The Internal And External Environments Of Corporations
|✅ Paper Type: Free Essay||✅ Subject: Marketing|
|✅ Wordcount: 1298 words||✅ Published: 24th Apr 2017|
For a corporation to attain a dramatic success, it is necessary to research and to conduct a detailed investigation regarding external and internal environment because any mishap will cost in billions, plus there will be a waste of time as well. External environment means to examine technological, social, societal, competitive, political and economic factors; whereas internal environment means to have known how about resources, budget, finance, employees, and machinery and manufacturing facilities. Those who are successful in achieving appropriate information regarding all factors will be able to have a long term profitability and market.
For accessing internal and external environment, it is important to conduct SWOT analysis because it will inform about strengths, weaknesses, opportunities and threats, plus it will assist recognizing competitive advantage and failure to have a competitive gain, so one must utilize this feature for improved research.
The organizations that will be scanned are Target Corporation and McDonald. Speaking first about Target Corporation, then Target is a well known retailing corporation or merchant store of United States. (Project, 2012) The company has started its name as a brand in early twentieth century and since then it has worked a lot and has developed a marvelous image in the eyes of customer. The corporation, which was developed by George Dayton, has introduced its name not only in United States, but it has also spread its name in other parts of the world. Today, Target Corporation is considered as the second big retail corporation after Wal-Mart. The corporation is included in Standard and Poor’s 500 and as well as Fortune 500 and is considered as sixth largest Retailing Corporation all over the world. (Management, 2012)
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Speaking about its product portfolio then Target is rich in products; it has a varied range of products from apparel, shoes, electronics, bags, medicine, healthcare and even beauty care. Year after year, Corporation is raising its value among its shareholders that is, its people, customers, society and competitors. They have stepped their foundation in market on the basis of ethnicity, rank and individuals in each country. (Plan, 2012)
As far as its environment assessment is concerned, and then externally it is facing political pressures which are affecting it in both positive and negative ways. For instance, For instance, positive aspects come from healthcare bill and because of these bills one can assist corporation to sustain prices of medicines that is they are able to sell medicines at controllable prices that will be affordable for both consumer as well as corporation. But negative aspect is ongoing political situation that is government instability, high taxes; trade barriers etc. has added influenced business sales in an adverse manner. (Baren, 2012) This considered as a threat and strength of protection.
Other threats are rise of oil prices which will add to its expenses, government rules and regulations, rise of inflation and decline in the value of currency serves as major threats of future.
Opportunities and strengths are amalgamated in such a way that Target has an opportunity of technology which can be utilized as a competitive advantage as well. It is rich in innovation and recently develops plus size in its fashion wear, which will add to the sales of future, thus will have a competitive first mover’s advantage. Online marketing and electronic business is its strength as well as its expansion will be considered as opportunity. Target’s online business, extension of outlets, innovation within a few spans of time and specialized facility serves as a main competitive advantage. (Plan, 2012)
They are focusing on strategy that is based on low price, simple, easy to use and reliable goods and services. Creating difference and quality absolutely are the first choice. Creating difference will maintain future competition in retail outlets and it can be made in terms of services provided like free delivery, online marketing, online advertisement and e-commerce. This will serve as a business strategy to sustain competition.
Hispanic employees are Target’s strength because they are well capable and thus cheap in terms of payment packages. Other strengths are its corporate social responsibility practices and its monitoring team.
Besides strengths, Target is not good in Research and Development; they have not utilized research and development as a separate department and are not yet very concerned. This can be a possible threat in future so one must be attentive.
Speaking about measurement guidelines then sales, profit growth and retention of current and future customers are evaluated thoroughly and through this basis one can predict performance. Increasing trend will reveal a high profit margin, where as decreasing trend will recognize the need of reconstruction of strategies.
As far as McDonald is concerned, then it is a renowned chicken based fast food restaurant. They are considered to be included in top ten fast food place and are in competition with KFC. Off course, in this current era, everyone is facing some challenges to protect its name and honor in market and so as Mc Donald.
The internal and external environment of McDonald is specified into opportunities and threats. Internally, McDonald is enjoying a perfect employer-employee relation that is they are continuously training and developing its employees to work for the benefit for customers. (Morrison, 2000) Secondly, they are conducting socially responsible attitude all over the world and are continuously oriented towards new style and flavors of chicken, thus innovation and technological facility increment, which serves as an opportunity to grab more market in future. Its strength is its care for children because of happy place and meals. They are utilizing the strategy to attract kids as they will then push their parents in McDonald. (Kate, 2012)
If McDonald promotes its products as a source of health consciousness and hygiene then, they can grab more future markets. Discounts and introduction of dinner and breakfast facility will add to the rate of customer’s satisfaction.
Threats and weaknesses are interrelated because most of the threats are due to global monetary crises and uncertainty of relations between several eastern and western states. McDonald is a bit expensive for several people, so they should come up with low cost hygienic food. Speaking about its advertisements, then there is a gap in advertisements; they are not promoting their products efficiently. (Morrison, 2000)
Emerging competition in food industry serves as a major threat and other threats are rise in inflation, customer’s low income level and sometimes hygiene.
McDonald is rich in resources; they have a good supply of chicken and are having a friendly contact with supplier. (Hood, 2012) The thing that can add to the competitive gain is its research that makes them enable to have new flavors every time, the play place and happy meal they have targeted on to children, plus the act of cleanliness and hygiene will contribute to the effectiveness.
Business strategy that it holds include customer satisfaction by providing good taste, hold good quality control system and zero defect policy to retain second visit.
The effectiveness of strategies and management guidelines can be evaluated by repeat visits and the feedback paper that is provided to every customer after having meal. The positive comments are appreciated, where as negative are kept into detailed consideration. (Shmuel, 2012)
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