External and Internal Environment Analysis - 2372 Words

Big 5 Sporting Goods External and Internal Environmental Analysis Big 5 Sporting Goods (Big 5) has operated within the sporting goods industry, predominantly in the western United States, for over 50 years (Hoovers, 2013). To understand the organizational structure and strategic path chosen by Big 5, it is critical to analyze various factors found within its external and internal environments. Big 5’s external environment includes remote, industry, and operating factors whereas the internal environment includes human capital resources and organizational structure factors. Ultimately these external and internal environmental factors provide opportunities and threats that help to develop and alter generic and grand strategies to meet Big†¦show more content†¦Ultimately understanding and analyzing the effect of each remote environmental factor will allow Big 5 to implement targeted strategies to capitalize on opportunities and minimize threats. Industry Environment Industry environment pertains to how an organization copes with the five basic forces that shape the competitive market in which it operates. How these forces relate to each other will determine the competitive nature of the industry and control how much profit can be made. In a perfectly competitive market, where new entrants are fairly consistent and lack barriers, the likelihood of long-term profits is low. This is seen in such industries as plastics and rubber. The five basic forces consist of suppliers, buyers, new entrants, substitutes, and industry competitors (Pearce, Robinson, 2011). Big 5 Sporting Goods industry environment starts with determining the possibility or ease of new entrants into the market. The ease of the market depends on how many barriers exist for entrants. There are six major sources of barriers, the first being economies of scale. Economies of scale allows Big 5 to purchase a large quantity of a product at a reduced per item cost. This in turn allows them to sell that product at a competitive price in the market. This creates a capital barrier for new entrants. An organization would need a significant amount of capital to take advantage of the economies of scale and stay priceShow MoreRelatedExternal and Internal Environment Analysis1429 Words   |  6 PagesRunning head: EXTERNAL AND INTERNAL ENVIRONEMNT External and Internal Environment Analysis Bharti Gupta University of Phoenix External and Internal Environment Analysis: Mayo Clinic The purpose of this paper is to analyze the External and Internal environmental factors of Mayo Clinic (MC). Mayo Clinic is a nonprofit worldwide leader in medical care, research and education for people from all walks of life (Mayo Clinic,  2011). Various types of external and internal factors affect theRead MoreExternal and Internal Environment Analysis1565 Words   |  7 PagesExternal and Internal Environmental Analysis This environmental analysis will provide a complete external environmental scan designed to provide RoyalBlu Invites with the tools needed to identify the organizations strength and weaknesses. Furthermore, including an assessment of the company resources. This analysis will assess the organization competitive position and possibilities of growth. An explanation of how the external environment affects RoyalBlu Invites structure and organizational performanceRead MoreInternal And External Environment Analysis Essay1260 Words   |  6 Pagesbusiness strategies, organizations must thoroughly analyze both the internal and external environments in which they operate (Hill, Jones, Schilling, 2014, p. 11). 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The first external factorRead MoreExternal and Internal Environment Analysis Essay1101 Words   |  5 PagesExternal and Internal Environmental Analysis DSW is the leading footwear specialty retailer in the United States operating 305 shoe stores in 39 states as of January 30, 2010. The shoe warehouse offers a wide assortment of better-branded dress, casual and athletic footwear for women and men, as well as assessories. The company’s main focus is to create a distinctive shopping experience that satisfies both the rational and emotional needs of DSW customers by offering a vast, exciting assortment ofRead MoreAnalysis of Subways internal and external environments2247 Words   |  9 PagesIntroduction This essay will analyse the organisation Subway’s internal and external environments and their impacts on this organisation. This will include a swot analysis on resources and capabilities which are a part of the internal environment and on customers, suppliers, competitors, pressure groups, economic, political, technological, natural environment and emerging trends in the external environment. â€Å"A SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses, andRead MoreInternal Analysis And External Environment Assessment1869 Words   |  8 Pages1) Internal Analysis and External Environment Assessment Industry’s Dominant Economic Characteristics Market Size: Annual sales revenue for 2014 according to NASDAQ $68,775,000. Scope of Competitive Rivalry: Global for Comcast and NBC Universal. Market Growth Rate: According to NASDAQ 11.21% over the next five years. Stage in Life Cycle: Residential Area = Mature, Small and Medium Business Area = still growing and the Enterprise (Ethernet Area) = Early development rapid growth. NumberRead MoreInternal Analysis And External Environment Assessment1865 Words   |  8 PagesI. Internal Analysis and External Environment Assessment Industry’s Dominant Economic Characteristics Market Size: Annual sales revenue for 2014 according to NASDAQ $68,775,000. Scope of Competitive Rivalry: Global for Comcast and NBC Universal. Market Growth Rate: According to NASDAQ 11.21% over the next five years. Stage in Life Cycle: Residential Area = Mature, Small and Medium Business Area = still growing and the Enterprise (Ethernet Area) = Early development rapid growth. NumberRead MoreCompany s External And Internal Environment Analysis1387 Words   |  6 PagesExecutive summary The main purpose of this paper is through the company s external and internal environment analysis to evaluate the company in the industry and future developments. Assess the external environment mainly through PESTLE Analysis and Porter s 5 Forces. Strategic Recourses Capability Analysis for internal environmental assessment is conducted. Finally, the company somehow SWOT analysis, concluded †¢Ã¢â‚¬ ¢Ã¢â‚¬ ¢Ã¢â‚¬ ¢ This article mainly refer to the company s annual financial reports, industryRead MoreSwot Analysis : The Internal And External Environment Of A Firm1658 Words   |  7 Pages1. SWOT analysis is a technique to analyze the internal and external environment of a firm. What are its advantages and disadvantages? SWOT provides a useful starting point for improving firms and better positioning them for success. However, SWOT is a limited technique with at least 4 problems. First, SWOT may identify strengths, but these do not always translate into competitive advantages. To generate competitive advantages, firms have to understand the source of their strengths and focus resources