Report on Environmental Analysis Business
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MAJAN UNIVERSITY COLLEGE
Added on 2020-05-03
Report on Environmental Analysis Business
MAJAN UNIVERSITY COLLEGE
Added on 2020-05-03
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Running head: FOUNDATION BUSINESS STRATEGYFoundation Business StrategyName of the Student:Name of the University:Author Note:
1FOUNDATION BUSINESS STRATEGYTable of ContentsIntroduction......................................................................................................................................2Evaluation of the Trend in the Macro environment (PEST Analysis).............................................2Competitive Environment Analysis (Porter’s Five Forces Model).................................................6SWOT Analysis...............................................................................................................................8Conclusion and Recommendation.................................................................................................11References......................................................................................................................................12
2FOUNDATION BUSINESS STRATEGYIntroduction Environmental analysis is the systematic process through which the business marketersidentify the business environment. The location of the business operations are often surroundedby enormous challenges posed by the potential competitors, political factors, and otherenvironmental issues. It is thus essential to conduct the complete market research prior toestablish the business or develop any initiative. The utilization of the simple framework for theenvironmental analysis would be fruitful for the business marketers. According to Matzler,Veider and Kathan (2015), the simple framework used for the presenting the environmentalanalysis helps in understanding the business environment more precisely. It not only identifiesthe external business environment, it generates the ideas about the relevant strategies to be usedfor the business to cope with such environment (Angulo-Ruiz et al. 2014). It is essential for abusiness manager to manage the basic step to analyze the external environments. Firstly, theenvironment is needed to be scanned for identifying the major factors that create influence onbusiness. Secondly, each of the factors is required to be monitored and culled. Thirdly, it isessential to understand the impacts of these factors on the business functions (Perlow and Kelly2014). Finally, the complete forecast of the scenario is needed to be presented for identifying thenecessary strategies to be implemented further. Accordingly, the study would present the strategic analysis of Best Buy Co., Inc., whichis a renowned electronics retailer company operating in the global environment. The study wouldpresent the PEST analysis to recognize the environmental feasibility to operate the electronicbusiness. The study would also discuss the global competitiveness by using the porter’s fiveforces model. The identification of internal strength and weakness of the company would also bepresented in this study. Accordingly, the preferable recommendations would be presented in thisresearch paper. Evaluation of the Trend in the Macro environment (PEST Analysis) Best Buy Co., Inc., is a electronic retailer company that offers the commendableelectronic services for computing, gaming, and telecommunication gadgets. The company hasestablished the operational activities over 1,100 stores in United States (Bestbuy.com 2017). The
3FOUNDATION BUSINESS STRATEGYfocus of the company is to ensure the best offers on the technological gadgets for fulfilling thecustomers’ expectations and enhance the customer base. The major purpose of developing themission is to enrich the lives of the people by providing the advanced solutions to thetechnological gadget use. In order to accomplish such mission, it is essential for the company toidentify the major environmental factors that have the significant impact on the businessoperations (Lee and Grewal 2013). In this section of the study, the PEST analysis would beformulated to recognize the impact of the external factors, such political, economical, social, andtechnological aspects. The PEST analysis provides the in-depth ideas about the external factorsthat have the clear impacts on the business activities. The influence of the external market isnecessary to be identified to ensure the probably of the business sustainability. The basicdemands of the external market would measure the success of the business. The analysis ispresented further:Political FactorsPolitical scenario is one of the most important factors that create impact on the businessoperations. It is notable that the political environment has been influencing the company forcreating the long term profitability in a country. Best Buy Co. Inc., has been operating over 1100locations that have the diverse political preferences and risks. In United States, best Buycomplies with the local, state, and federal laws that are concerned with the corporatecontributions to the ballot initiatives and the political candidates. However, it has been observedthat the federal law is prohibited in order to eliminate the direct funding to the federal candidates(Cao and Li 2015). Therefore, it is allowing the corporations to establish the political actions forfacilitating the contributions from the voluntary employees to particular committees andcandidates. In order to accomplish this purpose, the Best Buy Employee Political Forum PAC isestablished to encourage the eligible employees to participate. It is noticed that the companypays the taxes by maintaining the applicable laws that are consistent with the goals andtransparency of the company (Aithal 2017). This PAC Forum is federally registered under thenon-partisan political action committee, which is governed and controlled by the FederalElections Campaign Act (Corporate.bestbuy.com 2017). Economical Factors
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