Name: Argie G.

Catambacan Class Code: HRM 2232 (3-106) TTH

Learning Activity 6 Competitive Environment

Competitive Environment
1. What is the meaning of competitive environment?

- A competitive environment is a system where different businesses compete

with each other by using various marketing channels, promotional strategies,
pricing methods, etc. (Sendpulse.com) And according to Study.com, a
competitive environment is the dynamic external system in which a
business competes and functions. The more sellers of a similar product or
service, the more competitive the environment in which you compete. For
instance, fast food restaurants, there are so many fast food nowadays that
you can choose from; thus, the competition is high.
Additionally, there are two (2) types of competitors, these are:

● Direct competitors are businesses that are selling the same type

of product or service as you. For example, McDonalds is a direct
competitor with Burger King.
●  Indirect competitors are businesses that still compete even
though they sell a different service or product. The products or
services offered by indirect competitors tend to be those that can
be substituted for one another. Again, considering travel, you have
the option to travel by plane, train, or car. Therefore, airlines are
also competing with train lines and buses (assuming the travel does
not go overseas).
Aside from that, there are also different types of Competitive Environment.
● Monopolistic competition. In this environment, there are many manufacturers,
but they produce different products although they might serve the same purpose.
Customers can distinguish the products because of the differences in quality,
features, etc. Businesses actively use advertising to promote their products and
convince consumers that their products differ and have better quality. Companies
in monopolistic competition are price makers (have the power to influence the
price of products), however, to justify the price increase of their products they
should differentiate them from other businesses, for example, by improving the
quality of the company's goods.
● Oligopoly. In this market model, there’s a small number of businesses, usually
two or more. It’s considered stable as companies don't compete but collude to
 obtain high market returns. Firms set and keep prices high together or under the
leadership of one particular company. In an oligopoly, profit margins are higher
than in a more competitive environment. However, the main problem of this
market structure is that businesses often face a prisoner's dilemma, an incentive
to cheat and act in their interests at the expense of other companies.
● Monopoly. There’s one company that produces a unique product. This
manufacturer doesn’t face any competition and the product doesn’t have any
substitutes. Also, a monopolist decides on the price of the product and sets
barriers for new companies to enter.

2. Who are the actors or players in the competitive environment?

- The actors in the competitive environment are;
● First, is the company. It is important to maintain a close relationship
with employees of the company even if they participate in other
departments. One goal is that all employees in the different
departments understand the mission and overall objectives of the
company. Top management, finance, research and development,
purchasing, operations, and accounting should all be in
synchronization. Each individual in the various departments should
contribute to the company by completing their individual assignments,
but all must have one focus: understanding customer needs and
creating customer value.
● The second actor is the supplier or suppliers; those who provide
the materials they need to produce the chemicals. To keep a healthy
and strong relationship with suppliers is very important, as they provide
the necessary resources. It is important to keep in close contact with
suppliers in order to maintain adequate supply numbers, consequently
impacting the development of the company’s products.
● The third actor is the competitor . In the industry of chemicals
Syngenta, Dow AgroSciences, and Monsanto are the most important
competitors to Bayer CropScience. It is really important for companies
to keep an “eye” on their competitors to understand the new products
they are developing and counterattack these products with new ones.
Bayer CropScience must understand what its competitors are doing
and must provide greater customer satisfaction than what its
competitors offer.
● The fourth factor is the Public. In order to have a good image and be
positively exposed by organizations, a company has to offer something
to the public in order to produce the desired response.
● The fifth factor is the Customer. This is by far the most important
actor. The company of all companies is to make profit. It is important
to understand, segment and target a specific market to get the most
 profit. It is also important to create a strong relationship with the
customer to understand and address their needs. In the case of Bayer
CropScience, it is important to build strong relationships with farmers
and develop confidence and trust.

3. The Role of Strategic Human Resource Management in the competitive

environment.
- The role of strategic human resource management in the competitive
environment is that they are the one who’ll improve business performance
and uphold a culture that inspires innovation and works unremittingly to gain a
competitive advantage. And, in order for the company to be successful in its
competitive environment, HR professionals should be armed with a solid
foundation in business principles and strategies, be knowledgeable about
finance and accounting, and be skilled in advancing practices, methodologies
and trends within the field.

