Final Strategic Plan
MSTINA
InternalEnvironmentalAnalysis1.docx
Running head: INTERNAL ENVIRONMENTAL ANALYSIS 1
INTERNAL ENVIRONMENTAL ANALYSIS 5
Internal Environmental Analysis
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Institution
Internal Environmental Analysis
An internal analysis takes a keen look at the internal environment of an organization to assess its competencies, resources, and competitive advantages. The analysis allows one to identify the key strengths and weaknesses of any given organization. The knowledge gained from carrying out an internal analysis helps in making strategic decisions by the management. Such decisions may include the formulation and implementation of strategies. Once the process of internal analysis is complete, a company should have a clear picture of where they are excelling and where their gaps and deficits lie.
The selected company for this internal environmental analysis is New York and Company (NY&C). This is a leading manufacturer of women fashion apparel and accessories. NY&C sells its products through its network of retail stores located in all parts of the nation and through its eCommerce site. The headquarters of NY&C is in New York City. The company was formed in 1918 and went public in 2004 (Lewis & Loker, 2019). Some of the merchandise assortments provided by NY&C include apparel, wear-to-work, accessories such as dresses, jackets, knit tops, blouses, t-shirts, sweaters, handbags, and jewelry.
The internal environment of New York and Company is made up of factors that are within and under the control of the organization. This is regardless of whether these factors are tangible or intangible (Pártlová & Váchal, 2019). The internal factors of NY&C can be grouped into either strengths or weaknesses. Strengths are the elements that bring positive impacts on the performance of the company. On the other hand, weaknesses are the elements that negatively impact the performance of the company.
As a market leader, New York and Company has several strengths and weaknesses. Its strengths play an important role in helping the company to thrive in the industry. The strengths not only help NY&C to retain its market share, but also make it easy for the company to enter new markets. One of the strengths of NY&C is the automation of activities. This has led to the consistency and high quality of the products of the company. Further, automation has made it possible for the company to scale either upwards or downwards with ease, depending on market conditions. Secondly, the company has a successful track record. Having been in operation for more than a century, NY&C has built a strong reputation for itself as a company that develops innovative products that meet customer demands (Lewis & Loker, 2019). Thirdly, the company has a strong distribution network. This ensures that the company’s products reach the target market on time. The fourth strength of NY&C is that it has reliable suppliers. These suppliers ensure that the company has a constant supply of raw materials, enabling the company to overcome any supply chain bottlenecks that would otherwise arise (Copeland, 2019). Finally, the company has a highly-skilled workforce. This has been achieved through periodic learning and training programs provided by the company. NY&C has been investing heavily in the training of its employees. The result has been a workforce that is highly trained and motivated to work.
On the other hand, NY&C has several weaknesses that it needs to improve on. Strategic decision-making involves making choices, and an internal analysis points out the areas of weakness that a company should focus on to improve its strategic positioning and competitive advantage. One of the weaknesses of NY&C is low investment in research and development. Compared with the growing key competitors in the industry, NY&C’s investment in R&D appears to be below par (Pártlová & Váchal, 2019). Though the company is currently investing above the industry average in R&D, it has not been able to favorably compete with leading industry players when it comes to innovation. Secondly, the marketing of NY&C’s products requires some improvement. Though the company has been making impressive sales amounts, its positioning and unique selling proposition are not clearly defined and this leaves a vulnerability that can be exploited by competitors (Copeland, 2019). Finally, the organizational structure of NY&C is only compatible with its current business model. This is disadvantageous for the firm since its limits its growth and expansion into new market segments.
An internal environmental analysis of NY&C unearths several factors that should be considered when carrying an internal examination of an organization. A proper understanding of internal environmental factors is vital since it impacts the scale, success, and vision of the organization. Once the management understands the positive and negative impacts of various environmental factors, they can come up with suitable strategies that can handle all future incidents that a company faces (Lewis & Loker, 2019). Some of the important internal environmental factors that were identified are; human resources, policies and procedures, marketing and financial resources, corporate image, physical assets, technological resources, and organizational structure.
The biggest competitor of NY&C is Coldwater Creek. This company was founded in 1984 and is headquartered in Fairbon, Ohio. Coldwater Creek deals with the retail of apparel, just like NY&C. Currently, Coldwater Creek generates approximately 94% of the revenues generated by NY&C. The second competitor of NY&C is Citi Trends. The company started its operations in 1946, with its headquarters in Savannah, Georgia. Citi Trends has over 1000 more employees than NY&C. The third rival of New York and Company is Stein Mart. This company started its operations in Florida in 1902. Stein Mart mainly focuses on the eCommerce industry and has over 8000 more employees than NY&C (Lewis & Loker, 2019). The other competitors of NY&C are Target, J.C.Penney, Talbots, Kohl’s, Ross Stores, and Dillards.
The structure of an organization can either promote or inhibit its performance. This depends on how workflow and supervisory relationships influence productivity. The organizational performance of NY&C involves setting goals and carrying out periodic reviews by managers. The company has well-defined policies and procedures which are consistently enforced throughout the organization. The organizational structure of New York and Company is divisional. This implies that the central headquarter supports several different departments that make their autonomous decisions (Jin & Cedrola, 2019). These divisions have their own standards, procedures, and policies. This type of organizational structure is suitable for NY&C’s performance since the company has various products and its operations are widespread across many locations. Further, the company serves many types of customers. The flexibility provided by divisional organizational structure improves management performance and makes employees feel that they are being treated fairly.
References
Copeland, L. (2019). Media strategies impacting millennials’ sustainable apparel purchase intention. The Journal of Sustainability Education.
Jin, B., & Cedrola, E. (Eds.). (2019). Process Innovation in the Global Fashion Industry. Palgrave Macmillan US.
Lewis, T. L., & Loker, S. (2019). INDUSTRY LEADERSHIP TOWARD SUSTAINABLE FASHION THROUGH USER CONSUMER ENGAGEMENT. Global Perspectives on Sustainable Fashion, 45.
Pártlová, P., & Váchal, J. (2019, May). Internal Company Resources and Glocalization. In Economics, Management and Technology in Enterprises 2019 (EMT 2019). Atlantis Press.
