In my opinion, I think that both internal and external elements are of equal importance

to organizations to achieve their strategic objectives. Recognizing the external and

internal elements are important as the interaction between both elements create

influences (Krumwiede et al. 2009) on the strategies that organizations apply to their

operations (Rabin, Miller & Hildreth 2000). As the external environment is always

changing, effective organizations must set their internal structures, goals, strategies

and operations, allowing them to adapt to the environment accordingly (Daft 2009).

As such, strategic management process involves analysis of the internal and external

elements of organization, formulation of strategies and implementation of strategies

with the available internal resources (Daft & Marcic 2008).

Using Public Utilities Board of Singapore as the focus, after engaging in SWOT

analysis (Strength, Weakness Opportunities, Threats) (Diskiene, Galiniene &

Marcinskas 2008), one of its Strength is that being a government owned organization,

PUB is the sole provider of services like drainage and sewerage services and water

provision for consumption and manufacturing purposes in Singapore (PUB 2008) and

it is financially stable with the funding from the government (Browder 2007).

However, having strong financial funding (which is an internal element) from the

government does not give competitive advantage as there are no competitors in the

same industry. Moreover, after deploying PESTEL analysis of the environment

(Haberberg & Rieple 2008) that PUB operates in, Singapore, with the land space of

seven hundred square kilometers, lacks the land space to store rainfall (which is the

environmental factor in PESTEL) and PUB depended heavily on Malaysia for water

supply based on the political agreements signed in 1961 and 1962 at less than 1 cent

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per 1000 gallons until 2011 and 2061 respectively (political factor in PESTEL)

(Collins 2003). Singapore has been negotiating with Malaysia for the extension of the

water supply beyond 2061 and has since faced issues like price revision of the supply

up to 15 to 20 times of the current price (Tortajada 2006). As such, it poses a Threat

to PUB as the cost of procurement of water will increase, leading to a rise in water

pricing. This will greatly affect the economy of Singapore as industries and

consumers will have to pay a higher price. At a greater impact, industries may choose

to move out of Singapore in search for cheaper alternatives (economical factors in

PESTEL). This dependence becomes a major weakness to PUB.

In order to reduce the weakness and threat, with the value chain framework analysis

on PUB (Williams & Lewis 2008),

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PUB’s active research (with the funding from government) on technology (support

activities) to improve operations (primary activities) for recycling used water

(NEWater project) and desalination of sea water (Landers 2008), increase the

availability of water sources and reduces the dependence on Malaysia for water

supply.

Upon the analysis on PUB with strategic analytic tools and framework, it presents a

picture on the interaction between internal elements and external elements in an

organization, creating strategies for long term operations.

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