You work for a consulting firm whose primary objective is to help businesses improve their strategic operations. Your firm recently was hired by a newspaper company named Hoosier Media Inc. The client's print newspaper circulation and subscriptions have d

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Internal and External Environmental Analysis

Thomas Dennis

BUS/475

01 October 2018

Dr. Leah Raby

Internal and External Environmental Analysis

Hoosier Media Inc. has seen their sales drop over the past 5 years and the company needs help to turn things around. They have seen a profit loss of 30% over the past 5 years in their newspaper print circulation. They have online ad revenues that have increased profits, but currently only make up about 5% of the company’s revenue. I will conduct an analysis to help turn the company around and increase profits.

Identify economic, legal, and regulatory forces and trends in Hoosier Media Inc.

The first thing that Hoosier Media will need to do is come up with an effective strategy to increase profits. This will help Hoosier Media reach and maintain expectations. The exterior factors include economic elements, innovative technology, and regulating elements. Regulatory factors and most legal matters work together with strategic business goals. Regulatory and legal elements should always be followed by businesses to avoid any future issues that can cost the company money. Information technology plays a vital role in almost all businesses, and Hoosier Media has started with online ads. I would suggest that they expand their online ads. They could expand their print to cover more relevant material that attracts a broader audience. Technology needs to be planned out strategically due to the fast-growing advances in technology. If the plan is not thorough enough, then the company can incur a major cost if the equipment is not taken care of and updated as needed.

Critique how well the organization adapts to change.

There has been a decline in print newspaper circulation and subscription for Hoosier Media Inc. over the past 5 years which has led to a 30% drop in revenue. A key factor in profit loss is a result of Hoosier Media not adapting to changing technology and adopting the new methods which people receive information. It would have been beneficial for Hoosier Media to have updated circulation methods in order to incorporate social media and online subscriptions that were in line with the economic changes that were occurring 5-10 years ago. Most shopping is done online now, along with advertising, magazines, and newspapers. An immediate change needs to be implemented for Hoosier Media to catch up with other online businesses. Lewin’s model can help the company make the necessary changes with minimal draw back (David, F., & David, F., 2016).

Discuss the Primary internal organizational considerations

Primary Internal organizational consideration is essential in developing a strategic plan that can help Hoosier Media achieve its goals. The development of a strategic plan will help the company identify potential opportunities the will help the company gain a competitive advantage. Internally the company needs a change in culture to help support the change it needs to shift to a more technological company. Conducting a SWOTT analysis will help Hoosier identify its strengths and weaknesses to help support the culture change. Identifying strength and weaknesses is a key part of developing a strategic plan as well. Included in the analysis would be key elements that will help the company achieve its financial goals.

Discuss the Primary external organization considerations

The advancements in technology, social media, tablets, and cell phones, have played a major role in the way people conduct business. The external organization consideration that is mostly effecting Hoosier media is that people use all these technological advances to get their news. People have strayed away from printed newspapers over the past couple decades and this has taken a toll on Hoosier media. The company is in a position to adapt and change to these external changes and become profitable again with the right strategic plan.

Identify the primary issue and opportunities the company faces

The primary issue for Hoosier Media is the lack of internal changes in the company compared to the external, economic changes its customers went through. The company is facing a 30% decline in revenue over the past 5 years and its online ad revenue only accounts for 5% of its revenue. Society has adapted to the technological advancements while Hoosier media has not. The company is in need of significant changes to catch up with the society.

Conclusion

Hoosier Media Inc. is facing a lost in revenue due to the lack of changes it needs to make. The company needs to undergo a culture change to catch up with the advancements in technology. A well thought our strategic plan that incorporates the way society prefers to get its new, along with a SWOTT analysis will help the company achieves its financial goals. The fact the company has hired an outside consultant firm to help turn the company around, shows the company is willing to undergo changes necessary to save its business.

References

David, F., & David, F. (2016). Strategic management: A competitive advantage (16th Ed.). Upper Saddle River, NJ: Pearson