Navigating a Highly Competitive Business Environment

The SWOT analysis of Jiffy Lube International Inc reveals that the company has a skilled research and development team, a good brand image, and offers various automotive services to buyers. This enables the firm to draft an effective strategy to deal with the external environment, including economic fluctuations and competition. By conducting a PEST analysis, the company can assess its competitiveness in the market, make changes to its operations, and improve its sales and profitability.

PEST ANALYSIS

Table of Contents
INTRODUCTION...........................................................................................................................1
EXTERNAL FACTOR...................................................................................................................1
PEST analysis..............................................................................................................................1
Prioritized List.............................................................................................................................3
Readiness.....................................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Environmental scanning is being regarded as the systematic study of getting information
about factors that tends to affect the operation of the company in a negative manner (Alava &
Mu, 2018). In accordance with the then given context, it can also be said that environmental
scanning is the process of gathering the information in relation to the event or the activities that
have a significant impact on the working practices of the firm. It is very essential for the manager
of enterprises that it should continually improve its knowledge about both internal and external
factors of the firm. This is due to the reason that if these are ignored then in this situation the
impact of the same can be seen on the tactical goals and objectives of enterprises.
In this report, an environmental scan of Jiffy Lube International, Inc is carried out. It is an
American automotive service repair company that came into existence in the year 1971. The
company has automotive oil change specialty shops. However, for this report, the American
market will be taken for analysis purpose. At first, this report will give a detail description of
PEST factors that are causing an impact on the Jiffy Lube International, Inc functions. However,
after assessing the same priority list will be prepared that will entail about key issues that are
identified from each quadrant. Finally, at the end of the analysis company’s readiness to compete
in the American market will be evaluated.
EXTERNAL FACTOR
PEST analysis
PEST is the external environmental analysis tool that gives a description of political,
economic, social and technological factors that have an impact on the operation of Jiffy Lube
International, Inc in an effectual way. In accordance with the given context, there is some PEST
factor examined that tends to have an impact on Jiffy Lube International, Inc readiness to
compete in the American market. The detail description of the same is depicted below:
 Political: Jiffy Lube International, Inc tends to operate its functions in the number of
countries. Thus its activities are influenced by the political decisions which are being
made by the local government of different nations. This includes the factors like political
instability, changing policies and variation in the taxation rates of country etc. The
political government of the nation also controls the taxation rate of automotive services.
This will also have an impact on the strategy of Jiffy Lube International,. For instance,
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the company has planned to deliver its automotive repair services at low prices. The
given tactic cannot be implemented by Jiffy Lube International, if the government of
America will raise the taxation rate on any kind of repair services. The given thing will
tend to affect a firm’s effectiveness to compete in the American market in an effectual
way. Furthermore, it has also being assessed that corruption is another major issue for the
Jiffy Lube. The corruption affect the firm’s ethical policy and thus it will also have
negative impact on the brand image of firm in the eyes of its respective buyers in an
effectual way.
 Economical: It is being regarded as another factor that will also affect Jiffy Lube
International, readiness to compete in the American market. This includes factors like the
rate of interest, recession, and inflation of country, etc. The economic condition such as
recession will tend to have a direct impact on the overall strategy of the Jiffy Lube
International Inc. This is due to the reason that the situation like recession will influence
the purchasing power of buyers. In this situation, buyers are not able to afford high price
product and thus will like to use a cheap or low-cost product and services. Suppose, Jiffy
Lube International Inc has taken the decision to increase the prices of its automotive
services. Hence, in the process of making the given decision if American market is
affected with recession then in this situation, it will become very much difficult for the
cited company with regard to pursue its goal of charging high prices for its automotive
services. On the other hand, in this situation, the firm could also face difficulty in
attracting a large number of buyers towards the company. This will affect the profitability
related condition of the firm (Valencia, Cardenas & Acevedo, 2018).
 Social: It is very much essential for the Jiffy Lube International Inc that it should give
preference to the tastes and preference of the buyers where it is running its operation. For
example, Jiffy Lube International Inc provides different types of automotive repair
services such as brakes, oil change, battery and tires change etc. In relation to the given
services, each customer has different preference. For instance, some buyers want the
repair services at their home only. Similarly, some buyers like to choose the brand of oil
which the company will put in their cars. Thus, it is very important for the Jiffy Lube
International Inc that it should understand the behavior of its respective buyers. If not
significant attention is being given to the respective aspect then profit of firm will be
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impacted. On the other hand, it can also be depicted that getting the idea about behavior
of customers is itself a very difficult task to perform. It is the reason why sometime the
given thing tends to create huge problem for the firm in an effectual manner.
 Technological: There are lots of technological development is being seen in the process
of delivering products and services to the respective buyers of the company. In
accordance with the given context, it can be said that use of social media for marketing
purpose and delivering online services to the customers are some developments that have
happened in the field of information technology. Thus, it is very much important for the
Jiffy Lube International Inc that it should also comply with these all given developments.
This is because; if they are not followed then in this situation it will become quite
difficult for the enterprise with regard to surviving its functions in the highly competitive
business environment. Overall, it can be said that these are some major environmental
