Project 2: Strategy Analysis and Selection
MARK2_NIQUE
PROJECT1_PPUnitedRentalsInc.BMGT495.pptxUnited Rentals Company
Industry Analysis
January 28, 2018
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The United Rentals Company
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The Industry Analysis
When it comes to the external analysis, The United Rental Company will be used.
United Rental is the leading equipment company in the world and the competitive power is high.
The revenue of this firm remains high as a product of the improved response of its products. The high quality is high demand for this product (Capps C. J. & Cassidy, C M. 2015).
POWERPOINT
The United Rental Company deals with heavy equipment and operates in the United States and Canada.
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Competitive Analysis
The United Rental Company is high demand with quality of goods and services.
On the other hand, their prices are affordable thus increasing the inflow rate of customers.
This Rental company is the best in North America and share a market of 9.7% (Tippie, H. B., 2018).
POWERPOINT
Being high demand with a company that’s the best in the United States and Canada has great services and the best quality.
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Techniques Analysis PESTEL Analysis I
Liability for undesirable outcomes while machines are being serviced.
When companies has high quality and goods, customer & clients are attracted to the service (MindTools (2018a).
Government policies has an impact on good performance.
Also, result of Government policies can open doors for support and interference.
POWERPOINT
PESTEL Analysis create useful opportunities for the company. Opportunities can result of advancement in technology which helps investors reaches new clients, and new financing that can improve products from favorable policies of the government.
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Porter Five Forces Analysis
Strategic management is a tool to understand the success of a business.
United Rental can recognize factors and the company gets larger.
Economic growth leads to an increment in the competitive power of a company.
Based on the article of Porter, there are five forces affecting productivity of businesses, they are, the threat posed by new foes, bargaining power of both suppliers and buyers, and the current competition (Ang, Haq, & Zhang, 2015).
POWERPOINT
Porter Five Forces Analysis is a very important tool that is used in analyzing the routine of companies and accepting the forces behind its accomplishment. These forces can be good customer relations, quality services offered by the company, and affordable prices.
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Porter Five Forces Analysis Cont.
Also, for other companies, there are Herc Holding Company and Sunbelt Rentals Company.
In the United States and Canada, United Rental, is the top company for construction equipment.
However, Sunbelt will be second and Here Holding comes last.
United Rentals has more equipment than Sunbelt and Herc Holding Company and Sunbelt has more equipment than Herc Holding (Tippie, H. B., 2018).
POWERPOINT
The Porter Five Forces Analysis is a tool for planned management that evaluates businesses and helps to recognize a fundamental profitability.
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SWOT Analysis
SWOT (Strengths, Weaknesses, Opportunities & Threats) is a very major method in strategic planning.
It analyzes the business’s SWOT there current environment of operation (Strategic Management. (2014).
For example, United Rentals company is having cooperative development issues with low prices which are lowering its productivity.
However, they enjoy privileges of the growth with their company (MindTools. (2018b).
POWERPOINT
SWOT analysis is used by directors, managers and other officials of the United Rentals Inc. to conduct a situational analysis of the firm. It is the best method for analyzing not only the strengths but also the weaknesses of the company, the strengths of United Rental Company include the ability to outdo its competitors due to its affordable prices and high-quality goods and services.
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SWOT Analysis Cont.
SWOT (Strengths, Weaknesses, Opportunities & Threats) analysis are extremely cooperative process that involves active organization among division.
SWOT has marketing, management, planning systems and contain operations within.
SWOT also, maintains its situation within the market by carefully observing and learning the analysis of SWOT (MindTools. 2018b).
POWERPOINT
SWOT Analysis is the framework that helps organize the internal strategic factor in a company with strengths and weaknesses.
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External Factor Evaluation
Majorly, this tool is used for evaluation and investigation of the external environment.
The companies such as government and cultural factors.
Also, it recognizes the threats and opportunities for the company.
The threats could be another company being number 1 in the next 5 years.
The opportunities include market gaps and change of customers’ trust.
POWERPOINT
External Factor Evaluation is a method which is used in evaluating and investigating the external atmospheres of organizations such as social, political, cultural, and economic factors. The tool also helps in strength of mind of existing opportunities and challenges. For example, companies can regulate the goods which are absent, or which are extremely required by clients. However, companies can control when there's a problem with competition from remaining and new rivals.
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External Factor Evaluation Cont.
Strengths Internal
Build and keep improving
Weaknesses
Resolve issues quick
Reduce mistakes daily
Opportunities External
Achievement, develop, and be positive
Threat
Avoid long term payouts for mistakes
POWERPOINT
Enables the manager of the United Rental to develop better strategies.
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Critical Path Method
The Critical Path Method for United Rentals can calculate a critical for the company.
Being determine to complete the task.
Maximize your chances for completing your project on time
Shorten the project
POWERPOINT
The Critical Path Method use steps and join with the network and their activities.
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Emerging Trends
There are two emerging trends in the industry of equipment renting which affect the companies both positively and negatively.
United Rental can gain better rates of their company by having a great performance.
Customers prefer high quality and low prices.
The competition from United Rental has grown, such as Sunbelt Rentals and Herc Holding Inc. (Tippie 2018).
POWERPOINT
Nowadays, the industry is not only facing extreme competition from their rivals but do have hope from customers. United Rental has high customer value, that’s results of their loyalty and trust. There have strong quality of the company’s products and services.
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Conclusion
The performance of companies is highly affected by the environment in which it operates and therefore the management should ensure that the environment is favorable.
The government should also support the operations of the companies because their success will not only benefit the company but the country as well.
POWERPOINT
In conclusion, this firm surroundings has both internal and external, the impact, performance and trust of a company. Companies should always continue with alerts, have operations encounter and shocking waning in their routine.
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References
Ang, N., Haq, R., & Zhang, A. (2015). BANKRUPTCY & REORGANIZATION PAPER.
Bertozzi, F., Ali, C. M., & Gul, F. A. (2016). Resource Based View of an Organization and PESTEL Analytical Tool; An Analysis of Hotel
Capps C. J. & Cassidy, C. M. (2015). Difference Mapping an Internal-External (I-E) Matrix using. Traditional and Extended Concepts. Business Studies Journal,
PESTEL Analytical Tool; An Analysis of Hotel Corallo, Rimini. EPH-International Journal of Science and Engineering (ISSN: 2454-2016), 2(11), 57-71.
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Reference Cont.
MindTools. (2018a).PEST Analysis, Identifying “Big Picture” Opportunities and Threats
MindTools. (2018b).SWOT Analysis, Discover New Opportunities, Manage and Eliminate Threats
Strategic Management. (2014). SWOT Analysis from a resource-based View.Washington, D.C.:The Saylor Foundation
Tippie, H. B., the Henry Fund. School of Management United Rental, Inc. (URI).
https://www.biz.uiowa.edu/henry/download/research/URI_s17.pdf
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