Targeting Applied Corporate Management: External and Internal Analysis of VF Corporation

Targeting applied
corporate management

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Q1. External Analysis..................................................................................................................1
Q2. Internal Analysis...................................................................................................................4
Q3. Evaluation.............................................................................................................................8
REFERENCES..............................................................................................................................12
APPENDICES...............................................................................................................................13

INTRODUCTION
Corporate strategy is delineated to a long term vision which business set, seeking to devise
value of company and motivate employees for implementing proper actions with the hope of
accomplishing customer satisfaction (Charter and Tischner, 2017). It is an ongoing process to
sustain in volatile competitive environments. It emphasises towards ways to manage resources,
returns addition to risks across the venture in opposition to seek competitive benefit within
business strategy. The report of targeting applied corporate strategy is prepared on VF
Corporation that is worldwide apparel along with footwear organisation established in 1899. Its
headquarters are situated at Denver, United States.
The report highlights external analysis with application of PESTLE framework as well as
Porter’s Five Force Model. It also discusses internal analysis to examine resources with Vales
chain analysis and VRIO model. At last, it evaluates strategy of VF Corporation-Supreme
strategy through SAFe test.
MAIN BODY
Q1. External Analysis
PESTLE Analysis
It is a tool associated to macro environmental or extrinsic factors which business
concerns apply for scanning uncontrollable environment. In case with VF Corporation, factors
which causes threats to working or generate opportunities are underneath:
Political: It defines intervention of government of a nation in any industry or market
(Caglio, Melloni and Perego, 2020). Within United States, Strong democratic setup as well as
effective legislator regulations, along with elections are seen as fair and transparent which offers
huge opportunities to businesses operating in it. For instance, government makes contractual
agreement with another nation which acts as an opportunity for VF Corporation to expand and
grow business by selling its diverse products in other countries also. However, trade barriers and
tariffs implemented by the government possess threat for VF Corporation as the company have
to invest huge in tariffs and consider barriers while diversifying at global level.
Economic: It is associated to fundamentals elements comprising wages, consumer
disposable income, business cycle and many more. Economy of United States is highly
developed mixed economy with nominal GDP, net wealth and largest purchasing power parity
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that creates opportunities for companies to carry out operations effectively. For example, demand
for footwear across the globe are increasing. Moreover, growth is attributed to rise consumer
disposable income level within emerging nations So, it is an opportunity for VF Corporation to
offer variants of footwear to meet demand and boost organisational growth.
Social: Dimensions concerned with lifestyle, attitude, behaviour, buying habits,
population density and education level are social factors (Rehman, Shahid and Khalid, 2020).
Within United States, customers have huge preferences for footwear and clothing that is
opportunity for an entity that offers such category of commodities. For example, by
understanding customers of the market and repositioning organisational work segment portfolio
is an opportunity for VF Corporation to expand in untapped area of society.
Technological: The ways in which new practices addition to equipment influences
organisational practices are technological factors. In context to United States, there are rapid
changes in technological usage and upgradation as entities are changing operations with advance
technologies which provides opportunities to organisations. For example, when VF Corporation
works with automation in operations and advanced technologies, it creates opportunity of market
expansion with online collaboration via technological analytics. With technological advancement
in analytics that are Artificial Intelligence and Big Data Usage, companies are able to learn ways
to execute operational practices across the globe conveniently.
Legal: Legal factor pertains legal forces which illustrate what an organisation can or
cannot perform. Equality Act 1974, Data Protection Act 2021 and Occupational Safety and
Health Act 1970 are key laws which business concerns performing at United States are required
to follow. In context to VF Corporation, it is opportunity to operate at global level as it carries
out working by adhering all legislations with strong compliance as well as ethics program.
Environmental: There are huge environmental factors that provide opportunities to
business concerns (Honma, Kumano and Noriyuki, 2019). In United States, political system time
to time execute various plans and initiatives for providing protection to environment of the
country. By contributing in government plans and programs as well as carrying out operations to
reduce carbon footprints, restricting plastic use and many more, it creates opportunity for VF
Corporation to gain incentives addition to recognition from government for continuing working
on programs at global level.
Porters five force analysis
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