4. What is a strategy?
- Strategy is an action that managers take to attain one or more of the
organization’s goals. Strategy can also be defined as “a general direction set
for the company and its various components to achieve a desired state in the
future. Strategy results from the detailed strategic planning process”.
In other words, strategy is the blueprint of decisions in an
organization that shows its objectives and goals, reduces the key policies,
and plans for achieving these goals, and defines the business the company is
to carry on, the type of economic and human organization it wants to be, and
the contribution it plans to make to its shareholders, customers, and society at
large.

5. What is the meaning competitive advantage?

- According to Alexandra Twin (2021), a competitive advantage refers to

factors that allow a company to produce goods or services better or more
cheaply than its rivals. These factors allow the productive entity to generate
more sales or superior margins compared to its market rivals. Competitive
advantages are attributed to a variety of factors including cost structure,
branding, the quality of product offerings, the distribution network, intellectual
property, and customer service.

6. What are the contextual forces that affect the HRM practices of the
organization?
 - In the case of human resource management, there are two categories of
environmental factors-external and internal. External factors are all those
factors which lie outside an organization such as economic, socio-cultural,
technological, political-legal, and professional association, and affect its
working, including human resource management. Internal factors are all those
factors which lie within the organization and affect human resource
management (Factors Affecting Human Resource Management by Varsha
C.)

7. The role of leaders in corporate governance.

The role of leaders in corporate governance is that they will be the one
who will create a culture in the corporate which uses effective governance to
achieve its purpose. They also provide motivation and impulsion to make
corporate governance effective. Nicholas J. Price (2019) says that leadership
in governance is the willingness and ability to take ownership in a part of an
organization and to continually do what is best for the organization. Effective
corporate leaders stand on a foundation of solid governance principles. They
have a clear mission and vision for the future and align their decisions with
them. Leaders in governance follow a specific strategy and help to create a
corporate culture that’s conducive to success. Employees who embrace these
concepts will naturally develop leadership skills.
Additionally, leaders tend to have certain essential attributes. They
practice excellent two-way communication. Also, they have strong emotional
intelligence and team-building skills. They understand the competitive
landscape well and are forthcoming with suggestions and solutions.

8. HRM and Corporate, Business, and Functional strategies

Corporate Strategies in HRM

- A corporate strategy is the broadest and most long-ranging. It must be
developed first to provide direction to the business and functional area
planning efforts where the activities are planned and managed. So, it is the
largest doll that all the others fit into (Lynch, C., 2018). Moreover, the
corporate strategy should be closely tied to HRM policies within the firm and
only then higher level of corporate performance can be achieved. Three
strategies which a firm competing in a single market generally follows are: (1)
Growth Strategy (2) Retrenchment Strategy and (3) Stability Strategy.

GROWTH STRATEGY:
 Whenever a company is able to identify a niche factor and is successfully
and aggressively expanding within that particular market segment, it is said to
be pursuing a growth strategy. A key challenge for HR manager with firms
using a growth strategy is recruiting and training the large number of qualified
employees to help operate growing operations. So, the top management
team would consult with the HRM team to ensure that it had the capability to
attract and train the large number of new employees (Corporate Strategy &
Human Resource Management. (2016, April 2).

RETRENCHMENT OR TURNAROUND STRATEGY:

Sometimes, firms are forced to adopt, at least in the short run, a strategy
usually referred to as a retrenchment or a turnaround strategy, which occurs
when an organization finds that its current operations are not effective.
Management may close operations, shut down factories, terminate
employees, and take other measures to scale back current operations and
reduce their workforces. The ultimate goal in such scenarios is to take the
resources generated as a result of these steps and reinvest them into other
more promising products and markets.
Layoff, retrenchment and renewed labor contacts are part of HR’s
response to restructuring move of organization. Downsizing is resulting in
increasing job insecurities among employees. At this time, HR managers
need to provide morale boost to the employees so that employees continue to
feel attached to the organization. HR managers must help in ensuring that
decisions about who will be let go are made for job related reasons as
opposed to reasons that might reflect or suggest bias. Similarly, HR
managers can help optimize the transition process for displaced workers
through practices such as equitable severance packages and outplacement
counseling (Corporate Strategy & Human Resource Management. (2016,
April 2).

