SWOT, PESTLE and Lewins Field Force Analysis: A Case Study of Newspaper Industry - Essay Example

? Word Count: 2064 SWOT, PESTLE and Lewin’s Field Force Analysis: A Case Study of Newspaper Industry SWOT, PESTLE and Lewin’s Field Force Analysis: A Case Study of Newspaper Industry Table of Contents Executive summary In the processes of business development and growth, the analysis of the external factors that influence the ability of the business to register significant growth must be analysed. PEST analysis is a tool that measures the various business external environments and how they determine the success of the business. In this analysis, the political, economic, social and technological factors in the external environment are analysed in relation to how they influence the business performance. In this section of the report, I will analyse the essence of this tool of business environment analysis, highlighting its purposes and the benefits it presents to a business. SWOT analysis examines the internal environment of a business and the manner in which these affects the position of the organisation. Introduction The business external environment is characterized by different political influences that affects both the safety and regulatory issues that impacts on a business. Any change in a government results into changes in policies and approaches to different business related issues. These include regulatory issues, changes in tax regimes, systems, and political stability, which have direct bearing in the economy. In analysing the political environment, a business seeks to identify factors within the environment controlled by political changes that can affect its productivity (Carruthers, 2009). Trade tariffs, varying levels of government regulation, fluctuating tax regimes, tariff controls and regulations by the government are other political factors that characterize external environments in a business (Currah, 2009). PEST ANALYSIS The economic stability and position of a country significantly affects the ability of a business to grow and make significant breakthrough in its operations. Different economic situations exist in a country that is classified as either being in a slump or a boom, factors that a business must evaluate before and during its operations. Booms in economic environments results into benefits for all businesses while a slump economic condition result into a reverse of the results. PESTLE analysis also assesses the unemployment and labour related economic position of an environment before making important decisions that affects its operations. The labour costs, the level of disposable income and the interest rates within a country are also analysed under economic evaluation (Carruthers, 2009). As business run in an environment that is dependent on the behaviour and practices of the society, an analysis that evaluates the consumer behaviours, lifestyle and tastes and how this affects the growth of the business are highly beneficial. It enables a business to make decisions with the societal factors and behaviours into consideration. The socio-cultural factors that PESTLE analysis seeks to identify in an external environment include the population health, death rate, health status, morbidity and education levels (Sandra, 2003). Since the beginning of this millennium, the impact of technological growth in an economy on the growth of businesses has been critically followed. This is due to the immense impacts of external technological growth on a business and the opportunities that it presents to a business. Information and communication is today shared in highly advanced and technological dependent means (Kirchhoff, 2010). PEST analysis of the newspaper industries in the developed countries The newspaper industries in developed economies are exposed to a complex macroeconomic environment that influences their operations and thus affects their operational benefits. These macroeconomic factors can be evaluated and studied using the PEST analysis to identify the political, economic, socio-cultural and political factors that these newspapers are exposed to. This section will thus evaluate the macro environmental factors within the newspaper industry and how they determine the success of the industry players (Qasemi, 2006). Political environments affect the operations of newspaper industries as it influences their ability to either report in a free and democratic space or face government regulation and interference. During terrorist attacks for example, the content of newspapers reports that touch on matters security are controlled and keenly censored by the government. This makes it quite tough for such newspaper companies to report on issues, which can significantly increase their sales volume and profitability (Mahara, 2013). Newspapers fall under the category of print media, a sector that has been affected significantly by progress and development in technological development. The macro environment of developed countries is characterized by advances and growth in technological ways of production and business that affects the sales of newspapers in the countries (Qasemi, 2006). The technological environment within the developed countries is currently characterized with increased use in internet use powered by powerful technological devices. Today, newspapers are read preferably from the internet by over 50% of the residents within this country, a factor that significantly affects the performance of print media industry like the newspaper. This increases the operation cost of newspaper industry players in the developed countries like the United States and Canada. The current developments and growth of new communication channels presents fresh opportunities and challenges to newspapers within the developed economies as they struggle to meet the demands and changing tastes of consumers (Bui, 2013). Just like other industries, economic factors within the macro environment have significant influences in the success of businesses. These factors affect the profitability and operation costs of newspaper industries in the developed countries. These are tied to microeconomic factors such as the fluctuations in interest rates and the countries exchange rates (Mahara, 2013). During financial crisis and meltdowns, newspaper industries must come up with ways of cushioning their incomes from fluctuations in exchange rates. Changes in the United States stock markets in 2009 affected the incomes of most newspaper companies in the country. However, the success of most newspaper companies in the developed countries even during times of financial crisis is because of dual business model adopted by the companies. This model allows newspaper companies to build a rapport with their readers and even advertising companies making it possible for business to draw income from two sources (Kirchhoff, 2010). SWOT analysis of The Guardian SWOT analysis is a tool that is used by business to analyse the internal environments within the business and how it affects the profitability of the business. It is conducted by most organizations to improve their profitability and efficiency in production and marketing ways. In this section, the SWOT analysis of British giant newspaper, The Guardian, will be critically discussed to provide the internal environments of the business (Applegate & Johnsen, 2007). The guardian newspaper is one the print newspapers produced and marketed by the Guardian Media Group Inc, a trust owned business in the United Kingdom. Its products include print materials such as magazines, newspapers and other forms of media such as websites, radio stations and website reporting (Cook, 2011). The strengths of the Guardian vary significantly and this has allowed the company to develop progressively into a major media company in the United Kingdom. As one of the pioneers of print media in the United Kingdom, the Guardian controls a significant number of local customers. The company has significantly used its position in the market to control the newspaper industry in the United Kingdom. The Guardian also have a number of technologically advanced facilities and websites which has enabled them to continue offering online and print version of their newspaper to the consumers (Cook, 2011). Despite the progressive strengths of the company, a number of threats affect its operational efficiency and the ability to compete favourably in the market. The newspaper industry currently faces a major shift especially in the developed countries in which significant changes have occurred in the print newspaper sales in the country (Currah, 2009). The marketing strategies of the company have failed to increase its market share significantly in other countries across Europe. Other companies and newspaper manufacturers in the region to seize the market have exploited this. The company also have unsolved legal suits against it over various reports published by the newspaper. This affects the image of the company thus provided more space for competitors to advance in their marketing campaigns (Cook, 2011). The analysis of opportunities in SWOT analysis provides basis for analysing the chances of an organization that provides them with the competitive advantage over others. Being a pioneer newspaper in the industry, the company is better placed to improve its market share and control. The changes in the patterns and the emerging trends in newspapers present an opportunity to the organization to increase its market share. This is due to the company’s well-established technology and internet system and a large market share (Applegate & Johnsen, 2007). Competition remains one of the major threats facing the Guardian and results from a large number of market players. The emerging trends in newspaper and print media have had significant impacts in the market share that the company controls (Sandra, 2003). Lewin’s field force analysis Apart from the PEST and the SWOT analysis, businesses can adopt the Lewin’s field forces analysis to analyse the business environment and hoe these factors will influence the business performance. In this analysis, the forces that drive the progress of a business towards a goal or those that hinder such progressive movement are evaluated. This principle was developed by Lewin Kurt and has been applauded for the impacts it has created towards the evaluation of management and organization performance determinants. In business environments, different proposals are made which are meant to strengthen the position of a business and enhance productivity (Norris, 2000). The Lewin’s field force analysis thus helps in determining if the proposals made will be supported and to identify any obstacles to the development of working solutions. It thus seeks to develop steps that help in the reduction of the strength of the obstacle thus improving the ability of the business. It thus consider a number of forces in a business which include the resources, the business tradition, interest that can affect decision making and the internal organization structures (Applegate & Johnsen, 2007). Field force analysis for newspaper industry In the evaluation of the factors that determine the success of newspaper industries in the developed economies, Lewin’s field force analysis can be used. In using this model to analyse the industry, the restraining factors to the success of the industry should be considered in comparison to the driving forces, which are responsible for change. The driving forces in the newspaper industry in the developed countries as far as use of internet is concerned are the high level of technological advances in the country (Bui, 2013). The organizational behaviour and culture within the newspaper industries in the developed countries is also considered a significant driving force for this industry as it enable the management to implement changes with well-coordinated employee participation and team work. However, the success of a business does not depend on how well they change their driving forces but how the restraining forces is also balanced in the industry to strike a balance. The current developments in the use of the internet in newspaper industries have been attributed to reduced motivation of the print media industry employees. This negates the progress that has been made by these industry players towards improving their business abilities using the internet. The internet interruptions and traffic delays also results into consumer dissatisfaction, which affects their ability to access the products of the companies in the industry (Mahara, 2013). Indian newspaper industry Despite the current problems facing newspaper industries in other sections of the world especially the developed economies, India has seen significant growth in this sector, escaping from the current woes facing other industry players in developed economies. Indian daily newspaper companies still enjoy significant profits from their print newspapers as confirmed by the chief executive of ABP, India’s largest media company (Norris, 2000). The boom in newspaper business in the country can be attributed to the significant growth in the country’s population. This makes it possible for print media to continue taking a large share of the advertising platforms available in the country. The newspaper companies in the country have also made a significant shift from the common language of publication to producing vernacular publications that target the village dwellers and illiterate citizens. Conclusion As the web continues to pose a threat to the English newspaper industry, India boom continues due to less impact that has been created with the shift from print media to online versions (Bui, 2013). Majority of the citizens still prefer the print versions as opposed to virtual copies, a fact that can be attributed to low internet supply in the country. References 1. Applegate, E., & Johnsen, A., 2007, Cases in advertising and marketing management: Real situations for tomorrow's managers. Lanham: Rowman & Littlefield Pub Incorporated. 2. Bui, T., 2013, Integrated marketing communications plan for online newspaper. Lahti University of applied technology. 3. Cook, M., 2011, Guardian.co.uk: online participation, agonism and mutualism. London: media@LSE, London school of business. 4. Carruthers, H., 2009, Using pest analysis to improve business performance. In practice, 31, 37-39. 5. Currah, A., 2009, What’s Happening to Our News: an investigation into the likely impact of the digital revolution on the economics of news publishing in the UK, Reuters Institute for the Study of Journalism, University of Oxford, UK. 6. 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