 a twelvemonth. ( hypertext transfer protocol: //news.bbc.co.uk/2/hi/uk_news/6473885.stm )
1 ) Aberdeen is a stakeholder in the European Marine and Maritime Science and Technology Community: which shows their support and involvement in the oceans and seas for Europe ‘s economic, societal and environmental development, and in peculiar the major challenges posed by planetary environmental alteration and the important chances offered by the planetary market economic system.
( hypertext transfer protocol: //ec.europa.eu/maritimeaffairs/pdf/Aberdeen_Declaration_final_2007.pdf )
2 ) The Aberdeen metropolis council won the metropolis in bloom award 10 times in a row and was eventually ban from the competition to give other metropoliss a opportunity to win.
3 ) As portion of the readying or alteration of programs, programmes and schemes, local governments have been set abouting Strategic Environmental Assessments ( SEA ) since 21 July 2004. The procedure is regulated by the EU Directive 2001/42/EC, the Environmental Assessment of Plans and Programmes ( Scotland ) Regulation 2004 and the Environmental Assessment ( Scotland ) Act 2005. SEA is the environmental appraisal of programs, programmes or schemes. It seeks to supply high degree protection to the environment ; incorporate the environment and sustainable development into planning procedures ; promote sustainable development ; and advance a more unfastened, crystalline and evidenced-based planning civilization.
4 ) It is portion of the council ‘s vision to advance a new enhanced green infinite appellation called the green infinite web. This will cover the best country including river vales, the seashore, woodland territory wildlife sites and local nature militias along with other valued landscapes. These countries will be eligible to profit from important investing to rejuvenate and revitalize them. Developing along the conveyance corridors will increase the possible for people to utilize public conveyance assisting to cut down congestion and transposing times assisting our environment every bit good as bettering twenty-four hours to traveling.
( www.aberdeencity.gov.uk/local_plan_wed_pages/written/cpt1.htm-44k-2004-07-27-Cached )
5 ) Aberdeen City Council managed to recycle 25.1 % of waste. this reflects the councils involvement in keeping a clean environment
4.0 Principal alteration drivers
The PEST analysis indicated that the Aberdeen metropolis council is runing on limited resources, despite the fact that it has partnered with several private companies. The council has to take a direction within limited financess scheme to turn to this issue. This diverseness allows them to orient their actions to local demands, policies and fortunes. One illation of this is that there is no straight-line relationship between local authorities resource direction and cardinal authorities, so the council has to acquire advanced in order to bring forth more financess. A scheme development by stretch is needed in this instance to place and leverage resources competencies of the organisation to give new chances or supply a competitory advantage. ( Johnson and Scholes, 1999 )
There are already traditional ways of bring forthing fund, they are as follows, the European brotherhood, national lottery distribution board, individual pot support, trust financess, so there besides the local spouses. ( http: //www.external-funding.co.uk/edsynopsis.html ) . The metropolis council has to explicate a strategic program to prolong these beginnings.
The Aberdeen metropolis has seen a recent inflow of immigrants, and besides the out-migration of households with immature childs from the Aberdeen metropolis country to Aberdeen shire. As a consequence of the monetary values of the houses in the country has increased over clip ensuing to the out-migration. The immigrants on the other manus have provided the chance for invention whether it be in infrastructural developments, communications, transit, distribution, existent estate, agribusiness or industry. ( Morden, 1993 )
The Aberdeen metropolis council has been doing attempts to construct a metropolis of cultural diverseness with the program to supply better and more relevant services for people from minority cultural background. It goes beyond be aftering the execution of this program has to be treated as a top precedence in order to undertake favoritism and advance racial equality in Aberdeen.
Due to the fact that the council members taking the metropolis council come from different political parties they might work in the involvement of their parties. This prejudice works once more any scheme as the functionaries are changed after elections and the scheme might turn out to be a program on the shelf, scheme is a long term way that an organisation should follow non a written papers on the executive ‘s shelf. This may alter the skyline of determinations, since they may be to a great extent influenced by political considerations and may intend that analysis of schemes requires the norms of political tenet to be considered explicitly. ( Johnson and Scholes, 1999 ) .
The importance of communicating within the whole organisation can non be over emphatic it is one thing to bring forth a strategic papers with its missions, visions and values. It is another to guarantee that these nucleus values are embedded within the civilization of the organisation the most common ways of making this is by stressing the key values, institutionalization of patterns that consistently reinforce desired beliefs and values, pull offing the strategy-culture relationship. ( Pearce and Robinson, 2003 ) .
The Aberdeen metropolis council should guarantee that the organisational capacity efficaciously undertakes the holistic attack to strategic direction. ( Horton & A ; Farnham 1999 ) .
5.0 Conclusion/ recommendation
After an rating of the concern environment a figure of issues have been identified as the cardinal alteration drivers in the Aberdeen metropolis council. The issue of support, demographics and leading need to be desperately addressed by the council.
Strategic alteration tends to happen as a continual procedure of comparatively little accommodation to bing scheme, through activity within the subsystems of an organisation ( Johnson and Scholes, 1999 ) . It is hence of import to understand the nucleus values of the Aberdeen metropolis council and the cultural and political context in which it exists. Strategy is a gradual procedure which usefully combines the asperities of analysis with the world of the procedures of direction.