Internal and External Environmental Analysis of FARGO SCOOTERS

This assignment provides a detailed analysis of the internal and external environment of FARGO SCOOTERS, a leading scooter manufacturer in the UK. It includes a SWOT analysis, resources and capabilities matrix, PESTLE analysis, and Porter's model analysis. The assignment also discusses the company's position in the sector, strengths and weaknesses of tools, client needs, and recommendations for leadership and communication strategies.

Running head: MANAGEMENT
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Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Introduction.....................................................................................................................................................................4
Section 1..........................................................................................................................................................................4
The internal environment of the company..................................................................................................................4
SWOT Analysis..........................................................................................................................................................4
Strengths.....................................................................................................................................................................4
Weakness....................................................................................................................................................................4
Opportunities..............................................................................................................................................................5
Threat..........................................................................................................................................................................5
Resources and capabilities matrix...................................................................................................................................5
Key resources and capabilities...................................................................................................................................5
Transferability............................................................................................................................................................5
Replicability...............................................................................................................................................................6
External environment analysis........................................................................................................................................6
Pestle...........................................................................................................................................................................6
Political.......................................................................................................................................................................6
Economic....................................................................................................................................................................6
Social..........................................................................................................................................................................6
Technological.............................................................................................................................................................7
Legal...........................................................................................................................................................................7
Environmental............................................................................................................................................................7
Porters Model Analysis..............................................................................................................................................7
Competitive Rivalry...................................................................................................................................................7
Buyer power...............................................................................................................................................................8
Supplier power............................................................................................................................................................8
The threat of substitution............................................................................................................................................8
The threat of new entry...............................................................................................................................................8
Leadership and communication......................................................................................................................................8
Ethical values..................................................................................................................................................................9
The company's position in sector....................................................................................................................................9
Strengths and weaknesses of Tools...............................................................................................................................10
The client needs............................................................................................................................................................10
Main issues....................................................................................................................................................................10
Section 2: Recommendations to the organization.........................................................................................................11

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Recommendations of leadership and communications strategy...............................................................................11
Section 3: Implementation of recommendation............................................................................................................12
Leadership style............................................................................................................................................................12
Communicating the vision to the key stakeholders......................................................................................................12
Leadership strategy and the impact on organisational direction...................................................................................12
Achieving of Recommendations...................................................................................................................................13
Section 4: Critical Reflection (Gibbs reflective cycle).................................................................................................13
Description...........................................................................................................................................................of 13
Feelings.....................................................................................................................................................................13
Evaluation............................................................................................................................................................of 14
Analysis of 14
Conclusion................................................................................................................................................................14
Application of knowledge in future career...................................................................................................................14
Conclusion....................................................................................................................................................................14
References.....................................................................................................................................................................14

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Introduction
Consultancies Firms have to diversify and widen their workforces in order to keep pace
with the competitive market. The population is rapidly increasing and there is a sharp change
taking place in the preferences of the customers. Thus, the new emerging organizations have to
take help from the Scooter manufacturer Firms (Bull et al. 2016). In order to survive in this
highly competitive market, the Scooter manufacturer firms have to upgrade themselves and
follow the process of constant improvement. FARGO SCOOTERS is one of the leading scooter
manufacturers operating in the UK. This assignment has dealt with the detailed internal and
external environmental analysis of this company.
Section 1
The internal environment of the company
SWOT Analysis
Strengths
The strength of the company is the huge diversified workforce that helps in providing
advice to the people working in different organizations. In this 21st century, there is a large
change in the pattern of customer demands. This each and every organization is trying heir level
best to satisfy the needs and the demands of their customers by following the process of
continuous improvement. The number of organizations is also rapidly advancing in different
parts of the country. As a result, there is a huge demand for scooter manufacturer firms in this

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century (Ervural et al. 2018). FARGO scooters will already get a ready market base for their
services. An added advantage will be the Global line of operation that the FARGO scooters
undertake. As the very name suggested they will be working for the clients from all over the
world (Barak 2016). Thus their source of income will be huge.
Weakness
One of the greatest weaknesses is a large number of competitors existing in the market
(Lemieux 2017). Fargo scooters have to fight a tough battle with many of the competitors like
E-Motion Electrical Vehicle Company Ltd, Electric Mobility and other such firms. These firms
have emerged into the market for a long time and are delivering good services to all their clients.
Thus in order to survive in the tough competitive and challenging market FARGO will have to
upgrade them rapidly.
Opportunities
A large number of management graduates get their degrees from the eminent Universities
of the UK every year (Heywood 2015). Thus the scooter manufacturer firms can appoint these
students as their employers (Blockeel et al. 2016). Apart from this FARGO SCOOTERS can also
take help from the eminent consulting firm entrepreneurs so that they get all the valuable and
useful tips. Alternative and electric fuel vehicles are one of the major market opportunities that
must be used up by the organization.
As has been said by the owner or the MD of FARGO Scooters Coventry, Steve, in the
given case summary, that there are different entrepreneurs in the market and it is on the
individual which entrepreneur they will follow and what are the tips that they will take (Oke,

