External and Internal Environments

The main purpose of this paper is through the company 's external and internal environment analysis to evaluate the company in the industry and future developments. Assess the external environment mainly through PESTLE Analysis and Porter 's 5 Forces. Strategic Recourses & Capability Analysis for internal environmental assessment is conducted. Finally, the company somehow SWOT analysis, concluded ••••

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.

* Factors of internal environment include risk management philosophy, risk appetite, board of directors, etc.

Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates. Two of the five forces that are the most significant for Capital One would be rivalry among competitors and threat of new entrants. Capital One has addressed rivalry among competitors in the past by getting new customers to keep their percentage level low for the new and existing customers. Also they have credibility among investor to find individual who are at high risk but will have a good potential with handling their credit card. Capital One threat of new entrants was a major concern in the first two to three years of their business. These concerns are now less intense as it has led to a cost advantage that would be impossible for new entrants to replicate. Capital One can approve these two forces going into the future by keeping up with the latest technology, catering to the community so they can continue to get new customers, and continue to come out with other products that will allow the company to grow in other fields.

The following paper will discuss the research that I completed regarding the internal and external environments of both Allstate Insurance and the Target stores as a corporation. What will be provided is information on the competitive advantages of each company and the types of strategies that they each use. What will also be discussed is how each of these organizations create value and how they maintain a competitive advantage through their business strategy. I will also cover what types of measurement guidelines both Allstate Insurance and Target is using and how effective these measurement guidelines are for their organization.

* For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.

In the diversity Australian environment, business finds that itself experiences a rapidly change and the awareness of putting environmental factors into management is becoming necessary. Thus, for Coles supermarket, when planning strategically, it is important to take the interaction of organization and it environment into management. In so doing, long- term planning becomes geared toward future events and it brings planning more systematic and integrated (Gideon Nieman, Alf Bennett, 2006, pp.27). The business environment includes all the internal and external variables which exert affect on the operation of the business. In addition, the management cannot be carried out effectively and efficiently without taking external factor into consideration. And the internal environment, on another hand, which encompass many areas such as the strategy, business function, management task, setting goals, resource abilities and expectations of interest group must be taken into account.

The business environment of an organization reveals much about its competitiveness and the possible influences on the success of its strategies. The focus of this paper will be an environmental scan of the internal and external environments of two real-world firms, their competitive advantages and company strategies for creating value and sustaining competitiveness, measurement guidelines for verifying strategic effectiveness and their evaluation.

Its product related diversification strategy, through series of successful acquisitions, has made the company the biggest player in the US Health care industry. Diversifying the company into industries with high growth rates and potential profitability enabled the company to outperform its competitors who depends mostly only one product division.

Think of your organizational assets from the eyes of an attacker motivated by crime, espionage, hacktivism and even warfare. In other words, what are our Top Threats and how do we know? Interview the Chief Risk Officer and Business Unit leadership and ask them “what keeps you up at night?”. Then tie these answers to Corporate objectives and strategies in a Risk Register.

It is defined as all the forces or conditions that are available within an environment that affects an organization and business. It is also known as controllable factors because business can control them. The internal environment deals with the management of resources like human resources, physical resources, technology, monetary resources and others that constitute the organization in order to implement or execute a strategy. Internal environment also includes culture and other intangible aspects like teamwork, coordination, efficiency level of employees, employee’s salaries and monitoring costs. The strategy for competition should also be in sync with the internal resources especially the internal environment.

3. What are the biggest risks faced by the firm in the next 5-10 years?

Some of the opportunities from global perspectives would be vertical growth, such as constant improvement, close financial monitoring, reducing costs, differentiating, or horizontal growth as territorial expansion, occupying new potential niches.

The internal business environment includes factors within the organisation that impact the approach and success of the business operations. Formerly presented as core competencies, capabilities, leadership style and culture of an organisation. To understand its sources of competitive advantage from within a firm or an organisation will implement specific tools such as SWOT analysis (Strength, Weaknesses Opportunities and Threats), Value chain analysis, Resource based view, VRIO framework and BCG Matrix for instance.

An organization’s survival depends on factors such as increasing their market share in the industry, eliminating competitors, increase bargaining power with customers, successful collaboration; etc. However, perhaps the best way to