SWOT Analysis for Business Environment
Added on 2020-02-05
16 Pages4554 Words166 ViewsType: 166
Business DevelopmentLeadership Management
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Business Environment
Table of ContentsIntroduction .....................................................................................................................................3Task 5 ............................................................................................................................................31...................................................................................................................................................3Five force Analysis.....................................................................................................................32...................................................................................................................................................7Assets and competencies of internal environment......................................................................73...................................................................................................................................................9Conduct a SWOT analysis for Nike............................................................................................9CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................12
·Introduction The business environment is all about the external and internal factors which deals withthe employees, customers, business management demand of the products and various rules andregulation which affect the functioning of business environment and profitability. The social,political, technological and some factor which affect the whole economy with the organizationor some factors which are directly associated with the organization like demand, supply,distribution etc. these factors are external factors(Whittington, Delaney, 2011). Factors likeinternal operational threats, potential opportunities leadership quality, which are the internalfactors and can be controlled but it has a crucial rule in organization growth. An organizationcan control these factors, if these factors inside and outside of the organization. It become verybeneficial. Every organization has a mission and a vision that can never be achieved by ignoringthese factors of business environment. From this project it is understood that businessenvironment effects on the business bodies. This report also makes us aware and clear theconcept about the role of business environment. ·Task 5 ·1.·Five force AnalysisFive force analysis of Nike helps in the most significant factors which helps in shapingthe strategies of company. Five force model helps in analysis so that they can do the properunderstanding within the external factors on the business. This model helps in managing thecompany which helps in retaining the leading position in the international industry environment.the forces of the external factors which is included in the five force analysis so that they canremain among the strategic consideration of Nike(Aas, Pedersen, 2010). By this model companycan identify the competitors in the market and the price of the product of competitor which willhelp Nike in attaining the targets. In the five force analysis of Nike of the external factors so thatthe entity can determine the strength and weakness of the different forces which impact theperformance of company. It helps the company in making the correct decisions so that they canmanage the strategy and by that the entity can make the new and innovative products. Thismodel helps the entity in increasing the perceived value to the consumers which is very
important and necessary for the future success of Nike by which they can enhance the growth. Ithelps in attaining the success in the competition and have to revised the overall structure of theindustry which helps in taking effective decision making(Twyman, 2010). Porter's five forcemodel is help the entity in attaining the success at the time of high competition and potential ofgrowth. This model is classified into five parts which includes :-AXISForceDescriptionCompetitive rivalryStrongCompetition determines that they have tomaintain the share of the sports footwear market. This element of five force analysis helps inidentifying the factor which influence the environment of industry and the performance of theemployees. The external factors which create a strong force in the competitive rivalry of Nikeincludes low market growth rate, high aggressiveness of firms and the limited number offirms(Agarwal, Selen, 2011). This model helps Nike in attaining the success in high competitionand they have to focus on market and product development so that they can attain the maximumshare in the market. In the market there is low market growth rate which is due to the firmswhich is high market penetration and the market saturation which helps in attaining thesuccess(Storey, Kahn, 2010). Bargaining power of buyerModerateConsumers of Nike affect theperformance of business and this model helps in determining the business competitiveness andthe environment of industry. In this they are having the low switching cost, moderate substituteavailability and small size of individual buyers(Chen, Tsou,Huang, 2009). In the market Nikehave a small sized of the individual consumers by which they can minimize the individual forceon the company. The external factors of the entity which leads to the moderate bargaining powerof consumers. Bargaining power of supplierWeakSuppliers affect the business which helps in theavailability of raw material(Rogers, 2016). The element of five force analysis which helps intackles the influence of the suppliers on firms and the environment of industry. They are havingoverall supply which is high and supplier population which is large in number and the amountof individual suppliers is of moderate size. The staff members of Nike have to minimize theaffect the individual actions on the business of Nike. The elements of five force model helpsNike in improving the weak points so that they can attain the success in the bargaining power ofsuppliers(Brinkman, Navarro, Harper, 2014). Threat of substituteModerateSubstitute is the mostsignificant threat which helps in the improvement of Nike along with this they are also helpful inincreasing the performance in the competitive market. It is the important and essential elementof five force model by which Nike can identify the force of substitution on the business and the
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