Internal and External Environmental Analysis Internal and External Environmental Analysis Introduction In this modernized era, when any establishment which aspires to determine an adequate way to approach its operation, there is the need to consider the forces which operate within the internal alongside the external realms of the firm. Such an undertaking is beneficial in a manner that it enables the strategic teams to develop precise approaches which would propel the firm to the next level. Economic, trends, legal, and regulatory forces Concerning the economic frontier, the performance of the organization is dwindling because of a decline in the demand function for its newspapers among the existing clientele base. The facet is deemed to manifest itself because of a possible actualization of inflation which means that the cost of purchasing newspapers rises. Hence leading to an increase in price and eventual decline in demand outcome for the same among the patrons (Ho, 2014). Meanwhile, on the legal and regulatory fraternity, the business is bound by laws affiliated to copyright and patent, employment with the copyright and patent provisions meant to aid in protecting the products of the company from other firms which could be tempted to usurp the entity's newspaper. On the other end, the employment law stipulates unto the entity how its existing employees should become treated. These could encompass the regulatory provisions which embrace minimum wage provisions that do limit the amount of remuneration that the organization could offer along with child labor provision which prohibits the management team of the entity from hiring subordinates which are below the eighteen years. Internal and External Environmental Analysis 2 On the trends perspective, it is relatively determinable that there is a technological boom. Such is a reality as businesses get to exploit the businesses opportunities which comes along with it. In that mannerism, many corporations involve themselves with online advertising which rakes in significant revenue. Critique how well the company adapts to change Within the business guild, change is an attribute which is inevitable as such a facet is essential in its modifying itself to match the supposed requirements as well as the specifications of the industry into which it operates. Thus this bone of contention brings the question of describing organizational change which in its appropriate context is expressible both as a procedure unto which an operating establishment changes its technologies, structures, culture along with strategies, and effects that such modifications present on the company (Cook, 2015). Within its scope, the Hoosier media Inc. seems to be slow at adapting to change precepts. The criterion is accurate as the entity appears to be sluggish at embracing the openings presented by technological advances. For instance, its revenue from the printed newspapers has been dwindling within the previous five-year timeline. However, online adverts which only gives a five percent proportion of the overall revenue equation is on the increase. Such manifestation provides a succinct indication that the establishment is slow at taking on change initiatives. Instead of the top management sitting around to report an annual thirty percent decline in revenue, it is necessary for them in conjunction with the strategic team to come up with feasible strategies which could ensure that the organization exploits the online platform. While at the same time serving its print media clientele so that it achieves the endeavor of maximizing its profit-oriented perspective. Primary internal considerations. Internal and External Environmental Analysis 3 On its internal environment, the corporation presents strengths as well as weaknesses which the management has to put into consideration so that an appropriate mix becomes established as the entity gears towards realizing desirable results. Concerning its strengths, the business has necessary resources in terms of both equipment alongside human resources which it could amply position to achieve its strategic agenda. The firm has in possession its customer base who are ready to consume the products as well as services which its present to them so long as they meet their specifications and needs. Finally, the business has a significant financial reserve which can enable it to implement a strategic decision to completion. On the weakness side, the company seems to have an ineffective strategic team to drive the agenda of sales improvement and thus profit maximization. Further still, the business seems to lack diversification of the products which it presents to its patrons. Therefore, it indicates that the presence of different product lines would otherwise lead to an improvement in the sales volume for the firm. And thus result in a positive shift on the profit function. Primary external consideration Indeed, the firm is experiencing opportunities and threats at the same time form the external environment where it operates. Opportunities present themselves in the form of the existence of shifting consumer preferences which enables it to arrange its existing resources in a manner which would otherwise see it maximize on the anticipated returns in sales outcomes. The availability of technological platform creates room for Hoosier media Inc. to exploit the opportunities which comes along with it such increasing the investment proportion on online adverts. The corporation has the chance to increase its sales outlets which could create room for it to enhance its overall revenue criterion (Gupta, and Mishra, 2016). Internal and External Environmental Analysis 4 At the same time, this media entity encounters various threats which seem to hinder its operational success. The existence of competitors means that the establishment would have to share the market niche with other companies which also desire to have a piece of the pie in the form of customers within the market. The existence of governmental regulations would ultimately limit the extent of the firm aspiring to venture into different projects as its licensure would determine the scope of its operation. The availability of substitute products means that the products, as well as the services provided by the business, would mean that the sales volume of the firm’s products are bound to decline. Major issues as well as opportunities which the organization faces Issues Through the analysis, it is appropriate to understand that Hoosier media Inc. is facing concerns such as the failure to embrace change initiatives whereby the business establishment overlooks the prospects provided by online ads and the entire bundle presented by online technological advancements. Consequently, the firm has ineffective strategic team members who fail to come with appropriate mechanism meant for ensuring market expansion and penetration. Similarly, the company has poor marketing strategies which contribute to low sales outcomes. Regardless of the setbacks, the corporation has opportunities which consist of the chance to embrace the technological advancements which present desirable openings to ensure an ardent boosting of the sales outcome. Better still, there is the opening to diversify its product portfolio which would pave the way for meeting the varying demands of the customers hence, leading to maximizing on the returns. Conclusion For any corporation to thrive in its endeavors, there is the dire need for its management to consider the resultant analyses provided by the strategic team held accountable for determining Internal and External Environmental Analysis 5 the Ample way for maximizing profit outcomes. Though Hoosier media Inc. may register dismal performace, it is vital that its top-level management should consider being proactive while at the same time be ready to integrate the proposed changes but in a manner which would lead to desirable returns. Internal and External Environmental Analysis 6 Reference Cook, N. D. (2015). Crisis management strategy: Competition and change in modern enterprises. Routledge. Gupta, G., and Mishra, R. P. (2016). A SWOT Analysis of Reliability Centered Maintenance Framework. Journal of Quality in Maintenance Engineering, 22(2), 130-145. Ho, J. K. K. (2014). Formulation of a Systemic PEST Analysis for Strategic Analysis. European Academic Research, 2(5), 6478-6492.
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