STABILITY STRATEGY:

A third single market strategy that might be adopted by some firms is a

stability strategy. A company adapting this strategy plans to stay in its current
business and intends to manage them at same pace at which they are
already being managed. The organization’s motto is to protect itself from
environmental threats. A stability strategy is frequently used after a period of
retrenchment or after a period of rapid growth. Here HR managers play a
major role in determining how to retain the firm’s existing employees when the
firm can offer little in the way of growth and development opportunities, salary
increase, and so forth (Corporate Strategy & Human Resource Management.
(2016, April 2).
 Business Strategies in HRM
- The business strategy is informed by the corporate goals, the success or
challenges of the current strategy, the business’ market conditions including
shifts in customer preferences, market innovations, and regulatory shifts
(Lynch, C., 2018). In addition, a business strategy is a future-oriented plan for
creating and maximizing competitive advantages to accomplish the
organization's mission. To successfully execute that strategy, each function
within the business needs to align its departmental strategy with the overall
business strategy (XpertHR Editorial Team. (n.d.).
However, it is easy for functional and departmental leaders to slip into a
narrow "silo" perspective of their strategy. After all, each function has distinct
areas of responsibility - finance and accounting, sales and marketing,
operations, HR, information technology and production. But aligning individual
departmental strategies with the overall business strategy helps the business
plan to be executed efficiently.

The HR function, more than other functions, is involved in and affects the
operation and execution of all the other business functions. This is identified
most readily in HR's enterprise-wide staffing responsibility but extends to the
entire life cycle of employment. The HR function intersects and affects the
other business functions in the following areas:

● Talent acquisition.
● Performance management.
● Training and development.
● Employee retention and engagement.
● Employment law compliance.
● Compensation and benefits; and
● Safety and security.
Therefore, properly aligning the HR strategy with the organization's business
strategy is critical to achieving the organization's mission.
Alignment is the connection of strategy and execution through communication.
Aligning strategies requires HR to:
● Understand the business strategy.
● Assess current conditions.
● Plan and implement the HR strategy; and
● Measure and evaluate results and adjust as needed.
● Communication within the HR department and with leaders of the other
business functions is key to accomplishing the following steps.
Functional Strategies in HRM
- A functional strategy is the approach a business functional takes to achieve
corporate and business unit objectives and strategies by maximizing resource
productivity. It deals with a relatively restricted plan that provides the
objectives for a specific business function. It helps set objectives that guide
the optimum allocation of resources among different business functions. This
strategy also guides and facilitates coordination among the functions to
maximize their outcomes (Sridharan, M. (n.d.).
Functional areas of business/Examples of Functional Strategy
There are many functional areas in companies which mandate a strategic
level decision making. These functional level areas are as follows:
● Marketing - All the activities concerned with the promotion of
product or service right from identification of needs to delivery of
the product, and it’s after-sales come under marketing. The
marketing mix is considered as one of the crucial parts of the
marketing strategy, which involves all the steps that an organization
can take to increase the demand for the product or service.
● Financial Strategy - The financial strategy covers all the related
subsections of financial management. These include planning,
utilizing, acquiring and control of the available financial resources.
● Human Resource Strategy - The human resource strategy is
concerned with the working of employees in the organization. They
provide them with good and healthy working conditions so that they
contribute to the success of the organization.
● Production Strategy - As the name suggests, the production
strategies related to the manufacturing of products. The production
strategy focuses on the overall production of the organization,
including its operations control, logistics and also ancillary
functions.
The primary purpose of the Production Strategy is to improve the
quality of the product and also reduce the manufacturing cost.
● Research strategy - The strategy is focused on innovation.
Development and improvement are the primary objectives of
research and development strategy. The RND is encouraged to
develop innovative products so that the company can lead in the
market.
- Thus, the functional strategy is concerned with the improvement of specific
departments. Departments like purchase and material management should
improve the quality of the purchase and reduces the purchasing cost so that
the overall profit margin has increased. It is also concerned with production
 and operation strategies which are concerned with marketing concepts and
improving products.
The objective of the functional strategy is also to understand how they can
perform better. The problem is analyzed at a micro level so that it is solved
and it does not cause a glitch in the overall functioning of the organization.
This is where functional strategy is helpful since the respective departments
can be asked to improve (Bhasin, H., 2020)

