External and Internal Environmental Analysis - Essay Example

External and Internal Environmental Analysis External environmental factors According to (Hopkins, , the external environmental factors can be grouped majorly in terms of the remote and the industry factors that control the working business environment. Normally, the main external environmental factors in the industry segment include the competition from the stores availing similar products, government policies guiding the marketing and sales of clothes fashion. Merifashion’s external environments are painted with many contesting parts.

The external environment encompasses all the uncontrollable forces that are mainly outside the regulation or control of the organization. The notable factors falling under this segment are mainly the factors include eminent natural forces, entailed social or even cultural forces attaching to how people dress, varying demographic factors that address the variation in the mode of distribution of people and finally technological changes that take shape annually or periodically. Industry According to (Seivewright, 2011), the industry experiences widened competition from other retailers operating or selling products based on similar products.

The competition intensity has continuously been varying with extents of different brands availed in the marketers, varying sizes and even market capitalizations. The position of Merifashion limits it control of the competition, but it has placed stringent measures on the ground to keep afloat despite the ever-changing marketing environment. Merifashion has learned to stay in the market by predominantly studying the alterations in the market sphere thus creating an ever-changing sphere where business do not hugely hamper the existence of the company.

The industry also faces intense governmental policies and regulations attaching on the running of the fashion industry. Issues regarding patents and license on running of the fashion industry are under strict scrutiny by various bodies that look into proper regulation process and policies aimed at maximizing the production output. Remote Merifashion remote external environment has economic, social, technological, political and ecological as the main factor inhibiting its success. American population has varied constituent’s cultures that remain as an advantage for Merifashion to exploit.

Social and cultural limitation continuous segment the US fashion market into certain tiny considerable niche that is served structurally at very intended times. Demographic orientation also defines and structures the market niche into sector basing on the age, sex, family size, marital status and occupation that is hugely effective in the definition of the sector. The fashion industry is equally experiencing huge technological changes that control the expansive sectors of the American economy, and this has been experienced in terms of the machines entailed in fashion design process.

The machines are efficient, fast but expensive to acquire (Hopkins, 2011). External operating environments In general Merifashion’s operating environments has both promoting and discouraging environment that regulates the profitability and output of the business at all levels. The output aids in the enhancement of the profit margin and thus steadily elevating the levels of the business in the best possible ways (Hopkins, 2011). Internal strengths Merifashion has strong internal strengths that enhance its competition capacity in comparison to other players in the industry.

This notable through consistent performance books of accounts for the firm as it records substantial increment in profit growth annually as compared to other competitors. The firms have incorporated well-segmented approach servicing the section of the market. Consideration of the official wear and dress code sector has always been the segment service by Merifashion. The segment mainly entails the working group of people which has good monetary level to spend. Merifashion keeps attracting them by availing recurrent offers in the market always creating for enhancements in the official wear sold as compared to other players in the industry.

Formula for winning the game has always been the most attractive way to ensuring a success for the company. Internal weaknesses Merifashion management has been rethinking of expanding its ventures into the other fashion segments, but it has few skilled employees in the sector. This has lead to increased recruitment of new young, vibrant employees in the sector n with an aim of expanding the sector. The process is subsequently characterized by intensive training and retraining that marks massive chunks of finances spent in the process.

The company also thinks of attracting best talents in the job market, but it calls for intensive investment in terms of financial capacity so as to expand to the entire employee segment (Hopkins, 2011). Assessment of the Merifashion s resources Merifashion has ever increasing resources in terms of liquid cash and long-term assets located in various branches of the business. The firm has also invested in its employee by assigning skills to them that has always paid in desired time. The firm also owns various buildings alongside its other investment process.

Merifashion s competitive position and possibilities Merifashion s competitive position and possibilities are alive especially with expansion and incorporation new plans underway to create for exclusive system. The company prosperous future that is notable from the current and future investment in employee training, addition of new stores, introduction of new fashion brands and intensive advertisement to attracts more clients. Structure of the organization The firm has well definite structure of the organization which states out the roles of each individual from top to the bottom.

The business has a director at the helm who organizes the four main departments the director controls the entire four department and issues critical directions to them after every meeting. Fig: Merifashion s structure of the organization The four main departments are crucial to the organization of every special. The accounts manager looks into the financial records of the firm that are updated at each and every time in the progress. The personnel officer aids in controlling of the employees, recruiting and training of new talents in the business.

Customer care department also has a critical of looking into maintaining of the firms names by ensuring proper advertisement of the firm. The department has an intensive ability to spearhead the firm into a great success. It further acts as the basis for the introduction of a new department like the information department that would look into undertaking online business transaction of the firm. References Hopkins, J. (2011). Menswear. Lausanne, Switzerland: Ava Pub. Seivewright, S. (2011). Research and design.

Lausanne: AVA Academia.