Stilssim External Analysis
External Analysis
The external environment consists of two parts, the general environment and the competitive environment. The general environment can have dramatic effects on an organizations strategy and the general environment consists of six parts. These parts are demographic, sociocultural, political/legal, technological, economic and global. Only three parts of the general environment will affect StilSim Personal Company. The parts that will affect StilSim are demographic, technology and economic. The competitive environment consists of factors that are relevant to an organizations strategy and the competitive environment consist of Porter’s Five Forces (Dess, McNamara, & Eisner, 2016, p. 52). Porter’s Five Forces are the threat of …show more content…
new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products and services, and the intensity of rivalry among competitors in an industry. Only four of Porters Five Forces will affect StilSim. These forces are threat of new entrants, bargaining power of buyers, threat of substitute products and services, and intensity of rivalry among competitors in an industry. A SWOT analysis of the two components of the external environment has been completed focusing on the opportunities and threats in each environment.
General Environment Threats and Opportunities
The three segments of the General Environment that are impacting StilSim are demographic, technology and economic. These three segments are a threat to StilSim and will continue to be a threat if they are not recognized and turned into opportunities. The business needs in each of location of StilSim are changing and causing a change in personnel. These changes are causing a demand for candidates with new skills and new clients.
Demographics
A demographic threat to StilSim in the Lakeside area is the decline in the industrial industry in the area. The Lakeside area was once a heavy industrial industry. The area is starting to see a decline in the industrial industry. The area is seeing a growth in green manufacturing (Franklin University, 2013). Offering staffing services in the green manufacturing industry is an opportunity of StilSim in the Lakeside are. Another opportunity for StilSim in the Lakeside area is recruiting staffing to the area to fill the high-tech positions. A new hospital and medical complex recently be built in Lakeside (Franklin University, 2013). StilSim does not currently offer any services in the Healthcare market. There is an opportunity for StilSim to offer staffing services in Healthcare in the Lakeside area.
A demographic threat to StilSim in the Capital City area is the residents of the area are moving to the suburbs (Franklin University, 2013). This has caused many businesses to relocate to the suburbs to be closer to where the employees live. This caused a decline in employment in the commercial area of Capital City. An opportunity for StilSim in the Capital City area is the growth of government services. Another threat to StilSim in the Capital City area is the raise of the skill level needed in staffing. StilSim continues to hire entry level staffing that are lower paid. An opportunity StilSim has in the area is the expansion of the hospital (Franklin University, 2013). The staffing will need to be high level specialized in healthcare.
A demographic threat to StilSim in the Mountainview area is that the job growth in the area has matured. There have been companies in the area that have consolidated and the area is seeing an economic downturn (Franklin University, 2013). Another threat to StilSim in the Mountainview is that many of the jobs in the area are seasonal and new resorts have been built that are only a couple hours away from Mountainview. An opportunity of StilSim in Mountainview is that resorts hiring during downtime (Franklin University, 2013).
Technology
StilSim’s is lacking the use of current technology.
The company has many opportunities to enhance the technology used within the organization. When a customer or client calls into StilSim they do not get a personalized voicemail when someone is not available. An opportunity for StilSim is to update the voicemail system to allow for personalized voicemail mailboxes and allow for teleconferencing. StilSim does not have companywide intranet page and the company website needs updated with job boards. Another opportunity is creating databases. The company does not have a client or a candidate database. StilSim’s back office systems are another opportunity. These systems need updated to become more …show more content…
efficient.
Economic
The economy has caused a decline in the industrial industry. This has caused a downturn in the economy and a raised unemployment. The decline in the industrial industry has changed the needed of entry level staffing to the need of specialized staffing. The resort activity in Mountainview has leveled as the job growth in the area has matured. The economic downturn creates a big need for StilSim to upgrade the technology used at the company. To attract high level candidates and clients, StilSim needs to become a more attractive company that can offer more services for less.
Competitive Environment
Intensity of Rivalry Among Competitors in an Industry is the possibility that a new competitor may eroded the profit of an established firm (Dess, McNamara, & Eisner, 2016, p.
53). This is StilSim’s biggest threat. Don Wilson a former employee of StilSim left company to work for a competitor, Capital Staffing (Franklin University, 2013). Don then saw an opportunity for healthcare staffing and left Capital Staffing. He started his own staffing company, Wilson Personnel, that specializes in healthcare. Wilson Personnel client list continues to grow. There are many competitors that are in the industry at all three locations. Wilson Personal, Medical Staffing, Capital Staffing and Capital Personal are four competitors of StilSim in Capital City (Franklin University, 2013). Lakeside Medical Staffing, Capital Staffing and ACME recruiting are competitors of StilSim in Lakeland. Capital Staffing is the competitor of StilSim in Mountainview. An opportunity that StilSim has is to purchase Capital Staffing. Capital Staffing is a staffing company that is seeking buyers to purchase all assets including client lists and proprietary recruiting and placement system. Main office located in Capital City and has branches in Mountainview, Plainville and Lakeside. StilSim has the opportunity to make changes to how they do business. StilSim competitors have links to internet sites and StilSim does not. The company has an opportunity to upgrade the technology to include internet
links.
