Title: Environmental analysis of --------- Limited

Assignment topic
Organisations can have a number of strategic options available to them.
Making the right choice from available strategic options is the result of indepth internal and external environmental analysis and better alignment
with their vision, mission, and statement of values and objectives.
Select an organisation of your own choice and, without going into the details,
provide their vision, mission and statement of values and briefly discuss the
objectives. For this assignment you may use the existing statements and
objectives.
Using appropriate Strategic Management tools critically analyse the internal
and external environment of the chosen organisation. Based on your
analyses, identify and critically evaluate two strategic options and select one
option that provides the best strategic fit for the chosen organisation. With
the help of sound arguments, justify why you think this is the best strategic
option and how this can help the chosen organisation to achieve their overall
vision and mission and strengthen their position in the market.
Word count: (from the start of the Introduction section to the end of the
Conclusion section):
1 804 words
Executive summary
The internal and external environment impacts greatly on every
organisation. This paper analyses the previous statement and indicates how
they can be used to a companys advantage. Firstly, Strategic Management
will be defined; its principles and practice would then be discussed,
considering the environments in which --------- Limited exists.

The strategic options proposed which the company could benefit from are
the PESTLE, SWOT and Five Forces framework, to achieve the goals
envisioned. One of which will be chosen justifying why this would be the
most viable selection, in line with their objectives.

Contents
1. Introduction..................................................................................................................................5
2. Background..................................................................................................................................5
3. Vision...........................................................................................................................................5
4. Mission Statement.......................................................................................................................6
4.1 Justification of the mission statement....................................................................................6
5. Statement of values......................................................................................................................6
5.1. Justification of the values.....................................................................................................6
6. Strategic Management tools........................................................................................................7
6.1. Porters five forces model.....................................................................................................7
6.2. PESTEL Analysis.................................................................................................................8
6.3. SWOT Analysis....................................................................................................................8
7. Internal.........................................................................................................................................9
8. External Analysis.........................................................................................................................9
9. Importance of implementing strategies.......................................................................................9
10. Best-fit strategies.....................................................................................................................10
12. Recommendations....................................................................................................................10
13.References.................................................................................................................................11
14. Appendix..................................................................................................................................12

1. Introduction
Strategy is defined as the long-term direction of an organisation (Johnson et
al. 2014, p. 5).
To construct a strategic plan it is essential the strategist take into account
certain elements, for example mission, values, and vision statements, and
avoids common mistakes, for like ignoring the necessities of the
organization.
The aim of this paper is to analyse the external and internal environments of
---------, by examining different strategic options and select the best suited to
the organisation long-term strategy. This will be accomplished by an
evaluation of Porters five forces framework, SWOT analyses and the PESTLE
framework, offering why the option selected is the best fit option.

2. Background
--------- Limited (---------) is a fully owned subsidiary of the ---------s Group,
formerly --------- which started in April 1994, legally incorporated in 2003 with
well over 300 employees. They represent several major international brands
and provide direct, channel focused marketing and sales services via more
than 90 sales and trade representatives supported by management teams
comprised of sales, marketing and logistics specialists and are ably
supported by state-of-the-art warehousing and distribution centers.
The 2003 incorporation of --------- and --------------------- created an ideal
partnership and synergistic fit which is able to support an aggressive growth
vision. The alliance gave birth to --------- Limited, an independently managed
operation and newest member of the ---------'s Group
(www.----------------------.com)

3. Vision (see appendix figure 1)

---------s vision is to achieve sales of one billion TT$ by 2018. To realize this
target the company desires to be the most affable distributor to do business
with, through supplier and customer partnerships and by being best in class
comprising point of sale, customer service, supply chain management and
brand building capabilities provided by happy people who achieve more
(---------, 2015).

4. Mission Statement
To be a channel focused distributor of Health and Personal Care products in
Trinidad and Tobago.
4.1 Justification of the mission statement
--------- is a team in partnership with suppliers committed to providing
customized marketing and distribution services by linking the needs of
consumers or final users with the supplier offerings. Their success is
measured on the achievement of market leadership of their key brands and
the financial returns. They believe that their sustainable competitive
advantage is due to their business philosophy and management style.
According to ---------, they believe that Happy people are more passionate
and productive and are assumed to be an outcome of their corporate
values. (---------, 2015)
5. Statement of values (see appendix figure 2)

People come first Based on happiness, trust, open communication,

empowerment, creativity and opportunity for growth.

