MGT 498 Environmental Analysis Paper

Environmental Analysis Paper

Write a 1,050 word paper in which you complete the following:

  • Research and describe the internal and external environments of 2 to 3 real-world companies using an environmental scan.
  • Determine what competitive advantages each company has and what strategies each company is using.
  • How does each company create value and sustain competitive advantage through business strategy?
  • What measurement guidelines is each company using to verify its strategic effectiveness?
  • How effective are the measurement guidelines that each company is using?
 
  • Student: April Cangrejo
  • Textbook: Fundamentals of Strategic Management
  • Course: MGT 498
 

Samsung Environmental Analysis

Internal environment

Samsung being the strong name has large network distribution and selling compared to other mobile phone company in the world. It is user friendly product with high quality having strong finances which make it possible to make innovations easily. The financial aspect of Samsung is strong, making it as the profitable business. Samsung has high range of products which is attractive for the customers. The price of the product is the main issue. Some of the Samsung products are not user friendly which didn’t get success in the market. The service centers in India are very few and the after sales services are not good. Most of the models are heavy in weight and are difficult to handle.

 External environment

Telecommunication market is growing rapidly. Therefore, Samsung has an opportunity to increase its sales as well as the market share. As there is increase in the purchasing power of the people, Samsung has to target right customer at right time to gain the most out of the situation. They also have the opportunity to enter in the 3G market and can increase growth rate by reducing profit ratio. Samsung has to tackle in maintaining its position as market leader. More competitors entering in the market is a big threat for Samsung.Samsung has to make strategies to tackle down the problems in the present and thenear future. Some competitors offer products at low prices and as the economy is falling down the customers are getting more attracted towards the products of low prices.

Facebook Environmental Analysis

Internal environment

Facebook Inc (Ticker Symbol: FB) generally aims at creating value and competition that sustains for the company in attaining great profit maximization levels. Through the following internal competitive environments, Facebook Inc remains at the top in the social media market. The strong brand image that the company portrays to the rest of the public leads to strong relationships between the company and the consumers. The organization has the tendency to focus on research and development by creating an avenue where new products are brought in the market thus unveiling the fresh commodities in the market

External environment

Facebook Inc is the company with the strong brand name. These are the elements that affect the organization and its operations that exist outside the company. One of the major external factors that affect the operations of Facebook Inc is the fast expansion of e-commerce in the business realm. The company will hence have internal adjustments of its systems so as to keep up with the changing e-commerce. Facebook Inc interacts with its external environment to accomplish it set goals.

Competitive Advantages and Strategies each Company is Using

The telecommunications in market is highly competitive for Samsung Company. In the future, telecommunications and information technology as well as different media technology applications, will merge together. Therefore, Samsung is seeking differentiation strategies which build on its current strengths and include its high frequency technology expertise by focusing on consumer requirements. Whereas experts suggest that Facebook’s competitive advantage in the near future in the face of new smart phones from Blackberry and others which miss the point. The strategy of Facebook is to maintain a great success with its ability to understand the consumer wants and through effectively creating an innovative and unique design which is stylish, user friendly and affordable.

Creating Value through Business Strategy

Samsung company create value and sustain competitive advantage  through business strategy with some team that has got different mode and style of working which may not be applicable to the team and the leaders of  FACEBOOK. Whereas, Facebook company  create value and sustain competitive advantage through business strategy  that becomes imperative  to first study it resources, team perceptions, style of working , change in management, company culture and facilities, employee level of achievement and its product sale in market.

Measurement Guidelines for Strategic Effectiveness

The measurement guidelines Samsung company use to verify its strategic effectiveness company has resulted in a networked company that emphasizes the speed and flexibility in decision making. Samsung’s values include customer satisfaction and engaging with all stakeholders, including employees trust, share, working in formal and informal networks and by understanding that how the company business impacts people and the environment. Continuous learning provides employees with the opportunity to develop them and to stay technologically current. Employees are encouraged to share experiences, take risks, and learn together.( Porter and Goold et al., 1996)

The measurement guidelines Facebook company use to verify its strategic effectiveness. Facebooks marketing strategy effectiveness is very strategic. Facebook products give a good summary of Facebooks marketing strategy and consumer base. It seems that Facebook has put in place a number of strategies to establish customer loyalty, which is every business’ goal. But to a certain extent these strategies may seem too constrictive to their consumers.

How effective are the measurement guidelines that each company is using?

The measurement guidelines that Samsung Company is using by continuous learning means that employees support each other’s growth, and improving relationships through the exchange and development of ideas. It also helps to provide employees with the freedom to choose the best possible time and place for personal development. Hence in order to go global the cell phone manufacturer has ensured that its designs are globally marketed. The strategy of becoming and going global is easily seen in Samsung’s marketing efforts.

The measurement guidelines that Facebook products seem to use are to be fully loyal and dedicated to Facebook products which may scare the uncommitted consumer. Facebook has a perfectly global strategy design especially in the growing markets and the emerging market economies. The global strategy is clearly seen in the way it dominates the global cell phone market.  The convenience of the huge memory space and the Apps  which Facebook afford make it easy for the e reader to browse books on the mobile phone .As most Facebook products complement each other, consumers are forced to stick to Facebook products which they may not be comfortable with due to other preferences or economic reasons.

 

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