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How to analyze external factors that may affect an organization in its environment.
Evaluate different factors and decide on which ones you believe are top priority in evaluating the organization's external opportunities and threats
Brand equity is a very important factor in the success of the organization as the unique nature of the brand equity will help in obtaining high revenue. The company is having high valuation in comparison to the competitors which will help in increasing the value of the company. The company is present at the global level which had helped in increasing the public demand. The market share of the company is the largest and thus it had become a sign of growth of company. The use of innovative marketing strategies had helped in the increase in revenue by concentrating and targeting people of all age groups. The customer loyalty also positively affects the company as the high customer loyalty will help in increasing the revenue of the company. The distribution network is an important feature in the organization as the presence of high market share is obtained by way of large distribution network.
The company is facing high level of competition with Pepsi and thus it had not been able to achieve the position of market leader in a clear manner. The level of diversification in the products is low in the company which is adversely affecting the level of revenue thereby the growth of the company. There is absence of heath conscious beverages in the company which had led to lose of customers hence the decline in the level of revenue of the company. The management of water is improper in the company and thus also facing various regulatory issues in the management of company.
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The company should try to diversify in different products that are food business etc in order to increase the market share and the revenue. The company should expand its operations in the developing nations as there is high demand due to climate change. The expansion in the field of packaged drinking water will help in increasing the level of operations of the company and hence the profits. The improvement should be done in the supply chain management in order to reduce the level of costs.
There is threat of indirect competitors which may lead to decline in the level of demand for the products and the company is also facing issue of sourcing the raw materials which will lead to decline in growth of company.
The EFE weighted average score provides information in regard to evaluation of the external environment of the company. The total EFE score of the company is 2.63 which is higher than the average score of 2.5 hence the position of company is strong and thus the company is undertaking proper steps in order to control the external factors which are affecting the political, technological, social and other environment of the company.
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