Question

Select a company you want to learn more about, fill out the following external environment worksheet for that company. you may chose diferent company for each question

1)Economy: How does the state of the economy influence the sales of this company’s product or service?

2)Technology : What new technologies strongly affect the company you have selected?

3)Demographics: What changes in population might affect the company’s customer base?

4)Social issues: What changes in society affect the market for your company’s products?

5)Suppliers: How does your company’s relationship with suppliers affect its profitability?

Answer 1

1. Economy- Amazon is the world’s leading e-retailing company. The economic factors affect Amazon greatly. There are both opportunity and threat for Amazon products in this economic environment. The increase in the disposable income in a developing economy would increase the sales of Amazon thus increasing the financial performance of the company. China is one of the biggest markets for Amazon and an economic recession in China would pose threat to Amazon’s expansion in China.
2. Technology- Apple Inc., is a leading manufacturer of innovative computer and mobile phones. The growing apps market and the technological integration are great opportunities for Apple Inc. Apple can exploit these opportunities by manufacturing products that can be connected together seamlessly. The growing app market can be utilized by the company to increase its Apple Store.
3. Demographics- Microsoft - The generation change (demographic cohort) has made a great shift from PC users to smart screen mobile phones. Microsoft was mainly designed to be used in PCs and laptops and this generation shift to mobile phones has greatly affected Microsoft products.
4. Social issues- Google- The growing trend in the usage of the social media poses great threat for Google because it increases the popularity and usage of other companies such as Facebook.
5. Suppliers- Motorola- The suppliers’ overhead cost is a predominant share in the company. Motorola is a classic example that seeks to enhance the supplier relation as they affect a supplier’s overhead cost. Motorola helps small suppliers to adopt to the multiple standards and procedures as required by the manufacturing company.