External and Internal Environmental Analysis

In: Business and Management

Submitted By mssazzi
Words 1454
Pages 6
External and Internal Environmental Analysis
STR 581
August 27, 2012
Barbara Fuller

External and Internal Environmental Analysis Apple Inc. was first launched into the technology market as a computer company. In 1976, Steve Jobs and Steve Wozniak launched Apple Inc. with the mission of reaching a diverse community globally to market its products. Since that time, there have been changes in the external environment of the company that has an impact on the decisions the organization makes. Apple Inc. has implemented frameworks to assess its external and internal environment. The company has identifies the specific domains that affect the operations of the company from the outside. These forces of the organization enable the operations of the company to be influenced. Apple Inc. considers the global market to be of high importance. Globalization is becoming a criterion for large organizations to excel above their competition. Apple Inc. needs managers and executives proactively understanding that if the company is not globalizing it can leave them behind of the competition. This can be a tough challenge for Apple because many U.S. companies have not been successful capturing many global markets. Apple never thought about capitalizing on its digital future globally until they made a change in their strategy. Apple had to realize just how much influence it would make by expanding its products and service to a global level. It would help to increase their visibility and marketability worldwide. Because of the rise in revenue and the need to go international, specifically in Japan, Apple created a strategic plan to go forward in the direction of globalization. There are many companies who market some of the same products as Apple. If Apple gains 2% of the digital technology market in other major countries no other…...

Similar Documents

External and Internal Environment Analysis

...Running head: EXTERNAL AND INTERNAL ENVIRONEMNT External and Internal Environment Analysis Bharti Gupta University of Phoenix External and Internal Environment Analysis: Mayo Clinic The purpose of this paper is to analyze the External and Internal environmental factors of Mayo Clinic (MC). Mayo Clinic is a nonprofit worldwide leader in medical care, research and education for people from all walks of life (Mayo Clinic, 2011). Various types of external and internal factors affect the smooth flow of business at Mayo Clinic. External environment analysis is important in determining the strategy that should be adopted by a business and internal environment analysis is critical to identify the core competences of the business. External Environment External environment (EE) can be broadly classified into three types: Remote, Industry and Operating. Remote environment (sometimes called as macro environment) consists of the forces at work in the general business environment which will shape the industries and markets in which an organization competes (Stonehouse, Campbell, Prudie & Hamill, 2008). Industry environment (sometimes called as micro environment) is the competitive environment facing a business. It consists of the industries and markets in which the organization conducts its business competes (Stonehouse, Campbell, Prudie & Hamill, 2008). Operating environment also called the competitive or task environment comprises factors in the competitive......

Words: 1436 - Pages: 6

External and Internal

...Internal and External Factors Internal and External Factors Introduction Capital One is a successful business. The bank has applied the four functions of management which are planning, organization, leading, and control to aid in their success. Each component is important and it is hard for one to function without the other. There are internal and external factors that affect these four functions of management. The following will explain how these factors affect the functions of management in Globalization, Innovation, Diversity, Ethics, and Technology. Globalization Capital One Bank, as a credit card giant and one of the worlds’ strongest banks, has evolved with the current market. Globalization allows businesses to interact and trade past traditional geographic and political boundaries. This allows businesses, like Capital One Bank, to platform commerce. Production, customer service, development, and marketing strategies are internal factors to globalization according to the intelligent business plan website. The external factors include new market environments in which any and every business has to be accustomed to (Taylor, 2012). Knowing this information concludes that the manager has to exemplify immaculate planning skills. Planning specifies the goals to be achieved, weighing discrepancies, positive and negative outcomes, and appropriate options to achieve the goals presented. Globalization also includes branding and so on. This should be developed internally to......