We win only as a team Full participation and involvement by all,

support for each other, personal freedom with team responsibility and
close partnership with their customers, suppliers and associates.

We always do the right thing way Dedicated to continuous

improvement, attentive and responsive to new ideas, encouraging of
creativity and not afraid of failure.

There is always a better way Acting responsibly and staying true to

their values (---------, 2015).
5.1. Justification of the values

---------s environment is one based on happiness, trust, open communication,

empowerment, creativity and opportunities for personal growth, they
encourage full participation by all are dedicated to continuous improvement,
act responsibly and stay true to the values set forth.
The objective of --------- is to have happy people enhancing lives together,
passionately delighting the internal and external customers and suppliers
(www.----------------------.com). They believe that their major sustainable
competitive advantage is their philosophy and management style generating
happy people who are more passionate and productive ---------, 2015)
6. Strategic Management tools
There are various strategic management tools available, the options selected
are, Porters five forces framework (see appendix, figure 3), SWOT and
PESTEL analysis.
Porters five forces framework illustrates the impact of 1) rivalry within
existing competitors; 2) the threat of new entrants; 3) bargaining power of
buyers; 4) bargaining power of suppliers and 5) the threat of substitute
services or products, on the company. It helps strategists analyse the
industry and environment in which their companies function, formulate a
plan to ensure an advantage among existing competitors and to determine
how an industry would appear to new entrants.
According to Research and Markets (2013) the SWOT framework
demonstrates strengths and weaknesses within the organisation and
opportunities and threats that exist externally:

The internal features are the companys own strengths and weaknesses.
Analysing them is a matter of analysing the state of the company. They are
things that already exist for example; culture, technology and staff relations.
The external features are the organisations opportunities and the threats to
its future performance. These exist only on the horizon, and they are less
easy to assess and measure. They arise from things like changes in
technology, demography or government policy. The positive things are the
strengths and opportunities; the negative ones are the threats and
weaknesses (Guide to Management Ideas 2003).
6.1. Porters five forces model
A Company's success is governed by the strongest competitive force or
forces imposed, which are essential to strategic formulation (Porter 2008).
Using the five forces framework, which focuses mainly on the influence of
the external environment, to analyse ---------s external environment the
following are the conclusions drawn; Threats of entry posed by new or
potential competitors are low due to Government regulatory board
requirements, high start-up costs associated with entry and the fierce
competition that already exists.; The rivalry among existing distributors are
high due to the fact that the products offered are of similar quality and
prices.; Bargaining power of buyers is medium for example chain stores and
private hospitals who buy in bulk quantities, apply pressure on distributors to
keep prices in check also the government tendering system is structured in
such a way that distributors have to commit to the lowest prices possible in
order to win a bid.; Bargaining powers of suppliers are low since the number
of licensed distributors are limited and already have stipulated contacts with
the suppliers.; The threat of substitute products is high due to the lower cost
of generic products as they are mimics of products already developed.
6.2. PESTEL Analysis

PESTEL incorporates Political, Economic, Social, Technological, Environmental

and Legal segments (see appendix figure 4). Analysing these sectors it can
be concluded that, political instability is on the horizon owing to general
elections carded for September, 2015. Economically the country benefits
from GDP growth allowing for increased disposable income. Socially the
population is apt to choose from a wide variety to suit their requirements;
furthermore technology plays a fundamental role with the increasing use of
online shopping and digital media. The environmental impact is shown within
the delivery aspect of the company, where road accidents, bad weather and
other influencers could delay timely execution. Within the legal aspect health
and safety issues mainly influences the staff within the company.
6.3. SWOT Analysis
SWOT analysis is one of the most widely practiced methods from a variety of
options in the attempt to implement or improve the corporate development
strategy process (Hill & Westbrook 1997).
SWOT is a mnemonic that represents the words; Strengths, Weaknesses,
Opportunities, and Threats. It is used to assist strategists within
organizations to access ways in which to manage the SWOTs and enhance
performance (Guide to Management Ideas 2003). Furthermore SWOT
analysis can be used to educate staff of the necessity for change and solve
problems (Business & Management Dictionary 2007). SWOT can be broken
into two environmental entities, Strength and Weakness for internal
evaluation and Opportunities and Threats to access the external setting.
Where weakness assigned ought to be turned into strengths; threats into
opportunities and strengths should be matched with opportunities. Using the
SWOT analysis the information collected on --------- shows that there are
many strengths which the company can utilize keep or increase their market
share (appendix, figure 5). Their major strengths are innovative and
dedicated people who are willing to do what it takes to get a job done,
trusted partner relationships with suppliers creating opportunities for growth

