...Industry (External) Analysis Considerations of the Macro Environment (How does ea. affect industry?) Market (customer) Demographics (Current/Potential; End Buyers & Intermediaries)- The main type of customer that the confectionery industry targets are kids but they target people of all ages. Economic-Products within this industry are recession proof because of their low price and are always in demand. Legal-The prime government regulations for this industry deal with food and safety issues. The Food and Drug Administration (FDA) have strict guidelines that must be followed, even in dealing with candy and chocolate. Along with the FDA’s guidelines, there are also tariffs on sugar that are set in place by the USDA. These tariffs initially have an effect on the final cost of the product. Socio-culture- People are becoming more health conscious so companies have to adjust to this by making healthier options such as better portion control and fortified products. Global-_International spices and ethnic flavors will also have a large influence on new U.S. products and flavor development overall, 58 percent of experts say. While Asian and Latin flavors will serve as the biggest influences on U.S. confectionary product launches, insiders point to Europe as the birthplace for international confectionery trends now and in the coming years. Although Europe is most frequently perceived as the origin of confectionery trends, Japan appears to be an emerging influencer...
Words: 723 - Pages: 3
...2 – External Analysis Oracle: Software License Update and Product Support Computer Systems Design Support Industry By Catherine Wowk Oracle operates six different business segments. Software License Update and Product Support is a segment of Oracle’s Software and Cloud Business which provides support services such as Oracle Lifetime Support, upgrades, enhancements, and technical support. It is roughly 47% of Oracle’s total revenue and produce the highest business margin at 89% and 77% of total business margins. (3) Oracle’s Software License Update and Product Support is in the IT Consulting Industry, more specifically the Computer Systems Design Support segment. Oracle makes up 3.7% of the industry’s total revenues. (Appendix A) As Software License Update and Product Support makes up the majority of Oracle’s profits, we will analyze the Computer Systems Design Support industry in which it operates for the remainder of this paper. (3) Overview: The Computer Systems Design Support (CSDS) industry provides installments, training and support to system users. IT Consulting is highly fragmented, offering many different services including Computer Systems Design Support. CSDS, in turn, is more concentrated. The industry SIC and NAICS codes are 7373 and 541512, respectively. (2) It has been in the growth stage of the industry life cycle since the early 1990’s, only recently slowing down in growth rate, it is still expected to be one of the fastest growing industries in the...
Words: 1840 - Pages: 8
...Table of Contents 1 INTRODUCTION 2 2 INDUSTRY ANALYSIS - A BROAD DEFINITION 2 3 EXTERNAL ENVIRONMENT 2 4 INDUSTRY ANALYSIS 2 4.1 Industry Attractiveness 3 4.2 Porters Five Forces Model 3 4.3 Industry Dynamics 4 5 INDUSTRY ANALYSIS OF MARUTI SUZUKI 4 6 MARUTI SUZUKI’S INTERNAL AND EXTERNAL ENVIRONMENT 4 6.1 Strengths, Weaknesses, Opportunities and threats 4 6.2 Maruti Suzuki Broad Environmental Forces 5 7 INDUSTRY ATTRACTIVENESS OF MARUTI SUZUKI 5 7.1 Bargaining power of customers: High 5 7.2 Bargaining power of suppliers: Medium 6 7.3 Existing competitors (rivalry’s): High 6 7.4 Threat of new entrants: Increase 6 7.5 Substitute Providers: Increasing 6 8 CONCLUSION 7 9 DECLARATION STATEMENT 8 10 BIBLIOGRAPHY 9 1 INTRODUCTION The purpose of this document is to critically explain what is meant by Industry analysis in context of the External environment. I will also analyse the attractiveness of the industry in which Maruti Suzuki is operating in. The analysis will be based on Porters Five Forces model which will comprise of looking at the power of buyers (Customers), the power of suppliers, existing competitors, potential competitors (threat of new entrants) and substitute providers (substitute products or services). 2 INDUSTRY ANALYSIS - A BROAD DEFINITION Osmond Vitez defines an industry analysis as a business function that is used to help organisations understand the market they are competing in and how this understanding can be used to gain...
