BUS 475 Week 2 (1050 words excluding reference)

Internal and External Environmental Analysis

Hoosier Media Inc. has noticed a decline in their newspaper circulation and subscriptions, which resulted in a significant drop in revenues over the last five years. While online ad revenues have increased, they only account for 5% of the company’s revenue. The Fletcher Firm has been hired to assess the current strategic operations to assist Hoosier Media Inc. increase their profits. The following analysis will discuss internal and external factors that will help improve Hoosier Media’s business operations.

Economic, Legal and Regulatory Forces and Trends

It is necessary to consider economic forces when determining reasons for declining revenue and strategizing effective business practices. Consumer behavior is one of the many economic forces that affect businesses today. Consumer spending sets the trends that will either help or hinder Hoosier Media Inc. with meeting their business goals and objectives. Businesses go through cycles of expansion, recession and recovery. Monetary and fiscal policies can affect the timing and length of these cycles (Basu, 2017). Fiscal policies can affect spending policies, leading consumers to a reduction in taxes and an increase in disposable spending.

Regulatory forces monitor businesses to ensure they are following the necessary operational rules and standards. Regulatory agencies such as the Federal Trade Commission (FTC) have the authority to monitor marketing actions and advertising strategies of businesses and enforce fines, if necessary. According to Pride and Ferrell, marketing consists of external forces that directly or indirectly affect an organization’s acquisition of inputs and generation of outputs. The marketing environment includes competitive, economic, political, legal and regulatory, technological, and sociocultural forces (Pride, 2016).

Legal forces hold businesses accountable for maintaining honest business practices. Local, state, and federal laws, as well as regulatory agencies and special-interest groups, can have a major impact on the strategies of small, large, for-profit, and non-profit organizations. Many companies have altered or abandoned strategies in the past because of political or government actions (David, 2017). It will be most necessary for Hoosier Media Inc. to adhere to all legal and regulatory requirements in order to remain compliant.

Adapting to Changes in Business

Businesses operate on business-cycles; therefore, they are fluid and forever changing. For any business to survive in its industry, it must remain open and flexible and adapt to strategic plans to remain successful.

Although they have seen a decline in subscriptions and circulations, Hoosier Media Inc. is in a stable environment with their printed newspapers, as the industry typically won’t see any new competitors. They have seen an increase in their online ad revenues, so Hoosier Media Inc. may need to consider ways to leverage relationships with their advertising clients to assist with increasing their online presence.

Primary Internal Organizational Considerations

The success of a business is dependent upon how the strategic plan is developed and executed. Internal organizational considerations include the culture of the company, the financial resources of the company, and current trends.

Company Culture. In order for a strategic plan to be successful, it must align with the culture and structure of the company. Leaders must have the buy-in from the entire workforce when it comes to executing strategic plans. If the staff that implements the plan isn’t excited or believes in the direction the company is setting course for, work quality drops as people grow apathetic to the goals (Leonard, 2018).

Financial Resources. In order to execute a strategic plan, the business must be able to support the cost of the expenses related to research, development and marketing campaigns. Companies must set growth index goals when growth rates have lagged the industry norms or when they have high operational leverage (Kono, 2010).

Current Trends. We are currently in the age of the millennials. When considering expanding their reach, Hoosier Media Inc. must regard topics that are popular and trending. Current trending topics include cooking, meal preps and healthy lifestyle changes. These topics should be included in the digital circulation, as millennials are more prone to search their phones for digital newsfeeds. Change is constant, and the rate of change is accelerating. What worked yesterday in business might be a disaster tomorrow. [It is important that businesses] think strategically. Anticipate change and position proactively with products and services to meet emerging needs (Huxtable, 2018).

Primary External Organizational Considerations

Customer Satisfaction. To determine the reasons their revenue is decreasing; Hoosier Media Inc. must consider the external factors causing their profits to drop. One main external consideration are the customers – more specifically the current and past print subscribers. Speaking with and gathering the feedback of the customers will allow us the opportunity to hear their opinions and suggestions and identify areas of improvement to begin working towards increasing revenue, surpassing the highest profit projection.

