Strategic Plan, Part 2: Internal Environmental Analysis

Strategic Plan- Environmental Scan

Name:

University Affiliation:

Date:

Strategic Plan- Environmental Scan

Creating value and sustaining competitive advantage using the environmental scanning strategy

When a company starts to palm on its process of strategizing, then one key activity that it has to always look at is environmental scanning. This scanning has to entail the external forces for example technology, the economy, politics and also internal competencies of the company for example value, the organization, rareness, and immutability so that they may be effective.

For my startup company, WowBaby Store, that I am about to register so that I may start selling kids fashion, environmental scanning is a very important factor. With this analysis, my company will able to develop on its plan by having a foundation basis. I will be able to build upon the strengths, I will enable to mitigate on any weaknesses, I will be able to seize on the opportunities and also be able to be very careful on the threats.

The scanning has to be done more frequently so that the company may be able to its strategies that are so relevant to the market that is ever changing. This tells that if I don’t carry out the process, I will not be able to understand the market competition state and this is likely to affect the product penetration time and depth (Brooks & Weatherston, 2000). Also, another way is that I will be able to plan for a typical internal environment of the company like turnover and retention of employees, the employee morale as well as standard financial planning. Specifically, I will be able to ensure that we hire as well as retain the employees that will enable me to keep the business profitable even when there arises big changes in the baby’s clothing segment.

I will also be able to understand how to personalize the needs of each and every customer based on their changing tastes and preferences. This will keep me ahead of the competitive advantage.

Evaluation of the company's external environment

For WowBaby, its external environment is composed of two categories, the microenvironment, and the macro environment. From the microenvironment, WowBaby will be greatly influenced by the task environment whereby many external forces, as well as factors that are related to the business, will greatly influence how the business performs. For this case, I am looking at the suppliers, market intermediaries, partners, the customers, and the competitor.

In regards to the suppliers, I have identified over twenty different suppliers who will provide the business with different types f clothes and they are likely to give us the best deals since they are many suppliers, examples include Kiskissing, DHgate, Kiddies World Wholesale, and Wholesale Children Clothing. On the other hand, market intermediaries like the riders for delivery services are likely to increase my business penetration even too much greater coverage as they will cover the distance on behalf of the customers. They include Trucking &LTL, Motorcycle shippers, and Daily Veries. Regarding partners, I have so many companies like in the banking sector based on my business type whom I find that they will be able to offer them some credit facilities for expansion of the operations. They include Cross River Bank, Sutton Bank and Evolve Bank.

For customers, I look forward to serving mostly first time and second-time mothers. Also, people who will be buying children’s clothing for their friends who will be expecting or taking care of children. Competitors include Marionette Kids Boutique and Chasing Jase boutique.

The microenvironment of the business consists of the following: the demographic environment whereby the customers of the business consist of young mothers who are densely found in parts of America, the economic environment in terms of the earning levels of the customers, physical environment which considers such factors like pollution and raw materials availability and the technical environment, here the ever growing level of technology greatly will affect the business (Lester & Waters, 1989). This includes the growth of the internet and digitization of the different customer segments.

The company's general environment

The general environment of the company refers to the factors that are likely to affect the business beyond its influence. The factors will be addressed using the PESTEL format as follows:

Political

The American government is currently at tuffs with the Chinese government that has seen the government ban some Chinese products in the American Market. This s likely to go beyond the electronics business and this may even affect the fashion products since most of the supplies are from China (Bursztynsky, 2019).

Economic

The level of disposable income among young African parents is relatively moderate. This means that they are moderately managing to shop for their babies and kids. This is one of the factors that make the business choose the best choice.

Social

The increasing population size of American young parents, as well as ethnic mix, makes the kids' fashion business a strategic business option based on a large number of the expected buyer of its products. Good wholesale prices which will mean that the prices of kids fashion will be lower which may make the target market to buy overwhelmingly.

Technology

One important thing about this sit ha digitization of the selling process as well as the marketing process is likely to favor the growth of the business. Combining this with the fact that business intermediaries like the delivery companies are within the proximity, then selling to many faraway customers will be easy, scalability will be imminent due to technology.

Environmental

The fashion market, especially for kids, is highly favored by the ever-changing weather patterns. When it is too cold, the target market will be looking to buy the kids a heavy kind of clothing and when it is not cold, then light clothes types will be most preferred. This means that we have to strategize ourselves so that we may offer our customers seasonal customized options that fully meet their needs (Lester & Waters, 1989).

Legal

Legal factors like employment laws are likely to shape the culture at WowBaby stores. Given that we are also not manufacturing our own clothing, we will less likely flout intellectual laws as our products will be supplied by authorized suppliers. We will thus comply with every law pertaining to discrimination, antitrust as well as healthy and safety to make the business operational.

The organization's industry operating environment

One thing that I can attest of is that there are different cuts to which either the suppliers or the buyers are able to influence the clothing industry. Infarct, based on the many suppliers available, the customers have a bigger say on what they are going to buy and from who. This makes the suppliers ensure that they supply the best unique and high-quality kids fashion products at relatively affordable rates. This makes WowBaby stores to take advantage of the competitive nature of the products to offer its customers the latest releases to stay ahead of the competition.

References

Brooks, I., & Weatherston, J. (2000). The business environment: Challenges and changes. Harlow, Essex: Pearson Education.

Bursztynsky, J. (2019). Stephen Moore says the US-China trade war will be an epic battle that lasts '10 or 15 years'. Retrieved from https://www.cnbc.com/2019/06/26/stephen-moore-us-china-trade-war-will-be-epic-battle-lasting-a-decade.html

Lester, R., & Waters, J. (1989). Environmental scanning and business strategy. Boston Spa, Wetherby, West Yorkshire: British Library.

Stoffels, J. D. (1994). Strategic issues management: A comprehensive guide to environmental scanning. Oxford [England: Pergamon Press.