March 16th, 2015
Business Model and Strategic Plan Part II: SWOTT Analysis Paper
External forces and trends:
The external environment has an indirect influence on the business and cannot be controlled by the business. The external environment can be classified into 2 types:
Micro environment- otherwise referred to as the task environment and operating environment. Such forces have a direct impact on the operations of an organization (Sahi, 2011).
The following are forms of micro environment forces: suppliers, financers, the customer, marketing intermediaries and the general public. With the recent upsurge in the use of computer technology, supplier constraints have arisen which have led to prices of these products going up. The result is better revenue for Micron (Blanc, 2014).
Macro environment- otherwise also referred to as the general environment and remote environment (Sahi, 2011). Macro factors have a higher propensity of being uncontrollable compared to those classified under the micro environment.
Macro environment factors are:
The economic environment – this refers to country’s economy. Measurables that determine this include infrastructure, technology and the strength of the country’s currency.
The social environment – this refers to the value system that a country ascribes to. This affects how a business functions. Sociological factors that come into play include: costs structure, customs, general norms and conventions, mobility of labor etc.
Political Environment – elements that influence this environment include political parties, government ideologies etc.
Legal Environment – this refers to the flexibility and adaptability of the law as well as other legal rules that influence the business. This includes statute, court rulings and precedent.
Technical Environment – technological advancement in a country has a ripple effect on commerce. Technology adopted by industries has an impact on the end product as well the equipment used to make the products and services (Sahi, 2011).
A stable economy is a plus for the company as it allows it to generate income.
The United States is founded on a system of capitalism which allows commerce to thrive. This makes it the perfect environment for businesses to thrive; especially those that focus on innovation and technology such as Micron.
The United States emerges among the most developed countries in the world with a stable economy. This makes it a favorable environment for a business to grow.
The current social trend is growing use of computers and technology in homes, offices, public areas etc. As such, Micron is secured of having a market for its products as well as a steady increase in demand.
Micron has benefitted from technology in terms of the equipment it uses to assemble its products
A stable and sound legal system makes it possible to conduct transactions not only within the United States but also internationally.
The semiconductor industry is one that Micron has been in for over 30 years which gives it a great advantage as it has significant market share and enjoys large economies of scale
Internal forces and trends considerations:
The internal environment has a direct impact on the business (Kokemuller, 2015). A number of these factors are controllable such as personnel, location, brand image etc.
Micron has over 30 years of experience in the semiconductor industry which makes it a leader in the industry as far as knowledge and technology goes.
Owing to multiple acquisitions and mergers, the organization has consistently been able to benefit from a wider market share.
A new division will require the investment of a great deal of capital in the business. This is a risky venture as success is not a definite.
As demand increases, micron will need to increase its production