Business environment factors – INTERNAL (SWOT)
Overview of internal business environment. Identify and describe the internal factors in details.
How the environments affect the running of the business
The internal and external environment is constantly changing and has significant effects towards the operation and profit level for a company. Therefore, it is important to conduct the situational analysis in order to improve the understanding of the various factors that affecting the company as well as the position and market share.
For now as we are researching on this company PROTON which is in the automotive industry and known as the first Malaysian car manufacturer. We are going to ...view middle of the document...
For example, examples of organizational weaknesses are huge debts, high employee turnover, complex decision making process, narrow product range, large wastage of raw materials, etc. (Kotler, P. and Keller, K.L. 2009)
Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable. Organizations can gain competitive advantage by making use of opportunities. Opportunities may arise from market, competition, industry/government and technology. Increasing demand for telecommunications accompanied by deregulation is a great opportunity for new firms to enter telecom sector and compete with existing firms for revenue. (Kotler, P. and Keller, K.L. 2009)
Threats arise when conditions in external environment jeopardize the reliability and profitability of the organization’s business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable. When a threat comes, the stability and survival can be at stake. Examples of threats are - unrest among employees; ever changing technology; increasing competition leading to excess capacity, price wars and reducing industry profits; etc. (Kotler, P. and Keller, K.L. 2009)
Proton SWOT analysis
-Competitively priced products
-Extensive nationwide distribution network
-Good corporate governance
-Influence of patriotism as Proton is national car-maker
One of the important strengths of the company is its reputation or strong brand image due to the long years it had stayed in the industry and known as the 1st national car manufacturer for Malaysia. Because of that, the Malaysians have become familiar and loyal to the brand aside that it is also affordable for people that are in the lower and middle income group people. Besides that, Proton also have a strong support or back-up from the government, which is considered as an important entity in any business environment which can help them expand their nationwide distribution network. In fact they also have a good corporate governance to ensure the company have good conduct and productivity.
-Reputation of poor product performance and functionality
-High cost to...