Words: 2696 - Pages: 11
...appeal of this industry. We go through phases of what sports are trendy. • Seasonal o There is a high seasonal influence on consumer buying. Summer products typically cost less than winter products. Sales during offseason offset sales revenue. Winter sales are higher during the holidays and prices of the products are higher. • Physical o These companies are very aware of their carbon footprint. They are all based on the idea of being outdoors and care about how their production activities are affecting the environment. • Legal o As with many companies, these companies need to be sure they are following policies that abide by labor standards, for example, child labor laws, workers compensation, and labor training. Five Forces: • Threat of Substitutes o Substitute products pose no real threat, as they are not able to maintain the same level of quality and performance of the products within the industry. o Substitute Prices Customers might be attracted to the lower cost of products from outside the industry o Substitutes performance and quality Performance expectations cannot be met by the industries outside of our own. o No switching costs There are few switching costs for the customer, thus making it easy to substitute the product, although customers are not willing to do so because of the lack of performance from substitute products. Those products that are capable of satisfying similar customer needs but come from outside the industry and thus have different...
Words: 1348 - Pages: 6
...The Global Pharmaceutical Industry: Conduct an external analysis Introduction The pharmaceutical industry is described by high levels of risky and lengthy R&D process, tough competition for intellectual property, tighter government regulations and powerful pressures on buying power. (Johnson, 2006) In 2011, several blockbuster drugs patent like Lipitor will expire, possibly endangering the revenues of the pharmaceutical industry for the next three to five years. On the global level, the historical supremacy of the US was being challenged with the highest market growth rates recorded in emerging markets. The industry more than ever need to get a handle on the slippery business by offering a true step change in strategy. This case study will critically analyse the Global Pharmaceutical Industry with PESTEL, Porter’s five forces, SWOT analysis and plausible views of industry in the future. PESTLE PESTLE analysis used to help organisation to understand in depth that what is the current status of the organisation and the external factors which are effecting. It also helps to the Management to make strategy for the future and overcome the weak areas of the organization. PESTLE is comprises of political, Economical, Social, Technological, Legal and Environmental factors. Political The both policies (domestic and foreign) of government have a great effect on the industry innovation as compare to the other factors. To get the attentions of firms due to increase the economic...
Words: 2635 - Pages: 11
...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. Internal and External Environments Environmental scanning of the internal organizational environment focuses on company culture, employee-employee, manager-employee, and manager-manager, manager-shareholder interactions, in addition to organizational structure, natural resources’ access and brand awareness, among others (Schneider, 1995, p.70). Environmental scanning of the external organizational environment focuses on the analysis of the industry/immediate environment, national, and macro-environments. Analysis of the industry environment appraises the competitive Environmental Scan Paper 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. Internal and External Environments Environmental scanning of the internal organizational environment focuses on company...
Words: 1088 - Pages: 5
...Ryanair Strategic Analysis And Recommendations For The Future Ryanair is the first budget airline in Europe. Based on the case study of Ryanair by Eleanor O’Higgins, a role of a management consultant is assumed to conduct a strategic analysis on the company. The report consists of the initial Environment Analysis conducted on Ryanair prior to the detailed strategic analysis that will be conducted in the future in order to provide the company with strategic recommendations for the future. The Environmental Analysis conducted consists of both an extensive analysis on the external environment and the internal environment. The external environment analysis is conducted in order to identify the nature of the environment Ryanair operates in and its impact on the strategic situation of the company. Through PESTEL, External factor and Industry analysis conducted, rejection of Aerlingus offer and rules and regulations imposed by governments etc. are recognized as the critical external environmental factor affecting Ryanair’s strategy. An analysis of the internal environment through Value Chain model and SWOT analysis reveals the key issues hindering the strategic success of the firm; poor customer service and human resource problems. While this initial environmental analysis is used to assist the strategic analysis that is to be conducted on Ryanair, the importance of taking necessary actions regarding the critical issues is highlighted, CONTENT EXECUTIVE SUMMARY 1 CONTENT 2 1INTRODUCTION...
