ipl-logo

Importance Of External Environment Essay

904 Words4 Pages

Section 1: Importance of external factors affecting an organisation

1.0: It is crucial for managers to understand this aspect that no business is insulated from the outside environment. Businesses exist and are surrounded by certain environment and factors from their environment have an effect on their organisation. The environmental domain for example has few key factors which can affect the organization like competition within related industries or in global context also. Customer preferences can change; even demographical changes can have huge impact on a business. Resources like skilled workers, availability of raw materials, availability of capital and technology are some other key external factors which can change and if the managers are not aware of these factors in their external environment, they may well be caught unaware and unready for changes that affect their organisation. …show more content…

This is fundamental because if their competitors are gaining market share it can be at their expense. Any competitor in the same sector gaining more market share means that someone is losing their share. Likewise, its important for managers to look for ways to increase their respective businesses ' market share. Knowledge of what the competition is doing in terms of sales promotions, product mix, general pricing, customer service initiatives, and more, will help a business ensure that they have programs and policies in place to compete with their competition. Consequently, they are protecting their market share as best they can and even working to increase their market share by trying to stay one step ahead of their

Show More
Related

Str 581 Week 1 Case Study Magnolia Brands External Environment

920 Words | 4 Pages

When you factor in an external environment you dela with what can happen and influence the company from a outside point of view. Such as social, legal, and economic factors. In this case the company market ventures, source of revenues and new customer base is the components that will impact their ability to achieve their vision. Major competitors

Read More

EGT1 Task 4

1194 Words | 5 Pages

Thus, it is essential to keep these types of stakeholders in consideration (Hobohm, 2004). • Intensity of Competitive Rivalry: The competitive advantage by the help of the new ideas formation such as advertising level, strategies, sales growth ratio, transparency etc are the essential parts that are required to be analysed deeply. This includes the stakeholders such as employees, authority members, bank

Read More

Hcs/404 Week 3

537 Words | 3 Pages

2. Knowing one 's market share is important because

Read More

Why Is It Important To Btec Business Level 3 Unit 1 D1

2682 Words | 11 Pages

Competitors might to be concerns for businesses however competitors are important as it will show the strengths and weakness of a business and it will drive businesses to become better than others within a market. The competitors will influences the key customers to the business as they’ll be different businesses offering the similarly goods and services to your business within the market from this is will show which customers who are the most loyal to the business and these are the type of the customers that the business need to look out for because these customers will make the business

Read More

Btec Business Level 3 Unit 5 P4

1809 Words | 8 Pages

When developing a new product or service to sell to the public, it is good for a business to consider whether there is a market. If there is, it could determine if the product or service will be successful. It is likely that businesses will have competitors within the same market competing to sell their goods to customers as well. Market Share:

Read More

Essay On Lowe's

1235 Words | 5 Pages

The best way to stay ahead of the competition is to ensure that whatever they are doing in the market reflects something that you are doing to drive there. Competition is necessary since without competition you can grow stale and not develop a product or service that pushes the organization to its fullest potential. An increase in the rivalry can occur when it does not cost the customers a much money to change which competitor they shop with (Bethel, 2017). The customer ultimately has the option to sway how businesses compete since the goal is for the customer to spend their money in their stores either in person or online. If they can present a better product or shopping experience, then the customer could easily shop with them since the cost would be a

Read More

Trader Joe's Case

1669 Words | 7 Pages

Introduction Re-invention and targeted approach towards achieving competitive advantage were the key strategic actions taken to make Trader Joe’s (TJ) from a glorified regional convenience store to a nationwide specialty retailer, and that might just be the most important thing in the supermarket business. The footprint of this success lies in the efficient utilization of the company’s resources and their unique capacity to deploy its resource and capabilities(BB835). The result of such unique circumstances helped TJ to stay far ahead of its competitors in terms of customer satisfaction and brand loyalty. This TMA proposes that, through a company’s resources and capabilities TJ managed to imitate Key Success Factors (KSF) that created value,

Read More

Competitive Advantage Of State Street Company

1196 Words | 5 Pages

To do this it needs to have a competitive advantage over its its rivals. A competitive advantage is something a company does better than its rivals that gives it an advantage over its rival. Porter (1988) states that a firm performs many activities that can contribute to a firms relative cost position and create a basis for differentiation which can create a cost advantage that gives a firm a competitive advantage over its competitors. A company’s competitive advantage and competitive strategy are both interrelated. Competitive strategy is defined by Porter (1980) as a broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out those goals.

Read More

Competitive Case Analysis Of Wilkerson's Company

1770 Words | 8 Pages

Now, like any other company out there in the corporate world, they all come across a point in business where they face a competitive situation, due to either their product line, pricing, or their financial system. According to our

Read More

ASOS Business Model

1495 Words | 6 Pages

It can be said that by means of organisation’s competitive strategy, it can achieve an upper hand in the business market over its rivals. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. An efficient strategy can help an organisation to achieve an upper hand through commitment to its strategic objectives and the capacity to significantly expand execution and profitability (Bartlett & Ghoshal,

Read More

Globalization Impact On Nike

1083 Words | 5 Pages

Competition shakes off complacency. If your company is consistently trying to improve and innovate, your employees will be encouraged to push themselves. In the business world today , companies can get information and research about there competitors easily due to high level of technology and internet access. Seeing what your competitors can do can educate about how to be more successful. Their practices will give you valuable insight into the market and how to come out on top against your competitors.

Read More

Industry Competition: Michael Porter's Five Forces Model

2124 Words | 9 Pages

It notes that stiff competition can reduce the potential profit of like companies. Firms must determine the strategy that will be utilized to gain and maintain the upper hand in the industry, as it relates to price, marketing, competition and the introduction of new and innovative products into the market. The more a company senses competition the intensity of its strategy may increase as it does not only respond to other firms, but also to the industry as a whole. It is natural for firms to respond to competitive moves made by its rival as it will have an effect albeit positive or negative on the industry. Firms may be forced to supply the demands for cheaper but more reliable products or to create differentiated products to maintain the competitive

Read More

4p Case Study The 4ps Of Apple

877 Words | 4 Pages

1. When a company is formed, it either grows more and more to reach its maximum or it dies due to different reasons/ situations. Building a marketing strategy is vital for every firm. It is very important to set a certain path from the very start to ensure company’s growth and sustainability. In this case, Apple was able to build a competitive advantage and prosper because of its marketing strategies that were set to face various challenges.

Read More

Examples Of Contingency Theory

1080 Words | 5 Pages

What one does, is dependent on the situation. The situation can depend on internal or external contingency factors. Internal contingency factors include tasks, technology, structure, and people. External factors on the other hand comprise of economic factors, technological factors, political factors, and socio-cultural factors. Contingency theory declares that when managers make a choice, they have to take into account all aspects of the present situation and perform on those aspects which are keys to the situation at hand.

Read More

Importance Of Environmental Education Essay

1316 Words | 6 Pages

Introduction: Our earth is the most precious gift of the universe. It is the sustenance of ‘nature’ that is the key to the development of the future of mankind. It is the duty and responsibility of each one of us to protect nature. It is here that the understanding of the ‘environment’ comes into the picture. The degradation of our environment is linked with the development process and the ignorance of people about retaining the ecological balance.

Read More

More about Importance Of External Environment Essay

Related Topics

Open Document