Stilsim External Analysis

StilSim Personnel Introduction

Assignment 1-3: External Analysis

Ashley Coughlin

Franklin University

BSAD 495: Business Strategy Capstone

April 13, 2016

External Analysis

        As a current employee of StilSim, it clearly shows that the firm is not in line with the external environment that we are surrounded by. The use of this external analysis will prove vital to bringing the firm to where we need to be in future months and years. One must be able to understand what an external analysis entails. There are two pieces to the frameworks of the external environment and the first consists of the general environment such as demographics, technological, and economic segments. The second piece of framework includes the industry environment such as competitors and other organizations that may threaten the success of StilSim’s products and services. The general environment could definitely affect on StilSim. The frameworks go hand in hand with the competitive environment, which relate to the firm’s strategy. The firm’s competitive environment may include competitors (both existing or future), customers, and suppliers. It correlates alongside Porter’s Five Forces and out of the five, I believe StilSim needs to assess the bargaining power of buyers, the threat of substitute products and services, and the intensity of rivalry among competitor’s in the industry. (Dess, Eisner, Lumpkin, & McNamara, 2012). The reason for this analysis is to show how the SWOT analysis will outline the two components of the external environment alongside with outlining the opportunities and threats for each.

General Environment Analysis

As I stated in the introduction of the analysis, the biggest general environmental factors will include the demographical, technological and economic segments. Fully understanding how these factors will affect StilSim in addition to portraying some of these as an opportunity could help StilSim immensely advance within the industry. The complete idea of the general environment part for StilSim is to understand what is happening in the area completely and fully. By understanding what is happening is around StilSim, we will have the opportunity to increase our profits and business from the external environment.

Opportunities.  

        StilSim employees have a number of opportunities, they just seem to be not taking advantage of them. An opportunity that StilSim could take advantage of is to focus on what is happening in the market and applying strategy to correlate with demands of the needed changes. Capital City is also for sale, and the opportunity is there for StilSim to purchase the firm, putting StilSim into a new industry that they are not currently in.

        Demographics.  

        The general environment segment is important for the firm to understand so that we can place clients in the right positions. Stilsim needs to be fully aware of an aging local populations, and cater to the employment needs for individual from the baby boomer age. StilSim has the opportunity with companies that have more available employment options for clients  in different locations throughout the state. Our firm should take into consideration the demographics of the organizations that we hire clients to work for. If more and more people are moving away from the local areas that StilSim currently operates in, we could possibly open a branch in the local area to help bring in clients that don’t live in StilSim’s currently area of operations.