Words: 2334 - Pages: 10
...External Analysis of Starbucks 1 RUNNING HEAD: STARBUCKS External Environmental Analysis of Starbucks and the Coffee Industry Harold Brown Strategic Management MGMT 4340 Dr. Nwabueze March 3, 2011 External Analysis of Starbucks 2 Contents 1.0.0. Executive Summary ...................................................................................................................... 5 2.0.0. Company History ................................................................................................................................ 8 2.1.0. Background ....................................................................................................................................... 12 Table 1: Starbucks Revenue Trends 2005-2010 ..................................................................................... 12 2.2.0. Purpose of This Study ....................................................................................................................... 14 3.0.0. External Analysis .............................................................................................................................. 15 Diagram 1: The Components of a Coffee Firm’s Macroenvironment .................................................... 16 3.1.0. General Environmental Analysis ...................................................................................................... 16 3.1.1. Demographic Segment ...................................................................
Words: 20339 - Pages: 82
...merica Corporation. Assessment of the external environment of the financial services sector; an internal/external assessment of B of A.; a strategy assessment; and recommendations to the Bank of America on how to maintain and strenghen its competitive position. Paper Introduction: strategic Management analysis bank of america Introduction The report presents the findings of a strategic management analysis ofBank of America Corporation a financial services company that participatesin most facets of the financial services sector Bank of America is anationwide financial services company in the United States and the companyis the country's third largest banking company when measure by totalassets behind CitiGroup in first place and J P Morgan Chase in secondplace Hoover's Inc This report begins with an assessment of the external Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. Reliability in Service|.2 |3 |.6 |4 |.8 |3 |.6 ||Delivery | | | | | | | ||2. 8 |4 |.32 ||customer acquisition system | | | ||6. High-level of consumer awareness|.1 |4 |.4 ||3. Strong...
Words: 1815 - Pages: 8
...Linear Algebra Applied to Economics Input-Output Analysis Introduction: There are several non-mathematical subjects that linear algebra can be applicable too. Economics is a topic that linear algebra can be used to make a formal application, for example in Input-Output Analysis, econometrics, Game theory, and break-even point analysis. As a group we are going to be focusing on the Input-Output analysis, a type of analysis created for the purpose of describing and making predictions of complicated mathematical models using systems of linear equations. It was established by “W. Leontief, who won the 1973 Nobel Prize in Economics” (Hefferon, p.60). In this paper, mathematical and linear algebra formulas, calculations, graphs, diagrams, pictures, etc., will be clearly shown as to further understand the applicability of linear algebra in economics. Calculations and mathematical examples used in economics will be provided in the context of this paper for better understanding. Also, terms and notations used will be explained, derivation and origin of mathematical results will be shown. Definitions: Economics is a branch of knowledge concerned with the production, distributions, and consumption of goods and services. Linear algebra is a branch of mathematics with the properties of finite dimensional vector spaces and linear mapping between the spaces. The equations are represented using matrices and vectors and consist of several unknowns. Econometrics is branch of economics...
Words: 1271 - Pages: 6
...A gap analysis is performed to compare a strategy with the external environment and the internal environment, to see if there are any inconsistencies between the strategy and the environment. Therefore, the gap analysis is usually done by an organisation rather than an industry. So, for example, if Officeworks has the strategy of pursuing growth by being the best and cheapest supplier of office needs to the small business and home markets in Australia, then their gap analysis would be done to compare their internal environment with that strategy, and their external environment with that strategy. Therefore, they compare their capabilities, performance and key stakeholder expectations against that strategy to see if they are all consistent with it; if they find gaps, then they will need to decide what they are going to do to close those gaps. An example might be that Officeworks might not have the capabilities required to be the cheapest supplier, so they need to address those capabilities to improve that deficiency. They would also compare the remote environment trends they identified through their TEMPLES analysis of how the remote environment impacts on their business to see if they will get sufficient growth now and into the future, given the external trends and their strategy. Another external analysis is the Porter’s analysis of the industry environment, to determine the likely impacts on their profitability when pursuing that strategy going into the future. Again...