9. HR Strategy: Concepts and Applications

HR Concepts
When we talk about Human Resource Management, several elements are
considered cornerstones for effective HRM policies. These cornerstones are:
The seven HR basics
1. Recruitment & selection
- Recruiting candidates and selecting the best ones to come and work for the
company is a key HR responsibility. People are the lifeblood of the
organization and finding the best fits is a key task. The request for new hires
usually starts when a new job is created, or an existing job opens up. The
direct manager then sends the job description to HR and HR starts recruiting
candidates. In this process, HR can use different selection instruments to find
the best person to do the work. These include interviews, different
assessments, reference checks, and other recruitment methods. Sometimes,
when there are a lot of candidates, HR may deploy preselection tools. These
tools help to separate the wheat from the chaff when it comes to suitable
candidates. The successful candidates then continue to the next round,
where they are interviewed and receive a more in-depth assessment (Vulpen,
E. (n.d.)).

2. Performance management
- Performance management is the second HR basic. It involves helping people
to become their best selves at work, boosting the company’s bottom line.
Usually, employees have a defined set of responsibilities that they need to
take care of. Performance management is a structure that enables employees
to get feedback on their performance – to reach their best performance
(Vulpen, E. (n.d.)).

3. Learning & development

 - People are the product of life experiences, the country and era they grow up
in, and a range of cultural influences. Within HR, learning and development
ensure that employees adapt to changes in processes, technology, and
societal or legal shifts. Learning and development helps employees to reskill
and upskill (Vulpen, E. (n.d.)).

4. Succession planning
- Succession planning is the process of planning contingencies in case of key
employees leaving the company. If, for example, a crucial senior manager
quits his/her job, having a replacement ready will guarantee continuity and
can save the company significant money. Succession planning is often based
on performance ratings and L&D efforts. This results in the creation of a talent
pipeline. This is a pool of candidates who are qualified and ready to fill
(senior) positions in case of someone leaving. Building and nurturing this
pipeline is key to good people management (Vulpen, E. (n.d.)).
5. Compensation and benefits
- Fair compensation is key in motivating and retaining employees. One of the
fundamentals of human resource management concerning pay is ensuring
equity and fairness. Making the right offer of pay is a key part of attracting the
best talent. This must be balanced with the budget and profit margins of the
company. HR should monitor pay increases and set standards of merit. HR
may also carry out a pay audit on occasions.
Compensation comprises primary compensation and secondary
compensation. Primary compensation involves directly paid money for
work, which often is a monthly salary and sometimes performance-based pay.
Secondary benefits are all non-monetary rewards. This can include extra
holidays, flexible working times, day-care, pensions, a company car and
laptop, and much more. The goal here is to reward people in ways that
motivate them (Vulpen, E. (n.d.)).
6. Human Resource Information System
- An HRIS supports all the cornerstones we discussed above. For example, for
recruitment and selection, HR professionals often use an Applicant Tracking
System, or ATS, to keep track of applicants and hires. For performance
management, a performance management system is used to keep track of
individual goals and put in performance ratings. In L&D, a Learning
Management System (LMS) is used for the distribution of content internally,
and other HR systems are used to keep track of budgets and training
approvals.

- Compensation specialists often use a payroll system, and there are also
digital tools that enable effective succession planning. All these functionalities
can often be done in one single system – the HRIS. Sometimes, however, the
 management of these functionalities is split up into different HR systems. The
bottom line here is that there is a significant digital element to working in HR
which is why the HRIS is the final element when we talk about the HR basics
(Vulpen, E. (n.d.)).

