External Environment Analysis for the P’kolino Company

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Table of Contents

Needs the business is meeting
Target Customers
Scope of the business
Competitiveness of its products
Sense in the case study
Internal Environment Analysis
The team at P’koloni
Overall Potential
Recommendations
Conclusion

Needs the business is meeting

Within the playroom products and accessories industry, business magnitude of P’koloni is so wide and well organized that it would be very difficult for a new entrant into this industry to easily establish a niche or sway customers towards its new store. Thus, the company’s wide distribution network, large catchment of customers and customer loyalty meets the need for sustainability and profitability.

Target Customers

The target customers are retail businesses, private homes, children, and entertainment business that use the playroom products. Thus, customer loyalty in this industry is easily swayed towards the most cost effective store in terms of prices for its products. Despite the relatively crowded market, P’koloni has designed and integrated reliable and efficient in-house and external suppliers to ensure the flow of supplies for their products within and out of the US territory.

Scope of the business

The performance of the P’koloni within the expansive play station retail industry in the US is highly dependent on a buyer-power in terms of their purchasing power. Fortunately, the business has series of playroom products and furniture that serve the demands of its customers.

Competitiveness of its products

The Pottery Barn Kids and Land of Nod are the major competitors of P’koloni as a result of their large share of the play station industry market and wider distribution channels beyond P’koloni’s. However, through competitive pricing, strategic expansion, and planned diversification, the P’koloni Company has managed to establish as strong market niche despite the rivalry. The company’s products retail at prices below the average market price despite the high quality.

Sense in the case study

From the above reflection, it is evident that P’koloni Company has a great opportunity for expansion since the market is inclined to its advantage. For instance, its innovative approach to addressing consumer concerns and a well organized distribution network will ensure sustainable and rapid expansion into new market niches.

Internal Environment Analysis

Fair economic environment that has been created within the US boundaries has been the one that encouraged trade. This conducive trade environment has offered an unlimited access to the market for the P’koloni’s stores which has taken advantage of this to expand its market niche. The company has earned a segment of the US population that has developed loyalty towards the store because of its CSR activities and friendliness to customers unlike its competitors.

The team at P’koloni

Leadership and management are complimentary systems of action, each with distinct characteristics and actions for the success of the organization. Management of this company focuses on the organizational goals achievement. Great loyalty comes with great motivation hence great achievement of the organizational goals.

The team needs foresight in technical training since it gives a company rough perspective and overview of the future concerning the expected and unexpected changes and challenges it may face. Generally, the business has the potential of making money through technical training since it foster efficiency and optimal performance.

Overall Potential

Strengths

Most of the models of supply chain management at P’koloni propose a linear format to make judgments that marketing within an organization and can be described in reference to future expectations. This means that businesses will be striving to achieve their future desires while the present pressure will give them management problems.

The company has already established itself in the US market and offers competitive prices for its products. The company has good terms with customers and has built a cult like following. The company has the opportunity of attracting more clients through referrals since its local network is well established. The company has the opportunity of diversifying marketing beyond its current scope of operations.

Weaknesses

The company is sensitive to changes in customer and in lifestyle changes. Most of the models of supply chain management at P’koloni propose a linear format to make judgments within an organization and that can be described in reference to future expectations. In reality, modernism cannot accommodate the approaches adopted at P’koloni, because the rate at which marketing changes occur is rapid making the store to miss on exact predictions of its desirable future positions.

Instead, it ends up giving descriptions in more inspirational forms. This means that businesses will be striving to achieve their future desires while the present pressure will give their management problems. There are many competitors in the market, especially the big players. Thus, it cannot franchise to protect its future growth parameters.

Recommendations

The congruence model focuses on the gaps in opportunities and performance in an organization. In the organization, performance gaps are shown by the deviation of actual from of the expected performance while opportunity gaps are shown by the areas an organization needs to pursue. After identifying the gaps, management of the organization needs to strategically align the gaps with organizational building blocks so as to experience sustainable market penetration.

External environmental factors are the central drivers of market change in an organization. Changes in the external environmental factors necessitate an organization to change its internal processes, strategies, visions, and goals. Therefore, it is important for management of an organization to identify the key external drivers that can impact on an organization.

There are a number of external environmental factors that influence operations of P’koloni. Therefore, an entity needs to make changes in its operations so as to respond to the economic swings. Social factors also affect operations of the Company. The company needs to respond to the social needs in each industry and in each region. This may necessitate for the entity to overhaul its operations so as to meet the social needs.

Change in technology is also a key factor that affects operations in P’koloni. Being a retail company, it needs to make use of the current technology so as to remain on the top of the competition. The management should be keen on improving customer service. They should focus on making use of advanced technology to enhance the circulation of information within the company and to customers.

This is aimed at improving efficiency and customer service. Besides, they should focus on assembling specialists to solve specific needs of customers. Also, the company should change the company approach to strategic insight and executing strategic plans.

Conclusion

Despite the threats and weaknesses within this company, the strengths and opportunities for expansion and sustainability are unlimited. Thus, I would comfortably invest in this venture since the projected returns outweigh the possible risks. Besides, the company should embrace the need for creation of an integrated structure to absorb company goals that favour its business environment.

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