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Aghimien and Adedoyin 2018). On the other hand, FARGO SCOOTERS has to find out the
common factors that are linking all the entrepreneurs’ together (Engelen et al. 2015).
Threat
Threats are a part of every business and FARGO SCOOTERS will also have to face
many hurdles in their path. The high cost of fuel is troubling all the customers. It acts as the
reason why people are often hesitating while purchasing cars. Thus FARGO must try to make
their products with the recent scientific technologies that help the cars to run on some eco
friendly technologies. Alternative fuels or the batteries must be used. This is because there will
be profits and losses existing in the industry and the company will have to meet with these risks
(Abdel-Basset,Mohamed and Smarandache 2018). As has been aid Steve on the employer case
study, they had to suffer from the low sales volume at several stages of their business. The
strength lies in meeting with these risks and finding out newer and dynamic innovative strategies
that would help them to increase their sales.
Resources and capabilities matrix
Key resources and capabilities
This is one of the most important aspects that must be used the companies in order to
identify the internal strength. In order, to survive in this long run the company has to constantly
upgrade their resources and capability base. This is because the needs and demands of the
customers keep on changing. Thus in order to keep pace with their changing needs the company
has to diversify and also widen their resource base. As has been said Steve in the employer case
study that even if the suppliers approach to offer their products the company has to take the
decision very carefully.

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They have to depend on their capability and not the resource base alone. Looking back at
the sales volume before taking any important decision is of utmost importance (Hammond,
Keeney and Raiffa 2015). There can be a chance that the competitors are providing a huge
discount on a certain product to attract customers. Thus these wills be a loss for the FARGO
SCOOTERS firm. Thus they have to understand how to deal with this issue and allocate their
resources over the entire different product and not just over the sale of one particular product.
Transferability
FARGO SCOOTERS has to ensure that they are giving proper time to their employees
for helping them overcome their weakness. In other words, the leaders or the managers have to
make sure that they are helping their employees to identify their skill gaps and get the proper
help and facilities to overcome them (Ghasabeh, Soosay and Reaiche 2015). Recycling is the
process that has to be properly maintained by the company (Velásquez and Meunier 2017). In
order to survive in the long run, they have to undertake the recyclability of the machinery and the
technologies. As FARO scooter is an automobile company it is particularly essential for them to
use the eco friendly and the sustainable products to make sure that their products are well
accepted in the market.
Replicability
The firms must try to make or build the capabilities if they are not able to buy it from
outside. This will be a very helpful step for making the employees self-dependent. This can be
done by understanding those capabilities that cannot be procured easily from outside. This can be
attained by FARGO SCOOTERS firm by setting proper benchmarks for their employees. The

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employee has to be trained properly so that they can work in overcoming their skill gaps.
FARGO SCOOTERS has to hire the on job training experts who will help the employees in
identifying the areas where they need improvement and then get the needed training
External environment analysis
Pestle
Political
The political condition of the UK is more or less off a stable and fair nature. Thus it will not be
tough for the company to carry on with their business here in the country (Moran 2015). The
Government is also of a very proactive nature and thus they will be getting constant support from
the Government in order to import resources and manpower.
Economic
There is a very large population in the UK and thus they help in creating a huge market
for their products. Thus it will be easy for FARGO SCOOTERS firm to get a readymade market
for selling their products (Carter and Poast 2017). The economy is diversified as there are a large
number of firms both private and public sectors firms. This will help in diversifying the economy
and they will be able to carry on all their transactions very easily in the free market (Stewart and
Stanford 2017).

