External Environmental Factor Royal Invites believes the best way to capture a market is through an external environment analysis of the areas for future markets. Our strategic planning team constantly tracks the flow Of events and projects held in certain areas to find where and what would be the best places to market our services. Sources Royal expects to analyses are sales tax, equipment rental fees, and transportation. These are important factors to focus on the industry portion of the external environment.The factors beyond the control of the firm that influence its choice of direction, action, organizational structure, and internal processes”(Pearce, deed 108).
Changes in these areas can affect the operating environment and will enable the organization to identify and possibly attract interactive opportunities. In the remote environment factor like sales tax will cause the company pricing and quotes to those clients in certain areas. Royal Invites has found that the tax changes will affect the company annual financial statements.For example, economic changes causes states to changes states laws, this slows, and decreases propensity of clients to spend. To optimize the firm’s opportunities, the remote environment is a factor that influences the organizations actions; Royal Invites social network is a predominate factor in this industry. Social forces are dynamic, and constantly changing as a result of new innovative individual, and organization.
Another part of our environment is the political environment.Royal Invites works exclusively in the innovation in the remote environment; our organization is built around how quick our clients can get the information needed to make a finished project. ‘Technological forecasting can help protect and improve the profitability of firms in growing industries.
It alerts strategic managers to both impending challenges and rumoring opportunities”(Pearce, deed 108). Technological factors play a part in how Royal delivers quality service to our clients. Internal Strengths and Weaknesses Royal SOOT analyses have provided the organization with a clear understanding of the strengths and weaknesses.These factors are opportunities, threats, strengths, and weakness. The best way management found to implement SOOT was the strategy was the buy in from the project managers. This allows the organization to be accurate with the effectiveness of the analysis. Royal strength demonstrates their capability to provide fast an accurate quotes to their clients. The weakness analysis showed the company’s limited financial resources and how the company cannot operate under the capital they currently hold.
One of Royal Invites strengths is their advantage of mobility as project managers.The traditional market segments require overhead to provide their clients with a good quality service. Royal mobility, and remote locations allow the company to keep their competitive edge. Royal has one major threat that is able to transition to handle the potential economic changes. “Threats are key impediments to the firms current or desired position. The entrance of new impetigo, slow market growth, increased bargaining power of key buyer or suppliers, technological changes, and new or revised regulations could represent threats to a firms success” (Pearce deed, 158).