Friday, August 9, 2019
External and Internal Environment Audit of Stenders Essay - 1
External and Internal Environment Audit of Stenders - Essay Example The paper tells that the management of the Stenders has decided to enter the UK market. They are eyeing to open franchisee retail stores in London considering the prospect of the market. The social demand for body and face cosmetics and beauty products is increasing significantly in London. Moreover, a favourable technological environment will help the management of the organization to enhance its manufacturing, distribution, selling and promotional practices. Availability of skilled and low-cost suppliers and supply chain option can influence the management to develop and implement unique strategies in business operation process. recent financial crisis and economic environment affected the purchasing power of people. Therefore, it can affect the overall business output of Stenders in London. Apart from this, too much intense market competition can make it difficult to develop potential customer base initially. Strict employment and environmental regulations and legal policies can b e considered as significant external challenges for the organization. Moreover, the intense market competition and strict entry lawsuits can help the management of Stenders to face a limited threat of new entrants. Huge market competition and availability of differentiated and substitute products can increase the threat of bargaining power of the consumers. Stenders has both internal strengths as well as weaknesses. Strong brand name, high customer loyalty, potential customer base across the globe and significant international business diversification strategy can be considered as the major internal strengths of the organization. Affective product differentiation strategy and strong financial also can be considered as one of the important strengths of the organization. Apart from this, the organization has developed the decentralized decision-making model that enhance efficient and quick strategy development and decision-making process.
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