Words: 450 - Pages: 2
...Strategic analysis of Costa. Produce an individual strategic analysis of the above organization- Costa. Should use the secondary sources of information only. The strategic analysis should be written and structured in report style using an appropriate reference convention, table of convention, table of contents, list of figure, diagrams, appendices etc. This coursework is supposed to be structures as a report. Don’t explain what each model is about. Don’t discuss on the models. Just implement them for the company/ industry/ market you have selected, always trying to adopt the correct perspective for each one of them. THE REPORT SHOULD FOLLOW: Executive Summary: The last to write. In ten lines, summarize everything you have done in your coursework. Imagine that I am your manager and I don’t have time to read your report. In these 10 lines you have to make me understand what you have done in total. Introduction: Write a few lines about the company. What the company is about? What is the company’s size and area of activity? What is the vision/ mission/ main strategic goals of the company? In which industry(-ies) it belongs? Which market(s) it targets? Corporate Strategy is the Strategy shaped for the company as a whole. However, I am giving you the opportunity to choose just one market and/or one industry to analyse. For example, if you had to analyse ‘Samsung’, you could create a strategic review for Samsung as a globalized company (all industries and markets included)...
Words: 1098 - Pages: 5
...PepsiCo’s Five Forces Analysis PepsiCo’s world-wide success is related to its business capabilities, especially in overcoming the challenges and problem shown in this Porter Five Forces analysis. Michael Porter developed the Five Forces analysis model to determine the most significant external factors that influence Company. For PepsiCo to maintain its market rank as the second largest food-and-beverage company in the world, it must show the potential problems identified in this model. PepsiCo also needs to continually adjust its strategies to effectively respond to the external factors significant in the food and beverage industry competition A Five Forces model analysis of PepsiCo reveals that the companyshould prioritize the effect of competition and the influences of consumers and substitutes. These forces shape PepsiCo’s strategies.. Because of the global nature of its business, PepsiCo faces varying in external factors in its industry environment. However, the overall result of these factors and the corresponding that model are summarized as the given below , with indicators of the strengths of their forces of model on PepsiCo: 1. Competitive rivalry or competition 2. Bargaining power of buyers or customers 3. Bargaining power of suppliers 4. Threat of substitutes or substitution 5. Threat of new entrants or new entry Competitive Rivalry or Competition with PepsiCo (Strong Force) – The Coca-Cola Company is one of most PepsiCo’s...
Words: 974 - Pages: 4
...(Johnson et. al 2011). This requires good understanding of the externalinternal environment, organisational purpose and culture. The tools commonly used to develop understanding and perform a strategic analysis are presented in Appendix 1.0.This essay aims to lay the foundation for a comprehensive analysis of current strategic potential of Singapore Airlines (SIA). Firstly, the focus is on how to identify the sources of information about macro environment, unique features of airlines industry and in depth view of internal dynamics of SIA. Secondly, the focus is on comparison of four core tools in terms of relevance, advantages, disadvantages and creative adaptability for SIA. A preliminary application of these tools is made to illustrate the arguments for or against using a particular tool. The essay briefly touches on another crucial aspect of right expertise and competence for an effective analysis. The essay concludes with key observations and recommendations for a further comprehensive analysis of SIA.A simple structure is adopted in this essay as indicated in Fig 1.0 The airlines industry in general, with no exception of Singapore Airlines, has always been viewed as having certain unique features in terms its external environment. Johnson et al. (2011) describes the external environment in form of layers as shown in Figure 2.0. Environmental scanning is the acquisition and use of information about events, trends, and relationships in these layers(Aguilar, cited in...
Words: 1743 - Pages: 7
...asfasfsfsafsafsding PESTEL analysis to understand how the macro-environment factors affect the industry. Each single factor has the potential to fundamentally change the competitive Samsung operates in. Due to the fact that the mobile industry is easy to be influenced by external environment, the analysis is especially important for Samsung. As PESTEL is one of the frameworks that help to understand market growth or decline, business position, potential and direction for operations (Kotler, 1998). We hope that after reading this report, you will agree that PESTEL really affect how a company works. ing PESTEL analysis to understand how the macro-environment factors affect the industry. Each single factor has the potential to fundamentally change the competitive Samsung operates in. Due to the fact that the mobile industry is easy to be influenced by external environment, the analysis is especially important for Samsung. As PESTEL is one of the frameworks that help to understand market growth or decline, business position, potential and direction for operations (Kotler, 1998). We hope that after reading this report, you will agree that PESTEL really affect how a company works. ing PESTEL analysis to understand how the macro-environment factors affect the industry. Each single factor has the potential to fundamentally change the competitive Samsung operates in. Due to the fact that the mobile industry is easy to be influenced by external environment, the analysis is especially important...
Words: 461 - Pages: 2
