Business Analysis Part 1 The purpose of the decision making process is to make a good, rational, and smart decisions that based on reliable and valid information’s. In every day life people are force to make decisions, either this would be to decide what to wear, eat, buy or do after work; all the decisions base on some kind of analysis, for example, by checking the weather, food chain around the location or financial potential.
This decisions does not involve much of the risk therefore people may not pay too much attention or spend too much time analyzing pros and cons, but in a business world decision aging process involves much more complicated process due to the risk the business owner or company managements is willing to take by investing their time and money. For investors decision making process must base on detailed business analysis in order to make the right decision while locating their lifelong savings or company capital. Strengths, Weakness, Opportunities, and Threats” analysis knows also as SOOT analysis is one of the most used in a business tools to provide detailed information’s about the researched company. “SOOT has been used by countless restrictions, marketing researchers, and is a frequent and popular tool for business marketing and strategy students. Its simplicity and catchy acronym perpetuates its usage in business and beyond as the tool is used to assess alternatives and complex decision situations.
In the business arena the grouping of internal and external issues is a frequent starting point for strategic planning. It can be constructed quickly and can benefit from multiple viewpoints as a brainstorming exercise” (Helms & Nixon, 2010). SOOT analysis has been in a past and will continuing to be used y business information seeking individuals and groups of people to study organization(s) situation at the giving time of performing analysis to determined the best possible business decision, for example, a mutual fund manager who is debating whether to invest in an Apple Inc. Loud find the Apple Inc. SOOT analysis very helpful while making this decision due to having a better understand of the constantly changed market related to the company of interest (external situations) and the company internal situation. Because the SOOT analysis focuses on both internal and external company situation the potential investor is presented with a full overview of the company.
So what information’s exactly the SOOT analysis provides their viewers with that makes the whole company situation easier to know? Well, as was mentioned previously the SOOT analysis preset two points of views, on one side provide the company internal situation including the strengths and weaknesses and on the other side show an external potential opportunities and potential threats. Let’s view what the SOOT analysis would show for the Apple Inc. As their current internal and external situation.
The internal strengths presenting the strong points within company like for example, being a leader in particular segment of the market, the Apple Inc. Worked their way up to the top and by majority of the customers around the world they are viewed as the leader on the electronic market with focus on developing more sophisticated and practical devices. Since the customers in today era base their choice of purchase on other people opinions being a leader on ten market gives an Apple Inc. Log advantage gallant toner competently.
Also a well qualify, knowledgeable and customer service oriented workforce as well s market focus and good management team with strong strategy and cost effective chain of suppliers makes a good factor for winning the customers by being able to provide an attractive prices. Apple Inc. Effective and creative marketing department is also a part of the company strong internal strengths because of the ability to provide outstanding advertising campaigns that help the company to being more visible on the market then their competition.
The internal weaknesses of the Apple Inc. Are defected products that once in a while happens even with the great genealogy that Apple Company uses, although this situations are very rear for the company like Apple they can be very dangerous because of their leader position and constant presents in publicity. As for the potential opportunities Apple seems to keep taking any opportunity that comes available studding the needs of their customers and constantly creating and developing new devises and software applications that satisfying the customer’s demands.
The Apple Inc. Product line keeps growing and updating every couple of months making their customers excited about new products and even waiting for what’s new to come. This presents the company with endless opportunity to convert more customers from, for example, being Dell Company customers to the Apple Company customers. Also having multiple retail store location in the world Apple Inc. Has an opportunity to interact thru their sales employees with the customers and receive an immediate feedback about the products and possible new trends and needs.
This open communication between company and customers with the available technology and skills that the company own due to their knowledgeable staff helps quickly implement the changes onto production process. The potential external threats for the Apple Inc. Include their competitors in a market that produce similar devises and the low price polices that the competitors companies use to win the customers. Since the Apple Company keeps their prices protected with a minimum retail price policy that Apple Inc. Activates the competitors can use this to “fight” an Apple good quality product with the lower prices of their devises. But not only a competitors on the market are a potential external threats, the factors like growing tax rates, bad economic situation and at the name time customer traffic decrease because of the financial crises, and more stricter regulations are some of the potential external threats that Apple Inc. Faces every day.
SOOT analysis comes very helpful in making decision process, because provides internal and external company situation in current time, but knowing the company internal and external stakeholders is also very important for the potential investors. Let’s see who are the internal and external stakeholders of Apple Inc. And what are their wants and needs, and if the company fulfill them. For any organization including Apple Inc. He stakeholders are all the individuals as well as companies that relates to the business the organization is involve in and who’s needs the organization must address.
The stakeholders group includes customers who gain needed goods and services by doing business with Apple Company; employees, who work for the company for exchange of an income for their work, benefits, experience, and opportunity to success; stockholders who invest in the company business by buying their shares in order to gain the return of the investment; suppliers who are along Dustless to Dustless transactions Walt ten companies Day selling toner reduces, and the list of the Apple Company suppliers is very impressive (this list can be found on dapple. Mom), and as stated on Apple website “These suppliers represent 97 percent of Apple’s procurement expenditures for materials, manufacturing, and assembly of Apple’s products worldwide” (“Apple Suppliers 2011 2012). ; dealers who sales the Apple Inc. reduces; bankers who are also doing BIB transactions with the company by providing financial services; surrounding society by gaining work places for community people, and variety of different opportunities for the community to grow; government whom for example, the many pays taxes and license fees; celebrity who advertising the company products; nonprofit organizations and charities that Apple Company supporting; and many more that are involve with the company business.
The Apple Company management works as a team in order to meet all the stakeholders needs, there are variety of management departments responsible for keeping control over the segment of the business like marketing and customer service departments that would work to make sure their customers are taken care of and the company provides them with the high quality products and service, the Apple Human
Recourses Department on the other hand works to meet all the employees needs, the Operation Department manage relationship with all the suppliers and vendors, and of course the company leadership works to satisfy stockholders needs providing them with financial information’s about the company.
By gathering all the information using a SOOT analyses a potential investor(s) have a better view of the company current market as an external and company internal situation, which helps to make an inform decision to invest in a company or not. But not only the strengths, weakness, opportunities, and threats analysis will play an important role in determining if the company is worth to invest capital, there would be much more information to be viewed and analyzed before the decision would be made.