Assignment ContentDevelop three strategic objectives for each of the four balanced scorecard areas using the Balanced Scorecard Template.
Running head: INTERNAL AND EXTERNAL ENVIRONMENTAL ANALYSIS
Internal and External Environmental Analysis
Alexander Melendez
BUS/475
Bruce Mc Ewan
July 8, 2019
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INTERNAL AND EXTERNAL ENVIRONMENTAL ANALYSIS
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Wk 2 – Apply: Internal and External Environmental Analysis
Business enterprises, especially the media outlets, operate on a highly dynamic
environment characterized by constant economic and legal changes. The internal and external
factors affect the profitability of the business organization. The external factors and forces, in
particular, determine the action plans and the long term business strategy the firm adopts. The
macro-environment factors include political environment, economic growth, demographic
factors, technological advancement, legal control and competitive environment (Fernando,
2011). Notably, the owners and managers of the media organization have no control over the
factors mentioned above. However, the managers can manipulate the internal factors to take
advantage of the opportunities presented by the external environment and also use the available
strengths to overcome the external threats. The internal environmental factors considered in the
running of a media firm include the employees, innovations, objectives, the business culture,
strategies, firm owners and the available resources. The design of the most competitive business
strategy that will improve the profit margins depends on a critical analysis of the external and
internal environment.
The external factors that affect the profitability of a firm greatly are the economic and
regulatory law that governs the media industry. Also, the current trends in the coverage and
reporting of the major headlines making news keep evolving depending on technological
discoveries and application. The economic growth of the country determines the purchasing
power for the consumers. Changes in the economy form booms and regression cycles in the
business sector and managers need to stay informed and make business strategies that reflect the
fluctuations in the economy. The level of economic growth determines the taxation policies set
by the government, rate of inflation, income levels and the currency exchange rates. Unfavorable
economic factors reduce the consumer’s ability to purchase the newspapers and update their
subscriptions. Secondly, the government constantly formulates regulatory laws to govern and
control the media sector. Access to information is provided for in the first amendment, and as
such, news delivery and scope is an emotive issue that requires comprehensive regulatory
policies. Such policies determine the strategic practices of the media personalities in terms of the
content to deliver and the verification processes. The code of conduct of media players is
significantly dependent on the available legal framework. As such, the study of the limits of the
law is critical in the determination of the form of content to air to the public and in what specific
times. Notably, the violation of such laws may lead to heavy fines and jail time, both of which
affect the credibility and profitability of the media firm.
Remarkably, the media industry is very dynamic in terms of what content people relate to
and the channels of delivery. Such dynamism is as a result of rapid change in technology in the
entire country (Mason et al., 2015). For instance, most Americans have access to the Internet
through various devices which are very affordable. Additionally, social media has currently
become the most go-to source of information concerning current events. As such, the demand for
print newspapers is gradually reducing, especially for young people, which cause a reduction in
the revenues collected from the sale of newspapers for Hoosier Media Inc.
Hoosier Media Inc., in the last five years, has adopted limited change in their business
strategies to attract the new markets for their news contents. In my view, the media firm still
believes in the traditional delivery of information and has done little in the adoption of the
current technological changes. The 30% reduction in the revenue collected signifies rigidity in
INTERNAL AND EXTERNAL ENVIRONMENTAL ANALYSIS
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the marketing of the media content. The demand for content has significantly changed and
broadened in terms of the channels of delivery. The media firm has various options such as, basic
computer software, mobile applications and segmentation of the content into magazines that
target a specific issue.
The other factors of the external environment that affect the profitability of the business
include demographic and political aspects. The demography is the composition of the American
population and the relevant growth rates. Demography’s composition defines the size and
composition of the workforce and also the target market. The American population is highly
multiracial, with a high number of young adults. The characteristics of a population also
determine the type and content to be printed and in which platforms. The political environment
affects the country’s economic stability in terms of the formulation of laws that govern the
business sector. These policies are either favorable or unfavorable for business operations.
The micro-environment presents factors which are within reach of the firm and hence
controllable. The internal factors form the weaknesses and strengths of the firm. The main
weaknesses in the firm include rigidity, lack of dynamism, poor policy development, outdated
technology, and myopic strategic goals. The decision making culture and the operational
structures within the firm also affect the profitability levels. With the reduction in the revenue
collected, the available working capital is significantly reduced. Consequently, the firm needs to
diversify the sources of capital to fund the strategic goals for future investments. The internal
environment also includes workers who determine the type of content released to the public.
Form the analysis of the threats and opportunities presented in the external environment;
the firm needs to use its experience in segmentation of the market and formulation new forms of
content. First, the major weakness the firm faces is the rigidity in the channels of content
delivery. The firm only uses the newspapers and lacks strategies to use the other available media.
Secondly, the external environment is favorable in term or regulatory policies, political stability,
and improving the economy. Also, the advancement in technology provides other available
channels of distribution, such as the online platform. In particular, the already growing online ad
sector presents a major opportunity to the media firm. As a result, Hoosier Media Inc. needs to
shape and guide their strategic operations on diversifying online content delivery. The design of
the websites and mobile applications need reconfiguration to accommodate more ads. The
economic and corporate globalization provides another opportunity worth exploiting. The
magazines on sale from the firm need to address more content on the economy, issues affecting
the young people and more importantly, the global corporate world. These magazines, if sold
together with the typical newspaper, may improve on the sales volume. The internal strengths are
the foundation in investing in the opportunities presented by the external environment.
INTERNAL AND EXTERNAL ENVIRONMENTAL ANALYSIS
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References
Fernando, A. C. (2011). Business environment. Chennai: Pearson.
Mason, H., Mattin, D., Luthy, M., Dumitrescu, D., & G., E. R. (2015). Trend-Driven Innovation
beat accelerating customer expectations with. Hoboken, NJ: Wiley.
Balanced Scorecard Template
BUS/475 Version 8
University of Phoenix Material
Balanced Scorecard Template
Note: Hoosier Media is to be used as a resource for this Week 3 assignment as a carryover from Week 2.
Background
Strategic objectives are a measure of attaining your vision and mission. They reflect the vision, mission,
and values of the business, as well as the outcomes of the intenral and external environmental analysis.
Scorecard Areas
Develop at least three strategic objectives for each of the four balanced scorecard areas.
Financial Objectives
Measures
Targets
Customers Objectives
Measures
Targets
Internal Business Process
Objectives
Measures
Targets
Copyright © 2018 by University of Phoenix. All rights reserved.
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Balanced Scorecard Template
BUS/475 Version 8
Learning and Growth
Objectives
Measures
Targets
Reflection
Assess, in no more than 350 words, trends, assumptions, and risks of Hoosier Media, Inc.’s business
model after completing the strategic objectives for each area.
Copyright © 2018 by University of Phoenix. All rights reserved.
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