Strategic Management Analysis of a Catholic School

Organizational Overview

The mission of Organization X is to foster a community that journeys together in faith with Christ our Light. Students, staff, and parents become partners focused on holistic education within a welcoming and caring community. The main vision of X is to foster faith and spirituality in the community (Good Shepherd Catholic College, 2016). The belief among stakeholders is that each person is unique and possesses inherent dignity. The values of the organization include inner-directedness in students, responsibility, compassion, and justice. These values arise from the conviction that each student, staff member, and parent learns best in an environment of loving relationships and mutual respect (Buchanan, 2013, p. 34).

The organization requires learners to recognize that they are lifelong participants in a society that is complex and constantly changing. For this reason, X strives to develop the spiritual, intellectual, emotional, social, and physical potential possessed by each person. Strategically, one goal drives X to prepare holistic educational transitions for Year 7 students entering secondary college (Coffey, Berlach, and O'Neill, 2013, p. 10). The school also aims to increase student participation in senior schooling through the development of high-quality and holistic educational experiences (Christie, Barron, and D'Annunzio-Green, 2013, p. 628). An additional strategy is to develop effective staff recruitment and retention methods within the organization. One key improvement goal adopted by X is the implementation of an effective induction program for beginning teachers and new staff members (Good Shepherd Catholic College, 2016).

PEST Analysis

According to Davies and Ellison (2005), political, economic, social, and technological factors influence the operation of any organization regardless of the industry it serves. The only way an organization can protect itself from these effects is through strategic planning. The following are the PESTLE forces that will affect X over the next few years.

Political Factor

The education sector is always at risk of government influence. The government may initiate policy changes in ways that make it difficult for X to comply — for example, changes to teacher qualification requirements or curriculum revisions introduced with short lead times. In such cases, X may struggle to deliver on its stated expectations (Davies and Ellison, 2005).

Economic Factor

The potential closure of the mining industry may adversely affect the organization. A decline in parents' ability to raise funds for activities undertaken by X may create financial difficulties in the future. This risk is compounded by potential increases in interest rates and rising costs of providing educational resources (Davies and Ellison, 2005).

Social Factor

The local community consists largely of people in transition, as most residents are employed in the mining industry. This means X may be significantly affected by shifts in the local population. Should local mining firms close, the organization may face enrolment challenges, as parents are likely to transfer their children to state schools. The risk of skilled personnel relocating to other areas — combined with the difficulty of attracting replacement staff — further threatens the organization's stability (James, Brammer, Connolly, Spicer, James, and Jones, 2013, p. 87).

Technological Factor

It is important that X upgrade its computer hardware in coming years, as much of the current infrastructure will become outdated. Technological change may also necessitate staff training on new systems and platforms. Competition in the ICT sector with other schools in the region may erode the organization's competitive advantage if it does not invest proactively in technology (Davies and Ellison, 2005).

Porter's Five Forces

Based on Porter's Five Forces analysis, X operates in a relatively unattractive competitive environment. It is the only private school in the area, with the alternative being a state school where students are not required to pay fees. This creates significant rivalry between X and the state school, as both compete for the same pool of students. Any increase in fees at X is likely to prompt students to transfer to the state alternative. Staff transience compounds this challenge: once staff members complete their two-year country service requirement, they typically move on to positions in larger towns. X may become increasingly unattractive in the future should the local community continue to decline, particularly if contraction in the mining industry reduces the number of families who can afford private schooling (Orlitzky, 2015).