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Social
The society helps in providing many free services. The health and medical services are
often available in free of cost. Thus FARGO SCOOTERS firm can be able to provide their
employees with free health and medical benefits. The company can get health insurance schemes
very easily and make their employees insured.
Technological
UK is MEDC (More Economically Developed Country). As a result of this, the company
is able to get good access to modern scientifically advanced tools and implements. This will be
helping the company to utilize modern technologies in order to improve their services (Eguchi
2016). This will be highly beneficial for FARGO SCOOTERS firm in order to reach out to a
larger number of audiences living in different parts of the world. For an instance, they will be
able to get connected with customers living in Shanghai or in Australia by the means of video
conferencing or video calls and other such aspects.
Legal
The legal system of the UK is favorable for the employees to work properly and in a very
friendly ambiance. The legal system of the UK allows the employees to work at their will. In
other words, the employees who are willing to work for more than 48 hours are able to do so
theory the European Working Time Directive. The employees will also enjoy a safe and sound
working atmosphere. UK legal system pays due importance to the protection of the rights of their
employees via the acts like the Employment Rights Act 1996, the Employment Act 2002

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Environmental
The UK government system will help the organization to make sure that they are
complying with all the standards of sustainable developments. All the strategies that will be
formulated by the FARGO SCOOTERS firm will be made by keeping in mind the sustainable
development standards (Mallak et al. 2018).
Porters Model Analysis
Competitive Rivalry
FARGO SCOOTERS firm will naturally face stiff competition from the competitors. There are a
large number of competitors already existing in the industry (Duman, Green and Larsen 2018).
Thus they will have to bring about many new innovations and development in order to attract the
attention of the customers. As said by Steve in the employer case study, that competition will be
a part and parcel of the business and they will have to overcome it by finding out different
strategies. For an instance, Steve sais that they could sale specific scooter type to their customers
in bulk amounts but the sale of the most popular scooter was very low as they did not pay much
attention to it.
Buyer power
The buyer power is also quite high in this field as they have plenty of alternative options
to switch over. Thus the customers have the power to bring down the price of a product. As they
have the option of switching over to other firms (Alvarez and Mazza 2017). FARGO
SCOOTERS will be forced to set the price of their products at a low price to attract the
customers.

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Supplier power
The supplier base is high and it is very easy for FARGO SCOOTERS to switch over to
the other alternatives. The supplier power signifies the diversified workforce that helps them to
carry on with their work. Many applicants opt to work in scooter manufacturer firms as it is a
very respectable job. Thus FARGO SCOOTERS firm has the option of switching over to the
other alternatives like the fresher in exchange for a low pay scale. There are many competitive
firms that are trying to bring about the changes by adopting many sustainable technology like
eco friendly manufacturing methods, electric or battery driven pollution free scooters that are in
greater demand among public.
Threat of substitution
FARGO SCOOTERS firm will have to face a high threat of substitution as there are
many other powerful competitors who are existing in the market. They will try to use strategies
like discounted price, coupons and other such offers for attracting the customers. Thus customers
might switch over to these alternative options.
The threat of new entry
FARGO SCOOTERS is a scooter manufacturer firm and there is already a high demand
for scooter manufacturer firms all over the world. As there are many new industries developing
in the UK and also in many other parts at a rapid rate many scooter manufacturer firms will try to
enter the market. If they are able to provide customers with better facilities there is a chance that
FARGO SCOOTERS firm might lose their customer base.

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Leadership and communication
Communication and leadership style are of utmost importance in the organization.
Communication is the most important method for staying in touch with all the employees
working in every department (Hoch et al. 2018). Communication is important not only in the
internal environment of the organization but also in the external environment. As has been said
by Steve in the given case study, that communication helps in making more people know about
the services (Maister 2017). Communication through proper platforms like social media, mobile
marketing, and one to one marketing will help customers to reach out to them for the services.
An ideal leader has to make sure that he is taking proper feedback from all his leaders in order to
know if they are facing any kinds of issues (Webster 2017). Leaders must try to give positive
feedbacks for encouraging their employees and using their full potential.
Ethical values
FARGO SCOOTERS will have to make sure that they are following a proper code of ethics –
 None of the employees must be harassed on racial, gender or socio-cultural background.
 There must be no pay gap among the employees based on their gender
 None of the physically disabled employees must be denied the opportunities of
promotion.
 None of the employees must be exploited by making them over work
The company's position in the sector
The company is enjoying a good position in the current industry. FARGO SCOOTERS is
using their funds to work over their R&D department so that they can get to know about all the

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recent trends that are coming up in the industry. Being a scooter manufacturer firm they have to
include a diverse workforce. FARGO SCOOTERS is doing a very good job of recruiting people
from different religious and social backgrounds (Kaplan, Nolan and Norton 2018). This is
helping them to get a wide range of knowledge from the staffs. This, in turn, helps them to cater
to the changing needs and demands of their customers that are spread over Global scale.
However, as the competition is increasing rapidly FARGO SCOOTERS form has to make sure
that they follow the strategy of continuous development and improvement. In order to do that
they have to allocate their resources properly and make sure that they are able to offer their
products at an affordable price so that they can attract more number of customers.