7. HR data and analytics

- The last of the HR fundamentals revolves around data and analytics. In the
last half-decade, HR has made a major leap towards becoming more data-
driven. The Human Resource Information Systems we just discussed is
essentially a data-entry system. The data in these systems can be used to
make better and more informed decisions. An easy way to keep track of
critical data is through HR metrics or HR KPIs. These are specific
measurements that answer how a company is doing on a given
measurement. This is referred to as HR reporting. This reporting focuses on
the current and past state of the organization. Using HR analytics, HR can
also make predictions. Examples include workforce needs, employee
turnover intention, the impact of the (recruitment) candidate experience on
customer satisfaction, and many others (Vulpen, E. (n.d.)).

HR Applications
- HRIS (human resources information system) is a type of business
application that enables companies to store employee information, manage
common HR functions, and execute critical HR activities such as processing
payroll and administering benefits (Totah, Z, 2020).
Moreover, the features of HRIS applications include an employee self-
service portal, payroll, workforce management, recruitment and hiring,
benefits administration, and talent management. These capabilities are often
delivered through individual modules that form a unified suite of HR tools
(Totah, Z, 2020).

10. Film Viewing: Where to Invade Next/Michael Moore/Youtube

The film, “Where to Invade Next” is an American documentary film
produced in 2015 and directed by Michael Moore. In the documentary,
Michael Moore visits countries to see how Europeans view work, education,
health care, sex, equality, and other issues. Michael Moore is an American
man who explores countries in search of answers on how the United States
can improve better. He invades places such as Italy, France, Finland, Tunisia,
Slovenia, Germany, Iceland, Portugal, and Norway. During his travels, he
speaks to labor workers, employees of large corporations, teachers, and even
 leaders. In search of all these great ideas, in the end, he concludes that many
of these countries get their inspiration from America. Unfortunately, America
does not do the same thing.
The first place, Moore invades Italy, and he gets impressed by how
vacations are paid. The people that got Interview by him say that Italians have
35 days of vacation plus the holidays, and they also mentioned maternity
leave for five months with pay. Besides that, in December, they have an extra
paycheck, and they receive a bonus. The couple that Mr. Moore Interview
said that they thought America had better vacations.
Moreover, in Finland, Moore spoke with the Minister of education and the
minister mentioned that the top main secret of the schools was that they don't
have homework. Students only attend 20 hours a week of classes. The
students there spend less time than the students of the United States. In fact,
they even get to pick their own curriculum for the teacher says that they
should have more time to be kids and to be able to explore new things like
being in sports, doing art, listening to music or going on nature walk.
Thus, Michael Moore’s documentary film is awe-inspiring and humorous at
the same time. And honestly, I really enjoyed watching the 2-hour film, for I
have learned a lot of things and discovered new things that I didn’t know
before.

11. Reaction Paper: HRM Practices

- With regard to the current trends seen across most organizations globally, it is
obvious that the HRM assists the organization to achieve a very modest
advantage. The HRM can achieve this by advancing the employees skills and
the knowledge. The practices of Human Resource are strategic when there
are targets towards its activities like recruitment, and the training and
development to achieve the goal of the organization. In the organization, the
strategy of the recruitment promotes the growth through the attraction of the
candidates who are highly skilled. Thus, one should see the training and
development as an asset, which is important to the performance of the work.
REFLECTION
While doing this activity, I have learned that the HR environment nowadays
focuses on the new aspects and avenues, which is the people become the most
valuable asset of the industry, and that there is required to get new talented and
technological based persons when hiring people. For the entire social and business
environment, duly effect the HR concepts, practices, and performance in a wide range
of operations.
As for the new aspects, I have learned that to create and develop intellectual
capabilities among employees; there is a need to develop the learning and knowledge
attitudes among employees. And in order to make congenial and harmonious work-
culture at workplaces, there is a need to analyze all the relevant aspects as arising out
of environmental studies. And lastly, in order to study, analyze and develop personal
skills and efficiency, there is a need to study the HR environment. Thus, the
environment is an essential element in the HRM model, so it is necessary to know its
role and how it influences HR functions in an organization.

References
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https://www.investopedia.com/terms/c/competitive_advantage.asp
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FUNCTIONAL STRATEGY; WHY SO MANY?
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functional-strategy-why-so-many
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strong-governance-leaders/
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What is a Competitive Environment: Basics
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