Internal Environmental Analysis, business and finance homework help

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Question Description

Strategic Plan Part 2: Internal Environmental Analysis

Write a 1,400-word minimum internal environmental analysis in which you include the following:

  • Assess the organization's internal environment.
  • Identify the most important strengths and weaknesses of your organization including an assessment of the organization's resources.
  • Identify the most important internal environmental factors in the general, industry, and external analysis in relation to the internal analysis.
  • Perform competitor analysis.
  • Assess the structure of the organization and the influence this has on its performance.
  • Determine the organization's competitive position and the possibilities this provides.

Format your paper according to APA guidelines.

Cite at least 3 references

The company you will be using is 24 Hour Fitness Gym. Their competitor is LA Fitness. I have included an Environmental Scan of 24 Hour Fitness in the attachment. I also included the grading guide

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Running head: ENVIRONMENTAL SCAN 1 Environmental Scan Environmental scanning involves acquiring and using information extracted from external sources of the organization. Environmental scanning is very important as an earlywarning radar which lets the organization look into the future of its operations. Through scanning, an organization is able to understand the external forces facing the organization and also the opportunities and threats to avoid surprises and improve the planning accuracy. In this paper, I will discuss how to create value and sustain a competitive advantage using the strategy of environmental scanning. The paper also evaluates the external environment of 24 Fitness Inc. which operates over 370 fitness centers in 16 different western states. The paper also assesses the general environment of 24 Hour Fitness and also the industry operating environment of the organization. Creation of Value and Sustaining Competitive Advantage Using Environmental Scanning Strategy An environmental scanning strategy is very useful in creating value and sustaining the competitive advantage of an organization. This is achieved by identifying the trends which are mostly likely to affect the organization and its members directly so that it can create a strategy which will help it to take advantage of the inevitable changes in its operations. Through gathering information regarding the changing conditions and incorporating the observations into the processes which require changes, the organization is able to create the value and ensure its competitive advantage. With the right information regarding the environment which surrounds the organization, an organization is able to make the right adaptations which ensure the future ENVIRONMENTAL SCAN 2 viability of the organization (Kratzman, 2002). Environmental scanning strategy covers the industry analysis which comprises the environment’s immediate competitors, customers, and suppliers. This is achieved by conducting the Michael Porters Five Forces Analysis in order to determine the value of the organization and maintain the competitive advantage with respect to the outcomes of the analysis. An environment scanning strategy also creates value and sustain a competitive advantage through conducting a PESTEL analysis whereby the organization is able to determine its political, economic, social, and technological environment in order to determine how the forces influence the performance of the organization. Evaluation of 24 Hour Fitness External Environment The external environment of 24 Hour Fitness involves the factors outside the company which affects its ability to function. Location and accessibility are important factors when consumers are choosing a fitness center in the industry. Purchasing membership of a fitness center requires commitment both financially and in terms of time whereby the customers with limited free time require fitness centers which are easily accessible in terms of distance. Many companies in this industry are reacting to this by locating fitness centers in highly populated urban centers and in office buildings. The growth of the fitness industry is heavily influenced by consumer demand which directly correlates to the overall increase in the awareness of physical health and fitness and the growing target market (Wells, 2005). The age range target in the industry is 15-49 whereby offering age-specific services such as teen kickboxing class or yoga class increases the age range of the consumers. The cultural trend in the industry includes the increasing awareness nationally about the benefits of physical exercise. Government promotion of healthy lifestyles through educational ENVIRONMENTAL SCAN 3 programs and media campaigns have increased the publicity of fitness centers and reduced the advertising costs. The demand for fitness centers has been increasing over the last five years but most companies in the industry are yet to realize high profits due to high costs and the low prices. This has contributed to the high turnover rate in the industry whereby many companies are exiting and entering the industry each year. However, 24 Hour Fitness has established itself in the highly competitive industry whereby the company has fiscally grown and it is continuing to open new fitness centers both locally and abroad. The General Environment of 24 Hour Fitness The general environment of 24 Hour Fitness is analyzed by conducting the PESTEL analysis which comprises of six factors namely political, economic, technological, socio-cultural, legal, and environmental. The political factors surrounding 24 Hour Fitness include the government campaigns to promote healthier lifestyles in the community which have contributed to the improvement of the fitness centers (Hopkins, 2006). These campaigns have promoted the purchase of gym membership contributing to the growth of the industry. The economic factors surrounding the 24 Hour Fitness include the rising electrical costs which have increased the running cost of the fitness center. High unemployment rates and economic recessions are also affecting the growth of 24 Hour Fitness. The social factors surrounding the environment of 24 Hour Fitness include the influence