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Strengths and weaknesses of Tools
Tools strength Weakness
SWOT Helps in the identification
of strengths and weakness
of the company
Chances of unknown facts
resources and capabilities
matrix
Helps to measure the
internal skill gap of the
organization
Uncertainty about resource
building internally within
an organization
PESTLE Helps in developing a
deeper understanding
Subject to changes in state,
social and economic
policies
PORTERS Helps in understand ding
the external environment
Narrowing the scope of
market research
The client needs
 The clients are now venturing into a large number of business sectors. Thus they will
always look for newer and dynamic services from the scooter manufacturer firms. The

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modern-day clients are also looking for easy and comfortable services. For instance, the
client can carry on transactions over online or digital methods. Thus in order to cater to
their needs, FARGO SCOOTERS firm has to develop a good online presence. In other
words, they have to open up online applications and also their personalized web pages so
that the clients can easily get connected with them.
 24*7 hour basis customer service is also one of the recent needs of the clients. Thus the
company has to make sure that their customer care representatives are being able to
attend to the clients at any hour of the day and also solve their queries without any delay.
Main issues
 The company must keep a strict check over the entry of new firms. In the current context,
it is one of the most crucial issues that the company is likely to face. Many new firms
can enter into the industry with modern technologies to attract the attention of the
customers.
 The company has to make sure that they are providing discounts coupons, offers, and free
monthly membership subscriptions to their customers so that they can get customer
loyalty.

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 They have to widen their range of products and services. As has been suggested in the
customer case study that in the beginning, the FARGO company started with only classic
motors and scooters but as the business started expanding he realized that the taste and
preference pattern of the customers have changed . The demography of the overall
customer base has undergone many changes. He has suggested that change is a good
thing and in order to survive in the long run, a company has to accept and adapt to the
changes like changing technology, customer preferences.
Section 2: Recommendations to the organization
Recommendations of leadership and communications strategy
 It is recommended that the company undertakes a transformational leadership strategy. In
order to do that the leaders or the management of the company have to follow an
employee-centric approach (Hawkins 2017). They have to bring a change or a
transformation in the company culture (Pekarek et al. 2017). This can be done by
developing personal connections with employees, providing them facilities like work
from home, on the job training, paid parental leaves and other such aspects. In order to do
this, the company has to offer them a flexible and employee friendly shift. They can start
following the strategy of happy hours like 9 to 5.
 The company has to hire a diversified workforce including the people from the
indigenous communities as well

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 It is also recommended that the leaders follow the Fair Works Act and Anti-
discrimination act so that none of the employees are suffering from any workplace
discrimination or exploitation
 As far as communication is concerned the company has to develop weekly or monthly
feedback sessions in order to know if the recipients have been able to understand the
message that was conveyed.
 Developing an online presence is of utmost importance. In order to stay connected with
their employees and staffs from different parts of the world, the company has to make
sure that they are developing a modernized and scientific approach so that they can get all
the innovative and diversified ides from the Global or International employees located in
different parts of the world.
Section 3: Implementation of the recommendation
 The company has to hire the language translators or the language interpretations so that
there are no barriers in the communication process. As they will be recruiting employees
from different social and linguistic backgrounds, they have to make sure that none of the
employees are facing any linguistic barriers. This will ensure that the employees are
getting trained to handle multilingual customers without any issues
 Training campaign s and workshops on ICT tools handling must be conducted. This will
ensure that the company is being able to stay connected with a diversified workforce

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through modern scientific technologies like the video calls, video conferencing and other
such materials.
Leadership style
Transformational leadership must be followed in the organization so that all the
employees can learn to bring about a change in the organization. This can be done if the leaders
make sure to interact personally with each of their employees. Leaders have to make sure that
they are catering to all the needs and demands of their employees by providing them the moral
support. Transactional leadership must also take place so that the employees can be rewarded for
the effort and hard work being put by them. This will help in motivating the employees and they
will give in more energy and potential for the overall welfare of the organization (Antonakis and
Day 2017).
Communicating the vision to the key stakeholders
A horizontal or free-flowing communication system has to be established by the leader.
Leaders must make themselves flexible and approachable. They have to make sure that all the
employees are able to reach out to them in case of any doubts. It is the duty of the company
leaders or the manager to make sure that they are explaining the company goals and the missions
to each of their employees. This can be done by distributing the company booklet or the
prospectus. Induction sessions must be carried on in order to explain the visions to all the
employees.