factors that need to be given consideration (Tryjanowski and et.al., 2018).
Prioritized List
The key issues that are being assessed from the conducted PEST analysis are being
addressed. However, these are addressed on the basis of their priority. In this regard, it can be
said that a very first priority is being given to the social factor. This is because; it is related to the
customers of the firm. However, for any firm, it is very much essential that it should make an
effort in terms of maintaining the satisfaction level of its buyers. In relation to the social factor,
the main issue that Jiffy Lube International Inc is facing is to get the idea about the tastes and
preference of the customer in relation to the automotive repair services. In this regard, the
Carnegie and et.al (2018) have depicted that it is very much important for the company that it
should always conduct the evaluation of the market where it is running its operation. It is by
complying with such type of activity the only manager of Jiffy Lube International Inc is able to
get the information about its respective customers. Thus, on the basis of their preference Jiffy
Lube International Inc should change its products and services. It is through this way only the
manager of Jiffy Lube International Inc is able to establish its competitiveness in an American
market in an effectual way.
Besides this, it can also be depicted that second priority should be given to political
factor. Here, the main issue that Jiffy Lube International Inc is facing is unpredictable changes in
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the taxation policy of nation. However, with an aim to work in the given circumstances the firm
should always prefer back up plan for each of its implemented strategies. Suppose, the manager
of Jiffy Lube International Inc has decided to use the low pricing tactics for its automotive
services and from that movement taxation rates of any kind of automotive repair services will be
increased by the American government. Then in this situation, the firm should have back up plan
with an aim to maintain low pricing tactic of the firm. Here, this can be made possible if Jiffy
Lube International Inc will change its supply sources. The firm should select that specific
supplier that is ready to offer the repair parts at low or cost effective prices. It is through this way
only firm can maintain itself on the promise which is being made by it (Cameron and et.al.,
2018).
Third priority is given to the economic factor. In relation to the given PEST factor, the
recession is being regarded as one of a major issue. However, the given issue can be handled by
offering different discounts to the customers on automotive repair services. Further, the firm
should also introduce some combo services like get free tire tube change services on battery
change. Thus, it is through this way only different types of services should be launched.
Finally, the last priority will be given to technological factor. Here, the major issue that is
related to the same is that ongoing development in information technology. Thus, it is very much
important for the Jiffy Lube International Inc that it should develop a team of individual who will
constantly look into the changes that are happening in the technological environment. It is
through this way only firm can change its operation as per new technology. Thus, it can assure
its success in a highly competitive business environment.
Readiness
Jiffy Lube International Inc readiness to compete in the business environment of
American market is evaluated. In this regard, from the SWOT analysis of Jiffy Lube
International Inc, it is assessed that the firm has a team of highly skilled research and
development team. The main aim of a given team is to perform a thorough analysis of a firm’s
business environment and make changes in the operation of the firm. Thus, with the help of the
respective team, manager of Jiffy Lube International Inc can get idea or information about all the
factors that are mentioned above. Thus, it is on the basis of given information only Jiffy Lube
International Inc can draft an effective strategy with an aim to deal with the same. This will help
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in the process of improving the profitability related condition of Jiffy Lube International Inc in a
highly competitive environment (Newton, Stolle & Zmerli, 2018).
In addition to this, it can also be said that the cited company also has strength in its good
brand image and offering variety of automotive services to buyers. The given thing will assist the
firm in a poor economic condition. This is because, with the help of its brand image, Jiffy Lube
International Inc is able to attract a large number of buyers towards the company in an effectual
manner. However, it is to be critically evaluated that along with the brand image the firm should
also make changes in its automotive repair prices in the economic environment like a recession.
This is due to the fact that if not done then it will become quite difficult for the firm to attract
customers towards the firm (Jokisch, 2019). Thus, the given thing entails that Jiffy Lube
International Inc is quite ready to deal with different circumstances that are waiting for it in the
external environment. It is through this way only a firm is able to establish its remarkable image
in a global environment.
CONCLUSION
From the whole study, it can be concluded that by getting the idea about the external
environmental factor manager of Jiffy Lube International Inc can draft an effective strategy with
an aim to deal with the same. Further, it is by performing such type of analysis the only manager
of a firm is able to assess its competitiveness in the market. In addition to this, the PEST analysis
will also guide the firm in the process of making different types of changes in a firm’s operation.
Thus, these all types of activities help in the task of improving the sales and profitability related
condition of company.
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REFERENCES
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analysis. Australian forestry, 81(1), 53-59.
Carnegie, A. J., Venn, T., Lawson, S., Nagel, M., Wardlaw, T., Cameron, N., & Last, I. (2018).
An analysis of pest risk and potential economic impact of pine wilt disease to Pinus
plantations in Australia. Australian forestry, 81(1), 24-36.
Jokisch, B. (2019). Socio-political factor of qadá’in eighth/fourteenth century Syria. Al-
Qanṭara, 20(2), 503.
LEYVA, M., HECHAVARRIA, J., BATISTA, N., ALARCON, J. A., & GOMEZ, O. (2018). A
framework for PEST analysis based on fuzzy decision maps. Revista ESPACIOS, 39(16).
Newton, K., Stolle, D., & Zmerli, S. (2018). Social and political trust. The Oxford handbook of
social and political trust, 37.
Tryjanowski, P., Sparks, T. H., Blecharczyk, A., Małecka-Jankowiak, I., Switek, S., & Sawinska,
Z. (2018). Changing phenology of potato and of the treatment for its major pest
(Colorado potato beetle)–a long-term analysis. American journal of potato
research, 95(1), 26-32.
Valencia, G. E., Cardenas, Y. D., & Acevedo, C. H. (2018, November). PEST analysis of wind
energy in the world: From the worldwide boom to the emergent in Colombia. In Journal
of Physics: Conference Series (Vol. 1126, No. 1, p. 012019). IOP Publishing.
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