External Analysis
An external analysis is one of the most important tasks to complete when completing a strategic analysis for a given corporation. By looking at our Internal Analysis of General Electric (GE) we identified Strengths and Weaknesses and we were able to recognize the Distinctive and Core Competencies that exist within the General Electric organization. Our external analysis consists of two major analyses: The Competitive Analysis and the Industry Analysis. By taking a closer look into what our competition and overall industry has to offer, we will further get a better understanding of the overall market and will be able to make a clear and well-supported recommendation for General Electric.
General Electric distinguished
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Granted, this statistic is from 1995, but this goes to show the amount of energy we are consuming is incredibly high. All of this consumption of water and energy is letting GE, Alstom, and Siemens come in and letting their Research and Development teams come in and create new and innovative ways of conserving these necessities without drastically changing our social lifestyles. Demographically, the increase in age of the average United States citizen has been encouraging sales for a lot of companies. The U.S. median age continued to rise, from 35.3 years on April 1, 2000, to 35.9 years on July 1, 2003. Now, in 2007, it is reported that the U.S median age is 36.6 years old. This can be due to the fact that the “baby boomers” are slowly but surely getting older, causing the census to continue increasing. Politically, it is never quite certain how the U.S and overseas economies will perform. This has a direct correlation as to the foreign exchange rates, interest rates, and minimum wage requirements. It is a day-to-day, month-by-month basis when dealing with the state of the economy. Currently, our U.S economy has performed poorly for the last two years, mostly due to the housing crisis and high oil prices. With the economy in a slump, this means there is fewer consumers spending going on and can pose a serious threat to organizations that specialize in the consumer good industry. On a global scale, the income per household seems to be on
An internal analysis’ purpose is very similar to that of an external analysis. Both are essentially developed to assist an organization build a successful strategy. Where they differ is that the external analysis focuses on the influential external elements; an internal analysis focuses on the internal forces. An internal analysis can unquestionably assist an organization drive up the profits aligning with internal matters. First, it is important to recognize what an internal analysis entails. In the course of this paper we will be looking into the key components that comprise this analysis. These components are StilSim’s value-chain, resources, core competencies, stakeholders, and finally their mission and vision.
When manipulating a business’s strategy, it is important to focus on the external factors in the environment. An external analysis is where a business conducts environmental scanning that present a company with the key external forces influencing the organization. The facets of external forces examined are the business environment, remote environment, or the competitive environment. A business environment is all of the external factors in the general environment that a firm cannot control, but can affect their strategy. The remote environment is the forces that affect most firms. Lastly, a competitive environment is the firm’s specific industry and its entirety. The external analysis is pertinent to a company called Dick’s Drive- In; without it, Dick’s would not be a thriving popular business today.
the internal analysis of the firm and the external analysis of the industry and competitive environment
Distinguishing one 's firm from the alternatives is a major concern for any business. Strategic analysis provides the starting point in the strategic management process organizations use to evaluate and choose the competitive advantages that distinguish them from other organizations within the market. Dominating businesses should also "choose among alternative grand strategies to guide the firm 's activities, particularly when they are trying to decide about broadening the scope of the firm 's activities beyond its core business (Robinson & Pearce, 2009)."
Analyze the external and internal environment for opportunities, threats, strengths, and weaknesses that impact the firm’s competitiveness.
In today’s society, the work industry is comprised of numerous generations from baby boomers to millennia’s. Due to reasons ranging from increased cost of living to political policies, Americans are being forced to work longer in order to obtain the social security benefits they’ve contributed to during their careers. Each generation has certain generational influences such as war times and civil rights for the baby boomers and social media and the technology boom for the millennia’s. One constant that has not changed, however, is that the average American has to work for a living, and with the evolution of the US economy, they are having to work longer and are retiring later.
Identify elements of the external environment and internal resources of the firm to analyze before formulating a strategy.
LVMH has a wide range of consumers from different backgrounds. It is imperative that they are aware of religion, race, culture, and buying habits in every country. For instance, worldwide people are more dependent on the Internet, signifying that the methods of how people purchase goods are changing.
Introduction The external analysis is designed to help companies identify specific trends and events that may have an impact on their business. This concept is not difficult to understand, but many companies have fallen victim to their own complacency. This is why the external analysis is so important and must be evaluated on a regular basis. When performing an external analysis it is best to focus in on a target industry to ensure that only relevant information is analyzed. The industry we are analyzing for this purpose is the workforce housing sector of the oil and gas
There will be 2 parts to external analysis; it will be done based on general environment and competitive environment. External analysis is basically analyzing the factors that are not within the control of an organization for the general environment part. As for the competitive environment part, the strength of an organization’s current competitive position, and the strength of a position it is considering moving into will be identified to help prepare itself for every possible happenings in the near future.
External environment is quite important for the any company, because it creates the conditions that the organization need to run the business in. In order to develop company strategy successfully, the external environment need to be analyzed properly. One of the best techniques to do that is Five Porter’s Forces analysis.
An analysis of the external environment includes the factors in a business’s external environment about a business's industry, competition, and political and social environments, and affects the firm’s strategy (Aaker, 2001).
Many factors shape and form the operations strategy of a corporation, for example, the ever increasing need for globalizing products and operations and thus reducing the unit cost, creating a technology leadership position, introducing new inventions, taking advantage of mass customization, using supplier partnering, and looking for strategic sourcing solutions. All of these factors require an external or market-based orientation; these are the changes that take place in the external environment of the company.
This analysis consists of analyzing the external environment of the company (competitors, social, technological, regulations, etc.). The purpose is to identify the key opportunities and threats in the environment.
The company’s brand recognition is visible globally. It also possesses strong capital resources and has exhibited positive results to its shareholders in the past.