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Leadership strategy and the impact on organisational direction
Reward and recognition are one of the important leadership strategies that have to be
undertaken by the leader. Leaders have to ensure that they are awarding the efforts and the hard
work that is being put forward by the employees. Employees are valuable assets of the
organization. If the employees are putting forward their joint effort in order to make the company
succeed in the long run it is the duty of them a leader to make sure that the efforts of the
employees are not going unnoticed. This will have a positive impact on the employees as they
will realize their worth in the eyes of the company. This will make the employees work with
greater zeal.
Achieving of Recommendations
 Price of the products must be regulated so that people belonging from the lower and the
lower middle income groups are able to purchase the FARGO products.
 The company must work on giving some free fuel or oil subscription to their customers
so that customers can afford the products without worrying about the fuel cost.
 The company must focus on its promotional strategy. They have to widen their product
and service range. In order to do that they have to focus on strategies like social and
online advertising. Reaching out to the proper target market is of utmost importance.
Thus they have to venture into the social media making platforms like a snapshot,
Instagram, twitter, and other such platforms.
 Preparing an advance budget will help the company to allocate its resources properly
over different aspects. This will help them to allocate their resources over all the
departments uniformly. They will be able to handle any kinds of unforeseen risks or
emergencies that might arise. As has been said by Steve in the employer case study risk is

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a very common part of any business. Risks or unforeseen expenditures can arise at any
point in time. Thus the prior allocation of the budget will help the company to deal with
these risks
 The company has to widen its resource base in order to widen its product base as well. As
has been said by Steve in the employer case study.
Section 4: Critical Reflection (Gibbs reflective cycle)
Description
The incident took place during my internship project. I was working as an intern in one of
the automobile company. I was assigned to the project of conducting an advertising campaign
with the different products for the target customers. I thought that this is a very good project and
I can explore my creative content developing skill in order to promote the products. I
remembered that we were taught during the workshops regarding the upgradations and changes
that are to be brought in the business. However, I was suggested by many of my teammates that
I must also focus on the range of product to be included in the campaign. They suggested me to
include the upgraded and fast speed car designs.
Feelings
I felt that it would be a risk if I include too many new models in the campaign. It is good
to stick to traditional models than experimenting with all the new ones. However, I remembered
that we were taught about the risk factor of business in the module. I did not think it wise to talk
about the feedback or opinion of the rest of my team members. I felt that I must take my own
decisions. Thus I included the traditional models of cars in the campaign that was well known to

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people. I saw that some customers were happy to get the old traditional models as they were
concerned about the durability of products. However, the majority of the customers that is the
millennial and the teens did not really show much interest in buying those products. They were
eager about the latest designs which were missing.
Evaluation
I evaluated the incident and realized that there are both good and bad aspects of this. The
good thing was the promotional strategies. I used all the social media platforms to reach out to
the customers. The negative thing about the incident was it lacked the diversity and variety in the
product range.
Analysis
As per my analysis, I must have considered taking the opinion of my teammates. It was
also taught during our workshops that in order to be a true leader I have to include the team
members in all the decision making the process. Apart from this, I also realized that in order to
survive in modern competition. It is important for an entrepreneur to undertake risks.
Conclusion
I learnt from this situation that in order to survive in the modern competitive market, the
organization has to adapt itself to the new changes and up gradations. I have also realized that
taking the advice and opinions of the team members is also of utmost importance.
Application of knowledge in a future career
 I will include all the team members in any decision making the process in the future. I
have learnt that during any group projects it is very essential to move forward with a joint
collaborative approach.

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 In order to be a successful manager in the future, I will develop the adaptability quality so
that I can upgrade myself and my employees with the new emerging changes.
 I will develop the risk-bearing capability so that I can meet with any unforeseen disasters.
Conclusion
This it can be concluded that International Management Scooter manufacturer is enjoying
a good position in the current market scenario. However, they have to continue undertaking
detailed internal and external environmental analysis in order to stay upgraded about the
emerging market situations and develop them accordingly. They have to face very stiff
competition in the industry. However, they can deal with the competition by undertaking all the
update market strategies.

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