Management Simulation - Essay Example

A joint SWOT and PESTEL analysis identify various internal and external environmental factors to the enterprise. Competition, a threat under the SWOT model and a political factor under the PESTEL model, from firms such as Valentino, The Junction Shop and Pub Prince of Wales is a major factor that has led to poor market command, and is likely to dictate lower prices for the firm’s commodities. The competition into poor sales also limits the entity’s output volume. Weak management, a weakness under SWOT model, is another factor to the organization as poor insights into the competitive environment illustrates.

This has led to poor forecast of the business’ financial capacity and competitiveness, and may force the business into urgent borrowing or force a shut down. Lack of proper marketing initiatives for countering the existing competition is another significant weakness. This has maintained low level of market command and therefore limited the organization’s production level. The other SWOT and PESTEL elements are not identifiable (Webster 2010, p. 88). Health-in-Pizza Ltd.’s competitive situation and potential action plan for improvements The competitive business environment puts Health-in-Pizza Ltd.

at a disadvantage against its competitors. Major targets such as college students and the business class have not been visiting the enterprise and price is a major factor because Health-in-Pizza Ltd. is 20 percent more expensive than its competitors are. Two strategies are available for improving the business’ position in the market, price reduction and a direct approach to promoting the entity’s products among the target population. Health-in-Pizza Ltd. should reduce its prices to values that are equivalent to, or bellow, prices offered by the competitors.

This is because the trend in the past five months has shown that the market, regardless of its segments’ social classes is determined by pizza’s price. Awareness campaigns to enlighten the market of the health benefits of Health-in-Pizza Ltd.’s pizza and its reviewed prices should then follow this to change the developed attitude that the business is expensive. Section B Expected effects of environmental changes on the business Entry of a new supplier with cheaper products will reduce the entity’s operational costs and therefore increase its profit margin.

This will further allow