Words: 1409 - Pages: 6

Internal and External Environmental Analysis Apple Inc

...more, and Apple will give them a coupons for their next purchase. But Apple has exposed scandal by news. According to the previous report "2011 Apple supplier responsibility report" that Apple released, a large number of suppliers were found to have significant environmental violations, including 129 factories in 80 countries last year haven't proper disposed dangerous chemicals; 41 factories have not recycled or disposed hazardous wastes; 37 factories failed to monitor and control emissions, more than 10 factories wastewater problems; 63 factories without government departments to request for the license, without the approval of the environmental impact assessment. So, Apple should improve environmental awareness, can’t only considering the lower cost, earn excess profits but regardless of the health of workers and environmental issues. 3.1.10 S &Wanalysis Strength High quality and attractive products Leadership in electronic industry and high technology Leading the product design, Creative employees, Good relationship with customers. Diversity products Weakness Limited compatibility Limited market Limited distribution channels Suppliers pollution issue 3.2 External environment analysis 3.2.1 Political-legal environment In order to protect domestic companies, preferential policy for foreign enterprises in China is decreasing. In 2006, Chinese state department brought out a new law called the "Foreign Enterprise Income Tax Law of PRC". It......

Words: 2321 - Pages: 10

Ashok Leyland External and Internal Analysis

... Abstract The report provides a consolidated preview of the external environment of Ashok Leyland and the Indian automobile industry. This study will take us through the evaluation of external factors using EFE matrix, to the comparison of the company with its competitors (CPM) and study the incentives given by the government to encourage the expansion of the Indian automobile industry. Introduction The Indian Automotive Industry after de-licensing in July 1991 has grown at a spectacular rate on an average of 17% for last few years. The industry has attained a turnover of USD $35.8 billion, (INR 165,000 crores) and an investment of USD 10.9 billion. The industry has provided direct and indirect employment to 13.1 million people. But lately the Indian automobile industry has been going through a low phase since the past 10 months and experts believe that situation is going to sustain in the current financial year that ends in March 2014. Demands continue to remain low as against the expectations of the Indian auto makers, due to the crisis in the economy, increase in fuel prices and loan rates. Until few years ago, this industry boomed with sales but the falling value of Indian rupee is only bringing its depreciation. (Car trade, n.d) The market is divided into four segments namely two-wheelers, three-wheelers, passenger vehicles and commercial vehicles. (Grewal, n.d) Source: Society of Indian Automobile Manufacturers (SIAM) According to the deputy director general of......

Words: 3324 - Pages: 14

External and Internal Analysis

...External and Internal Environmental Analysis Yum Brands University of Phoenix Strategic Planning and Implementation STR / 581 March 17, 2014 Both external and internal environmental analyses are very important components for any organization’s strategy plan. A review of both of these environments enables the company to identify which ways to compete in the industry they operate. With this planning an organization may also identify what the companies’ weakness and strengths are. Both the internal and external environments are just as importantly equal. In today’s business the external environment is receiving an increasing amount of attention because of the recession being now a global concern. Yum Brands has suffered some changes by the external environments. Analyzing some important factors like external operating environments, along with remote, and industry are some topics covered. Identifying strengths is important and finding the weaknesses of Yum Brands of which may impact their ability to manage these factors will be discussed. Yum Brands is one of the top 10 fast food companies in the U.S. A clear leader in the quick-serve industry, Yum Brands operates about 18,000 restaurants domestically and almost 15,000 locations internationally. Yum Brands company sales accounted for $11million of annual sales in the fast food industry. This does not include franchise sales. Franchise fee accounted for $1.8 million which is approximately 4.5% of franchise sales. ...