of the socio-media which has created more awareness on health in the society which has increased the demand of gyms in the society. The rising rates of obesity are also contributing to the growth of the industry due to the growing needs to reduce health problems which are related to obesity. The technological factors include the need to keep the exercise machines and ENVIRONMENTAL SCAN 4 equipment up to date and the advancement in the fitness equipment which have enabled the customers to use their personal data to make their workout personal and tailored. Use of mobile devices to promote the latest deals and also the online free trials are technically effective in the industry. The legal factors surrounding the 24 Hour Fitness include the rules and regulations which have been set by the fitness industry, the government, insurance companies, and the health safety regulations whereby the company has to adhere to them. The environmental factors surrounding the company include the high consumption of energy because most machines require electricity to operate whereby the company has the responsibility to regulate its consumption of electricity for the care of the environment. The Industry Operating Environment of 24 Hour Fitness Analyzing the trends in the operating environment of 24 Hour Fitness requires performing the Michael Porter’s Industry Analysis. This analysis determines the bargaining power of suppliers and buyers, the threats of substitutes, new entrants, and the level of rivalry among the competitors. The threat of new entrants is high in the fitness industry is high because the industry is still young and growing fast and also there are no dominant firms in addition to the low barriers to entry in the industry (Kratzman, 2002). According to consumer trends, the choice of fitness centers is based on location but not the brand name which implies that the switching costs are also low. Homogeneousness of services and the lack of government regulation also contribute to the low entry barriers. The bargaining power of the suppliers in the fitness industry is relatively low because there are few required suppliers in the industry. The suppliers are primarily useful in the purchase or leasing the equipment. Companies in the fitness industry differentiate themselves from competitors by offering new equipment with increased ENVIRONMENTAL SCAN 5 technology. This is a key driver to the cost of equipment which gives the suppliers some influence in the industry. However, there are multiple suppliers in the fitness industry to choose from keeping the prices of equipment relatively low. The bargaining power of the buyers in the fitness industry is high. This industry mostly relies on membership revenue as the major source of income whereby membership retention is low as a result of low switching costs (Kratzman, 2002). This low switching cost increases the influence of consumers over price. The fitness industry also faces stiff competition from substitutes from outside the operating industry especially from the outdoor recreational facilities and the organized sports. Although the organized sports are expensive, they remain popular while the outdoor activities are cheaper in comparison to the gym membership. The fitness industry is also highly competitive due to the low entry barriers and the low switching costs which increase competitive rivalry. The major competitors of 24 Hour Fitness include the Bally International Holding, Town Sports International, and also other upcoming smaller companies such as the Curves International. In conclusion, the environmental scan of the 24 Hour Fitness reveals that the fitness centers industry is not very appealing. The industry is price-driven which makes the company use low prices as a way of increasing their market share. There is high competition making it difficult for 24 Hour Fitness to enjoy high margins which are requiring the company to continue with differentiation of its services in order to survive in the competitive industry. ENVIRONMENTAL SCAN 6 References Hopkins, J. (2006). “CEO Bulked Up 24 Hour Fitness with Ideal Timing.” USA Today. http://www.usatoday.com/money/companies/management/2006-08-13-entrefitness_ x.htm? tab1=t3 Kratzman, V. A. (2002). US fitness industry: Market overview and entry strategies. Helsinki: Tekes. Wells, J. R. (2005). 24 Hour Fitness. Cambridge, Mass: Harvard Business School Pub. Grading Guide Content Met Partially Met Not Met Total Available Total Earned 3.5 #/3.5 Partially Met Not Met Comments: The paper uses the organization selected in Week 1. The paper includes an assessment of the organization’s internal environment. The paper includes the identification of the most important strengths and weaknesses of your organization including an assessment of the organization’s resources. The paper includes the identification of the most important internal environmental factors in the general, industry, and external analysis in relation to the internal analysis. The paper includes a competitor analysis. The paper includes an assessment of the structure of the organization and the influence this has on its performance. The paper includes a determination of the organization’s competitive position and the possibilities this provides. The paper is a minimum of 1,400 words in length. Writing Guidelines The paper and presentation—including tables and graphs, headings, title page, citations, and reference page—are consistent with APA formatting guidelines and meets course-level requirements. The paper and presentation include properly cited intellectual property using APA style intext citations and a reference slide or page. The paper and presentation include major points that are stated clearly, organized logically, and supported by specific details, Met Comments: Strategic Plan, Part 2: Internal Environmental Analysis Grading Guide STR/581 Version 10 Writing Guidelines Met Partially Met Not Met Total Available Total Earned 1.5 #/1.5 5 #/5 examples, or analysis. The paper and presentation include sentences that are complete, clear, and concise. The paper and presentation follow proper rules of grammar and usage including spelling and punctuation. Assignment Total # Additional comments: Copyright © 2017 by University of Phoenix. All rights reserved. Comments: 2 ...
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Robert__F
School: UT Austin

