Homework Solutions

In this report, the company of aNachos is continuing its strategic plan and focusing on the internal environment. The company will focus on the following sections: Assessing the organizations internal environment, it will identify the most important strengths and weaknesses of the company including an assessment of the company’s resources, it will identify the most important internal environmental factors, perform a competitor analysis, assess the structure of the organization and the influence this has on its performance and lastly determine the competitive position and the possibilities this provide for the company.

The term internal environment is described as the circumstances, systems, measures, and determinants within a company that shape the activities and distinction, particularly the demeanor of the employees. Determinants that are many times considered part of this environment include the company mission statement, style of leadership, and the culture in the company. The mission statement should embody the things that the company will do and won’t do. The mission statement sets the expectations from management on down on what is required by each employee during their time with a company. The style of leadership helps set the tone for employees to follow. One example of a leadership style is authoritative which sets in motion how the team will come together on a shared vision and central point on the goals, leaving the ways forward to each employee. Another example of a leadership style is an instructing leader which builds up their employees for the imminent opportunities ahead. The culture in the company consists of core values and behaviors that employees share and utilize daily. Such values and behaviors are showing respect to each other and the customers they serve. Providing teamwork in every capacity, developing learning opportunities for potential advancement and making sure each employee is aware of the goals that are being set through employee engagement.

Identify the most important strengths and weaknesses of your organization including an assessment of the organization's resources. In identifying the most important strengths and weaknesses my aNachos, one most first understand what defines strengths and weaknesses. The term strength is best described as the qualities that enable everyone involved with the company to accomplish the company’s mission. The term weakness is best described as a quality that prevents the company from accomplishing the mission and not achieving it full potential.

For aNachos to gain success in the restaurant industry, the company must consider the most important internal environmental factors. Such factors include competition, compensation, legislation and employee relations. The competition in any given industry will have an effect on a company’s ability to recruit qualifying staff. For organization that have hundreds to thousands of employees, candidates tend to seek out the organization. A smaller new company such as aNachos that does not have the same branding power as a bigger well-established restaurant, will have to send money advertising to gain recruits.

The second important internal environmental factor is compensation. The cost of labor for a small business must be attractive enough in the recruitment of employees. In an oversaturated market such as the one currently, with a relatively high unemployment rate and their being many more candidates qualified than actual opportunities for employment available, the amount in compensation by aNachos must provide is less than when there is a shortage of candidates in existence and a company having to compete with other companies to recruit employees.

The third important internal environmental factor is Legislation. Whither it’s the state or federal levels of government, companies are impacted by the legal decisions made by elected officials. For instance, regulation laws are principles that can influence a company can function during certain cases. For example, environmental regulations, building code laws as well as what types a license a business needs to have to operate. Labor laws are another form of regulation that pertains directly to how a company treats their employees. Such regulations include, minimum pay standards, pay garnishment and worker protection guidelines. There are also tax regulations in which a company must provide a summary of its monetary standing to the government and reporting regulations that have oversight on how a company summaries its capital to the government and shareholders

The last important internal environmental factor is employee relations. The internal procedures and policies also can impact a company. Whither it’s the hiring of new employees or promoting current employees, the manager must ensure that the employee is receiving appropriate training and development for any role they will play for the company. If the company provides benefits such as education assistance, the company must outline what those conditions are and ensure that employees and meet the criteria needed. Should aNachos have a union based work force, the manager/owner will have to engage in collective bargaining with the union on matters of representation.

According to (Hitt, Ireland & Hoskisson 2015), the term competitor analysis is described as, “How companies gather and interpret information about their competitors”. An assessment of the competitor analysis, allows a company to focus on those companies with which it will be in continuous competition with, and it is especially important when a company fronts fewer possible competitors. An area of focus for aNachos will be: To examine the market, to formulate strategy, and to create strategy for business expansion. In examining the market, this entails determining if there is an opportunity within a specific market.

For instance, if aNachos can factor the market share or even the percent of industry sale totals that each competitor would have or conducting specific research on the target base (that being customers) will determine the size of the market within that location. To formulate strategy as a new start-up, aNachos can consider reviewing the setting of the company’s objectives, have an evaluation of the company’s environment, setting measured targets and continue to aim for reaching overall company goals, both short and long term.

To develop a strategy for business growth, aNachos will have to begin by using market penetration by selling more types of nachos to its current customer base. Then utilizing market development and developing other ways to sell the nachos to markets like the industry. This can be opening new restaurants in different locations. Another method can be using alternative channels. Instead of customers coming to the restaurant to purchase their food, ordering online or through an app and the food being delivered to them.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2015). Strategic Management: Competitiveness & Globalization: Concepts and Cases (11th ed.). Stamford, CT: Cengage Learning.