Bargaining power of buyers is the pressure consumers can exert on businesses to force down prices, bargain for higher quality products and more services by playing competitors against one another (Dess, McNamara, & Eisner, 2016, p. 54). This is a threat to StilSim. Customers and clients have the ability to go to other staffing companies because the competitors have more services and technology that StilSim does not offer. The competitors also offer their services at a lower price the StilSim. StilSim has the opportunity to offer more services and specialties, and update the Company’s technology. StilSim may need to lower costs for clients or differentiate the company so that clients would be willing to pay more for StilSim services. StilSim could focus on certain industries such as healthcare or temps or specialized candidates for jobs.
Threat of Substitutes Products & Services is a product from another industry that offers similar benefits to the consumer as the product produced by the businesses within the industry (Dess, McNamara, & Eisner, 2016, p. 56). The competitors of StilSim have higher quality staffing personal and specialize in areas StilSim does not. The competitors are updated with current technology and can offer the same service at a lower price. Additionally, the competitors can offer more services than StilSim at a lower price. StilSim has the opportunity to formulate strategic opinions and business-level and corporate-level strategies to set StilSim apart (Franklin University, 2013). StilSim has the opportunity to higher quality staffing in specialty fields, use databases and update the company’s technology.
Threat of new entrants is the threat new competitors pose to existing competitors in an industry (Dess, McNamara, & Eisner, 2016, p. 58). With the use of the internet a virtual company could be created quickly. A new staffing company could be created overnight with a low startup cost. This is a threat to StilSim. Don Wilson is an example of new entrant. He was able to start a new staffing company called Wilson Personal relevantly easily (Franklin University, 2013). StilSim has an opportunity to update the company website and the technology to become more present on the internet.
Conclusion
In Conclusion, StilSim Personal is seeing many threats that could cause issue to the organization, however, the company has opportunities to offset these threats. The biggest threat to StilSim is the technology they use. The internet always for new competitors to appear overnight, always competitors offer the same service and even more service for a lower price. StilSim needs to update the technology used within the company in order to stay current with the competitors within the staffing industry.
The external environment consists of two parts, the general environment and the competitive environment. The general environment can have dramatic effects on an organizations strategy and the general environment consists of six parts. These parts are demographic, sociocultural, political/legal, technological, economic and global. Only three parts of the general environment will affect StilSim Personal Company. The parts that will affect StilSim are demographic, technology and economic. The competitive environment consists of factors that are relevant to an organizations strategy and the competitive environment consist of Porter’s Five Forces (Dess, McNamara, & Eisner, 2016, p. 52). Porter’s Five Forces are the threat of …show more content…
new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products and services, and the intensity of rivalry among competitors in an industry. Only four of Porters Five Forces will affect StilSim. These forces are threat of new entrants, bargaining power of buyers, threat of substitute products and services, and intensity of rivalry among competitors in an industry. A SWOT analysis of the two components of the external environment has been completed focusing on the opportunities and threats in each environment.
General Environment Threats and Opportunities
The three segments of the General Environment that are impacting StilSim are demographic, technology and economic. These three segments are a threat to StilSim and will continue to be a threat if they are not recognized and turned into opportunities. The business needs in each of location of StilSim are changing and causing a change in personnel. These changes are causing a demand for candidates with new skills and new clients.
Demographics
A demographic threat to StilSim in the Lakeside area is the decline in the industrial industry in the area. The Lakeside area was once a heavy industrial industry. The area is starting to see a decline in the industrial industry. The area is seeing a growth in green manufacturing (Franklin University, 2013). Offering staffing services in the green manufacturing industry is an opportunity of StilSim in the Lakeside are. Another opportunity for StilSim in the Lakeside area is recruiting staffing to the area to fill the high-tech positions. A new hospital and medical complex recently be built in Lakeside (Franklin University, 2013). StilSim does not currently offer any services in the Healthcare market. There is an opportunity for StilSim to offer staffing services in Healthcare in the Lakeside area.
A demographic threat to StilSim in the Capital City area is the residents of the area are moving to the suburbs (Franklin University, 2013). This has caused many businesses to relocate to the suburbs to be closer to where the employees live. This caused a decline in employment in the commercial area of Capital City. An opportunity for StilSim in the Capital City area is the growth of government services. Another threat to StilSim in the Capital City area is the raise of the skill level needed in staffing. StilSim continues to hire entry level staffing that are lower paid. An opportunity StilSim has in the area is the expansion of the hospital (Franklin University, 2013). The staffing will need to be high level specialized in healthcare.
