Environmental Analysis Essay Paper.
The process of developing a strong and viable business strategy is fundamental to the
overall productivity of the business. The presence of diverse business matrices and models serves
as a reliable way of analyzing the performance corporation within a particular industry. This is
because the internal and external environments both pose serious threats to profit margins and if
they are not scaled down can severely affect the viability of a business. Environmental Analysis Essay Paper. This means that the process of understanding the macro and micro-environmental factors is important because it can
forecast the changes that may affect the company. The SWOT model is a vital tool that is used
in identifying the focus of the firm based on its strengths, weaknesses, threats and opportunities.
It acts as a useful guide in identifying the positive and negative factors that can affect the internal
and external affairs of an organization. The same case is true for the PESTEL model that is
instrumental in highlighting the direction that the company should take in terms of decision
making and strategic planning depending on the prevailing external environment. This paper is
an essay that makes use of the SWOT and PESTEL models to analyze the internal and external
environment of a provided company case study. Environmental Analysis Essay Paper.
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Essay Task
Using the attached case study, conduct an environmental analysis of both internal and
external factors and apply both SWOT and PESTEL Models during your discussion. Include a
number of concepts and theories when analyzing the case study.
Body of the Essay
The success and overall performance of any business organization is directly influenced
by the factors that operate within both external and internal environments. The strategies that are adopted by the company can be used to manipulate these factors so that they can be
advantageous to the firm (Dockalikova and Klozikova, 2014). Stag International is one of the
many companies in the current business world that is facing a huge dilemma when it comes to
making sure that its ventures remain afloat. The firm has for a long time enjoyed being the
leading manufacturers of sporting gear and other goods within India and other neighboring
countries. Environmental Analysis Essay Paper.
This trend has been maintained for over ninety years and has been jointly operated by the
same family lineage. However, the business is presently experiencing troubles that emanate from
the fact that the trends and customer preferences have constantly changed and evolved over the
years. One of the elements that characterizes the world of business is change and it is
experienced in all aspects from management, leadership, customer satisfaction as well as
consumer behavior (Issa et al, 2010). The dilemma that is facing Stag International can be best
explained by analyzing the internal and external environment through the use of both the SWOT
and PESTEL models. Environmental Analysis Essay Paper.
The process of conducting a SWOT analysis on any business or company aims at
changing the profitability of the firm and giving it a new dimension to take (Jabłoński, 2015).
For Stag International, the SWOT tool can greatly help in developing a robust strategy that
considers all the strengths, weaknesses, threats and opportunities of the business. One of the
strengths of this Indian based firm is the fact that it is a household brand within its country. This
means that it has been able to establish a close connection with its customers who have already
become accustomed to their brand of sporting wear. Further, its humble beginnings also
contributed greatly to ensuring that it gained a larger share of the market where its earnings have
mushroomed over the years.
These strengths can be used in shaping a future strategy that should ensure the business
regains its position in the industry. However, its weaknesses may pose a serious challenge and
they should be addressed so that normal operations in Stag International can resume. One of the
weaknesses of this sporting business is the fact that it has used the same strategy of operation for
a long period of time. This is despite the fact that there have been drastic changes that have been
witnessed when it comes to fitness awareness and even lifestyle trends among most Indians
(Verboncu and Condurache, 2016). What’s more, the fact that there were more people who had
become educated on the benefits of staying fit and had not known about what Stag International
has to offer makes this another serious weakness. Environmental Analysis Essay Paper.
Additionally, the economic turbulence that hit the continent of Europe was seriously
affecting business considering the fact that this was the largest export destination of the firm.
These weaknesses align themselves with the threats being posed to the firm with the major one
being the introduction of other retail companies that also deal in the sale and manufacture of
sports gear. Further, the lack of diversification in the product lines of Stag International is
another threat that is leading to its serious dilemma.
The lack of a wide range of goods to choose from could be making customers shy away
from making purchases from this company. Hence, this can be converted into an opportunity
where the firm should consider selling a bigger and wider variety of sporting goods. They should
not limit their sale to selling goods of a particular sport such as tennis, swimming, football or
even hockey, but they should also consider introducing a line of gym wear for the average Indian
who simply wants to kip fit. If Stag International follows the results of this SWOT analysis, then
it is bound to take control of its internal and external environment. Environmental Analysis Essay Paper.
