Stilsim Personnel Introduction - External Analysis

StilSim Personnel Introduction

Assignment 1-3: External Analysis

Charles F Grubb III

Franklin University

BSAD 495 F1WW: Business Strategy Capstone

February 28, 2016

External Analysis

        It is very obvious that StilSim is out of sync with the external forces surrounding us, and we are in direr need of an external analysis which will help us get to where we need to be in the months and years ahead. Analyzing the external environment is a critical step in recognizing and understanding the opportunities and threats that organizations face (Dess, Lumpkin, Eisner, McNamara, 2014, p. 34). It is my opinion that StilSim should focus on 3 out of the 6 general environment factors, and those three are demographics, technological, and economic which will significantly impact StilSim continued existence. StilSim must also keep an eye on the industry environment, what is the nature of competitors in the staffing industry and how do they directly impact our profitability? All of StilSim’s opportunities and threats lay with competitors both existing and potential, our customers, and suppliers. StilSim needs to use the above three factors in conjunction with three of Porter’s Five Forces. The three are the bargaining power of buyers (customers), the threat of substitute products and services (competition, and technology), and the intensity of rivalry among competitor’s. It is my hope that this examination will illuminate StilSim’s current external environment while outlining our opportunities and threats.

General Environment Analysis

The general environment demands a full understanding of demographical (who is serviced), technological (embracing digital business) and economic factors if StilSim wants to advance in this industry. This can be done simply by understanding the trends currently at play in this industry, this will vastly increase opportunities for StilSim to improve profits, and business in the environment.

Opportunities & Threats

 StilSim has missed many opportunities that would have kept the firm in step with the industry. Somewhere along the way StilSim has lost sight of the fact that change is what drives markets and organizations to evolve so they can remain effective and relevant. This has resulted in StilSim failing to formulate effective business strategies because they completely ignored the value of change in this environment. Furthermore, StilSim has an opportunity to acquire Capital Staffing and enter into new business areas which it currently does not service.  

Threats are ever present, and StilSim must be aware of them all so that it can ensure strategies are implemented to mitigate or eliminate threats to its market. Current threats that are facing StilSim are clients defecting to other organizations due to our apparent indifference, competitors filling more positions due to the use of technology, and lower fees, all things that are appealing to those seeking the services of a staffing organization. Another threat is the migration of qualified workers and their families to the suburbs, leaving aging individuals in the metropolitan region. The aging populace of Capital City are mainly interested in part-time employment, while our clients are looking for permanent fills. Threats will creep up and overwhelm a business before they know what has happened, and this is what is happening to StilSim.  There is still time to turn this organization around but time is running out.