The surrounding within a business and strategic sense could be perceived to hold the key for the organization or business in achieving its long-term goals and objectives. The strategic surrounding could be broken down into two distinct entities: external and internal. This paper will seek to discuss the internal and external environments of Chase Bank with the aim of determining some of the strengths and weaknesses facing the organization. The analytical apparatuses that were employed in the analysis of my organizations’ internal and external environments will be discussed in this paper. The internal discussion of my organization would focus on the strengths and weaknesses of the functions in my organization, like the management, sales and marketing, research and development, production, and information systems.
The internal environment of Chase Bank is composed of inbuilt competencies. It also outlines how the internal processes and systems are structured to become either weaknesses or strengths. The genuine value of internal analysis to a business entity is suggested to be where an organization could identify and acquire a clear representation of its weaknesses and strengths. In reference to the internal analysis, Chase Bank’s weaknesses could be identified as a lack of capabilities or resources. This is turn has prevented the generation of potential revenues, and undermined efforts geared toward gaining competitive strength in implementing the proposed strategy of my organization. In reference to the external business examination, strengths are forwarded as the organization’s resources that allow it to practically take part in actions aimed toward making it more profitable. The organization’s resources are also crucial for enabling the organization gain competitive advantage over rivals.
The external environment in reference to a business or organization is where data that is of critical importance could be analyzed. This, in turn, would aid the considered planning and future growth and development of my organization. Chase Bank undertook to analyze its external environment for it to comprehend the external forces that influence the organization and that could alter a forwarded strategy. The management of Chase Bank carried out an analysis of the external environment in order to prevent exterior surprises and at the same time to identify opportunities and threats. Moreover, the analysis of the external environment was carried out to acquire competitive benefits and improve on the short and long-term planning. In addition, the external forces, which take place outside the organization, are perceived to be almost uncontrollable. The most effective and common analytical tool for the external environment of an organization is the PEST (political, social and technological change). In addition, PEST measures certain elements that are within the external environment, for instance the potential and condition of an identified market, economic, socio-cultural factors, political, level of competition. However, in analyzing the external environment, one tool is not sufficient; other analytical techniques should be employed because of the transforming structure of the industry through constant innovation. In addition, it is not advisable to advance a strategy simply on the basis of one model, but to scrutinize it in connection to other analysis tools like the Swot analysis.
Swot analysis is the structured approach to analyzing the strategic standing of the organization by looking at its strengths, weaknesses, opportunities and threats. It is how the business could further their growth and development from the PEST, and other analytical tools used to address exterior elements in the organization. The strength within Chase Bank is placed in the marketing and advertising department a weakness within my organization is highly concentrated in the lack of a new invention to put forward. The opportunities that are present for my organization could be perceived to lie in the external cluster. The opportunity lies in the development of the channels of distribution like the internet and quicker delivery. Another opportunity for my organization is the growth in demand for our products out of the changed lifestyle of most of our consumer base. Upon carrying out a Swot analysis for my organization, it was deduced that a potential threat could develop from the occurrence of a new competitor in the market that my organization operates. Moreover, the threat of technological development and progression cannot be neglected because of the self-motivated nature of the present-day industry.
The legislative and fiscal policies in a business environment may determine the financial position and tax policies in an organization. When the government introduces new tax cuts for industries, the management of the industries must deliberate on how the new policies would affect the organization. Increased taxation for industries could lead to increases in prices of consumer goods and services, or a decrease in production expenditures, including wage cuts. Technological advancements could be a stepping stone, or a stumbling block for an organization, depending on how it embraces the change. If it is the organization that has the first hand access to the technology, it would be head and shoulders above its rivals; thereby a stepping stone. On the other hand, if it is the rivals, the organization would suffer severe competitive disparities. My organization had technological advancement as its point of strength in countering competitive forces thereby increasing on our revenues. Great technological innovations in the sales and advertisement department resulted in the increase in demand of our products. Furthermore, the establishment of the “online window shopping and marketing” led to increased sales. The human resource department received a boost as a result of increase in wage pays. The advancement in technology led to a reduction on the work load on the employees, consequently, the increased revenues, arising from the increased sales led to increase in salary of the employees. The connection of the organizations’ mission to the environmental factors in the analysis of the internal and external factors of my organization would help it realize abnormal profits in the just concluded financial year.
The internal environment of Chase Bank is composed of various variable weaknesses and strengths. The strengths and weaknesses that are related to an organization are relatively crucial and could be divided into two subgroups of resources and ability. The divisions could enable the organization divide the two factors further to accomplish a comprehensive analysis of their strengths. Further division would enable the organization to identify its growth, versatility and markets.
An organization’s and its resources in its micro-environment operate in greater external environment of the forces that shape its opportunities and threats. It relates to the major external and uncontrollable elements that could affect an organization’s performance. The factors within my organization’s external environment include its demographic, political, the economic environment and technological inventions innovations. The economic environment of my organization is in reference to the broad character of the economic system in which the business operates. My organization has dealings with the government, the household sector, the capital markets and the international community. These elements together affect the financial trends of the economy in which my organization operates. The general economic functions that operate in the economy like the national income, economic resources, per-capita-income form an important part of the board’s financial and management judgments. Furthermore, the stage of economic growth and development of the economy has direct consequences on an organization’s strategies. The initial increase in growth rate in the first quarter of the current financial year has led to an overall increase in the consumption expenditure. This has worked to lower the prevailing pressure within the industry, and has offered more opportunities than threats.
Upon carrying out sufficient Swot analysis of my organization, the greatest potential threat that was established was the emergence of new competition that is highly characterized by great technological aspects. My recommendation for my organization is to determine the current position of the organization in technical spheres, and make necessary improvements before going out to face the enemy in the market. The organization should also make suitable adjustments in its expenditures, to accommodate the financing of enough resources for its operation. This would enable it achieve its full potential.
References:
Chase Bank. "SWOT ANALYSIS CHASE BANK SWOT ANALYSIS 2011 7791 S " 30 June 2011. docstoc.com. 4 March 2013
