To what extent does the internal environment of E.ON enable it to Essay

To what extent does the internal environment of E.ON enable it to survive and prosper in a global knowledge economy - Essay Example The aspect of knowledge economy would also include the extent to which E-on has used innovations as a part of its strategic framework towards attaining excellence in the global knowledge economy. The report also contains an analysis of the strengths, weakness, opportunities and threats using the SWOT analysis. Furthermore the external environment has also been analysed by using the PESTEL framework. Competitive framework is another significant area which demands considerable attention hence an analysis of the Porter’s five forces model applicable to E-on has also been discussed in the study. This has been followed by the analysis of the external environment with regards to the opportunities of the market and finally the level of synchronisation or harmony of the organization with regards to its changes in the business environment have been analysed so as to formulate effective strategies for the future in an attempt to gain sustainable competitive advantage. Table of Contents Executive Summary 2 Introduction 5 Background to the organization 6 Internal Analysis 7 Congruence with the External Environment 7 Organizational Structure 8 Leadership 10 Politics 11 Human Resource Management 11 Corporate Culture 11 Innovations 12 Customers 14 Stakeholders 15 External Analysis 15 PEST analysis 15 Porter’s Five Force 17 Summary of the Internal and External Analysis (S-W-O-T) 18 Internal Strengths and Weaknesses 19 Strengths 19 Weakness 20 External Opportunities and Threat 20 Opportunities 20 Threats 21 Conclusion 21 References 22 Bibliography 25 Annexure 26 Introduction Globalization has changed the business dynamics and the environment in which organizations operate in the markets. Business organizations are now looking beyond national and geographical frontiers to enter into new territories. This has significantly increased the rate of completion among the market players. The change in business dynamics of the external environment has forced organizations t o adhere with the global knowledge economy by bringing about innovations in their business processes. Innovations not only help in generating organizational excellence but also help to formulate measures that seek to counter the competition in the markets. Knowledge is perhaps the area which can be used as a tool to gain leverage of the prevailing knowledge based economy. According to Corey & Wilson knowledge economy is defined as â€Å"an economy that increasingly relies on technology and knowledge factors of production and wealth creation, in addition to labour and capital† (Corey & Wilson, 2006, p.206). Operating in a knowledge economy also involves making full use and proper application of the benefits of the knowledge economy in every business process of the organization. The evolution and use of ICT in business organization largely follows from the implementation of the elements of knowledge economy in the business organizations (Brinkley, 2006, p.4). The emergence and evolution of knowledge economies can be traced to the beginning of the industrial revolution. Since then it has been a continuous story of technological evolution with the present age of internet and highly advanced technologies which are increasingly used by business organizations to gain competitive advantage. Another interesting aspect is that technological innovation has not only inculcated among the developed nations but also among the developing nations which has