Mba 580 – Forces and Trends Analysis
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Forces and Trends Analysis
MBA/580
University of Phoenix
Introduction
Today’s global marketplace provides a competitive environment that requires companies to be strategically adaptable
and agile to anticipate the forces and trends of change which are impacting many different industries. Strategic adaptability is very important to the success of companies. Trends and factors will always be an aspect that companies will have to adjust to in order to optimize their success. Strategic adaptability is defined as “a firm’s ability to adjust its business practices and competitive tactics in response to the perceived efficacy of its strategic actions, can be a strong determinant of organizational performance.” (The Arthur M. Blank Center for Entrepreneurship, 2007) This encourages companies to scan the remote environment to create strategic plans that provide benchmarks, direction and forecast for the company in the next three to five years. Consequently, “many CEOs are talking about strategic adaptability and agility, partnerships and alliances and how to exploit their strengths and mitigate their weaknesses. For the most part, these foci are unlikely to change” in the future and are heightened by the current economic downturn. (Perla, 2003) Strategic adaptability compels a firm to not only scan the environment but ensure the strategic direction remains flexible, politically, socially, ecologically, economically, and technologically sensitive to issues that could dramatically change a company’s performance, profitability, market share and wealth maximization.
Every industry is facing the winds of change, progress of time, and the trends of the future. This is relevant to each company in this paper since the impact of these forces can determine a firm’s rating on Wall Street whether Main Street consumes or uses the product and or services. Strategic adaptability and its relevance can ultimately mean survival and or extinction for some companies and industries. Strategic adaptability impacts on the operating environment for many companies since this influences competitors, creditors, customers, suppliers and labor. Additionally, agility influences industry environment through entry barriers, supplier power, buyer power, substitute availability and competitive rivalry. Therefore, a vigilant view of the remote environment is essential for each company to continue to thrive in this changing global marketplace.
“The remote environment comprises factors that originate beyond, and usually irrespective of, any single firm’s operating situation: (1) economic, (2) social, (3) political, (4) technological, and (5) ecological factors. That environment presents firms with opportunities, threats, and constraints, but rarely does a single firm exert any meaningful reciprocal influence.” (Pearce�Robinson, 2004, p. 79) Forces and trends will continue to occur and impact companies. However, an organization’s approach to taking advantage of opportunities that occur from the result of trends or forces that will make or break an organization.
SBM Key Factors
SBM has taken many steps to deal with key factors and trends which affect the janitorial/facilities operations aspect. Several key factors are affecting a variety of areas. Economic trend that has the most affect on the janitorial industry is unions. The employees can take advantage of a program called Justice for Janitors. SBM has taken initiative and offers all full time employees’ benefits. Social trend that most affects SBM is the current health trend this is very important for SBM to focus on, because companies are looking to help create healthy work environments. Environmental factors are key and at the forefront of the janitorial industry. Recycling and “going green” is a trend that has affected all types of companies and businesses. Thus, SBM must remain on the forefront and provide these services and remain ahead of the industry.
Family First Cleaning Services Factors
Family First Cleaning Services focuses on providing exceptional residential cleaning services in southeastern Michigan. The company has strategically adapted by using cleaning products that are eco-friendly to their customers and the environment. The steps the company needs to take to stay strategically adaptable is looking at securing financing to expand address staffing requirements, and improve equipment needed for the residential cleaning services. These steps will assist the company to assure a competitive advantage. Family First Cleaning Services needs to use the creative strategies from the strategic