External and Internal Environmental Analysis of Bayou Inn - Essay Example

External and Internal Environmental Analysis of Bayou Inn Introduction An analysis of the internal and external environment in which a business operates in provides insightful information for the management body of the organization (Nadine & Pahl, 2009). The information collected enables the individuals serving in the capacity of a manager to implement decisions that would result in short and long term benefits for the stakeholders of the company. The term stakeholders refers to all the individuals directly or indirectly linked to an organization and can be affected or have an effect on the organization. Discussed below is the internal and external environmental analysis of Bayou Inn; a hotel in the lodging industry (Nadine & Pahl, 2009). Recommended Vision Statement Success in the hospitality industry can only be achieved if a company models its vision statement to target the customers it intends to provide services (Briggs, 1999). The vision statement must be brief, clear and concise. It must indicate the general direction the hotel aims to head, while capturing the dream of the founders of the company. Therefore, the recommended vision statement must highlight the high regard in which customers are held by the employees, management and shareholders of the hotel (Briggs, 1999). In the case of Bayou Inn, the vision statement can highlight how the business intends to look in a specified duration of time. In such a scenario, the capturing of Bayou Inn’s aspirations occurs. An analysis of vision statements of the biggest hotels in the hospitality industry indicates that these statements capture the aspirations of their founder; for example, Conrad Hilton’s vision statement for the Hilton chain of luxurious hotels, “To achieve extraordinary things, you must first dream magnificent dreams” (Briggs, 1999). Therefore, an example of Bayou Inn’s vision statement could be, “Taking care of you by giving you a home when you are away from home” (Briggs, 1999). Recommended and justified mission statement The mission statement is considerably different from the vision statement in that it provides a description of what the organization intends to do after reaching its target mark (Briggs, 1999). Druker (1954) explains that the mission statement outlines the purpose of an organization by providing realistic and clear business objectives. Drucker also emphasizes that the customers rely on the mission statement to figure out the services it provides (Briggs, 1999). Rarely do people look at the statutes, articles or names of an organization to determine the role it plays. Therefore, it is crucial to capture the main goals of the organization in the mission statement. The format of Bayou Inn’s mission statement ought to follow the guidelines used in the determination of objectives (Briggs, 1999). Meaning, the goals stated in the mission statement must be S.M.A.R.T ones. The acronym represents measurable, attainable, specific, realistic and time-bound goals. As a result, Bayou Inn can formulate strategies which will prove viable after the time allocated for their implementation (Briggs, 1999). SWOT Analysis A SWOT analysis helps an organization in the identification of the strengths, opportunities, weaknesses and threats (Nadine & Pahl, 2009). As a result, they are able to strategize with the information gathered in mind. Capitalizing on the opportunities detected, eliminating the weaknesses found, relying on the strengths noted, and avoiding the threats becomes easier for a company (Nadine & Pahl, 2009). The procedure followed when conducting a SWOT analysis involves the analyzing of both the micro and macro environments of a business. The micro environment entails the functions found within an organization whereas the macro environment covers the aspects outside of the organization. The macro environment is further split into the broad and narrow categories (Nadine & Pahl, 2009). Information gathered from a SWOT analysis of the microenvironment reveals the employees’ outlook on the firm’s policies, for example, labor relation policies and management policies among others. Therefore, companies are able to rectify the policies negatively affecting the employees. In addition, they are also able to make improvements on the policies positively affecting the employees (Nadine & Pahl, 2009). As a result, the entire workforce remains focused on the fulfillment of the company’s objectives. Management’s failure to pay attention to the state affairs of their employees affects the organization in ways detrimental to the running of operations, for example, productivity levels might dwindle (Nadine & Pahl, 2009). On the other hand, a SWOT analysis of the macro environment sheds some light on the external business environment. A look into the broad micro environment might reveal issues that might be of interest to the management body of an organization (Nadine & Pahl, 2009). An analysis of the demographic, social and cultural section provides information on the factors present in the society which affects the business indirectly or directly; for example, insecurity (Nadine & Pahl, 2009). Keeping up with the changes in technology allows the organization to remain up-to-date with new equipment improving