Words: 1061 - Pages: 5

External and Internal Enviromental Analysis

...External and Internal Environmental Analysis Jeanette McCullough STR 581 March 24, 2014 Christopher Romano External and Internal Environmental Analysis Dunkin’ Donuts began serving its loyal customers in 1950. Five years later in 1955, they began to spread their wings and open franchises. Dunkin’ Donuts has over 10,000 stores in 33 different countries. The company is now one of the largest baked goods and coffee chains in the world. According to a survey in 2013, the company sells more than 4 million doughnuts and about 2.7 million coffee cups every day ("Prezi," 2013).  Performing an internal and external analysis on Dunkin’ Donuts showed where the company can improve in areas and where the threats are at with other competitors. SWOT Analysis Strengths – Dunkin’ Donuts has a strong brand name. DD has brand loyalty among customers. The company has over 100 varieties of doughnuts, and its stores are an ideal place for having breakfast and coffee. Popular for a number of bakery products like pastries, bagels, muffins, biscuits, etc. and hot beverages like coffee, tea, and hot chocolate. Innovative ways to retain customers by issuing coupons and discounts. One of the most experienced in the coffee industry. They have affiliations with sports teams like the Red Sox. They have worldwide franchisees, totaling to more than 10,000 locations across 33 countries ("Swot Analysis On Dunkin' Donuts," 2010).  Weakness- Competition from other international snacking......

Words: 1175 - Pages: 5

The External Environmental Analysis (Pestel)

...Developing an external environment analysis THE EXTERNAL ENVIRONMENTAL ANALYSIS (PESTEL) A business converts inputs into outputs in order to make a profit. However, the business does not exist in a vacuum, it exists within an external environment consisting of the actions of other players who are outside the business. The external environment consists of: • Political • Environmental • Social • Technological • Economic • Legal Why PESTEL? HOW THE ENVIRONMENTAL ANALYSIS IS IMPORTANT PESTEL analysis stands for "Political, Economic, Social, and Technological, Environmental and Legal analysis". It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macro environmental factors that the company has to take into consideration. Political factors or how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit bads). Furthermore, governments have great influence on the health, education, and infrastructure of a nation. Economic factors include economic growth, interest rates, exchange rates and the inflation rate.......

Words: 891 - Pages: 4

External and Internal Environmental Analysis Strategic Planning and Implementation

...External and Internal Environmental Analysis Apple Inc. is a computer product company that was launched into the market through the collaborative efforts of Steve Jobs and Steve Wozniak in the year of 1976 and is aimed at reaching the diverse global community. The changes in the external environment of the company determine the decisions that the corporation will make. Apple Inc. has reputable frameworks that have been developed to assess the external environments of the company. The company has identifies the specific domains that affect the operations of the company from the outside. These forces on the organization enable the operations of the company to be influenced. In a broader sense, the entities that fall outside the operations of the Apple Inc and relate to the company are the external environment. These are the elements that exist outside the company confines and still affect the organization and its operations. The fast expansion of e-commerce in the business realm is one of the major external factors that affect the operations of Apple Inc. The company will hence have internal adjustments of its systems so as to keep up with the changing e-commerce. Apple Inc interacts with its external environment to accomplish it set goals. Apple Inc is aimed at creating value and competition that is sustainable for the company to attain great profit maximization levels. Through the following internal competitive environments, Apple Inc can remain top in the computer market.......

Words: 1191 - Pages: 5

External and Internal Environment Analysis

...External and Internal Environmental Analysis DSW is the leading footwear specialty retailer in the United States operating 305 shoe stores in 39 states as of January 30, 2010. The shoe warehouse offers a wide assortment of better-branded dress, casual and athletic footwear for women and men, as well as assessories. The company’s main focus is to create a distinctive shopping experience that satisfies both the rational and emotional needs of DSW customers by offering a vast, exciting assortment of in-season styles combined with the convenience and value they desire (DSW, Inc. 2009 Annual Report). External Environmental Factor in the Remote, Industry, and External Operating Environments Part of DSW’s external environment factor in the remote is their economic factor. DSW is in a leading marketing position that is driven by their competitive strengths, the breadth (heart) of their branded products, their distinctive and convenient store layouts, the value proposition they offer to their customers, and their financial strength (DSW, Inc. 2009 Annual Report). DSW stores and dsw.com sell a large assortment of merchandise. They purchase shoes and athletic footwear from over 400 domestic and foreign vendors. DSW’s growth is attributable to their operating model and management’s focus on store-level profitability and economic payback. Over the five fiscal years ending in January 30, 2010, their net sales grew at a rate of 11%. They have also generated a positive operating cash......

