Question

Discussion Question 3

Research and write your Fortune 500 company’s three (3) current Opportunities and three (3) current Threats of your company in this current year.

Research and describe the impact that these factors of opportunities and threats have on your company’s financial and future strategy in the current year.

Resource information:  Opportunities and threats are external—factors that are going on outside your company, in the larger market. You can take advantage of opportunities and protect against threats, but you can’t change them. This matrix is known as the External Factor Evaluation (EFE) and opposite will be the Internal Factors Evaluation (IFE).

Opportunities examples are ‘Technology Advancements’. Threats examples are ‘Economic Changes’.

Answer 1

OPPORTUNITIES

1. Global Expansion - Because Target stores are only located in the U.S., expanding their locations to countries such as China, India, and/or Japan would really benefit the company as these places have high population.
2. Growth of their grocery department

3.Enhance efforts of being environmentally friendly through their products, packaging, and bags

THREATS

1. Competition - Target has many retail store competitors, the number one being Walmart. Walmart and Target are rival companies, especially when it comes to prices and quality. Because Walmart is a global company, this poses a risk to Targets located only in the U.S.
2. U.S. Economy - Target is only located in the United States, therefore if the U.S. economy were to slowdown, Target could not rely on foreign markets.
3. Increasing interest rates

the impact that these factors of opportunities and threats

OPPORTUNITIES

Opportunities are openings or chances for something positive to happen, but you'll need to claim them for yourself!

They usually arise from situations outside your organization, and require an eye to what might happen in the future. They might arise as developments in the market you serve, or in the technology you use. Being able to spot and exploit opportunities can make a huge difference to your organization's ability to compete and take the lead in your market.

Think about good opportunities you can spot immediately. These don't need to be game-changers: even small advantages can increase your organization's competitiveness. What interesting market trends are you aware of, large or small, which could have an impact?

You should also watch out for changes in government policy related to your field. And changes in social patterns, population profiles, and lifestyles can all throw up interesting opportunities.

THREATS

Threats include anything that can negatively affect your business from the outside, such as supply chain problems, shifts in market requirements, or a shortage of recruits. It's vital to anticipate threats and to take action against them before you become a victim of them and your growth stalls.

Think about the obstacles you face in getting your product to market and selling. You may notice that quality standards or specifications for your products are changing, and that you'll need to change those products if you're to stay in the lead. Evolving technology is an ever-present threat, as well as an opportunity!

Always consider what your competitors are doing, and whether you should be changing your organization's emphasis to meet the challenge. But remember that what they're doing might not be the right thing for you to do, and avoid copying them without knowing how it will improve your position.

Be sure to explore whether your organization is especially exposed to external challenges. Do you have bad debt or cash-flow problems, for example, that could make you vulnerable to even small changes in your market? This is the kind of threat that can seriously damage your business, so be alert.