communication and other aspects within the organization. Changes in the economy might work for or against an organization; therefore, it is necessary to stay updated in order to capitalize on favorable changes and cushion the organization against unfavorable ones (Nadine & Pahl, 2009). The political and legal sectors must also occur to keep abreast with legislation or regulations imposed; therefore, avoid incurring losses from legal liabilities attracted by the failure to comply with the changes. The narrow macro environment entails an analysis of the market, customer, distribution channels, suppliers and competitors (Nadine & Pahl, 2009). Successful companies succeed by analyzing the target market before introducing a new product or service into the market preventing the incurring of losses from rejection of the product or service. Customer satisfaction is also crucial for the organization's success; therefore, constant improvements on how business operations are run are mandatory in the sustenance of customer satisfaction (Nadine & Pahl, 2009). Scoping the competition also helps companies re-strategize in instances where their competitors are flourishing. Companies must establish a healthy rapport with their suppliers because they rely on them for timely delivery of production materials (Nadine & Pahl, 2009). Bayou Inn stands to benefit from the conducting of a SWOT analysis because of the insightful information gathered from the exercise. For example, the management body might capitalize on the motivated employees to create a friendly environment to boost customer satisfaction for the organization (Nadine & Pahl, 2009). In addition, Bayou also stands to learn a lot from its competitors who have been in the business for a longer duration. The chances of avoiding legal liabilities increase by Bayou taking an interest in the changes, in legislation (Nadine & Pahl, 2009). Recommended and justified long-term objectives Long term objectives of a business can be defined as goals an organization wants to achieve in a period of over five years (Camillus, 1986). They include objectives which are not practical to realize over a short span due to factors such as financial limitations. Examples include; technology development, employee development and relations, profitability and public and social responsibility (Camillus, 1986). Stakeholders must be on board with the strategies directed towards the achievement of these goals. Long term objectives must also follow the guidelines of S.M.A.R.T. goals. A key factor taken into considered when dealing with long term goals includes the derailment of stakeholders from the lack of motivation during the realization period. As a result, it is the management's responsibility to keep the stakeholders motivated throughout the entire process of the realization of the goal (Camillus, 1986). Bayou Inn’s long term objectives might include; improvement of competitive position, employee relations, corporate image and productivity. Bayou Inn operates in a niche dominated by organizations that have been operating for a long duration of time (Camillus, 1986). These majestic empires dominate because of the brand created over the years. It is improbable that Bayou might emerge victorious after a business confrontation with these companies. Therefore, the formulation of strategies equipped to meet long term goals provides a viable solution for Bayou Inn (Camillus, 1986). This is because these strategies take into account the financial position, and employee relations of the company. Therefore, implementation of these strategies is gradual allowing for Bayou’s business operations to proceed undisrupted. The successful realization of long term goals will allow goals to compete with other companies (Camillus, 1986). Conclusion In conclusion, an analysis of the business environment enables companies to strategize, therefore, speed up the realization of goals. In addition, it is clear that an organization must capture the attention of potential customers in their vision and mission statement (Briggs, 1999). Many people rely on these statements to get a glimpse of the company’s business operations. Firms also reap a multitude of benefits from conducting a SWOT analysis on their businesses (Nadine & Pahl, 2009). They are able to rely on their strengths, capitalize on their opportunities, eliminate their weaknesses, and avoid their threats. This gives them an edge over other businesses operating in the same field; they are able to model their strategies based on the information gathered from the analysis. Lastly, the fulfillment of long term objectives proves to be a tricky issue for most companies. The delicacy in which they require to be handled in order to avoid incurring substantial losses requires companies to dedicate themselves fully towards their realization. Bayou Inn stands to benefit from the recommendations made with regard to the long term objectives, mission and vision statements and the SWOT analysis (Nadine & Pahl, 2009). References Briggs, B. (1999). Creating Effective Mission and Vision Statements. New York: Gloven. Camillus, J. (1986). Strategic Planning and Management. New York: Lexington Books. Nadine, A., Pahl, R. (2009). Swot Analysis - Idea, Methodology and a Practical Approach. New York: GRIN Verlag. Read More