and their willingness to invest as evidenced by the recent acquisition of

Genethics Pharmaceutical Limited.
7. Internal
--------- has an internal environment fostering creativity, mutual respect and
opportunity for each person to realize their full potential by following the first
value and supporting a flexible work life (--------- 2015). This is evidenced in
the SWOT analysis prepared on ---------, where people are their greatest
strength.
8. External Analysis
--------- Limited identifies that the customer is the life line of their business
success and the objective is to meet customer needs and to exceed their
expectation in quality, delivery and value. (--------- 2015), Taking into account
the five forces, --------- controls a major market share, they are committed to
customer satisfaction, observes the laws of Trinidad and Tobago, provide high
quality products and adhere to a code of ethics acting with integrity
9. Importance of implementing strategies
Implementation of strategy is paramount to the success of a company,
without action strategy is no more than a notion. When strategic plans are
converted into action it becomes the guiding force in an organisation. The
development of implementation can be quite a challenging task. Particularly
when the strategy entails substantial deviations from established ways of
culture. Often strategy plans fail because employee resist, implementation of
strategy may also fail because of inadequate availability of required
resources, communication and training. This is the purpose of --------- enabled
training sessions to educate staff of the vision, values and beliefs (see
appendix figure 6).

10. Best-fit strategies

The best fit strategy for --------- is Swot analysis used in combination with
PESTEL framework. This is based on findings from the options examined;
Porters five forces framework indicates a strong position in the industry
however SWOT and PESTEL analyses contain a greater opportunity for
improvement and capitalisation in both environments for ---------. The
feasibility of this can be gathered initially from the strengths and weakness
where there is a dedicated workforce nevertheless a high turnover and
insufficient staff.
11. Conclusion
The vision, statement and mission of values are in accordance with the
objectives of ---------, principally in the external environment, though they are
not fully utilised to maintain an upright internal stance, as perceived in their
weakness.
12. Recommendations
--------- should place additional emphasis on their greatest strengths by
employing more staff that is properly trained for the task required of them;
educated in the values of --------- with proper job descriptions defined.
Furthermore although they have implemented state-of-the-art systems; the
Warehouse management and accounting technology possessed needs to be
fully utilised in order to promote greater efficiency of resources. There is also
a necessity to take advantage of new technology to the region with the
purpose of reigning supreme in the market share controlled.

13. References
Bloomsbury Business Library, Business & Management Dictionary 2007, p
7227, http://web.a.ebscohost.com.
--------- orientation document, 2015.
--------- website, viewed 4 July 2015,
http://www.----------------------.com/ourvalues.
Guide to Management Ideas. 2003, pp 218-219, http://web.a.ebscohost.com.
Hill, T, & Westbrook, R 1997, Long Range Planning. February, vol. 30, no. 1,
pp 46-52 viewed 5 July 2015, http://web.a.ebscohost.com.
Johnson, G, Whittington, R, Scholes, K, Angwin, D & Regnr, P 2014,
Exploring Strategy-Text and Cases,10th Edition.
Porter, M, E., 2008 THE FIVE COMPETITIVE FORCES THAT SHAPE STRATEGY
Harvard Business Review, 00178012, Jan, vol. 86, no. 1, viewed 5 July 2015,
http://web.a.ebscohost.com
Research and Markets. 2013 Business Wire (English). viewed 6 July 2015
http://www.researchandmarkets.com/research/t2lqws/systemair_ab

14. Appendix
Figure 1-Vision of ---------

Figure 2---------- Core values

Figure 3-Porters Five forces model

Figure 4-Pestle Framework

Figure 5-SWOT analysis of ---------

Strengths

Weaknessess

-Innovative & dedicated people

-Trusted partner relationships
-Willingness to invest
-Brand building
-High penetration and in-store
impact
-Quick decision making
-State-of-the-art systems
-Enhanced growth potential

-Insufficient office staff

-High turn-over of staff
-Inconsistent communication
with staff
-Underutilization of technology
(Warehouse management and
accounting system)
-Non-existent Job descriptions

-Invest in Digital x-ray

machines (new technology)
-Seek alternative suppliers
-Stable economy and GDP
growth indicates more
disposable income for
consumers

-Loss of brands to competitors

owing to intense rivalry
-Under-bidding of tender
contracts
-Political instability due to
upcoming elections is
September 2015

Opportunities
Threats

Figure 6----------s beliefs