Technology. Technology plays a part as an external factor. Since news is now accessible to everyone via internet searches and mobile apps, Hoosier Media Inc. will need to widen their reach by enhancing the age of technology. I would also suggest increasing their online presence by collaborating with their advertising clients to create marketing strategies which will drive an increase in traffic to their site.

Major Company Issues

The company must consider ways to keep up with trends to remain relevant and this will require changing business practices which are outdated. No one likes change, especially employees who have been a part of the team for several years. It is necessary to keep these individuals engaged and onboard with the vision and direction of the firm. Employees must feel needed, respected and valued during the process of change. According to Halvorson, fostering employee loyalty is essential for the long-term success of any business. Not only will it decrease turnover costs, but it can also boost productivity, increase efficiency, and provide a much more stable work environment for everyone (Halvorson, 2013).

Possible Opportunities

While competition is a concern for the online publication, I do not believe that concern is as demanding for the print side of the firm. According to a recent Nielsen Scarborough study, print remains the most popular newspaper format, with 81 percent of readers reading print format, and half of the respondents – 51 percent – reading print only (Fletcher, 2016)

In strategic planning, Hoosier Media Inc. will need to look at broader scope to adjust priorities, resources and goals for the future. This will cause for a meeting of the minds with internal and external stakeholders such as key level employees, investors and partners, so that everyone can have a clear understanding of what the next steps should be.

Conclusion

The interest of acquiring information from a printer circulation has decreased due to digital publishing. In order for Hoosier Media Inc. to remain relevant and successful, they must be flexible enough to stretch the limits of technology, since digital circulation is gaining momentum when compared to print. I would suggest creating an interactive news subscription app that provides real-time reporting and offers the ability for subscribers to log in and chat with each other about topics which matter to them.

We should measure the level of satisfaction from current and past print subscription holders. This will allow us to see what improvements can be made to sustain and increase growth in the print subscription sector. I also recommend garnering the input of all stakeholders, as it will take the dedication and determination of the entire team for Hoosier Media Inc. to be successful and remain relevant in the industry, thus setting the path for future strategic planning sessions.

References Basu, C. (2017, September 26). How Monetary and Fiscal Policy Affect Businesses. Retrieved from BizFluent: https://bizfluent.com/info-7967081-monetary-fiscal-policy-affect-businesses.html David, F. R. (2017). Strategic Management: A Competitive Advantage Approach, 16th ed. Florence, SC: Pearson Education. Fletcher, P. (2016, December 26). Good News for Newspaper; 69% of US Population Still Reading. Retrieved from Forbes: https://www.forbes.com/sites/paulfletcher/2016/12/26/good-news-for-newspapers-69-of-u-s-population-still-reading/#6d3d4bfa723c Halvorson, C. (2013, September 5). 10 Steps to Increasing Employee Loyalty. Retrieved from When I Work: https://wheniwork.com/blog/10-steps-to-increasing-employee-loyalty/ Huxtable, E. (2018, August 24). Capitalize on Emerging Trends: Strategic Planning for 2019. Retrieved from Business to Community: https://www.business2community.com/strategy/capitalize-on-emerging-trends-strategic-planning-for-2019-02110220 Kono, P. B. (2010). The Role of Finance in the Strategic-Planning and Decision-Making Process. Retrieved from Graziadio Business Review: https://gbr.pepperdine.edu/2010/08/the-role-of-finance-in-the-strategic-planning-and-decision-making-process/ Leonard, K. (2018, November 28). What Are the Primary Internal Organizational Considerations for the Development of a Strategic Plan? Retrieved from Chron: https://smallbusiness.chron.com/primary-internal-organization-considerations-development-strategic-plan-2779.html Pride, W. F. (2016). Marketing: Concepts and Strategies 7th ed. Hougton Mifflin Co.