Analyzing External and Internal Environment and Competitive Forces for Polaroid

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
P1 By applying proper models analyse the effect and influence of external environment
factors on given organisation and its strategies......................................................................1
P2 Examine the internal environment and capabilities of a given organisation by applying
appropriate models.................................................................................................................4
P3 Evaluate competitive forces by applying Porter’s Five Forces model for an organisation in
the given market sector...........................................................................................................6
P4 Applying range of theories concepts and models, interpret devise strategic planning in
given organisation..................................................................................................................8
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy can be defined as a set of actions, goals and plans that helps a company
in outlining the strategy to compete in a specific market with a product or service. A business
strategy considers a number of factors that includes market, business environment, competitors,
company strengths, weaknesses and structure (Adomako, Ning and Adu‐Ameyaw, 2021). This
strategy helps in designing a long term plan that helps manager in achieving a desired set of
objectives in the company. It is used as a blueprint that helps in defining business working to
accomplish the desired end. Polaroid is the consider company which deals in instant film and
camera. The report outlines about the effect of external factors on polaroid by pestle analysis.
Used VRIO and McKinsey model for analysing internal environment. The report also discussed
about analysing competitive market through porters model and justified different concepts and
theories to understand strategic planning.
MAIN BODY
P1 By applying proper models analyse the effect and influence of external environment factors
on given organisation and its strategies.
Polaroid is considered as an American company which serves services in products like
instant films and cameras across the world and has expanded its market in other products like
insurance, finance and mobile phones. For analysing impact of external factors, company uses
Pestle method for understanding market trends and improving operations of business to gain
competitive advantage. Pestle analysis is explained below:
 Political – Political factors explain the relation of government with different businesses
in the economy(Caldera, Desha and Dawes, 2019). These factors include tax policy, trade
restrictions, labour law, political stability and tariffs. There is political stability in UK
which provides benefits to the businesses as there is smooth functioning of companies
due to policies being framed and not being amended on regular basis.
 Economical – There are number of economic factors that effect the operations of
company which include interest rate, inflation rate, tax rate, exchange rate and, demand
and supply. Polaroid is a leading marketer of UK which produces a wide range of
products to different customer segments which are of good quality and value. Any
changes in the policies of the UK government will affect the profitability of the company.
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The company needs to diversify its operations and presence outside UK for achieving
more market share that will help in increasing the demand of goods and services
internationally. Moreover, the inflation rate being high in UK can affect the business of
Polaroid.
 Social – Shopping trends of consumers are changing constantly with time which makes
the schedule of people busy and tough. Social factors include education level, buying
habits, family size, income group and religion which affects the working of an
organization. Polaroid produces a wide range of products which are of good quality and
value for customers. But due to changing trends in this industry, the business of Polaroid
can get affected by it and can impact its profitability.
 Technological – Technology is changing constantly and companies need to adopt to the
new technology methods to sustain in the competitive market. Online shopping trends,
social media promotions are some of the methods that help in influencing the customer
by giving several technological benefits. Polaroid is following new innovation
technology which allows its customers to have access to the cameras with new
advancement of technology so that they can take competitive edge in the market. The
continuous innovation by business helps it to gain more profitability.
 Legal – Any change in the policies of the government will directly affect the business
operations of the organisation (Mamabolo, 2022). For smooth functioning of operations,
the company needs to align with the local as well as global market laws. Polaroid is
affected by several allegations regarding the gender and age bias that dominate the
working culture and also been under a fraud case that affects the reputation and
credibility of the company. It is important for the company to follow all the rules and
regulations that prevail in the market and gain competitive advantage.
 Environmental – There are several environmental factors that affect the performance of
the company such as temperature, population, natural disasters and climate change.
Polaroid has taken an initiative to improve the environment by creating a more
sustainable society which helps in decreasing the amount of waste. The company
Polaroid is being engaged in the eco-friendly practices which helps in lowering down the
carbon emission from its operations so that no harm is caused to environment.
Stakeholder analysis of Polaroid:
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