Good luck in your study and if you need any further help in your assignments, please let me know Can you please confirm if you have received the work? Once again, thanks for allowing me to help you R
Attached.

Running Head: INTERNAL ENVIRONMENTAL ANALYSIS

Internal Environmental Analysis
Student’s Name
Institutional Affiliation
Date of Submission

INTERNAL ENVIRONMENTAL ANALYSIS

2

Contents
Introduction .................................................................................................................................................. 3
Most Crucial Internal Environmental Factors in the general, industry, and external analysis about the
internal review .............................................................................................................................................. 5
24 Hour Fitness External Environment ......................................................................................................... 6
The Industry Operating Environment of 24 Hour Fitness ............................................................................. 7
Competitor Analysis ...................................................................................................................................... 8
Structure of the Company............................................................................................................................. 8
Company’s Competitive Position .................................................................................................................. 9
Conclusion ..................................................................................................................................................... 9
References .................................................................................................................................................. 10

INTERNAL ENVIRONMENTAL ANALYSIS

3

Introduction
The environmental analysis involves acquiring and using information from extracted
sources of the organization. Environmental analysis is paramount as it allows companies to look
into the future of their operations. It helps identify the opportunities and threats to avoid surprises
and enhance efficiency.
The purpose of this paper is to evaluate a company by the name 24 Hour Fitness Gym;
their business competitor is LA fitness. This paper shall examine the most important strengths
and weaknesses of the enterprise, and consider the most significant internal environmental
factors in the general. The external analysis is pertaining the internal analysis. Additionally, this
paper shall analyze the structure the company and the influence the company has on its
performance, the industry, and also this paper shall conclude the business’s competitive position.
24 Hour Fitness Gym controls above 370 fitness centers located in sixteen various western states.
This paper is an assessment of the general environment of the 24 Hour Fitness Company and also
the company’s industry operating environment.

The Company’s Internal Environment

INTERNAL ENVIRONMENTAL ANALYSIS

4

24 Hour Fitness company has the best hiring practices. When interviewing people before
hiring them, they make sure that the process is fun, dynamic and it is not a time drain. They do
not conduct countless interviews so as to determine the right person. Secondly, 24 Hour Fitness
meets all its clients’ needs by providing the most up to date workout machines, cus...

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Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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