Words: 1110 - Pages: 5

Str 581 Week 3 External and Environmental Analysis

...STR 581 WEEK 3 EXTERNAL AND ENVIRONMENTAL ANALYSIS A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=str-581-week-3-external-and-environmental-analysis Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION STR 581 Week 3 External and Environmental Analysis, Introduction The organization considered in the present situation is Verizon Wireless. An environmental scan of this organization is to be carried out. Regarding the environmental scan, there are certain points which are to be taken into consideration. The most important environmental factor, in the industry shall be considered. Most important internal strength and weakness of the organization shall also be considered. Competitive position and possibility of organization and its organizational structure shall be included in the present paper. Most Important External Environment Factor Here, most important external environment factor of Verizon Wireless is to be taken. For Verizon Wireless, most important external environment factor in industry is the factor of competition. The organization does face a lot of competition from other organizations. Verizon Wireless is the second US telecom service provider after AT & T. The top competitors of this organization are AT & T, T-Mobile US and Sprint Corporation. These organizations have an important place in the market (Jones, 2012). Regarding these organizations, Verizon Wireless has to ensure that it provides......

Words: 655 - Pages: 3

External and Internal Environmental Analysis

...External and Internal Environmental Analysis STR/581 April 17, 2014   Cheesecake Factory External and Internal Environmental Analysis A very small number of people have succeeded in their lifetime what the Overton’s accomplished through theirs. By way of a countless work hours, audacity and willpower, Oscar and Evelyn Overton became conscious of their vision - to possess a fruitful small-business such as the Cheesecake Factory. Cheesecake Factory customer base: The average customers to this restaurant are middle to upper class families; business owners and their clients conducting deals in professional yet relaxed setting. Additionally, tourists that have heard of the great cuisine and customer service offered are patron at this establishment. Founded in 1972 by the Overton’s son David the Cheesecake Factory made its home in Beverly Hills CA. With very little notion of a business plan David set to provide the best dining experience offered to the Cheesecake Factory’s customers. Mission statement: “To create an environment where absolute guest satisfaction is our highest priority”. Vision statement: “Through a shared commitment to excellence, we are dedicated to the uncompromising quality of our food, service, people and profit, while taking exceptional care of our guests and staff. We will continuously strive to surpass our own accomplishments and be recognized as a leader in our industry”. The restaurant business is perpetual, and in today’s economy it is also......

Words: 1094 - Pages: 5

External and Internal Analysis of Wfm

...1. External analysis: Describe industry/market dynamics in terms of customers, competitors, potential entrants, product/service substitutes, and suppliers. Customers Whole Foods is known for its strict standard on its food quality as well as its personal care products. Also, it has a commitment to provide natural and organic products to its customers in order to show that Whole Foods cares about its customers, community, and the environment. They have the well designed website that explains their concepts very well. Their customers are mainly who agree with Whole Foods’s concepts and are willing to pay more for the organic products there to avoid the genetically modified food. All the age groups of customers can be found in the Whole Foods, but they have a significant increasing number of young adults customers. In addition, Whole Foods is supported by various industries such as fitness centers, health insurance companies and nutritionists. Competitors The main competitors of Whole Foods are Kroger, Sprouts, Trader Joe’s and many other local grocery stores that also sell organic foods. Buyer power strongly impacts Whole Foods because customers can easily shift to other providers of organic and natural foods. “Supermarket chain Kroger is expected to surpass Whole Foods as the nation's top seller of organic food, while Trader Joe's sells twice as much per square foot” (Business Insider). It is apparently that Whole Foods is not doing enough for its expensiveness so......

