week 4
moqllint
IgwachoBMGT660ExternalandInternalAssessment.pptxPart 2: External And Internal Assessment (Topic 3)
Assessment of the external and internal business environment
External
Government policies
Politics and political stability
Licensing regulations
Market discipline regulations
Employment laws
Demographics of the market
Market trends, tastes and preferences
Internal
Marketing departments
Financial accounting processes and procedures
Management information systems
Decision support systems
Availability of funds
Company Chosen: Apple INC.
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The internal environment are those factors within the organization. Typically, these are business aspects that the organization has control over. On the other hand, the external environment is composed of those factors outside the business (Bernroider, & Schmöllerl, 2013). These are factors that the organization has little or no control over.
Apple SWOT analysis
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| Strengths Robust organizational culture Availability of enough funding Experienced workforce Effective and efficient information systems Robust market research | Opportunities Growing demand for consumer electronic products Increase use of electronics in educational institutions Surge in the number of consumer electronics customers |
| Weaknesses Lack of enough market information Threat from changing accounting standards | Threats Threat from surge in consumer electronics in the market. Threat from increasing government taxes on electronics |
SWOT analysis succinctly brings to light the internal strengths and weaknesses of company, Besides that, it exposes the opportunities and threats presented by the external environment (Boons, & Lüdeke-Freund, 2013).
Discussion of the externa and internal environments
Analysis Of The External And Internal Environments
| Internal | External |
| From the analysis, it is evident that Apple has a robust workforce, an organizational culture that is effective and a good market research program and data. Besides that, the information systems are effective and efficient These advantages might be curtailed by the lack of enough market information and the changing accounting standards. | It is also evident that Apple company might have an opportunity for growth stemming from the growing demand for electronics products, increase use of consumer electronics and an increase in the number of customers. However, the company might have to deal with the problem of increase in taxes and stiff competition from other upcoming companies. |
In order to succeed in its strategic plan, Apple must leverage the internal strengths, and minimize the weaknesses (Zhu, Sarkis, & Lai, 2013). Besides that, it must also come up with strategies to leverage the externa; strengths and evade the threats presented.
Application Of The Results From The Assessment
From the results, it is important to note that the strategy would need to ensure that the internal weaknesses are minimized. Besides that, the internal strengths need to be safeguarded so as to ensure success in the external environment.
Within the strategy, there is the need to document how the organization might take advantage of the external opportunities. Besides that, other risks such as taxes and a shrinking market share need specific strategies as well.
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In order to ensure that the strategy is effective and efficient, it is important to take into account the strengths and weakness, opportunities and threats. This would allow the company to formulate a strategy that would be effective and efficient in achieving both the short and long term goals of the company (Hilton, & Platt, 2013).
Outlining the preliminary strategy
Consideration of the corporate culture.
The organizational culture is just within the strategy.
Apple’s culture is providing electronics that meet the needs of the consumers.
Apple ensures that all its customers are happy with the products by providing them products and services that are worth the value of their money
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When coming up with the corporate strategy, it is important to take into account the corporate strategy. This would ensure that the organization’s strategy would be implemented without leaving out any important process or even detail (Chen, et al, 2014).
References
Bernroider, E. W., & Schmöllerl, P. (2013). A technological, organisational, and environmental analysis of decision making methodologies and satisfaction in the context of IT induced business transformations. European Journal of Operational Research, 224(1), 141-153.
Boons, F., & Lüdeke-Freund, F. (2013). Business models for sustainable innovation: state-of-the-art and steps towards a research agenda. Journal of Cleaner production, 45, 9-19.
Chen, Y., Wang, Y., Nevo, S., Jin, J., Wang, L., & Chow, W. S. (2014). IT capability and organizational performance: the roles of business process agility and environmental factors. European Journal of Information Systems, 23(3), 326-342.
Hilton, R. W., & Platt, D. E. (2013). Managerial accounting: creating value in a dynamic business environment. McGraw-Hill Education.
Zhu, Q., Sarkis, J., & Lai, K. H. (2013). Institutional-based antecedents and performance outcomes of internal and external green supply chain management practices. Journal of Purchasing and Supply Management, 19(2), 106-117.
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