A demographic threat to StilSim in the Mountainview area is that the job growth in the area has matured. There have been companies in the area that have consolidated and the area is seeing an economic downturn (Franklin University, 2013). Another threat to StilSim in the Mountainview is that many of the jobs in the area are seasonal and new resorts have been built that are only a couple hours away from Mountainview. An opportunity of StilSim in Mountainview is that resorts hiring during downtime (Franklin University, 2013).
Technology
StilSim’s is lacking the use of current technology.
The company has many opportunities to enhance the technology used within the organization. When a customer or client calls into StilSim they do not get a personalized voicemail when someone is not available. An opportunity for StilSim is to update the voicemail system to allow for personalized voicemail mailboxes and allow for teleconferencing. StilSim does not have companywide intranet page and the company website needs updated with job boards. Another opportunity is creating databases. The company does not have a client or a candidate database. StilSim’s back office systems are another opportunity. These systems need updated to become more …show more content…
efficient.
Economic
The economy has caused a decline in the industrial industry. This has caused a downturn in the economy and a raised unemployment. The decline in the industrial industry has changed the needed of entry level staffing to the need of specialized staffing. The resort activity in Mountainview has leveled as the job growth in the area has matured. The economic downturn creates a big need for StilSim to upgrade the technology used at the company. To attract high level candidates and clients, StilSim needs to become a more attractive company that can offer more services for less.
Competitive Environment
Intensity of Rivalry Among Competitors in an Industry is the possibility that a new competitor may eroded the profit of an established firm (Dess, McNamara, & Eisner, 2016, p.
53). This is StilSim’s biggest threat. Don Wilson a former employee of StilSim left company to work for a competitor, Capital Staffing (Franklin University, 2013). Don then saw an opportunity for healthcare staffing and left Capital Staffing. He started his own staffing company, Wilson Personnel, that specializes in healthcare. Wilson Personnel client list continues to grow. There are many competitors that are in the industry at all three locations. Wilson Personal, Medical Staffing, Capital Staffing and Capital Personal are four competitors of StilSim in Capital City (Franklin University, 2013). Lakeside Medical Staffing, Capital Staffing and ACME recruiting are competitors of StilSim in Lakeland. Capital Staffing is the competitor of StilSim in Mountainview. An opportunity that StilSim has is to purchase Capital Staffing. Capital Staffing is a staffing company that is seeking buyers to purchase all assets including client lists and proprietary recruiting and placement system. Main office located in Capital City and has branches in Mountainview, Plainville and Lakeside. StilSim has the opportunity to make changes to how they do business. StilSim competitors have links to internet sites and StilSim does not. The company has an opportunity to upgrade the technology to include internet
links.
Bargaining power of buyers is the pressure consumers can exert on businesses to force down prices, bargain for higher quality products and more services by playing competitors against one another (Dess, McNamara, & Eisner, 2016, p. 54). This is a threat to StilSim. Customers and clients have the ability to go to other staffing companies because the competitors have more services and technology that StilSim does not offer. The competitors also offer their services at a lower price the StilSim. StilSim has the opportunity to offer more services and specialties, and update the Company’s technology. StilSim may need to lower costs for clients or differentiate the company so that clients would be willing to pay more for StilSim services. StilSim could focus on certain industries such as healthcare or temps or specialized candidates for jobs.
Threat of Substitutes Products & Services is a product from another industry that offers similar benefits to the consumer as the product produced by the businesses within the industry (Dess, McNamara, & Eisner, 2016, p. 56). The competitors of StilSim have higher quality staffing personal and specialize in areas StilSim does not. The competitors are updated with current technology and can offer the same service at a lower price. Additionally, the competitors can offer more services than StilSim at a lower price. StilSim has the opportunity to formulate strategic opinions and business-level and corporate-level strategies to set StilSim apart (Franklin University, 2013). StilSim has the opportunity to higher quality staffing in specialty fields, use databases and update the company’s technology.
Threat of new entrants is the threat new competitors pose to existing competitors in an industry (Dess, McNamara, & Eisner, 2016, p. 58). With the use of the internet a virtual company could be created quickly. A new staffing company could be created overnight with a low startup cost. This is a threat to StilSim. Don Wilson is an example of new entrant. He was able to start a new staffing company called Wilson Personal relevantly easily (Franklin University, 2013). StilSim has an opportunity to update the company website and the technology to become more present on the internet.
Conclusion
In Conclusion, StilSim Personal is seeing many threats that could cause issue to the organization, however, the company has opportunities to offset these threats. The biggest threat to StilSim is the technology they use. The internet always for new competitors to appear overnight, always competitors offer the same service and even more service for a lower price. StilSim needs to update the technology used within the company in order to stay current with the competitors within the staffing industry.