Words: 761 - Pages: 4

Microsoft - a Review of Capital Structure and Internal External Analysis

...Microsoft Corporation (NASDAQ: MSFT) --A Review of Capital Structure and Internal/External Analysis Introduction Bill Gates and Paul Allen had founded Microsoft in 1975 to develop and sell computer languages and microcomputers in Redmond, Washington State. The company had pioneered in operating system business and had been able to invent new technology and acquiring subsidiaries in order to produce a large range of personal computer solutions. Microsoft is currently reporting a rate of return on book assets of 13.41% last year. IPO of the company started in 1986 and has been trading on NASDAQ. Internal Financial Analysis The capital structure of Microsoft Corporation in the past 5 years have been selected and shown as in Appendix figure 1. With regards to the company’s current financial performance, the debt ratio has been reducing in the past 5 years and currently at 45.28%. That indicate a reducing risk associated with Microsoft’s operation. Compare to its competitor Apple Inc, which have a ratio of 32.86 with a similar rate of reduction, this may also indicating Microsoft have a lower borrowing capacity, which will affect the corporation’s financial flexibility. On the investor’s side, currently the stock price is $28.15, which expected return is at 3.1%. Weighted Average Cost of Capital is 11.49%. WACC considers Debt (taxable), Preferred stock and Common stock (Equity). If Microsoft’s borrowing increases, the lenders would demand a higher rate of interest on......

Words: 946 - Pages: 4

External and Internal Analysis of Foxconn

...External and Internal Analysis of Foxconn Introduction Foxconn, or Hon Hai Precision Industry Co, was founded 37 years ago in Taiwan by Terry Gou. The company initially started as a local computer component manufacturer. Over the past decades, Foxconn had been continuously growing to become the world’s largest electronic components manufacturers with the consolidated revenue of 59.32 billion US dollars in 2010. As the largest electronic manufactures, Foxconn provides electronic components to major electronic devices manufacturers across the world. Its clients include Apple, Amazon, Sony, Nintendo, Microsoft, Dell and HP. Since 2011, Foxconn has been expanding its operations in Brazil to increase its supply of Apple products. It has also announced that the company will increase the wage of employees working at the Apple manufacturing sites in China by 16 to 25 percent and opened itself up for further inspection. Broad Environment Sociocultural: During the course of a society transition in developing countries, the current working class will grow and evolve into the middle class. Those workers who, once forced by circumstance to stand for fourteen hours a day, are the workers that no longer need or want what seemly meager financial benefits employer has to offer. In the past year, Foxconn’s image has been tarnished by reports of labor protests and employee suicides. These were the result of harsh working conditions, unfair wages and a lack of communication with the media...

Words: 2133 - Pages: 9

External Environmental Analysis

...External Environment Analysis Kristy Sanchez MGT/488 September-Sunday 11, 2011 Jeannette Guignard External Environment Analysis Introduction This essay is written in regards to the Home Depot and the evaluation of their external environment. The Home Depot is a highly successful retail industry that has expanded globally. The Home Depot has a wide variety of supplies and materials for all home improvement projects. They even have tools, equipment, and trucks that can be rented out to assist with any larger home improvement needs. The Home Depot has made a continuity plan to assist with protection of the customers, associates, and the industry if a crisis or disaster occurs. A continuity plan is basically the instructional list or procedures for the company in the event that a crisis or natural disaster occurs and how they will handle that event. This essay will look at how the external environment affects that plan. This essay will also look at the affects of the environment in three other areas as well, including general, industry, and competitor. Finally, it will look into the business ethics and see how they play a role when gathering information for competitor intelligence. The Home Depot has a continuity plan that they follow that can be found in their code of conduct and ethics manual. That continuity plan is as follows: “We are committed to taking all reasonable steps to minimize risks to our associates, customers, facilities, information assets and supply......

Words: 1180 - Pages: 5