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Likewise, the PESTEL model is a vital business tool that is valuable when it comes to
conducting a detailed analysis of the immediate macro and micro-environment (Kozlinskis,
2008). This tool also doubles up as a marketing concept that is used to evaluate the political,
social, economic, legal and technological factors that directly impact on a business (Santos and
Laczniak, 2015). Stag International is bound to be affected by the political climate in India
especially if there is any incidence of instability. Political tension can be detrimental to business
since most customers and potential investors pull out for fear of running into losses. Environmental Analysis Essay Paper.
Perhaps this could be one of the reasons why the firm is not doing well due to the
previous and current political situation. Further, the legal factors also have the potential of being
influenced by politics since they deal with how a business should be operated and the rules,
regulations and policies that govern it (Litavniece and Znotiņa, 2015). Hence, if the government
imparts rules that are stringent on a business, there is no way that is can be productive.
Moreover, issues of taxation and remittance of revenue are covered under legal factors and they
may significantly reduce what the firm is making on a monthly or annual basis.
The PESTEL model also takes into consideration the technological factors and how
innovation and advancements in the same can change the course of a business (Lyman and
Smith, 2015). In the case of Stag International, technology has created more dilemmas since the
management does not seem to understand how trends and lifestyle has changed so fast. They do
not seem to comprehend that the internet is responsible for the spread of information such that
customers and potential buyers can communicate from any corner of the globe. Environmental Analysis Essay Paper.
Hence, the firm should use this technology to its advantage and study what customers
prefer, their needs and even their expectations. Further, they should also take time to learn about
how change in purchasing behavior comes about and the results should be used to re-invent the firm. It is in these same lines that the economic factors should be considered since they
determine how much a business is able to make in a given time frame. Specifically, the foreign
exchange rates, inflation, unemployment and even disposable income are some of the factors that
can affect Stag International (Verboncu and Condurache, 2016). This means that the PESTEL
model covers the external environment in an extensive manner and this Indian based firm can
use it to solve the current predicament that it is facing. Environmental Analysis Essay Paper.
Conclusion
The process of understanding the macro and micro-environmental factors is vital to
making accurate forecasts and predictions that may affect the company. The macro-environment,
mainly deals with the external forces that cannot be controlled directly by the company. Hence,
the organization is normally forced to manage this form of the environment so that it can be a
source of benefits and advantages. On the other hand, the micro-environment deals with the
internal factors that a company can control directly. This means that the manipulation of the
micro-environment is entirely the responsibility of the company and they are the ones to decide
how to implement these factors. THE SWOT and PESTEL models have been used to analyze the
plight of Stag International and how business can be revamped if all the considerations and
recommendations are strictly followed. Its external and internal environment is within India and
the additional market regions and these tools would come in handy in ensuring that Stag
International stays ahead of its competitors. Environmental Analysis Essay Paper.
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References
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Significance of PESTEL Analysis Criteria.Proceedings Of The European Conference
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Issa, T., Chang, V., & Issa, T. (2010). Sustainable Business Strategies and PESTEL
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Jabłoński, A. (2015). Technology Business Models in a Network Environment. International
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Kozlinskis, V. (2008). Evaluation Of Business Macro Environment: Case Of Economic
Slowdown. Journal Of Business Management, (1), 30-34.
Litavniece, L., & Znotiņa, D. (2015). External Business Environement Problems And
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Lyman, P., & Smith, S. W. (2015). Into The Black With Blueberries: To Buy Or Not To Buy–A
Business Analysis Case Study. Journal Of The International Academy For Case
Studies, 21(6), 291-302. Environmental Analysis Essay Paper.
Santos, N., & Laczniak, G. (2015). Marketing to the poor: A SWOT analysis of the Market
Construction Model for engaging impoverished market segments. Social
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Verboncu, I., & Condurache, A. (2016). Diagnostics Vs. Swot Analysis. Review Of International
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