External Forces Journal
Once an organization has defined its mission, vision, and values and assessed the environment, it needs to take a look at the external forces that affect it. These external forces will impact how the organization implements its strategic plan. In this journal activity, you will analyze your case study to identify how external forces impact the situation.
You will review your case study again and develop a journal assignment that explains how external forces impact strategic planning by addressing threats from different market and service area competitors. In the assignment, be sure to address the following:
- Provide a brief summary of the external forces that affect the organization. Explain who the competitors are and the market space they affect.
- Provide an interpretation of the external forces and your case study organization’s competitive advantage. What areas of the organization are affected by the external forces, and how does your case study’s organization stand out?
- Discuss how the external forces should impact the strategic planning of the organization. Be sure to address how the organization should address the threats from the external forces using its competitive advantage.
Expert Solution Preview
External forces play a crucial role in shaping an organization’s strategic planning and overall success. Understanding and analyzing these external forces is essential for organizations to effectively navigate their competitive environment. In this assignment, we will discuss how external forces impact strategic planning by focusing on threats from market and service area competitors in a case study organization.
1. The external forces that affect the organization include various market and service area competitors. These competitors can range from direct competitors offering similar products or services to indirect competitors that fulfill customer needs in different ways. It is crucial to identify and understand these competitors to assess the market space they affect.
2. The interpretation of the external forces and the competitive advantage of the case study organization is essential. The external forces can impact different areas of the organization, such as pricing, product development, customer service, and market positioning. By analyzing these external forces, the organization can identify areas where it stands out in comparison to its competitors.
In the case study organization, its competitive advantage may lie in offering unique features or benefits, superior customer service, innovative solutions, or a strong brand reputation. Identifying and leveraging this competitive advantage will be crucial in standing out among the competitors and gaining a competitive edge.
3. The external forces should impact the strategic planning of the organization. The organization needs to develop strategies and tactics to address the threats posed by these forces while utilizing its competitive advantage.
To address the threats from external forces, the organization can focus on strengthening its competitive advantage through continuous innovation, product differentiation, or enhancing customer relationships. It should also consider market positioning strategies to differentiate itself from competitors by clearly communicating value propositions and highlighting its unique offerings.
Additionally, the organization should conduct regular competitor analysis to stay updated with market trends and proactively respond to any changes or challenges posed by competitors. This may involve adjusting pricing strategies, improving service quality, or exploring new market segments.
Overall, effective strategic planning should integrate an understanding of external forces, insights into the organization’s competitive advantage, and proactive measures to address threats. This approach will help the organization navigate its competitive environment successfully and achieve its strategic objectives.